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How to Run a Profitable Shipping Business?

How to Run a Profitable Shipping Business


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Running a profitable shipping business does take organizational levels to an extreme, and it does help to have those with shipping and logistics experience on board, but it is not essential, especially if you are starting on your own. Getting shipping work is, for the most part, where you are going to have to concentrate your efforts, but it is also paramount to the success of your business that you are not driving around endlessly crisscrossing your path on the same day.

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Tips to Run a Profitable Shipping Business

#1 Getting Your Fleet Together

Depending on what size business you are looking to run, you are either going to require just one vehicle or a fair few. However, before you rush out and purchase a lot of different trucks for your business, you must think clearly. Working with just one vehicle will probably be enough in the first instance, and it is far better to start small and grow steadily than to jump straight in at the deep end to see if you can swim or cave in under the pressure it will cause.

For small items that require shipping, you may find that you can cope very well with a large car or small van that you may be able to keep relatively full of deliveries, which means that you will inevitably have a much better profit margin than if you had a large truck with the same amount of deliveries in it.

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#2 The Importance of a Full Load

It is far better to have full loads; this means that you will be getting the maximum amount of money per trip. It is inevitable that, from time to time, your vehicle will be only partly loaded or will only have orders that can be delivered in one direction, leaving your vehicle empty on its return trip. These are scenarios that you want to try to avoid. With the help of board for loads, you will be able to get additional shipping work, that with careful planning could very well see your vehicle making use of all the time it is on the road by shipping items along the way to its destination and then back to your depot.

#3 Organize Your Delivery Areas

Another way to make your shipping business a highly profitable one is to zone your shipping destinations so that your drivers, or you, are not driving from one side of the state to another on the same day when you are based in the middle. By having your drivers go in one direction only and then back to your depot in one day (or one shipping period), you will not only save in gas, but also in time spent on the roads.

You may very well feel that this could be difficult to put in place as your customers want their items as quickly as possible, but you can then use this to your advantage by charging them a premium cost at having their items shipped to them on days that do not include their zip codes, or work the other way that if they comply to your designated shipping dates, they can have discounted shipping costs on that particular order.

Final Thoughts

To make your shipping business profitable from the earliest possible date, you should make sure that you start small and let your business grow steadily. By using sites that offer load board facilities, you should be able to get shipping loads that will keep your vehicle full on your shipping trips and can make money on your journey from and to your depot.

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