Top 3 Great Tips to Negotiate Freight Rates

People who are in the logistics field know the importance of freight rates. These are multiple facets to the freight industry, including your employees, the equipment you use, your relationship with the clients, your customers, and many more. However, these will go in vain if they fail to generate revenue.

People always search for profitable freight rates while shipping products from one place to another.
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Many people also hire a broker who will negotiate the freight rates on their behalf. Nevertheless, negotiating the freight rates is one of the logistics industry’s most important and essential skills. The negotiation will help you save a significant amount of money and strengthen the professional relationship.

Below, we will discuss the top 3 tips to negotiate freight rates successfully. This guide will undoubtedly help get better freight rates. Without further ado, let’s get started.

Know the Operating Costs

This is one of the essential tips you should know while negotiating¬†freight rates. You won’t negotiate fright rates properly if you’re unaware of the profitability. The operating costs are the amount of money to run your business. As you’re the carrier, you need to consider multiple factors, including maintenance charges, fuel, and the driver fee. You cannot accept freight rates that are not profitable for your company.

However, it would help if you did not neglect customer satisfaction. If you realize that a broker or shipper will transport many items through your logistics services, it’s fair to make some short-term compromises. This way, the broker will also trust you.
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When you deliver the products to the designated location in good condition and on time, you can ask for additional charges. Make sure you know your operating costs so that you don’t end up negotiating for lesser fees.

Be Willing to Say “No”

This is a topic that most freight negotiators struggle with. You will find yourself in situations where saying “no” will become challenging. One such case is that you need to book the loads as quickly as possible. Another factor is desperation and taking whatever is available to move your shipment. An idle shipping method will cost you more money.
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Even you might be tempted to accept low offers, don’t be afraid to say “no” in some crucial situations. This way, you will do business while also maintaining the operating costs. You should not accept a load if the loss is more than you can afford.

Rather than negotiating, again and again, make sure you say “no” directly if you’re not comfortable with the freight rates. As per Forbes,¬†it’s important to say “no” at work.

Know Every Detail of the Freight Rates

Make sure you know all the coverings of the freight rates. Even though the freight shipment sounds easy, there are various factors you need to consider while transporting goods from one place to another. Make sure you plan the route ahead of time. Don’t forget to take the necessary information from the broker or shipper.

Not only tolls but the fuel surcharge, customs, detention, and lumper fees will also increase the overall operating costs.


These are the top 3 freight rate negotiation tips you need to remember. Keep in mind that negotiating freight rates is a skill. Therefore, you cannot hone your skills in one day. Even if you make mistakes, make sure you learn from your previous experience.

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