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Meeting the shipping needs of a diverse customer base is more important now than ever. Due to backlogs of shipments and changing regulations, having an option to defer shipping slightly may help you and your customers.
Deferred shipping involves delaying a non-essential shipment in order to consolidate it with other shipments to save money.
Consider this scenario: You have a contract to ship household furniture to retailers from a distribution warehouse. In previous years, all pieces may have arrived at the same time, but now sets of tables and chairs are arriving separately. Rather than make multiple trips for the chairs and then the tables, deferred shipping allows you to wait until both have arrived.
Similarly, you can offer deferred shipping to customers. If they’re waiting for the delivery of a multipart shipment, offering to defer payment on the delivery until all pieces are together may take the sting out of the wait time.
Deferred LTL is the process of deferring shipments when using less-than-truckload shipping for smaller amounts of freight that won’t take up a whole trailer or box truck. Your goods are sharing space with other LTL shipments and may take slightly longer to arrive at their destination.
If you already have an agreement with a business for deferred shipping, or if the freight is part of a routine restocking of items, these short delays can be worth the money saved. Businesses that are paying for routine shipments can avoid the higher freight rates for expedited shipping.
Deferred or otherwise, LTL freight is still a major expense for businesses large and small. Before you offer deferred shipping truckload services for small packages, be sure that fulfillment can still happen within a reasonable amount of time.
Related: LTL Freight vs NMFC: The Conclusive Guide For Shippers
Yes, deferred shipping can apply to full truckloads. Retail consolidation can even allow you to combine your load with that of other small-volume shippers for a full truckload shipment and save on multiple LTL shipments. However, depending on the conditions goods require, deferring on delivery may not be possible.
Goods that require specialized services and may be harmed by delays include:
If shipments require specialized containers or have special restrictions, offering deferred delivery may not be an option.
Merchandise that is restocked on a regular schedule and is non-perishable is a good candidate for deferred shipping. Items like auto parts, paint, or cleaning supplies are usually purchased and used quickly. No growing business wants to manually reorder such items and will have automatic renewals put in place.
Regular deliveries mean that the customer is less likely to run out of an item completely. An occasional delay of a few days for the sake of being able to send a full order may be worthwhile. Offering deferred shipping to such a client may give you both a price break.
Deferred shipping is often credited with being less expensive than expedited shipping. However, this does not mean it will always be cheaper.
A customer who does not want to pay the extra cost of expediting a shipment for a standard restocking order is likely to save money with deferred shipping. At the same time, a wider delivery window provides importers with a chance to find the best way to reduce expenses.
In the case of offering deferred shipping, there are other factors to consider. Waiting has its own price in the fast-paced world of international trade.
Consider these variables:
None of the above factors will automatically make deferred shipping expensive. However, they should be considered when offering this option, or if allowing a customer to defer payment.
Be aware of average lead times for commonly shipped items. Communicate clearly with customers and offer tracking services to be sure they know their deliveries are important.
Related: What is a Fuel Surcharge and How is it Calculated?
The advantages of deferred shipping will depend greatly on what is being shipped, where it’s coming from, and the mode of transportation being used. These factors need to be weighed carefully to ensure you and your customers are benefiting from the arrangement.
Possible advantages include:
Working with a combination of possible solutions and being sure to have a strategic, reliable partner for your truckload needs will go a long way toward growing your business.
If you’re looking for solutions to manage your shipping and storage costs, look no further than USA Truckload Shipping. Offering a variety of full truckload and LTL services, we can become a trusted partner for your business.
Our full list of services includes:
Call us today at (866) 353-7178 or request a quote with no obligations attached. Continental U.S. shipping for all your freight needs is within your reach.
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