Why the right freight provider matters more than you think
When selecting a freight provider, it’s easy to focus on upfront shipping rates. But what many businesses don’t realize is that the cheapest option isn’t always the most cost-effective. Outcomes like shipment delays, damaged goods and poor communication can quickly add unexpected costs to your operations and strain your supply chain.
Let’s break down the hidden costs of choosing the wrong freight provider and how the right logistics partner can help protect your bottom line.
Unexpected expenses that can hurt your freight budget
Here are 7 costly pitfalls to watch out for when choosing a provider to work with:
1. Damaged or lost freight
Poor handling leads to damaged or missing shipments, resulting in replacement costs, lost sales and frustrated customers. Finding a provider with a history of safely transporting freight is vital. You can ask carriers directly about their performance and look at awards and recognitions from reputable sources like the ATA to help identify carriers with a good record.
2. Service failures or delayed shipments
Late shipments upset customers and can lead to more expensive expedite services to get them back on track. Missed deadlines can mean lost sales and supply chain inefficiencies. Choosing the right provider ensures reliable on-time delivery with optimized routing and a strong network capacity.
3. Poor communication
Lack of visibility, unexpected fees and slow issue resolution create inefficiencies in your supply chain. Without clear updates, managing disruptions becomes a challenge. The ideal provider has transparent pricing, real-time tracking and responsive support to keep your shipments moving.
4. Inefficient routing
Poor routing leads to longer transit times, higher costs and inconsistent service. Pick a provider that optimizes routes to ensure fast and efficient shipping.
Learn how to optimize FTL shipping with routing guides here.
5. Lack of network coverage
A weak carrier network leads to service gaps and inflated rates. Inconsistent coverage can disrupt your supply chain and limit your shipping options. Look for a provider with a robust network to ensure reliable and cost-effective freight solutions nationwide.
Check out ArcBest’s network coverage here.
6. Lack of compliance
Non-compliance can lead to fines and delays. Regulatory violations put your businesses at risk and can affect your bottom line. If you are shipping unique loads that need special compliance, working with a reputable provider with experience transporting your type of freight is a good start.
7. Insufficient cargo coverage
Inadequate coverage leaves you vulnerable to loss from damage, theft and liability claims. Without it, recovering costs can add up quickly. Make sure that your provider has proper coverage for each of your loads.
Red flags to watch for
Here are some common things that could end up costing your business if ignored:
- Unclear pricing & hidden fees. Unexpected charges like excessive fuel surcharges, reclassification fees or penalties for appointment-based deliveries can significantly raise costs. A provider should offer transparent and itemized pricing.
- High claims & freight damage. Frequent incidents of damaged or lost shipments lead to costly replacements, fees and potential customer churn. A reliable provider should have a low claims ratio and strong cargo protection measures.
- Inconsistent transit times. Delays can disrupt your operations. Look for a carrier with a proven track record of on-time performance and optimized routing.
- Limited visibility & support. Poor tracking capabilities and unresponsive customer service make issue resolution difficult. The right provider should offer real-time shipment updates and dedicated support.
Identifying these warning signs early can prevent unnecessary expenses and bring down your total cost. If you see any of these red flags from your potential provider, it may be time to look for a new one.
Contact ArcBest today
Avoid the hidden costs of unreliable freight providers by choosing a trusted logistics partner. ArcBest offers industry-leading solutions, extensive nationwide coverage and expert support to keep your supply chain running smoothly.
Connect with an expert today to learn how we can help streamline your shipments and protect your bottom line.
