Follow us on Twitter!
Blog Header Logo
DG&A's Transportation Consulting Blog
Posted by on in Freight Bids
  • Font size: Larger Smaller
  • Hits: 2628
  • 0 Comments
  • Print

Now is the Time to Conduct your next Freight Bid

b2ap3_thumbnail_dreamstime_xl_38118025.jpg

 

As everyone knows, it is very difficult to time the stock market. While we are all aware of the old adage, “buy low and sell high”, in reality, this is not easy to do.

When it comes to freight rates, it is sometimes problematic to select the right time to put a company’s freight out for bid. The last few years have been particularly challenging for shippers. After the Great Recession, carriers have been adding capacity in a prudent and deliberate way. Gone are the days when carriers build transport companies and hope that shippers will come. In addition to managing their fleet capacity, carriers have also been challenged with the struggle of recruiting qualified drivers.

Consolidation in the trucking industry has been very prevalent in recent years. In Canada, companies such as TransForce have acquired large chunks of the small parcel, LTL and truckload sectors. There are simply fewer carriers for a shipper to choose from. Carriers have gained pricing leverage over the past few years.

While this has been going on, the rail sector has had their own service issues and has not been able to pick up some of the shortfall in truck capacity. Government regulations have also made it more costly to run a truck fleet. Taken together, these developments have led to upward pressure on freight rates.

As we approach the end of 2015, a window of opportunity has opened for shippers seeking to limit their freight costs in the New Year. The economies of Canada and the United States appear to be slowing. Trucking companies have made their fleet purchases and have prepared their 2016 budgets. They need revenue certainty to meet their budgets and satisfy their shareholders. They would like to enter the New Year in the knowledge that they will fill their fleets with consistent, quality revenue.

Now is the time for shippers to conduct their small parcel, LTL and truckload freight bids. Shippers are currently in a good position to negotiate favorable freight rates and fuel surcharges and place them under multi-year arrangements. Just as carriers have budgets to meet, so do shippers. Conducting a bid now allows a shipper to cast a wide net and test the market for freight rates. It allows the manufacturer or distributor to limit freight cost increases or even achieve decreases that will help improve their bottom line. Since the window of opportunity can close quickly and without warning, take advantage of current economic conditions.

 

If you need help in preparing a conducting a freight bid, feel to phone or e-mail us at dan@dantranscon.com. Dan Goodwill & Associates has conducted many successful freight bids over the past twelve years and we would be happy to help you.  To learn more about us, visit www.dantranscon.com.

0

Comments

  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Friday, 29 March 2024

Most Recent Posts

Search


Tag Cloud

Sales Training Distribution LTL business start-up financial management CN Rail Regina Amazon shipping wine economy FMCSA Canadian truckers professional drivers LinkedIn Omni Channel Load broker drones Toronto Maple Leafs Whole Foods carrier conference solutions provider Comey Deferred Packaging 3PLTL bulk shipping truck drivers Retail business security dimensional pricing Training last mile delivery driver shortages LCV's consumer centric Carriers Failure freight broker TMS FCA NAFTA Freight Capacity rail safety future of freight industry Masters in Logistics Online grocery shopping driverless freight audit Leadership small parcel freight payment freight audit Muhammad Ali Horizontal Supply Chain Collaboration BNSF automation Canada's global strategy Driving for Profit MBA Microsoft Warehousing autonomous vehicles Consulting robotics intermodal Adrian Gonzalez Canada-U.S. trade agreement YRC Canadian freight market Geopolitics Hudsons Bay Company President Obama Surety bond Management capacity shortages Tariffs natural disasters mentoring Stephen Harper Trade Vision transportation news Accessorial Charges e-commerce freight payment derailments ShipMax Transportation service CN freight forwarders shipper-carrier contracts transportation audit Freight contracts transportation newspaper Truckload computer security 2014 freight forecast small business TransForce hiring process EBOR Celadon Training New Hires BlueGrace Logistics Government Trucking CSA scores laptop Load Boards 2015 Economic Forecast Covid-19 YRCW Loblaw Associates NS $75000 bond dark stores shipper-carrier collaboration JB Hunt supply chain management pipelines computer protection Scott Monty capacity shortage broker bonds recession Shipper Entrepreneur truck capacity freight costs Tracy Matura NCC freight transportation Doug Davis Social Media in Transportation Wal-Mart IANA Doug Nix Infrastructure Yield Improvement Facebook Coronavirus Blockchain technology selling trucking companies cyber security USA Truck Anti-Vax Habs Spanx CSX shipper-carrier roundtable RFP CP Rail Job satisfaction Sales TMP Worldwide Packaging Electric Vehicles Outsourcing Sales Conway Canadian Transportation & Logistics US Manufacturing home delivery Dedicated Contract Carriage Software Advice Dedicated Trucking Business skills trade 2014 freight volumes Life Lessons Business Development Sales Strategy USMCA Search engine optimization autos Rail Freight Matching Bobby Harris freight transportation conference Colilers International customer engagement 360ideaspace Reshoring Leafs Freight Shuttle System Map-21 cheap oil Career Advice computer Blogging Trump US Auto Sales FMS US Housing Market UP Keystone Pipeline David Tuttle 2013 Economic Forecast freight cost savings CSA US Economy Twitter Toronto shipping risk management Climate Change Transportation Buying Trends Survey 2014 economic forecast the future of transportation Donald Trump tanker cars freight marketplace Right Shoring University of Tennessee Freight Management Montreal Canadiens fuel surcharge Ferromex Driver Shortage Value Proposition driver pay Canada U.S. trade energy efficiency New York Times Impeachment Dan Goodwill Crisis management Derek Singleton Global Transportation Hub dynamic pricing Politics Justice Sales Management Business Strategy cars driver Retail transportation Education freight bid Crude Oil by Rail Canadian economy Freight Werner freight rate increases ELD Transport Capital Partners (TCP) Schneider Logistics Hockey Inbound Transportation Broker freight agreements broker security Swift Freight Recession Success FuelQuest routing guide digital freight matching Social Media Freight Carriers Association of Canada Global experience marketing Rate per Mile Grocery peak season KCS Harper Davos speech Trucker Protest economic outlook employee termination 2012 Transportation Business Strategies. Jugaad Finance and Transportation Railway Association of Canada economic forecasts for 2012 General Motors truck driver Business Transformation Strategy Canadian Protests Freight Rates FCPC Digitization freight transportation in 2011 ProMiles US Election asset management online shopping Canada Success failure entrepreneur home delibery Fire Phone network optimization Cleveland Cavaliers Transloading Transcom Fleet Leasing CITA Shipper Pulse Survey Uber Freight APL freight RFP buying trucking companies Rotman School of Business trucking company acquisitions NMFC Transportation coaching Digital Freight Networks CRM MPG Emergent Strategy Transplace 3PL China Otto

Blog Archives

March
February
December
October
September
August
June
May
April
March
January