Follow us on Twitter!
Blog Header Logo
DG&A's Transportation Consulting Blog
Subscribe to this list via RSS Blog posts tagged in shipper-carrier contracts


The essence of successful freight rate negotiations is an honest exchange of information. Carriers count on shippers to supply them with complete and accurate information on shipment weights, dimensions, volumes by lane, seasonal spikes and any special service (i.e. job site deliveries, weekend pickups etc.) requirements. Shippers expect carriers to be able to supply them with the correct types of equipment to pick up their freight at the designated time, to provide adequate amounts of equipment at the right time to move their loads, to meet their designated transit times over 95% of the time and to provide good customer service and quality information as they outlined in their submission and interview.

While this all seems so straight-forward and reasonable, there are a host of challenges that get in the way of committed shipper-carrier relationships. Here are a few to consider.

Changes in Shipment Volumes

Business conditions are constantly changing. There are ebbs and flows in the general economy that can impact on many industries, including both shippers and carriers. There is ongoing competition in the market where shippers win or lose customers every day. Then there are mergers and acquisitions and new product launches (or old product cancellations) that can lead to rationalization of locations for factories or distribution facilities. The net impact of these changes is that the shipment volumes discussed in an RFP may not come to pass or the actual volumes by lane may vary over time.

Hits: 826
Continue reading 0 Comments

b2ap3_thumbnail_dreamstime_l_19275327.jpgFurther to the last blog, a well written motor carrier agreement can be a powerful tool in promoting partnerships between shippers and freight companies. Listed below are some of the major components of a comprehensive contract.

1. Parties to the Agreement

The document must clearly identify the parties to the agreement, including the use of any third parties or sub-contractors. This is very important since it is critical that all transport companies that perform services for the shipper have the same licenses, insurance and service levels as the primary party to the agreement. In other words, they must be a replica of the primary party or any differences must be so stated. The agreement must also make clear that the parties to the agreement are independent contractors. Neither Shipper nor Carrier shall have the right to enter into contracts or pledge the credit of or incur expenses or liabilities on behalf of the other party.

2. Services

a) Types of services

Hits: 912
Continue reading 0 Comments

Most Recent Posts


Tag Cloud

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

Blog Archives