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Shipping freight rates have skyrocketed during the past two years since the Covid-19 pandemic hit. The new consumer trends greatly impacted the global economy, and most logistics and transportation companies were not ready for such a high increase in demand. Therefore, causing significant delays, unsatisfied customers, and even companies who were forced to close shops.  

ECommerce growth has been one of the most significant shifts these past few years. In fact, according to a DigitalCommerce360 report, the eCommerce industry rose by a whipping 32% in 2020 alone. But this was only natural. As we were all locked down in our homes, the only way to purchase essential items was through the internet. Many started to rethink their work, health, and social routines, compelling them to buy home office furniture, gym equipment, and additional furniture to transform their homes into enjoyable spaces.  

The industry was not ready for this shift. Containers began to pile up in ports while transportation companies tried to find the capacity to get them on the road to their destination. Naturally, global shipping rates increased with tight capacity, and according to the World Economic Forum, shipping rates will still be at record highs throughout 2022.   

So, what can transportation companies do to stay competitive, combat the high freight shipping rates, and avoid financial struggles? 

How to manage high freight shipping rates? 

Since the beginning of the pandemic, companies began to search for strategies to overcome the disruptions and ensure high-quality and on-time services.  

One of the most common actions was partnering with third-party logistics providers. In fact, according to a study by Korn Ferry, 91% of manufacturers who used 3PLs noticed that 3PLs provided new and innovative ways to improve supply chain logistics.  

Even though 3PLs cannot change the volatile market, they can help companies avoid additional costs and lower the pressure from rising costs and inflation.   

Reasons to partner with a third-party logistics provider 

  • Cost reductions 

As 3PLs help your business during every step of the transportation process, they know the perfect transportation partners who can help your business provide better services. Especially with carriers, it’s essential to know which one is the right fit for your specific freight. 3PLs have a vast network of carriers that handle from very complex to simple loads where they can choose from to ensure you’re paying the right price for the service you contract. 

  • Agility 

Having a birds-eye view of the entire transportation process allows third-party logistics companies to know exactly where the operational gaps are. This kind of insight and data will enable them to provide efficient alternatives for transportation companies that ensure their freight is delivered faster. Whenever there are any issues along the way, they have the information at hand and know what to do to address these issues and make up for the time lost.   

  • Industry and market knowledge 

Understanding the market and the industry means anticipating challenges and creating efficient strategies to stay ahead of disruptions. A 3PL has knowledge of the entire transportation process. It can provide valuable insights on how to make each of its clients’ supply chains faster, ensuring exceptional customer service and repeat business.   

  • Innovation 

Finding new ways to do the same thing more efficiently is critical, especially in an industry where customers already have negative delivery experiences due to delays. Third-party logistics companies can help you source the right transportation partners to ensure fast transportation. Additionally, most 3PLs are now heavily utilizing technology platforms that provide complete visibility and accuracy.   


Ensuring your business overcomes disruptions is the only way you’ll be able to stay competitive. At Logistics Group International, we understand the industry, have the experience, and a vast carrier network that allows us to create a streamlined transportation process that helps your business to provide the best possible service to your clients.