Freight is one of the largest controllable expense categories for manufacturers — typically 5–10% of total revenue. In 2026, with carrier costs rising, driver shortages persisting, and supply chains tightening, reducing freight spend is more urgent than ever. Here are 10 proven strategies manufacturers can implement today.
1. Conduct a Freight Audit
Start by auditing your freight invoices. Industry studies show 5–15% of freight invoices contain errors — and the errors overwhelmingly favor the carrier. A professional freight audit recovers overcharges, identifies systematic billing issues, and provides the data foundation for all other cost-reduction initiatives. House of Freight offers free freight audits with no obligation.
2. Compare Rates Across Multiple Carriers
No single carrier has the best rate on every lane. Using a TMS that compares rates across 120+ LTL carriers and thousands of truckload carriers in real-time ensures you always book at the market-lowest rate. House of Freight's Cabo TMS platform does this automatically.
3. Optimize Freight Class
Incorrect freight classification is a major cost driver. If you're letting carriers reclassify your LTL shipments at the terminal, you're overpaying. Use density calculators to determine the correct class before booking. Accurate NMFC codes and precise dimensions are your best defense against reclassification fees.
4. Consolidate Shipments
Freight consolidation — combining multiple LTL shipments into a single truckload or multi-stop load — can cut per-unit costs by 20–40%. Warehouse-to-warehouse pooling and route optimization reduce the per-shipment cost base.
5. Optimize Mode Selection
Heavy LTL shipments (over 10,000 pounds) may be cheaper as volume LTL or partial truckload. Half-empty truckloads might consolidate into LTL. Intermodal is significantly cheaper than truckload for long-haul freight over 700 miles.
6. Reduce Accessorials
Accessorials — liftgate, residential, detention, redelivery — add 15–40% to many shippers' base rates. Identify recurring accessorials and address the root cause: negotiate them into base rates, adjust pickup/delivery locations, or improve loading processes.
7. Use Contract Rates Strategically
Lock in contract rates during soft markets for your predictable, high-volume lanes. Use spot market for overflow and non-standard lanes. A hybrid approach provides both stability and flexibility.
8. Implement a TMS
A Transportation Management System automates rate shopping, carrier selection, document management, and tracking. The right TMS reduces administrative overhead and ensures every shipment is booked at the best rate. The Cabo TMS platform integrates with your ERP/WMS via API.
9. Improve Packaging and Loading
Better packaging reduces damage (and claims costs). Proper loading reduces rejected loads and reclassification. Dense, well-packaged freight qualifies for lower freight classes and avoids accessorial charges.
10. Partner with a Strategic Logistics Provider
Managing freight in-house means limited carrier relationships and manual processes. A strategic partner like House of Freight brings Priority1's 47,000+ carrier network, the Cabo TMS platform, in-house customs brokerage, and freight bill auditing — all under one roof. This is the single highest-impact change most manufacturers can make.
Start with a Free Freight Audit
The fastest way to reduce freight costs is to understand what you're currently paying. House of Freight offers free freight audits that benchmark your current rates against market rates, identify billing errors, and build a cost-reduction roadmap. Schedule your free freight audit today.
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House of Freight provides free freight audits powered by Priority1's 47,000+ carrier network and the Cabo TMS platform. See exactly what you should be paying — no obligation.
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