5 Proven Strategies to Control Freight Costs 

From low tender acceptance to surprise fees, freight costs are budget drains that can turn profitable shipments into financial disasters. But there’s good news: the smartest logistics managers have developed strategies to plug these leaks and take control of their freight spending.  

Here are the five strategies that make the difference between budget chaos and cost control:  

1. Negotiate a contract  

The variability of the spot market creates cost risk with no guarantee of value. Shippers are better off negotiating a contract with a carrier that guarantees an agreeable rate. That will help support the shipper’s transportation budget when disruptions and market volatility arise.  

Scott Van Zeeland, a sales leader in Warehousing and Transportation, shares that WSI gives all its transportation customers rates that last for six months. This offers shippers stability without limiting flexibility. “If there’s a drastic change in the market, you have a chance to correct once that agreement is done.”  

2. Choose partnership   

Commitment is more about a mindset than a contract. A valuable transportation partner wants a continuous relationship and does what’s in the best interest of the shipper. That means helping preserve a shipper’s budget to support the shipper’s bottom-line profits. At the end of 2024, with tariff uncertainty that continues to unfold in real time, WSI decided to keep agreements for 2025 without raising rates.  

“We kept rates the same way that they were despite the fact that the market might turn. A good faith gesture we felt was important to make shippers feel more comfortable,” Van Zeeland explains.  

3. Lean on analytics  

The technology resources of a transportation partner can monitor and validate freight costs with regular frequency. Top-notch Transportation Management Systems (TMS) have comprehensive reporting that enables shippers to catch any slip in the budget.  

Smaller shippers that use spreadsheets for reporting transportation costs are more susceptible to being caught off guard by large budget deviations. Regular reporting from an advanced system enables shippers to make corrective actions quickly and continuously.  

4. Forecast well   

With an accurate forecast of volumes, shippers can ensure docks are adequately staffed and scheduled to accommodate an influx. These measures prevent a carrier delay that holds up every driver that follows and threatens the on-time metrics of every delivery.  

“Every shipper today is operating on a tight schedule; it’s common to see a one-hour window to get a truck in and out. A delay in the morning could have a significant impact on the rest of the day,” Van Zeeland says. Clear forecasting helps stop detention fees and other extra charges that can add up over time, helping to mitigate out-of-control freight costs.  

5. Communicate proactively  

Many things that increase freight costs and crush transportation budgets are preventable through communication between shippers, carriers, and receivers.  

Shippers who receive regular carrier updates can intervene when carriers delay pickups. They can call the warehouse to say, “Hey, our truck has been there for an hour and nobody has touched it. Do you have an ETA, or have you forgotten about our driver?” That can help reduce or eliminate detention fees.  

Shippers that notify retailers in advance when drivers are late can often avoid expensive redeliveries and penalties. Transparency and clear communication with carriers also help control accessorial charges. For example, informing a driver of a floor load upfront can enable the driver to adjust expectations. Rather than a two-hour pallet load, they’ll know they’re looking at a 3–4-hour live load. They may be able to drop the trailer, thus saving detention time.  

Every shipper needs an advocate for their freight budget   

A transportation partner that’s as concerned for your budget as they are for your freight is a valuable ally. Transportation can be complex, and many things can derail freight costs, but there are steps you can take to improve your calculations and forecasts. The difference between budget success and budget failure often comes down to having the right partner who understands these strategies and implements them on your behalf.  

Connect with a transportation expert today and discover how smarter strategies can drive real cost control.