When it comes time to shipping your goods you want to find the most efficient and economical
shipping carrier without spending all day researching your shipping options. In any business you need to get
orders filled and shipments moving as quickly as possible.
Accordingly, when you first set out to find a freight carrier or shipping company that will
meet your company's needs there are a few things you should consider, beyond the shipping box.
If your package has
to travel a long distance, one of the first considerations should be the shipping delivery schedule
and the number of times the package will be interlined. A lengthy shipping time and increased
interlining may suggest that the shipper cannot deliver your goods efficiently.
Another measure to look at is the shipping company's on-time delivery statistic. This
statistic indicates how often the company meets its declared delivery schedule. A good firm
will typically quote on-time delivery rates in the mid to high nineties.
Lastly, you will also want to know the shipping company's claims to damage ratio. This ratio measures
the percentage of revenue paid out in claims for problems caused by loss, damage or theft.
The shipping industry average is 1.25%-1.4%. You should use a shipping company with a similar or lower ratio.
As you go about trying to find shipping company to work with there is some standard terminology
you will want to familiarize yourself with. Some key terms are:
Accessory Charge: This is a charge that reflects the cost of services rendered above the mere
shipping of the goods. Common accessory charges include fees for storage, contacting
the recipient prior to delivery of the goods or providing delivery to companies without loading docks.
C.O.D.: Collect on delivery. This is a service where the shipping company will accept payment
for the goods from the recipient at the time of delivery.
Consignee: The recipient of a shipment.
Interlining: This is when a package of goods is transferred from one carrier to another to complete a shipment.
