How to Choose the Right Freight Carrier

A freight carrier has great power to impact your operations and reputation, so choosing wisely is critical. The right carrier will deliver your shipments on time and damage-free, communicating clearly to you and your receiver throughout the process. The wrong one, on the other hand, can cost you time, money, and your good standing with your stakeholders.

With all the options at your disposal, narrowing down your choices can be overwhelming, and you may not know where to begin. Here are the steps to find the right freight carrier for your business. 

Define Your Shipping Requirements

Before starting your research, some shipping requirements to establish include:

• Shipping method: Consider the best delivery method for your goods and customers. Differing transportation modes like LTL, TL, and STL have varying benefits and restrictions, including routes, capacity limits, storage processes, and costs.
• Delivery timeline: Your chosen carrier needs to be able to deliver your goods to your customers on time. This requirement is closely tied to picking your freight shipping mode. If you’re working on specific delivery deadlines, you’ll need to narrow down to a carrier with options that meet those needs. If you’re more flexible in your timeline, you can explore a wider variety of freight carriers and shipping modes.
• Shipping frequency: Are you sending items out daily? Weekly? A few times per week? Knowing your regular shipping cadence will help you partner with a carrier that can meet your needs and delivery schedule.
• Product accommodation: Shipping perishable goods has far different requirements than, say, shipping furniture. Some carriers may even refuse to ship particular items, such as those that are extremely expensive, like jewelry, or very fragile, like glassware. Find a carrier that ships your specific goods, and determine what accommodations they need to make to ship your products safely.
• Shipping destination(s): Freight carriers offer different benefits and service rates based on the location(s) you’re shipping to. Shipping domestically versus internationally (or both) has different shipping requirements, and not all carriers are equipped for one or the other. For domestic deliveries, you’ll also want to consider whether you’re shipping locally or nationally. For example, if you ship primarily to your local area or region, exploring regional carriers may be the most cost-effective option. Consider the types of addresses you’re shipping to, as well—policies will differ by carrier for shipping to residential addresses, businesses, military bases, and others.
• Freight insurance: Determine how much coverage the baseline carrier liability insurance offers and decide whether it’s enough for your needs. If not, you’ll want to purchase additional insurance to make up the gap.

Research Potential Freight Carriers

You likely wouldn’t go house hunting without thoroughly researching realtors to represent you; freight carriers should be treated no differently. It’s critical to explore and compare several carriers to determine whether they meet your shipping requirements. 

First, research the basics of a potential carrier’s history—how long have they been in business? What are their average service metrics for damage and on-time deliveries? You can also ask for customer references to learn about other shippers’ experiences with that carrier.

It may be tempting to gravitate toward the freight carrier with the cheapest rates, but the initial cost savings may come at their own price. For example, while LTL shipping seems cheaper compared to full truckload prices, hidden costs—including higher damage rates from more frequent handling, as well as extra fees due to shipment sizes—can add up and erase any initial savings. Poor service quality, missing or damaged items, and late deliveries can cost you even more in repairs or replacement, not to mention dissatisfied customers. 

Compare Services and Offerings

If you’re shipping perishable goods, for example, you’ll want a freight carrier that provides refrigeration services, as well as offers additional insurance options to cover lost goods in the event of weather delays or mechanical failures.

Some examples of freight services include:

• Transportation mode options: Your shipment size, weight, and specific goods all play a part in determining the best way to get your items from here to there. The most common ground transportation modes are:some text
  • Full truckload (FTL) shipping, where goods shipped from a customer fill an entire truck to capacity or can’t be easily consolidated to share space with shipments from other customers.
  • Less-than-truckload (LTL) shipping, where multiple shipments from several customers are grouped into one truck for a more affordable (but also more damage-prone) option.
  • Shared truckload (STL) shipping, a similar option to LTL shipping but one that better optimizes both truck space and shipping routes for a more cost-effective, faster, and safer delivery.
• Equipment types: Depending on the items you’re shipping, you may need specialized equipment. Perishable goods, for example, have different shipping and storage needs than lumber. Some equipment options include:some text
  • Refrigerated trucks
  • Oversized/heavy haul transportation
  • Flatbed transportation
• Additional services that address more specific needs for your shipment, such as:some text
  • HAZMAT shipping
  • Warehousing
  • Premium or expedited shipping
  • Cross-docking
  • Brokerage services
  • Last mile/final mile delivery
  • Signature confirmation
  • Guaranteed delivery

Also consider the level of involvement you want to have—or, conversely, how hands-off you prefer to be. Some freight carriers will handle every aspect of the shipping process for you; others will give you more control over or access to your shipment and delivery process. Find a carrier that will work with you to match your preferences.

Evaluate Technology and Tracking Capabilities

To have the most up-to-date information on the status of your goods, you’ll need a freight carrier with sophisticated and accessible tracking capabilities. Most carriers employ some sort of tracking software, but not all technology is created equal.

Some carriers also utilize advanced transportation technology that helps schedule and optimize routes for the most efficient delivery. These carriers have deeper insights into optimal freight management, often resulting in a higher rate of on-time deliveries. They also typically provide real-time data on your shipment location and status, giving you more visibility and allowing you to better communicate with your customers in the event an issue arises.

Analyze Pricing and Hidden Costs

Though enhanced tracking technologies and expanded services are major assets, at the end of the day, a freight carrier still needs to fit within your business’ budget. Price is one of the most important factors in picking a carrier; finding one that meets your needs without breaking the bank can be a fine line to walk.

Gathering quotes from several carriers can help you understand who is offering the services you require at more affordable prices—you may even find some companies with the same offerings at wildly different price points. Use your previous research to figure out if those cheap prices are appealing, or if they’re covering up a history of poor quality. Sometimes, cheaper prices indicate fewer included services. It’s often better to pay more for a reputable carrier with a broad suite of offerings.

Too, it’s critical to assess the hidden dangers associated with your chosen transportation mode. One of the most seemingly efficient shipping options—LTL—is often riddled with handling issues, unfulfilled truck space, and inefficient routing, all of which can lead to surprise fees that end up costing you more overall. The hub-and-spoke model of LTL shipping means more people are loading and unloading your goods more frequently, increasing your damage risk. In 2023, shippers reported an LTL average damage rate of 1.94%—the equivalent of one in every 51 shipments. SMB shippers paid up to $182k just on damage and loss claims, at an average cost of $2,560 per shipment transported via LTL.

Similarly, because LTL shipments are designed for smaller, lighter loads, even the slightest deviation can incur costly (and unexpected) accessorial fees. On average in 2023, the cost for reweigh, reclass, and overlength fees was over $419 per LTL shipment. Additional hidden fees that carriers don’t advertise in their initial quotes could include:

• Cargo handling and storage fees
• Fuel surcharges
• Brokerage fees
• Cargo tracking
• Residential delivery fees
• Late fees
• Address correction fees
• Incorrect billing or invoicing costs

A trustworthy freight carrier will have transparent, upfront pricing and offer a list of any surcharges or ancillary fees. Make sure to also audit your shipping invoice and check that all information is accurate. If, for example, the listed weight and dimensions of your cargo are wrong, you could face overcharges. 

Consider Customer Support and Communication

Just as you ensure that your business provides clear and accessible support for your customers, your freight carrier should be readily available for you throughout the shipping process. Effective, responsive communication with your freight carrier helps you stay on schedule and resolve problems quickly, should any arise. Ideally, your carrier handles any questions or updates swiftly to minimize errors and prevent disruptions—particularly if there are delays during shipment. 

Equally important is how your freight carrier connects with your customers, if applicable to your business. Your clients will expect regular shipment updates and notifications; if you’re not facilitating that yourself (or don’t want to be responsible for it), your freight carrier should step into that for you. A lack of clear and regular communication can lead to frustrated customers; make sure your reputation stays intact by thoroughly vetting any potential freight carrier’s communication process.

Ship Affordably and Reliably with Flock Freight

Choosing a freight carrier for your business can be overwhelming. Flock Freight’s unique shared truckload (STL) shipping offers the benefit of lower costs, as you only pay for the space your goods utilize, as well as optimized shipping routes via our FlockDirect® technology that result in less damage and higher on-time delivery rates. You can track your shipments directly on our platform and share shipment updates with the receiver or other third parties.

Request a demo or a quote to see if Flock is right for you.

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