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Small to industrial-size farming requires heavy machinery and equipment that can be expensive to buy and ship. With high shipping costs that primarily come with logistical challenges and levies, it is difficult for farmers to maintain optimal operation expenses and make significant profits.
Transporting tractors, forage harvesters, fertilizer spreaders, balers, and other advanced and state-of-the-art equipment, requires knowledgeable and well-researched strategies to cut shipping costs significantly.
Luckily, there are numerous ways in which modern farmers can achieve freight cost reduction. This guide will give you insight that will help you maximize farm equipment shipping savings.
Reducing The Cost Of Transporting Farm Machinery In The Planning Phase
One of the best ways to reduce the cost of transporting essential farm equipment is preparedness. Here are some strategies that can lower the cost of transporting equipment from abroad at the planning stage.
- Choosing an Appropriate Shipping Technique: Though air transportation is faster, it is too expensive for farmers who want to save some money after shipping the farm equipment. Shipping the machinery by rail, sea freight, or road is wise, depending on the destination. This is more than ten times cheaper than air freight.
- Shipping During Off-Peak Seasons: When there is a reduction in the demand for heavy machinery, including farm equipment, you might get low shipping costs compared to the peak season.
- Find an Affordable Shipping Company: You can also lower your freight costs by working with a cost-effective shipping company that allows price negotiations. The business should be reliable and have a perfect track record of safe transportation and delivery of low to high-risk goods.
- Learn All The Shipping Regulations: During the planning phase, you need a professional to educate and empower you to understand the complex shipping procedures, imposed duties, and laws concerning your shipment. Such preparations help you avoid fines and penalties or apprehension of the equipment.
Reducing The Cost Of Transporting Your Farm Equipment In The Shipping Phase
There are other helpful tips for reducing the cost of transporting your farm equipment from another country.
- Ship as a Group of Farmers: When shipping the machinery, you can do it in a group to share the total expenses. The shipment becomes much cheaper because everyone contributes a certain percentage of the accumulated shipping amount.
- Consolidation of Many Pieces: You can also consolidate numerous farm equipment as one package and negotiate an enormous discount. The consolidated shipment is more cost-effective than transporting one piece of equipment separately.
- Proper Packaging of the Equipment: One of the keys to freight cost optimization is efficient parking. If you can reduce the risk of damages to your farm equipment, you lower the shipment cost because it will cancel the dangers of importing replacements of damaged parts or the entire machinery. Therefore, it is essential to properly and safely package the equipment to get to its destination in proper working condition.
- Ensure Proper Weights: When shipping the farm equipment, it is vital to understand the legal dimensions. Knowing the required maximum weights of farm machinery can prevent additional charges in the form of special permits.
Other Ways to Lower the Expenses of Shipping Your Farm Equipment
Shipping of farm machinery can also attract more charges that come with logistics. A shipping company might ask for other fees to cover additional time and distance in delivering the cargo, limited access location delivery, long haul shipping, gate services, fuel surcharge, and inside delivery.
The added costs are accessory fees that you can avoid through:
- Optimizing Routes: Advanced logistics software, such as delivery management systems, can help track your equipment in transit. The system helps track drivers, create optimized routes, and capture proof of delivery time. The software prevents shipping companies from charging extra fees due to unnecessary delays.
- Transparency: The shipping company transporting your farm equipment should be honest and reliable and offer transparent costs to avoid hidden fees. Therefore, before confirming the shipment, you should review loading and unloading costs, other emerging expenses, and waiting hours.
- Check Fuel Prices: You can reduce the accessory fee by monitoring any adjustments in fuel prices to avoid exaggerated surcharges.
Reducing The Cost of Shipping Your Farm Equipment
In the competitive world of agriculture, it’s vital to understand the shipping market, regulations, and costs to reduce freight expenses. For freight cost optimization and farm equipment shipping savings, farmers and agribusinesses should consider working with logistics experts, negotiating price cuts or discounts, and importing during off-peak seasons.
In addition, they can ship as a group or consolidated shipment. The strategies you use to lower shipping costs should comply with the legal requirements, laws, and policies to avoid fines.