Top 10 Freight Shipping Mistakes to Avoid in 2024

Freight shipping is a crucial part of any business's logistics operations. Yet, even seasoned shippers can fall prey to common mistakes that lead to delays, additional costs, and customer dissatisfaction. Did you know that shipping delays can decrease a business’s revenue by 20% annually in addition to other preventable mistakes like damages? In this article, we'll explore the top 10 freight shipping mistakes and provide actionable tips to avoid them. Let's dive in and ensure your freight shipping process is as smooth as possible!

1. Choosing the Wrong Freight Carrier

Choosing the right freight carrier can be the difference between a smooth and fast shipment, or the loss of important products and critical time you need to grow your business. 

Ask yourself - will $43 in savings have a bigger impact in the long run than happy clients who receive your products in great condition, on time, every time? 

It’s not just about finding the cheapest option, although it is important to control your direct shipping costs. 

Other factors can significantly impact the overall cost of your shipping: reliability, insurance coverage if things go wrong, and service quality to back you up every step of the way. 

Many companies make the mistake of prioritizing short term savings over quality shipping services, which often leads to delays and damaged goods. 

According to a recent survey by FreightWaves, 45% of companies experienced significant losses due to choosing the wrong carrier.

Researching Carrier Reliability and Reputation

• Reasonable Cost AND Reliable Quality: Cheap rates can often lead to cheap service. Great shipping companies prioritize reliable service and try to provide the most fair rate possible. Balance your budget with both your short and long term shipping goals utilizing reliable carriers. 
• Before committing, read reviews and ask for references from other businesses in your industry. Websites like FreightWaves offer insights into carrier performance.
• Ensure your Carrier can handle your specific needs, with a track record of successfully following through on promised services.

2. Inaccurate Shipment Documentation

Accurate shipping documentation is the backbone of a smooth shipping operation.

Documents like the Bill of Lading (BOL) are particularly important because errors with this paperwork can lead to severe delays, financial penalties, or even lost and stolen shipments. 

Issues with your paperwork resulting in delays or worse, are a simple fix when working with the right shipping companies and they can save your customer relationships setting you apart from your competitors. 

Make sure you have all the mandatory shipping documents, especially when importing/exporting goods. 

• Importance of Accurate Bill of Lading (BOL): This document acts as a receipt and a contract. Any errors can result in serious issues with clients and the government.
• Common Documentation Errors and How to Avoid Them: Double-check all entries for accuracy and completeness, regular audits can help avoid mistakes. ‍
• Ensuring Compliance with International Shipping Regulations: Different countries have different documentation requirements. Stay updated to avoid compliance issues.

3. Improper Packaging and Labeling

Proper packaging and labeling are essential to protect your shipments and ensure they reach their destination without issues. 

Incorrect packaging can lead to damage, loss, and increased shipping costs - companies like Wal-Mart have extremely strict standards for packaging which can lead to penalty fines and product rejection. 

The National Motor Freight Traffic Association emphasizes the importance of proper packaging in freight shipping.

• Best Practices for Packaging Freight: Use durable materials, secure packaging methods, and comply with any specific packaging rules for your customer / wholesaler. 
• Labeling Packages Correctly: Clear, accurate labels help avoid misrouting and delays - ensure you have a quality assurance process to check this on every shipment.‍
• Protecting Fragile Items: Extra cushioning and warning labels can prevent damage, make sure the packaging is designed specifically for what’s being shipped.

4. Underestimating Shipping Costs

Shipping costs are influenced by many factors, including fuel surcharges, accessorial fees, and unexpected expenses like re-rates in LTL hub and spoke facilities. 

Underestimating these costs can disrupt your budget and affect your bottom line, so accurate cost estimation is crucial for maintaining financial stability.

• Factors That Influence Shipping Costs: Distance, weight, dimensions, and additional services all play a role.
• Calculating Total Shipping Expenses: Use comprehensive calculators and factor in all possible costs or get a free quote today from Cota Systems.
• Understand Fuel Surcharges and Accessorial Fees: These can significantly impact your total cost and with some companies it’s not included in the quote. ‍
• Budgeting for Unexpected Costs: Always have a buffer in your shipping budget for unforeseen expenses.

5. Ignoring Insurance Needs

Freight insurance is vital to protect against loss, damage, and theft. 

Many shippers underestimate the importance of insurance, risking significant financial losses. 

Types of Insurance Coverage Available

1. Carrier Liability
2. Cargo Insurance
3. Declared Value
4. Full Value Coverage

Assessing the Value of Your Shipment

• Properly valuing your shipment ensures adequate coverage - so consider the full Cost of Goods (COGs) in your calculation.
• Choosing the Right Insurance Provider: Look for reputable providers with good reviews.
• Filing a Claim in Case of Damage or Loss: Understand the process and documentation required to file a claim.

6. Failing to Track Shipments

Real-time tracking is essential for managing shipments and ensuring they arrive on time. 

Failure to track shipments can result in lost goods, delays, and unhappy customers - ultimately damaging your brand and distracting you from focusing on creating great products. 

• Real-Time shipment tracking and customer service that monitors your shipments every step of the way, offers visibility and peace of mind throughout your shipment. 
• Good shipping companies often offer technology to keep track of your shipments including GPS tracking, RFID scans, and Truck Driver check calls. 

Transparency and trust are vital for a reliable relationship with quality shipping companies, make sure you choose wisely and think long term about who will provide the most long term value for your freight shipping operations.

7. Misjudging Transit Times

Accurately estimating transit times is crucial for meeting delivery deadlines and customer expectations - misjudging these times can lead to unnecessary delays and costs that will hurt your business. 

As noted by the Logistics Bureau, understanding transit time factors is essential for effective planning.

• Consider Factors Affecting Transit Times: Weather, route changes, construction, arrival windows, and carrier schedules.
• Realistic Expectations for Delivery Dates: Set achievable delivery dates based on thorough research - which a great carrier can assist you with.
• Planning for Delays and Disruptions: Always have a contingency plan in case of emergencies.‍
• Choosing Expedited Shipping Options When Necessary: Weigh the costs and benefits of faster shipping vs cheap shipping.

8. Neglecting Customs Regulations

Customs regulations are strict and complex, neglecting the rules of international shipping can result in delays, fines, and even confiscation of your goods. 

When your products arrive in the US through customs, it’s vital to have your delivery scheduled and on time because after a certain period of time you’ll start incurring charges that could skyrocket your shipping costs. 

Common Customs Clearance Issues

1. Incomplete Documentation
2. Incorrect Tariff Codes
3. Improper Packaging

Working with Customs Brokers

• Professional customs brokers can help streamline the process to avoid common pitfalls with import/export and customs.
• Staying Updated on Regulatory Changes: Regulations change frequently, so you need to stay informed to avoid compliance issues.

9. Overlooking Carrier Capacity and Equipment

Make sure to match your shipment needs with the carrier’s capacity, equipment, and expertise. 

Most carriers will include these fields in quote entry forms, but if you’re calling or emailing for a quote, make sure to include all the details you can about the shipment to make sure there are no surprises. 

One key example is having a liftgate on the truck if pallets are being delivered to a neighborhood or location without a delivery dock. 

• Matching Shipment Needs with Carrier Capacity: Ensure the carrier can handle your shipment volume and specific transit requirements.
• Understanding Different Types of Shipping Equipment: Choose the right equipment for your freight type, especially if it needs to be refrigerated or frozen.
• Coordinating with Carriers on Availability: Plan ahead to secure the necessary capacity and proper scheduling for your shipments to arrive on time. 

10. Poor Communication with Stakeholders

Communications are the glue that holds a great shipment together. 

Being specific, prompt, and providing all the necessary information go a long way in hitting shipment deadlines and ensuring safe delivery of your products. 

• Importance of Clear Communication: Keeps everyone on the same page is critical to avoid confusion, missed delivery windows, or even product damage. 
• Setting Up Regular Updates and Check-ins: Schedule updates keep everyone informed - or make sure to bring this up when selecting a reliable carrier for delivery.‍
• Addressing Issues Promptly and Effectively: Swift resolution of issues prevents escalation or further problems - for example if there’s a weather delay, losing a day will likely be better than risking a damaged truck that can’t fulfill the delivery, leaving your products stranded.

Conclusion: Avoiding common freight shipping mistakes can save your business time, money, and headaches. By choosing the right carrier, ensuring accurate documentation, and maintaining clear communication, you can streamline your shipping operations and keep your customers satisfied. Remember, the key to successful freight shipping lies in the details. Implement these tips today and watch your shipping process improve dramatically!