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April 25, 2023 business

Fluctuating freight rates can be a major challenge for a manufacturing business, as it can drastically affect its bottom line. These are more challenging for Manufactures as they typically inbound and outbound large volumes of freight. Reducing costs and controlling risk have become top operational objectives for 2023. To protect your business from these volatile rates and ensure that shipments reach their destinations on time and on budget. MANUFACTURING OPERATIONS. Manufacturing operations follow many existing freights needs for high-volume shippers. That means you’re working within a system that can meet some of your needs immediately, but there are areas to negotiate based on your unique orders and customers. If contending with fluctuating rates is becoming a burden, consider these methods for cost control
  1. Negotiate long-term contracts
  2. Utilize freight management software
  3. Shop Around
  4. Leverage technology
  5. Utilize volume discounts and promotions
  6. Use fuel surcharges
1. NEGOTIATE LONG-TERM CONTRACTS. Long-term contracts with freight carriers can help your manufacturing business to lock in freight rates for an extended period of time, protecting you from the fluctuations of the market. This will also provide you with the ability to plan your budgeting and shipping needs more effectively. 2. USE FREIGHT FORWARDERS. Consider using a freight forwarder to help you find the best rates. A freight forwarder will have access to multiple carriers and can help you find the best deal for your business. 3. SHOP AROUND. Don’t be afraid to shop around for the best rates. It can be beneficial to compare rates between different carriers, as they offer different rates for different lanes, as well as to look for discounts or special promotions that may be available. 4. LEVERAGE TECHNOLOGY. Technology can be a powerful tool for reducing freight costs. Use technology to automate processes such as freight tracking software and automated shipping systems to help them manage their shipments and costs. 5. UTILIZE VOLUME DISCOUNTS AND PROMOTIONS. Many freight carriers offer discounts and promotions to their customers in order to increase their business. It can be beneficial to take advantage of these promotions in order to lower your freight rates. 6. UTILIZE FREIGHT MANAGEMENT SOFTWARE. Freight management software can help you to track and monitor freight rates in real time, giving you the advantage to take advantage of lower rates when they are available. This will help you to stay on top of the market and make informed decisions about your shipping needs. 7. USE FUEL SURCHARGES. Carriers will often add a fuel surcharge to shipments. Companies should use this to their advantage by negotiating a fuel surcharge that is low