They say you get what you pay for, and that’s especially true in the shipping industry. Cheap freight companies may save you money up-front, but it can also come with drawbacks like hidden fees, damaged freight, and shipping delays that can cost you more in the long run. Cheap freight shipping can actually cost you more in the long run
8 Hidden Costs of Cheap Freight Shipping
Below, explore the hidden costs of using the cheapest freight carriers that cut corners, and discover how to spot a more reliable shipping carrier for your logistics needs.
Shipping Delays
Carriers who charge bottom-dollar prices need to ship a huge volume of orders to turn a profit. That means they may take on more orders than they realistically have the capacity for, leading to shipping delays.
On your end, shipping delays can end up costing your company sales, make you miss customer deadlines, or interrupt your supply chain and manufacturing process.
Damage With Cheap Freight Shipping
Cheap carriers aren’t exactly known for their care and attention to detail, meaning that your shipments can get lost or damaged. Replacing damaged freight can end up causing extensive delays and leave you paying the same shipping fees twice.
Low Reliability & Communication
Cheaper carriers often cut out business expenses they don’t deem essential, like customer service teams. They might outsource their customer service to third-party call centers, which are often overloaded with calls from other companies, or just use AI chatbots and phone agents.
When your business is on the line, you need help from a real customer support agent who knows your account and can give you fast, accurate answers from the rest of the team.
Hidden Fees
Sometimes, carriers are able to offer a low upfront quote simply because they omit the fees associated with some deliveries.
For example, heavy cargo may require a truck with a liftgate, which can add an additional $75 to $150 to your final bill. Or, if a warehouse doesn’t have on-staff workers, they may need to contract with third-party unloading workers called “lumpers,” whose unloading fees can range from $45 to $500.
A Reliable freight company will help you understand what costs are included in a quote, and when you can expect to pay extra for a particular load or situation, so you’re never surprised by the final bill.
Reweighs & Higher Quotes
Reweighs can happen when a truck’s Bill of Lading (BOL) doesn’t match the actual weight and dimensions your carrier provides.
A cheaper carrier may underestimate the weight or dimensions, or round them down during quoting to secure a better Less-than-Truckload (LTL) price. But those inconsistencies can later result in an additional reweigh fee once your freight is loaded onto a truck.
Cheap Freight Shipping Companies Have Poor Routing
In last-mile delivery, a carrier who isn’t familiar with your area may not choose the fastest routes. Inefficient routing. Poor route optimization can end up costing you 10 to 30% more on your overall fee, since every extra mile adds up.
In last-mile scenarios, it can pay to use a local trucking company that already knows the area and the fastest routes around town, even if their fees come at a higher up-front cost.
Non-Compliance Risk
When shipping hazardous materials, carriers need to take special steps to stay compliant with the Department of Transportation (DOT), including employing only Hazmat-certified drivers, appropriately labelling trucks, and keeping a declaration for dangerous goods on board.
Failing to follow even a single industry regulation can result in freight delays or your shipment never reaching its destination. Non-compliance can also result in fines, which your carrier might pass on to your shipping costs to preserve their own bottom line.
Reputation Damage Using Cheap Freight Shipping
Working with a cheap carrier that’s flaky and unreliable doesn’t just hurt delivery times: It can damage your relationship with your customers or business partners. When items arrive late or damaged, or never arrive at all, it can reflect badly on your brand.
Customers don’t know that the carrier is to blame. All they know is that your company failed to keep its word about delivery times or intact items, which can cost you long-term trust, sales, and business relationships.
How to Identify Reliable Carriers
Now that you know why going with the cheapest freight carrier isn’t always the best option, how can you identify reliable carriers?
The following signs are generally green flags that a freight company doesn’t cut corners and cares about more than their own bottom line:
- Quote Transparency: Any rate quotes should include additional estimated fees, or make note that those will be added later
- Good Communication: The freight company should reply to you quickly about concerns and give you updates on shipments.
- Prioritizes Safety & Compliance: When handling special freight, like Hazmat-cargo, a carrier should have certified drivers and be familiar with the DOT’s policies.
- Brand Reputation: Look for freight carriers and trucking companies with good local reviews and recurring clients who trust them to
A reliable freight carrier offers you more than just the lowest possible prices. They’re committed to meeting their shipping deadlines, offering fee transparency in their quotes, and ensuring your freight arrives intact.
Work with A New England Trucking Company
Looking to connect with a reliable carrier in New England? N&D Transportation has you covered.
We’ve been in the logistics industry for over 50 years, and we understand how to deliver consistent results for reasonable prices. We’ll do our utmost to give you the fastest delivery times, with the most competitive prices in the region: No corner-cutting.
Contact us today for a rate quote.
