Freight Shipping Guide for Growing Brands: Reduce Costs & Deliver Faster

Shipping becomes more complex as your ecommerce or retail brand grows. Once your products exceed parcel‑carrier limits, packages heavier than 150 pounds are considered freight, you must navigate new modes, pricing models and logistics partners. Choosing the wrong mode or failing to optimize packaging and contracts can erode margins, while a strategic freight program shortens delivery times, reduces damage and preserves cash flow.

This freight shipping guide uses insights from industry‑leading logistics providers and freight experts to help growing brands audit their shipping spend, select the right transportation mode, negotiate better rates, and optimize packaging. By adopting data‑driven practices, businesses can reduce costs by 15–30 % without compromising service.

Why Freight Shipping Matters for Growing Brands

Freight shipping involves transporting palletised goods by truck, rail, ocean or air. Unlike parcel services, freight shipments come with dimensional weight (DIM) charges, fuel surcharges and different liability rules. According to Mercury, shipments over 150 pounds qualify as freight and typically require parallelization or crating. Red Stag Fulfillment’s 2025 pricing guide notes that LTL (Less‑Than‑Truckload) costs range from $300 to $1,500 per shipment, with average pallet costs between $120 and $250. Meanwhile, full truckload (FTL) shipments often cost $1.50–$3.00 per mile, adding up to $1,025 for a 500‑mile trip.

Freight shipping quickly becomes one of the largest operational expenses for growing brands, especially those selling bulky or heavy products online. Understanding the fundamentals helps you control costs and deliver products reliably.

Freight Shipping Basics: Modes & Terminology

Freight modes and when to use them

Key freight terms

Freight class: The National Motor Freight Classification (NMFC) groups commodities into 18 classes (50–500) based on density, stowability, handling and liability. Higher classes (e.g., 300–500) represent lightweight or fragile goods and cost more to ship.

DIM weight & factor: Dimensional weight accounts for how much space a shipment occupies. Carriers calculate DIM weight by multiplying length × width × height and dividing by a DIM factor (139 for domestic shipments) Shippers pay whichever is greater—actual weight or DIM weight.

Accessorial charges: Fees for extra services such as liftgate usage, residential delivery or inside pickup. These can significantly increase your bill if unmanaged.

Fuel surcharge: A variable fee added to freight rates based on the diesel price. Negotiating caps or favourable fuel index formulas can reduce volatility.

Step 1 – Audit Your Freight Spend

Start by understanding your current shipping profile. The Broussard Logistics article on LTL contract management recommends a data‑driven approach: regularly review shipping data, identify common lanes, freight classes and accessorial charges, and use forecasting tools to anticipate future needs. Key elements to capture include:

1. Shipment characteristics: Weight, dimensions and pallet count for each order.
2. Freight classes: Determine density using a freight density calculator and assign correct NMFC codes to avoid reclassifications.
3. Top lanes & seasonality: Identify origin/destination pairs and note seasonal peaks.
4. Damage & claims rates: High claim frequencies may signal packaging issues.
5. Accessorial fees: Track liftgate charges, residential deliveries and reclassification fees.

Use spreadsheets or a Transportation Management System (TMS) to calculate cost per pallet, average transit time and on‑time delivery percentage. These metrics provide leverage when negotiating rates.

Calculating freight shipping costs for ecommerce

1. Measure accurately. Record length, width, height and weight of each pallet or parcel.
2. Calculate density. Use density = weight ÷ volume (cubic feet) to estimate freight class; refer to NMFC tables.
3. Determine DIM weight. Multiply L×W×H and divide by the carrier’s DIM factor.
4. Request quotes across modes. Compare LTL, PTL and FTL rates using online calculators or your TMS.
5. Add surcharges & accessorials. Include fuel surcharge and any extra services (liftgate, residential).
6. Benchmark. Compare contract rates vs spot quotes and track trends to ensure competitiveness.

Step 2 – Choose the Right Mode for Each Load

Selecting the appropriate mode balances cost, speed and service quality:

• FTL vs LTL for ecommerce brands: Use LTL for 1–6 pallets or up to 15,000 lbs; FTL becomes cost‑effective when your freight exceeds 15,000 lbs or fills most of the trailer.
• Partial truckload (PTL): Ideal for mid‑sized loads that don’t quite fill a truck. PTL shipments typically stay on the same truck throughout transit, reducing handling and damage risk.
• Intermodal vs ocean freight: Choose intermodal for long domestic hauls when cost and sustainability matter; choose ocean freight for international replenishment when lead time is less critical.
• Air freight: Reserve for high‑value, urgent shipments due to its high cost and carbon footprint.

Use this matrix to guide decisions by lane and SKU. For example, a brand shipping heavy furniture cross‑country may find FTL more economical than multiple LTL shipments, while a small batch of appliances can move cost‑effectively via LTL.

Step 3 – Optimize Packaging & Parallelization

Freight pricing strongly depends on density. Lower-density freight is assigned a higher class and costs more. Optimizing your packaging not only reduces DIM weight but also prevents damage and accelerates handling. Freight Center’s pallet optimization guide recommends:

• Stack efficiently: Align boxes in straight layers, avoid overhang and build a uniform, cubic footprint to maximize pallet space.
• Wrap securely: Use stretch wrap to prevent shifting or bulging, keeping the pallet compact and stable.
• Standardize pallet sizes: The 48×40‑inch GMA pallet is widely used in North America and facilitates efficient handling.
• Label accurately: Place labels on two sides at eye level; accurate dimensions help avoid unexpected DIM charges.
• Improve density: Choose packaging that minimizes empty space. Denser loads lead to lower freight classes and lower rates.

Step 4 – Negotiate Better Rates

Negotiation goes beyond asking for lower base rates. Broussard Logistics outlines a strategic contract management approach: data analysis, informed negotiation, performance monitoring and continuous optimization. Apply these principles:

1. Analyse your data: Conduct freight audits to uncover true costs, identify high‑impact lanes and spot frequent accessorials.
2. Prepare for negotiation: Use volume forecasts and historical performance to leverage better pricing. Present yourself as a shipper of choice by maintaining efficient dock operations and accurate information.
3. Negotiate key contract elements:
   • Pricing & discounts: Secure meaningful discounts based on volume and lane consistency.
   • Fuel surcharges: Understand how surcharges are calculated and negotiate favourable formulas or caps.
   • Accessorial fees: Standardize or reduce common fees like liftgates or reclassifications.
   • Liability & insurance: Ensure liability limits and insurance requirements are cost‑effective.
4. Diversify carriers: Use multiple carriers per lane to increase leverage and reduce risk.
5. Monitor and optimize: Track KPIs- on‑time delivery, damage rates, invoice accuracy-and renegotiate if performance slips.

Step 5 – Leverage Technology & Trusted Partners

Technology and partnerships are essential for scaling freight operations:

• Transportation Management System (TMS): A TMS centralises quotes, bookings and tracking, and provides analytics for cost per pallet and carrier performance.
• Freight marketplaces & digital brokers: Platforms give instant quotes across multiple carriers and simplify booking.
• Third‑Party Logistics (3PL) providers: 3PLs handle warehousing, fulfillment and freight, leveraging aggregated volumes to negotiate better rates.
• Freight brokers vs forwarders: Brokers negotiate transportation but don’t handle cargo, while forwarders may warehouse and consolidate shipments. Use brokers for domestic LTL and forwarders for international shipping.
• Managed transportation services: Combine TMS technology with dedicated account management, suitable for brands that want outsourced logistics with strategic oversight.

Decide whether to outsource based on lane volatility and internal expertise; keep stable, high‑volume lanes in‑house and outsource variable, multi‑modal routes.

Conclusion

Freight shipping is a strategic function that directly affects your brand’s profitability and customer satisfaction. By understanding freight classes, optimizing packaging, choosing the right mode and negotiating with data, growing brands can reduce freight costs by 15–30 %. Adopt a data‑driven freight program, leverage technology and forge strong carrier partnerships to transform logistics from a cost centre into a competitive advantage.

Ready to streamline your freight shipping? Consider working with a trusted 3PL or freight broker that offers transparent pricing, TMS capabilities and negotiated rates. Use the guidance in this freight shipping guide to ask the right questions and secure the best deal for your growing brand.