Logistics represents between 8% and 15% of total product cost. Reducing this figure, even by a few percentage points, can dramatically improve your profit margins. Here are the strategies Elohe's top clients use to keep freight costs under control.
Plan Ahead — Avoid Spot Rates
The single biggest driver of high freight costs is urgency. Booking cargo 4-8 weeks in advance allows you to access planned rates instead of volatile spot market rates, which can be 30-60% higher during peak seasons or shipping disruptions.
Optimize Package Dimensions & Weight
Ocean freight is charged by CBM (cubic meters) or weight, whichever is greater. Reducing empty space in packaging through better design can significantly lower your effective cargo volume. Consider flat-pack designs or disassembled components where possible.
Choose the Right Incoterm
Incoterms define who pays for freight, insurance and risk at each point. EXW (Ex Works) gives you most control over freight costs as you arrange everything. FOB lets you control main freight; CIF includes freight in the supplier's price (which usually means you're paying a markup). Always compare total landed cost.
Consolidate Shipments (LCL)
If your volume doesn't fill a container, LCL consolidation is far cheaper than booking a full FCL you don't need. Alternatively, coordinate with your suppliers to batch multiple orders into a single larger shipment, amortizing fixed freight costs across more goods.
Negotiate with a Freight Forwarder, Not Directly
Freight forwarders like Elohe Group aggregate volume from hundreds of clients, giving them negotiating power with shipping lines that individual importers simply don't have. Our rates on key routes (China–Venezuela, China–Panama) are consistently lower than what you could negotiate directly.
Review Your HS Code Classification
Incorrect tariff classification often results in paying higher import duties than required. A customs broker can verify that your products are classified under the correct HS code — the one with the lowest applicable duty rate — through legal means like trade agreements or duty suspension programs.