How to Reduce Freight Costs: 10 Proven Strategies for Australian Businesses

How to Reduce Freight Costs: 10 Proven Strategies for Australian Businesses

The Real Talk About Freight Costs in Australia

Let's be honest: freight costs are killing your margins right now.

Fuel prices are all over the place. Driver shortages mean higher labour costs. And every time you turn around, there's another "surcharge" on your invoice that wasn't there last month.

We get it. At OzCoast, we talk to Australian businesses every day who are frustrated with unpredictable freight costs. The good news? There are real, practical ways to cut these costs without sacrificing service quality.

Here are 10 strategies we've used to help our clients save thousands on freight, and how you can do the same.

1. Find Out Where Your Money's Actually Going

You can't fix what you can't see.

Most businesses focus on the big freight rate but miss the sneaky costs that add up:

· Re-delivery fees because someone wasn't there to receive the goods

· Waiting time charges when your driver sits at the loading dock for 45 minutes

· Access surcharges for metro deliveries or sites that need special equipment

· Surprise fuel levies buried in the fine print

Pull your last three months of freight invoices and look for patterns. Are you constantly paying re-delivery fees to the same customer? That's a quick fix right there.

We do regular freight audits for our clients, and you'd be surprised how often we find 8-12% in costs that just shouldn't be there.

2. Stop Paying for Fresh Air

Every time you send a half-empty pallet, you're literally paying for nothing.

The fix: Consolidate your consignments. Instead of sending three separate pallets on three different days, combine them into one consignment.

Real example: We had a client moving building materials to Queensland. They were sending stuff whenever orders came in, usually half-full loads. 

We switched them to weekly consolidated runs on the same routes. Result? 18% cost reduction in the first quarter.

The trick is being consistent. Regular volumes mean we can plan better routes and negotiate better rates.

3. Don't Just Accept the First Quote

Too many businesses pay the same rates year after year without questioning them.

Here's the thing: freight pricing is negotiable, especially if you're a regular customer.

Long-term contracts beat spot rates every time. When you commit to regular volumes, carriers give you better pricing. You also avoid the wild price swings when demand spikes.

At OzCoast, we negotiate on behalf of multiple clients at once. That buying power gets us rates that individual businesses can't touch. And we pass those savings straight to you.

Quick tip: Don't just negotiate price. Negotiate terms that actually matter like flexible pickup times and transparent fuel charges.

4. Make Every Truck Trip Count

Empty trucks cost money.

When a truck drops off your goods in Brisbane and drives back to Sydney empty, that's wasted capacity. Backhaul opportunities mean finding cargo for that return trip, which spreads the cost across both journeys.

This is where having a logistics partner really pays off. At OzCoast, our national network means we can match outbound and return loads across 

hundreds of routes daily. You get better rates because we're not paying for empty kilometres.

We also use route optimisation software to plan the most efficient paths, avoid traffic, and group nearby deliveries together. Less fuel, less time, lower costs.

5. Fix Your Packaging (Seriously)

Bad packaging costs you twice: once in freight charges, and again when stuff gets damaged.

If your boxes are too big or pallets aren't stacked properly, you're paying for empty space. Carriers charge by dimensional weight, not just actual weight.

Quick wins:

· Use packaging that fits your product

· Stack pallets to maximum safe height (usually 1.2m)

· Wrap everything properly so nothing shifts in transit

· Label clearly with accurate delivery details

 We've seen clients cut damage claims by 30-40% just by improving packaging. That's massive when you add up replacement costs and customer complaints.

6. Match the Service to the Job

Not everything needs express delivery.

A lot of businesses default to premium tra for everything, but most freight doesn't need next-day delivery. Standard road freight is perfectly fine for 80% of deliveries and costs 40-60% less than express.

Use this:

· Road freight for regular, non-urgent consignments

· Intermodal (road + rail) for long hauls between major cities when you have time

· Express only for genuine emergencies

We help clients figure out what needs fast delivery versus what can travel slower and cheaper. Most find they've been overpaying for speed they didn't need.

7. Time Your Deliveries Smart

Delivering at 8 AM Monday morning in Sydney? You'll pay extra for that.

Peak hour surcharges and after-hours fees can add 15-25% to your freight cost. If you can be flexible with delivery windows, you'll save money.

Try mid-morning or early afternoon deliveries instead of peak times. And definitely avoid weekend or evening deliveries unless your customer genuinely needs them.

Even giving carriers, a 4-hour window instead of demanding an exact time slot can get you better rates because it gives them routing flexibility.

8. Let the Experts Handle It

Managing freight in-house seems cheaper, but is it really?

Think about the time your team spends getting quotes, booking deliveries, tracking deliveries, and fixing problems. Then add in the fact that you probably don't have the carrier relationships to get the best rates.

Most businesses that partner with us save 10-20% in the first quarter just from:

· Better negotiated rates

· Less admin waste

· Fewer booking mistakes

 Your team gets to focus on running the business instead of chasing down freight quotes.

9. Use Modern Tech (Even If You Don’t Want To)

Spreadsheets and phone calls aren’t cutting it anymore.

Modern transport management systems streamline the entire process, giving you automated quoting, instant proof of delivery, and clear visibility of your freight costs. They also help identify potential issues before they become costly mistakes.

At OzCoast, our platform integrates with your systems, so you get enterprise-level technology without needing to buy anything. You can see exactly what you're paying, manage your consignments efficiently, and receive digital delivery confirmations automatically.

The best part? You’re not the one who must learn how to use it. We handle that for you.

10. Review Your Freight Every Quarter

Fuel prices change. Carrier rates shift. Your business evolves.

If you're still paying the same rates you locked in two years ago, you're probably overpaying.

Do this every quarter:

· Review your freight spend by route and carrier

· Look for patterns and problem areas

· Check if your rates still match the market

· Ask your logistics partner what's changed

 We do proactive quarterly reviews with clients to keep them competitive. Sometimes we find savings just because a new carrier entered a region with better pricing.

Bottom Line: Get a Partner Who Actually Cares

Look, reducing freight costs isn't rocket science. But it does require attention, expertise, and relationships you probably don't have time to build.

At OzCoast, this is literally all we do. We've got the national network, the technology, and the carrier relationships to reduce your costs while improving service.

We're not trying to be the cheapest freight company in Australia. We're trying to be the smartest one and help you be smarter with your logistics too.

Ready to stop overpaying? Get a quote from OzCoast and let's find those savings together.