Understanding Shipping Lingo to Reduce Shipping Costs | Lojistic [ ](https://www.lojistic.com)- Why Lojistic - [ All Inclusive. Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. 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Zero Cost. Every Lojistic solution. No limits. No fees. ](https://www.lojistic.com/pricing) - [ All Modes. All Carriers. All Currencies. Parcel, LTL, truckload, ocean, rail, air freight. ](https://www.lojistic.com/carrier-connectors) - [ Industries Served Retail, eCommerce, 3PL, manufacturing, and more. ](https://www.lojistic.com/industries-served) - [ Roles Most Impacted & How Supply chain & logistics, procurement, finance leaders. ](https://www.lojistic.com/roles-most-impacted) - [ Use Cases How Lojistic helps manage and reduce shipping costs. ](https://www.lojistic.com/use-cases) - Platform Features - [ Global Analytics & Reporting Predictive analytics and scenario modeling for all carriers globally. ](https://www.lojistic.com/shipping-analytics-software) - [ Rate Optimization & RFPs Tech-powered data prep, strategy, and rate impact analyses. ](https://www.lojistic.com/rate-optimization-rfps) - [ Parcel and Freight Audit & Payment *+PAY* Carrier refunds and payments automated and made simple. ](https://www.lojistic.com/freight-audit-and-payment) - [ GL Coding & ERP Sync Automatically code shipping costs down to the order level ](https://www.lojistic.com/gl-coding-erp-sync) - [ Lojistic API & App Integrations Easily integrate normalized shipping data to your business systems. ](https://www.lojistic.com/api-app-integrations) - [Pricing](https://www.lojistic.com/pricing) - [About](https://www.lojistic.com/about) - [Company](https://www.lojistic.com/company) - [Culture](https://www.lojistic.com/culture) - [Careers](https://www.lojistic.com/careers) - [Partner Programs](https://www.lojistic.com/partner-programs) - [Security](https://www.lojistic.com/security) - [Media](https://www.lojistic.com/media) - [Ratings & Review](https://www.lojistic.com/reviews) - [Videos](https://www.lojistic.com/videos) - [Blog](https://www.lojistic.com/blog) - [Contact](https://www.lojistic.com/contact) [Create Free Account](https://app.lojistic.com/demo/connect-carrier?activeStep=create-account&trackDemo=false) [View Demo](https://app.lojistic.com/demo) [ Log In](https://app.lojistic.com/demo/account/login?trackDemo=false) Understanding Shipping Lingo to Reduce Shipping Costs ===================================================== ![Icon denoting blog author information in Lojistic’s content layout](/images/pages/blog/icon-author.svg)Rich Harkey ![Calendar icon used to display blog post dates on Lojistic’s website](/images/pages/blog/icon-calendar.svg)April 27, 2012 When you make shipments through either FedEx or UPS, when was the last time you thought about how much of the shipping costs you could actually be saving? In reality, one of the easiest ways to save money is to focus on reducing your shipping costs. We’ve gone over a variety of ways you can be saving your company money on shipping, from parcel audits to instructions on how to write a shipping form, but another important way is to understand the language used by the carriers that can better help you talk to carrier representatives, especially during [carrier negotiations](https://www.lojistic.com/rate-optimization-rfps/prenegotiated-rates). Some of this shipping language mainly comes during the carrier negotiation process. As you continue a relationship with a particular carrier, their goal is profit-driven, with incentives and goals the carrier representatives are set to achieve. Because of this, the carrier negotiation process becomes highly subjective since there is no one system or calculation that the carriers use to determine incentives from one shipper to the next. Instead, the representatives will constantly use ‘relationship’ or ‘value-added services’ to try and create a favorable deal without any improvement on rates. The solution is to make sure to address this issue with your representative. Although value-add services and a good relationship are great to have, great discounts and better rates are even more important and imperative to getting a good discount. Making sure to vocally acknowledge this note can go a long way to helping secure reduced shipping costs in the future. We at [Lojistics](https://www.lojistic.com/) can make sure that you are well-prepared for all aspects of a carrier negotiation and can help you on your way to discounts. Along with helping you prep for the negotiation and what to expect, our experienced employees with carrier experience and amazing, innovative tools will help give you the proper analytics and research to help build up a case for shipping discounts. The best strategy for [reducing shipping costs](https://www.lojistic.com/rate-optimization-rfps) is a foolproof one! ![Rich Harkey Headshot](https://www.lojistic.com/assets/public/users/rich.png) Author Rich Harkey Rich Harkey Senior Strategy Manager Rich Harkey is a results-driven professional with extensive experience in the logistics and supply chain industry. As the Senior Strategy Manager at Lojistic, Rich leverages over three decades of expertise to help businesses improve their shipping strategies and reduce costs. With a deep understanding of the requirements of shippers and the operational intricacies of carriers, he excels in everything from optimizing business rules and managing carrier invoices to negotiating carrier contracts. Rich's comprehensive knowledge of the logistics industry, combined with his strategic insights and passion for data analysis, has enabled thousands of companies to gain visibility into their shipping expenses, driving impactful results. 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