We founded FreightorGator with the goal of making booking LTL freight so simple and easy anyone could do it. Currently, there is an entire industry of middlemen that expect shippers to pay a premium for them to handle shipping, and they’re making a killing. This includes 3rd Party Logistics providers, or 3PLs. They want shipping to be difficult for companies – the more difficult it is, the more they can charge in fees and additional costs.
How much does this overhead actually cost your business? Well, it is difficult to calculate a general answer because all 3PLs operate differently. You can expect them to nickel and dime you with charges and fees that sometimes remain hidden until you get the bill. Here are some of the costs and charges for which you should be on the lookout when working with a 3PL or LTL middleman.
Set Up Costs
Just about every 3PL charges an initial set-up fee the first time they work with your business. The cost of set up ranges widely depending upon the services you need from a 3PL, but it can cost a business up to thousands of dollars.
If you rely on a 3PL for all of your logistics including warehousing, a set-up fee can make sense. It covers the extra time 3PLs may need right at the beginning of your agreement. It also doesn’t hurt that fear of these costs will keep businesses from switching logistics providers. But if you’re only shipping, it shouldn’t require too much set up. Why would most LTL shippers pay these steep fees?
At FreightorGator, our set up is easy. It’s no different than setting up an Amazon account. Just tell us a little about you and your business, give us a way to keep in touch and BOOM! You’re ready to begin booking your shipping without massive upfront costs.
Receiving and Storage Fees
When you ship with a 3PL, everything you send goes through their warehouse before going to it’s destination. This doesn’t make much sense to us, but sure enough, every shipment will take this extra detour.
What’s worse is that they charge you for this unnecessary stop. You pay them to remove your shipment from the first truck, pay storage fees while your shipment waits between trucks, and possibly even pay to have it loaded again.
At FreightorGator, we don’t have a warehouse. We just connect you directly with the shipping provider, get you the best possible rate and they handle the rest. No need to charge you for an extra stop.
3PLs and LTL brokers and middlemen add fees every time you book a shipment. Essentially, they charge you for the time it takes them to compare shipping rates and order your shipment. Of course, this time is variable – there usually isn’t a flat shipping fee – so you won’t know for sure how much you’ll pay until you receive the bill. Some will claim larger shipments require more time, so they’ll charge a percentage of the total cost.
Maybe we’re cynics, but if you let a middleman handle cost comparison for your shipping, how do you know you’re getting the best deal? What if your 3PL or broker doesn’t put the time in and just picks the provider they always use? Or worse, what if they choose a provider to earn a kickback?
You wouldn’t let someone buy a car for you without doing the research yourself, so why should you with your LTL shipping?
Again, we have attacked this problem head-on at FreightorGator. We negotiate the best rates with shippers and share all of them with you when you request a quote. You can then make your own buying decision. Oh, and we have a flat fee of only $25 per shipment, regardless of size. No more guessing games.
Are you ready to say “Later, Gator!” to unnecessary overhead? Request a quote today