Freight shipping can be costly, often leaving businesses wondering why they’re paying so much. Understanding the factors that contribute to high shipping costs and how Oway’s innovative model addresses these issues can help you manage your shipping expenses more effectively.

1. Traditional Cost Factors in Freight Shipping

Several factors contribute to high freight shipping costs:

Fuel Costs: Fluctuations in fuel prices can significantly impact shipping rates.

Carrier Rates: Traditional carriers set rates based on a range of factors, including distance, weight, and type of freight, often including added fees and surcharges.

Handling and Warehousing: Shipments typically go through multiple handling stages and warehousing, which can increase costs and risk of damage.

Broker Markups: Traditional LTL brokers often act as intermediaries, marking up rates to cover their fees and sometimes inflating single pallet rates to compensate for lack of FTL (Full Truckload) shipments.

2. How Oway’s Model Reduces Costs

Oway’s approach tackles these traditional cost factors head-on:

Utilizing Empty Truck Space: Oway maximizes revenue for drivers by filling empty truck space with shipments going to the same destination. This reduces costs for customers since the space would otherwise be wasted.

No Warehousing: By avoiding warehousing and handling in between, Oway minimizes risks of damage and delays. Shipments are loaded directly onto trucks, reducing the need for multiple handling stages.

Transparent Pricing: With other freight brokers, and even other automated digital load boards the cost you see is not the cost you get. How do we know this? We experienced it first hand when we were shippers and we had enough. At Oway the cost you see is the cost you get - and it even includes insurance.

Automated Freight Classification: Oway uses machine learning to automatically assign freight classes based on inputted data, removing the guesswork and potential for incorrect classifications that could lead to higher costs.

Automated Paperwork: Oway also automates all paperwork and stores it directly in your account for easy organization and access. No more chasing drivers down for signatures or dealing with filing cabinets (unless you want to - you can always easily download and print out your documents whenever you want).

3. Additional Benefits of Oway’s Approach

Rapid Pick-Up and Delivery: Oway’s efficient system allows for pick-ups as fast as 30 minutes and deliveries on the same day, provided the distance is within 6 hours. This quick turnaround minimizes delays and keeps costs down.

Direct Communication: With Oway, you have the ability to contact the driver directly, facilitating immediate communication and issue resolution.

Real-Time Tracking: Oway’s real-time tracking system provides visibility into your shipment’s progress, ensuring you’re informed throughout the shipping process.

4. How Small Businesses Benefit

Oway’s model is particularly beneficial for small businesses:

Cost Savings: By utilizing empty truck space and avoiding unnecessary handling, Oway offers reduced shipping rates that can be up to 50% lower than traditional market rates.

Expanded Reach: Affordable shipping costs allow small businesses to expand their reach to previously high-cost locations, opening new markets and opportunities.

Conclusion

Understanding why freight shipping is expensive and how Oway’s innovative approach addresses these factors can help you manage your shipping costs more effectively. By utilizing empty truck space, avoiding warehousing, and offering transparent pricing, Oway provides a cost-effective solution for your shipping needs. Discover how Oway can help you save on shipping costs and expand your business reach today!