Freight Contracting – Streamline the Process and Improve Your Chances of Success

For freight shippers, freight and logistics consulting contracts provides stability and consistency for capacity planning, budgeting and reducing long-term risk. However, negotiating these contracts can be time-consuming and difficult. Having the right freight contract management system in place can help you streamline the process and improve your chances of success.

Freight contracts are agreements that establish a fixed price to move goods for an agreed-upon term. They typically include terms and conditions including load tendering procedures, payment terms, liability or insurance requirements and accessorial charges (fuel, handling, oversized). Freight contracts are used for both domestic and international transportation, as well as multiple modes of transport and can also cover additional services such as warehousing and customs clearance.

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Contract freight is often more lucrative for carriers than spot rates. The advantage is that contract rates allow for more predictable revenue and a more consistent order situation for both shippers and carriers. Carriers can build genuine partnerships with their customers and enjoy profitable routes for a set period of time. This allows them to grow their fleets with more confidence knowing they can meet the needs of their customers.

The key to contracting freight is finding the right shipper and carrier fit. This can be achieved by attending trade shows and conferences and cultivating strong relationships with shippers and 3PLs you can network with and develop partnerships. Developing these relationships can put you on their radar when they are ready to issue an RFP, allowing them to consider your company for their contract freight opportunities.

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