Reducing Your Freight Rates
Besides negotiating with your carrier, there are other ways to reduce your rate charges:
If your shipments are moving within Canada and are comprised of a number of different types of commodities, you may be able to reduce your freight charges by asking your carrier to supply you with rates that are predicated upon different density applications.
Let's look at the following example to see how you can lower your freight charges on domestic shipments by requesting that your rates are subject to a higher density application:
Your company ships a number of different types of commodities, ranging in density from 5 pounds per cubic foot to 35 pounds per cubic foot. Approximately 80% of your shipping activity involves the distribution of paint in cans and the remaining 20% is comprised of various painting accessories such as tape, brushes, rollers, etc. The density of paint in cans is much greater than the density of the painting accessories. In this example, you could request separate per hundredweight rates for your different commodities - one that is subject to a greater density application when shipping paint in cans, and one that is subject to a lower density application when shipping the painting accessories.
This means that you - the shipper - get the benefit of being charged a lower rate when shipping paint in cans.
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