Metro Vancouver’s leader in trucking and warehousing has cost-saving tips that can help you offset rising fuel surcharges. Stay informed, plan, and learn from one of the best during this coming peak shipping season!
We’re living in a world where businesses have been riding waves of challenges one after the other and rising fuel prices are just another problem to tackle with. Whether you ride with the wave or get sidetracked by it all depends on whether you are able to get creative and adapt to ever-changing situations. While many challenges ahead may be unavoidable, our team at Sandhar is committed to helping your business grow, starting with how to maintain a solid shipping strategy that will save you money.
What are fuel surcharges?
Fuel surcharges are an additional fee that is added when the cost of fuel exceeds a certain level. Due to a variety of uncontrollable elements that may affect fuel charges, these fuel surcharges help to protect carriers against loss should the price of fuel rise during the terms of the contract. Dynamic in nature, these surcharges may be subject to weekly adjustments based on a rounded average of the Canadian diesel retail price per litre.
How to Reduce the Impact of Fuel Surcharges in Your Logistics Plan
Although there are many external factors that are out of a business owner’s control, there are ways to lower shipping costs and increase your bottom line.
1. Consolidate Your Shipping
As is always the case, the more freight you ship at once, the lower your cost of shipping. Why pay more than you have to when multiple pallets are heading to the same address or area? Plan ahead accordingly, there are cost savings to be had.
2. Ship During Off-Peak Season
Peak months in the logistics and shipping industry run from August to October. This specific time frame typically comes with astronomical peak surcharges. Although it does take a bit of thorough planning, your hard work will pay off in the form of reduced shipping costs, increased profits, and a well-stocked warehouse once the holiday shopping season kicks in.
3. Have All Your Paper-Work in Order
Accurate information on all shipping documents not only allows for your cargo to arrive safely and in a timely manner, but it saves you more than just time in the long run. In addition to encountering unnecessary delays, incorrect documentation may result in substantial charges and fines.
Make a habit of double-checking all details thoroughly before your shipment departs to avoid costly mistakes down the road.
4. Mind Your Packaging
Your packaging is there to help secure your goods for the safest journey possible. However, choosing the wrong type of packaging may add unnecessary volume and weight to your shipment. Packaging incorrectly may also increase risks and result in costly mistakes.
Learn more about proper packaging for LTL/FTL freight shipping on our blog and avoid delays, repairs, and replacements with our packing tips!
5. Have a Trusted and Experienced Team Working For You
With the ever-changing logistic landscape that we’ve all been navigating through for the past few years, it is crucial to have a solid and experienced logistics team working for you. From freight forwarders, customs brokers, and sufferance warehouses to LTL/FTL trucking companies, their up-to-the-second knowledge will help you save money and time. Do what you do best and outsource the rest!
As a leading provider of transportation and warehousing in BC with authorized access to all major ports and rails, our team is always up to date with the latest changes and developments related to shipping, trucking, intermodal transportation, and importing/exporting.
We also provide logistics services across Alberta, Ontario, and Quebec. Contact us today at (604)-276-9044 or info@sandhartrucking.com for more information and let us help your business grow.