freight rates
Home » Top 4 Great Tips to Negotiate the Freight Rates

Top 4 Great Tips to Negotiate the Freight Rates

Is your business using the general rates of the carrier services? If so, your business will face problems in cash flow in the future. There are tons of different ways to save your expenses while using freight services. Remember that negotiation is one of the most important factors you need to consider for the freight rates. If you know how to negotiate, it will save you a lot of money. 

However, the negotiation process of the freight rates isn’t easy. Many business owners don’t possess the skill of negotiation. To negotiate the freight rates properly, you should know the exact location of applying the leverage. As a business owner, you can also take some negotiation training so that you can receive better services as well as rates. 

In this article, we will discuss the top 4 great tips that will help you to negotiate the freight rates. 

Make Yourself Prepared to Negotiate

Before you start negotiating with the freight service, make sure you know what you want and what is available. Don’t forget to review the market trends as well as the impacts of the current currency, economics, and politics of the shipping industry. As per Harvard, negotiation will enhance the long-term success of your business.

Determine your need along with your budget. Do you need to ship your products monthly? Does your business need a SA or service-level agreement? What should be the key performance indicators of your primary logistics? This way you can reduce the rates of the freight by increasing the quantity of the shipment. 

Compare the Rates

There are various sources available that will help you to know the freight rates indexes and market data. This is the main reason why carriers find competing quotes quickly. Before you meet your carrier, look at the rates of their competition. 

While looking for the competition, don’t forget to consider some important factors such as load times, transit requirements, insurance, weights and dimensions, and contract rates. 

When you know the competition of your carrier, it will help you to achieve success during the negotiation process. The carrier will undoubtedly apply some discounts when they notice your interest in their competition. 

Pay for Only the Services You Need

It’s extremely important to know the level of price, service, and security that are appropriate for your business. Research the services your freight carrier provides and pick what’s appropriate for your business. 

For instance, do you need the goods to be delivered quickly? Or does your business need extensive customer service? Do you ship only during the winter or some certain seasons? 

Discuss with your carrier the important factors for your business. This way you can trim down the additional expenses. 

Develop Relationships

This is one of the greatest tips for negotiating freight rates. Your carrier plays a massive role in your supply chain. While negotiating for the freight rates, showcase your skills to develop a long-term and positive relationship with the freight carrier. Building positive connections and interests will help you to prevent price hikes and shipping delays. 

However, remember that the demand and supply between the carriers and shippers change always. Your carrier might provide a discount, but some slight change in politics, weather, or economics in supply will interfere with the rates. 


These are the top 4 tips that will help you to negotiate the freight rates. Even though the carrier doesn’t offer the same pricing throughout the entire year, but applying these tips will undoubtedly help you reduce the freight rates. 

Zaraki Kenpachi