The Impact of Rising Freight Costs: How to Cut Shipping Expenses in 2025

Freight costs have been on the rise, driven by fuel surcharges, labor shortages, supply chain disruptions, and increased demand. Businesses that rely on LTL, FTL, and parcel shipping are feeling the squeeze as carriers continue to adjust pricing structures.

In 2025, cutting shipping expenses will require a strategic approach—one that balances cost efficiency with reliable fulfillment. By working with a 3PL, leveraging rate shopping, and optimizing packaging, businesses can lower costs while maintaining strong shipping performance.

Why Are Freight Costs Rising?

The cost of shipping is influenced by several major factors, including:

Fuel Surcharges – As diesel and gas prices fluctuate, carriers pass these costs onto businesses.

Peak Season Surcharges – UPS, FedEx, and freight carriers increase rates during high-demand seasons.

Driver & Labor Shortages – The trucking industry continues to face a shortage of qualified drivers, raising transportation costs.

Capacity Constraints – Limited carrier availability leads to higher LTL and FTL rates.

Dimensional Weight (DIM) Pricing Changes – Carriers charge based on package size rather than actual weight, making oversized shipping more expensive.

Without a proactive approach, businesses could see shipping expenses skyrocket in 2025.

How to Cut Freight Costs Without Sacrificing Efficiency

1. Take Advantage of 3PL Carrier Discounts

One of the best ways to reduce freight costs is by leveraging bulk shipping discounts through a third-party logistics provider (3PL).

 3PL Center has negotiated rates with major carriers, offering businesses:

Reduced oversized shipping surcharges

Lower LTL & FTL freight rates

Discounted parcel shipping for high-volume businesses

By tapping into 3PL Center’s carrier network, businesses gain cost advantages they wouldn’t get on their own.

2. Use Rate Shopping to Find the Best Carrier Pricing

Shipping costs vary based on destination, weight, and service level. Rate shopping ensures you always get the best deal.

3PL Center’s TMS (Transportation Management System) helps businesses:

Compare rates across multiple carriers in real time.

Choose the most cost-effective option based on delivery deadlines.

Optimize freight consolidation for bulk shipping.

By shopping rates across carriers, businesses can cut expenses while ensuring timely delivery.

3. Optimize Packaging to Reduce Dimensional Weight Fees

Dimensional weight (DIM) pricing means larger packages cost more, even if they’re lightweight. Businesses that don’t optimize packaging end up overpaying for shipping.

3PL Center’s box optimization software ensures:

Smaller, better-fitting boxes that minimize empty space.

Custom packaging solutions to reduce DIM weight fees.

Right-sized packaging for oversized items to avoid unnecessary surcharges.

This strategy lowers shipping costs while maintaining product protection.

4. Utilize Multiple Warehouse Locations to Reduce Transit Costs

The farther a package travels, the higher the shipping cost. Businesses with only one warehouse end up paying more in zone-based pricing.

 3PL Center’s nationwide fulfillment network helps businesses:

Ship from the closest warehouse to the customer.

Reduce shipping zones and lower transit costs.

Offer 2-day shipping without express rates.

With multiple warehouse locations, businesses can cut costs while improving delivery speeds.

5. Consolidate Shipments to Save on Freight Charges

For businesses shipping in bulk, LTL and FTL consolidation is a cost-saving game-changer.

3PL Center’s freight consolidation services:

Combine multiple small shipments into one larger load to lower per-unit costs.

Reduce handling and minimize damage risks.

Save on warehouse storage by shipping directly to retailers.

By consolidating shipments, businesses cut transportation costs while improving supply chain efficiency.

How 3PL Center Helps Businesses Lower Shipping Costs

With rising freight costs, businesses need a partner that provides strategic shipping solutions. 3PL Center offers:

Discounted carrier rates for parcel, LTL, and oversized shipping.

TMS-powered rate shopping to find the lowest shipping cost.

Box optimization software to cut DIM weight fees.

Multiple warehouse locations to reduce transit expenses.

Freight consolidation services for bulk shipping cost savings.

Smart Shipping Strategies for 2025 and Beyond

Freight costs will continue to fluctuate, but businesses that take proactive steps can reduce expenses without sacrificing efficiency. By leveraging carrier discounts, optimizing packaging, consolidating shipments, and utilizing multiple warehouses, companies can maintain competitive shipping rates while improving fulfillment speeds.

Partnering with a 3PL like 3PL Center gives businesses access to exclusive discounted rates, smart freight consolidation, and advanced shipping solutions. With the right logistics strategy, businesses can navigate rising freight costs and keep their bottom line strong in 2025.

Want to lower your freight costs in 2025? Contact 3PL Center today to learn how our strategic shipping solutions can help your business save!