Key Takeaways

• Freight rates vary based on weight, dimensions, distance, and seasonal demand, making comparison essential for SMBs.
• Digital comparison tools simplify rate evaluation with real-time pricing, filters, and fast booking options.
• Total landed cost provides a complete view of shipping expenses, including fuel, insurance, accessorials, and storage.
• Choosing the right transportation mode – air, sea, rail, or road – helps balance speed and affordability.
• Regularly comparing rates strengthens negotiation power, improves cash flow, and helps SMBs adapt to shifting markets.

Shipping expenses can quickly reduce your bottom line, especially when running a small- or medium-sized business (SMB). Freight rates and hidden fees in the fine print may make logistics overwhelming. However, learning how to compare these fees can transform your daily operations. Here’s how to save on freight costs and effectively compare rates.

What Are Freight Rates?

Freight rates determine how much shipping companies charge to transport cargo from point A to point B. The cost of each load depends on factors like weight, dimensions and distance. Lighter shipments are typically cheaper because they cost less to move, while larger shipments may be heavier or require more room on trains or trucks.

Your freight rate typically begins with a base charge that encompasses both weight and size. Then, the carrier may add extra fees for fuel and security. Shipping during peak seasons could increase costs due to industry volume. Experts say shipments increase by up to 60% during the holiday season, leading to extra charges.

How to Compare Rates and Save on Freight Costs

Comparing freight rates requires a strategic approach to maximize savings and make every dollar count. Here are four tips to compare rates and reduce logistics costs.

1. Understand Your Needs

SMB owners have unique shipping requirements, so it’s essential to understand your logistics profile before choosing a partner. For example, you should assess the number of shipping pallets required for your shipment. Experts recommend full truckloads because they fit 10 or more pallets and large equipment, but less-than-truckload options are more economical for smaller loads.

Besides weight, you should consider whether you need specialized or expedited services. Logistics companies may charge more when using white-glove service and handling hazardous materials. If you need shortened delivery times, you may incur time-definite delivery charges to ensure guaranteed windows.

2. Use Digital Comparison Tools

Past strategies required phone calls and emails, which extended timelines, but technology has transformed the shipping industry for SMBs. Modernized digital tools let you aggregate rates from multiple carriers in a side-by-side view. These platforms can also store your shipping history to simplify record-keeping.

Digital tools demonstrate how to save on freight costs by utilizing real-time data. You can access quotes from carriers while filtering for specific needs. The technology will consider your shipment size, speed and other unique requirements. Live rates are essential due to the frequent price fluctuations. You can also take advantage of faster bookings, giving you a competitive edge.

3. Evaluate the Total Landed Cost

Once you get a quoted shipping rate, it’s time to focus on the entire price. The total landed cost reflects the complete expenses of your product, including all fees. Modern supply chain disruptions can significantly impact these expenses, making it essential to focus on this aspect to make informed decisions.

Here are a few factors used to determine the total landed cost for your shipment:

• Fuel surcharges: Additional costs may be incurred if fuel prices rise.
• Accessories: Liftgate or residential delivery could increase the total landed cost.
• Insurance: Insurance is essential for protecting your goods during transit.
• Last-mile delivery: Remote and suburban areas may be more expensive.
• Storage: Longer stays at ports or warehouses can result in higher storage costs.

4. Consider the Transportation Modes

While the rate matters, it’s essential to consider the most effective transportation method for your shipment. Logistics companies may offer air, sea, rail and road freight, each with advantages. If you have time-sensitive goods, air freight may be beneficial for shorter timelines.  However, this option can get expensive for SMB owners.

Logistics professionals use sea freight for less urgent shipments, especially for international partners. Shipping bulk goods overseas by ship could include longer transit times and port delays, but it’s one of your best options when saving on freight costs. Road freight or trucking is a good option for regional and domestic shipments, especially when delivering directly. Be considerate of fuel prices and congestion, as they can raise rates.

Why Rate Comparison Is Essential to SMBs

Comparing freight rates is essential for business owners seeking to optimize their bottom lines. Fluctuating rates mean your operations must be ready for changing prices. For example, supply chain experts found that shipping costs nearly doubled between May and June 2025, but reduced demand halved the rates between June and the end of the year.

Rate comparisons help you find the best prices, regardless of the market’s standing. It also helps your business by giving you negotiating power. If demand decreases, you may be able to secure better deals with carriers or brokers. Lower, predictable costs result in improved cash flow and more effective budget management, helping you meet your business needs.

Understanding How to Save on Freight Costs

Freight costs are a significant expense for SMB owners, but your business can be more productive after using digital tools and evaluating the total landed cost. Leaders approach logistics strategically and focus on operational improvements, so you should regularly review your needs and find cost-saving opportunities.

FAQs

What are freight rates?

Freight rates are the fees carriers charge to transport goods based on weight, size, distance, and additional surcharges such as fuel or peak-season fees.

Why should SMBs compare freight rates?

Comparing rates helps SMBs control shipping costs, avoid hidden fees, improve budgeting accuracy, and secure the best value in changing market conditions.

How do digital comparison tools help reduce freight costs?

Digital platforms aggregate live quotes, allow side-by-side comparisons, store shipment history, and speed up bookings, giving SMBs clearer insight and better pricing.

What is total landed cost?

Total landed cost includes every expense tied to shipping a product – freight charges, fuel surcharges, accessorials, insurance, storage, and last-mile delivery.

Which transportation mode is most cost-effective for SMBs?

Sea freight is typically the most economical for large or non-urgent shipments, while road freight suits regional deliveries. Air freight offers speed but is the most expensive.