Are you Paying Too Much for Your Ship...

Are you Paying Too Much for Your Shipments?

Posted in the Logistics Forum


Philadelphia, PA

#1 Sep 30, 2012
When was the last time you analyzed your actual carrier costs? If you havenít reviewed your carrier activity during the past year, thereís a good chance you are paying higher than originally contracted fees and, possibly, above market rates.

Competition for static transportation resources by shippers has prompted many carriers to initiate across-the-board rate increases. At the same time, rising fuel charges continue to escalate carrier surcharges. And with limited transportation resources available to support increasing freight demands, shippers like you may had to occasionally contract more expensive drivers to get goods transported on time. As a result, your freight costs may be higher than planned and represent a more significant percentage of delivered price.

To remain competitive and understand actual transportation costs, chemical shippers must gather market intelligence on their own networks to get an accurate picture of how they are buying in the market. By reviewing shipments history, carrier agreements and freight invoices, a benchmark study can reveal what was actually paid to a carrier on a per shipment basis. And by comparing this data to market trend costs for shipping goods in specific traffic lands and geographic regions, a benchmark can determine if you paid best in class rates or too much with specific carriers.

Through this analysis, the benchmark study can provide insights on the competitiveness of your companyís freight rates. It can also serve as a basis to negotiate significant improvements to your own carrier agreements and standardize corporate rates associated with accessorial charges such as fuel surcharges and unloading costs among your carriers.

However, compiling and analyzing this data requires a significant investment of time and resources as well as access to competitive carrier freight rate and lane imbalance information to which most shippers donít have access. Thatís where a transportation consultant, such as ChemLogix, becomes invaluable. Possessing market intelligence, an established carrier network as well as a dedicated team focused on this work, a third party logistics provider (3PL)- familiar with your industry - can conduct a thorough benchmark study faster and more cost effective than many in-house logistic departments who donít have the available resources or experience for this endeavor.

Using benchmark results, 3PLs can take you to the next step in negotiating rates with carriers for service in specific lanes and regions and identifying new sources to replace those that have priced themselves too high for your business. To find out more about how benchmarking can provide you with the tools and analysis to mitigate rising carrier costs, contact us at or visit our web site at: .

Since: Dec 12

Newmarket, Canada

#3 Dec 3, 2012
Check out this company! They've helped me out a lot!
Erin Shropshire

Since: Jan 13


#4 Feb 1, 2013
Thanks for the info, ChemLogix! With third party logistics, cost is an important factor. APL Logistics provides value-added services that help reduce costs.
Matt kirik

Great Barrington, MA

#5 Apr 23, 2013 helps reduce logistics costs by 10-15 % off original Logistics company's. a quote is easy as 5 min on our website and if their is a bigger project they will be very happy to speak to you.

Kiev, Ukraine

#7 Feb 19, 2015
I want to warn everyone from working with company ONTIME LOGISTICS as they are deceivers! Never work with this company! They irresponsibly treat their customers, overstate the price for their services because of the problems that occur due to their fault and do not fulfill their duties under the contract!

Niles, MI

#10 Nov 13, 2015
It simply amazes me how people comment on this stuff, fishing for business, without adding any real value.

Let's sum it up. Every one of us would love to do an analysis based on a potential clients shipping history. We want to see those freight bills.

Why? It's simple really, and anyone that has a head for business will agree. We want to see what your cost has been, compare that to our cost, and make an offer that saves a company money, offers service options that may be beneficial to the business, and still make some margin so that we can feed our hungry and loving children.

There's one of two outcomes. 1. You save money. 2. We decide there is no way to save you money and still make money and walk away.

Option 1 is more likely as long as a logistics firm is trusted enough to have a true network to support it.
Fartfoward Sniffers

United States

#12 Feb 17, 2016
I do not need a tracking number for farts released in my face.

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