LTL Shipping Costs to Rise Further in 2009

Trends are showing there will be lower fuel prices next year, but LTL freight shipping will be more expensive. Freight quotes will spike 8% to 9% due to environment shifts from a buyer's market to a seller's market. Slow business demand during 2008 has kept rate hikes to lower than 2%, but it's also shrinking the LTL freight industry.

Close to 3000 trucking companies will shut down, and many will join forces to compete with the larger

National carriers. This will be a challenge when the economy starts to pick up in coming years. With so many fewer freight trucks hauling, there will be a strong rise in demand.

With diesel prices likely to remain over $4 a gallon, lofty fuel surcharges won't disappear. In fact many companies will be adding extra charges, and eliminating free shipping altogether. Here are some ideas for lowering freight costs for the upcoming year.

To get the best rates, small companies should try to use a freight logistics company to handle their freight shipping needs. Unless a company ships enough volume through a carrier, they will not receive any discounts. Freight Logistics companies pass their discount on to the shipper, which in many instances is between a 30% to 50% discount.

If a company ships enough they can try negotiating a multiyear shipping contract. Carriers will be willing to give a discount in turn for years worth of shipments. This might take some serious negotiating, but it can be done.