Shippers enjoyed savings throughout 2023. As a national average, contract rates for dry van shipments fell 15% from January to November, according to data from DAT iQ. And with the inverted market, shippers were able to use the spot market strategically for deeper savings.
Click here to access “Freight Focus,” our annual report reviewing 2023 and looking ahead to 2024
Those discounts won’t last forever, but the strategies put in place now will fortify transportation networks when the markets do finally flip. Implementing systems and practices that handle the most volatile lanes in your network more efficiently will put you in the best position going forward.
Get dynamic
Shippers can optimize their transportation network by segmenting it based on lane characteristics, level of service requirements, and other relevant factors. This allows shippers to take more of a portfolio approach to procurement that includes dedicated, contract, and dynamic relationships. Taking advantage of the full spectrum of truckload transportation adds the flexibility and efficiency needed when markets tighten.
And when markets turn, low-frequency lanes in a shipper’s market will be where pricing becomes most unstable. By embracing a dynamic pricing strategy, you can better align your costs to the broader market while maintaining high levels of service.
Strengthen relationships
The current soft market is also an ideal time for shippers to deepen their relationships with tier 1 carriers. One approach would be to establish API connectivity to a select group of transportation providers. This technology enables seamless and efficient communication between shippers and carriers, streamlining the booking process. This could prove especially useful when looking for capacity on hard-to-fill lanes.
Laying this groundwork will help fortify your network regardless of the market conditions.
