Avoiding Hidden Freight Charges
Hidden freight savings can be easy to overlook, but they’re a key part of optimizing shipping costs. With the right tools and strategies, you can uncover savings you didn’t know existed. Let’s dive into how you can spot these savings and take action.
What is the Biggest Cost of Hidden Freight Savings?
The biggest hidden cost often starts on the front end: gathering the right information at the time of quoting. Many shippers fail to gather accurate data about freight class, dimensions, or delivery conditions, which leads to unexpected costs down the road. This is especially important with the upcoming
NMFC changes in July 2025. Freight classes may change, and misclassifying freight could cost you.
This is where
ViewPoint TMS comes in. ViewPoint has a built-in
density calculator to ensure that you’re using the correct freight class when you quote. By using the right freight class, you avoid overpaying for shipping. If you ship enough volume, it’s also
worth considering a
dimensionalizer. A dimensionalizer measures freight dimensions precisely and integrates into ViewPoint TMS, ensuring that your freight is rated correctly. If you need a dimensionalizer TLI can get you all setup.
Another hidden cost often comes from unexpected delivery scenarios. For instance, if your freight is going to a residence, you could face additional residential delivery fees. ViewPoint TMS can help by automatically flagging shipments heading to residences, so you won’t be surprised by extra charges. Additionally, be aware of
limited access facilities like schools, universities, police stations, or military bases. These locations trigger additional fees, and ViewPoint TMS helps you spot these in advance with its dynamic routing guide, sorted by least cost provider.
I recently received a call from a shipper who was concerned about a so-called "government-mandated fuel surcharge" that his current vendor was using to justify quoting so much higher than the market. To clarify,
there is no such thing as a government-mandated fuel surcharge. This type of claim either stems from ignorance or is a deliberate attempt to mislead from his incumbent provider. It's important to remember that the trucking industry went through a major deregulation phase during the Carter administration in the late 1970s. That period eliminated many of the rate-setting rules that had been in place for decades, which includes government-imposed surcharges on fuel.
Such misinformation highlights a larger problem: ignorance can lead to overspending and unnecessary confusion. Fuel costs have dropped significantly in recent years, and it’s important for shippers to recognize that surcharges should reflect the actual cost of fuel, not be used as a way to inflate profits. At
TLI, we offer a
fuel surcharge that is fair and based on real fuel prices. It’s not a profit center for carriers, nor does it involve hedging by the motor carrier raising linehaul rates. Instead, our surcharge is updated weekly based on the actual cost of fuel, ensuring it’s always in line with market conditions. This is yet another example of why it pays to delegate your freight management to the experts who can help you avoid confusion and unnecessary costs.
Mode Optimization: Are You Using the Correct Transport Option?
Many shippers overlook the full range of
transportation modes available between
LTL (Less Than Truckload) and
FTL (Full Truckload). There are more options than you might realize. One memorable example is a shipper that didn’t know they could use volume LTL. They were only using standard LTL, missing out on a significant cost-saving opportunity.
Luckily,
ViewPoint TMS integrates volume LTL options directly into the system. With this tool, you can easily compare and choose the best mode for your shipment. If LTL isn’t the right fit, you can also book a partial truckload. This is an especially great option for large shipments that don’t require an entire truck. Using the most cost-effective mode is a key strategy in uncovering hidden freight savings.
Not only that, but ViewPoint TMS also helps you optimize by analyzing different transportation modes. This makes it easier to choose the most economical carrier and service level. Being data-driven will help you cut costs and improve efficiency across your entire shipping process.
Leverage Data and Transportation Technology to Track Spend
Another area where hidden savings can be uncovered is by tracking freight spend data. Shippers often don’t have full visibility into their freight costs, which makes it difficult to identify where savings can be found. With ViewPoint TMS, you can automate GL (general ledger) and cost center coding. This helps you track freight spend more accurately and align it with your budget.
Integrating these data insights into tools like Microsoft Power BI or your ERP system further enhances the process. By combining TMS data with business intelligence tools, you gain access to powerful dashboards that highlight trends and inefficiencies. This allows you to make data-driven decisions and spot savings opportunities you might have missed otherwise. The more you analyze your shipping patterns, the more you’ll see where hidden costs creep in—and where savings can be realized.
One smart way to find even more savings is by launching an RFP (Request for Proposal) during times of market weakness. Many shippers overlook the potential savings that can come from timing their bids correctly. By bidding when the market is softer, you can negotiate better rates with carriers. ViewPoint TMS can assist you in launching these RFPs and timing them strategically, helping you unlock hidden freight savings.
Take Action Today to Unlock Hidden Freight Savings
