Keep Freight Shipping Costs in Check

Joe Filipiak
FedEx Worldwide Account Manager
Alliance and Associations
www.uschamber.com/fedex

Smart shipping offers significant potential cost savings. Whether your company makes a freight shipment once a week, once a month, or just once a year, you can save by following the tips below:

Space costs money. Package your products using the least amount of space to achieve the best rate. Shipment classification, which affects rates, is determined by four freight characteristics: density, stowability, ease of handling, and liability. Density indicates how heavy the shipment is for the space it occupies, expressed in pounds per cubic foot (PCF). Stowability refers to how well the shipment uses trailer space, considering excess size or weight, whether it can be stacked, and any loading restrictions. Ease of handling dictates any special care required due to size, weight, or configuration. Liability is measured by value per pound, susceptibility to theft or damage, perishability, and risk of spontaneous combustion or damage to other freight.

Be dense. Take proactive steps to improve density and secure the best possible LTL (less-than-truckload) shipping rates. Th e formula to determine density and freight class is: density = weight ÷ cubic feet [(L” x W” x H”) ÷ 1,728]. For example, if the length of a 400-pound pallet is 48” (4’), the height 36” (3’), and the width 24” (2’), here’s how to calculate cubic feet: 48” x 24 “ x 36” = 41,472” ÷ 1,728 = 24. To get the density, divide the weight by cubic feet: 400 lbs. ÷ 24 = a density of 16.66 PCF. For round items, like cylinders or drums, substitute diameter (D) for length and width [(H” x D” x D”) ÷ 1,728]. Aft er calculating PCF, refer to the density guidelines on the National Motor Freight Traffi c Association (NMFTA) Web site, www.nmfta.org/pages/welcome.aspx, to determine classifi cation.

Package to protect. Proper shrink-wrap techniques and pallet packaging can reduce damage claims and customer complaints. First, overlap layers of shrink-wrap, especially with tall pallets. Start at the bottom, tying shrink-wrap to the pallet, and wrap upward around the load to stabilize the freight and limit its chances of falling. Twist the shrink-wrap every other time around to increase strength.

Second, only use pallets in good condition and place cardboard or chipboard between the pallet and freight to reduce the risk of puncture. Outer packaging like cardboard, bubble wrap, or plastic wrap prevents rubbing and scratching. Finally, secure heavy items with banding or strapping and avoid overhang on the pallet.

Whether you’re shipping anvils or inflatable balls, proper packaging techniques and accurate density calculations can significantly reduce freight shipping costs.