Thanks to an increase in e-commerce and an abundance of freight, we are in the middle of a very carrier-friendly negotiating environment. LTL freight volume is exceptionally high, while carrier capacity is low. LTL carriers are in high demand and they are doing their best to meet the needs of all shippers. However, since they are feeling the constraints and are also dealing with the driver shortage, carriers are able to demand a little more from freight shippers.
As freight-pricing application programming interfaces (APIs) continue to proliferate throughout the transportation industry, they increase the data and information that shippers, 3PLs and carriers have at their fingertips. Not only do they help create efficiencies in operations, but they can also increase efficiency in the contract negotiating process.
You can improve the process and results of your LTL carrier negotiations by being as prepared as possible. The best way to do that is by aggregating as much data as you can – about your own freight and shipping lanes as well as the preferred freight and lanes of your carriers. This will ensure that you choose the best LTL carriers to offer the best service for your freight, your customers and your suppliers at a fair market value.
