GlossaryEN1 min readUpdated: Jun 22, 2026

Shipping Cost Optimization

Freight forwarders and shippers treat shipping cost optimization as a recurring discipline, not a one-time exercise.

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Last updated: 22 June 2026Published: 19 June 2025

Source: https://www.shippo.com/blog/shipping-cost-optimization

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Definition & Explanation

Freight forwarders and shippers treat shipping cost optimization as a recurring discipline, not a one-time exercise. The main levers are carrier rate benchmarking, shipment consolidation, packaging adjustments to reduce chargeable weight, and periodic renegotiation of contract terms. Mode selection is equally central: air freight for time-critical cargo, ocean freight on high-volume lanes, rail where it competes on long overland corridors. A systematic approach requires continuous monitoring of contracted rates against live market data and regular reviews of routing logic. This sets it apart from a simple rate enquiry, which produces a snapshot rather than sustained cost control.

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Shipping Cost Optimization

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FAS cost transfer

CIF cost transfer

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