The domestic transportation market continues to show signs of leveling.
Rates have fallen steadily over the past several months and tender rejections are down nationwide. These shifts are sparking optimism for many shippers as they begin to build out annual transportation budgets.
With peak holiday season around the corner and the threat of a freight recession looming, however, it may be wise for shippers to approach the changing market with caution. Companies can take proactive measures —...
A freight recession is on everyone’s mind as capacity continues to loosen and spot rates remain on long steady decline for months.. As rates begin to approach pre-pandemic levels, some carriers are shifting their focus toward protecting their bottom lines.
The logistics industry is collaborative by nature and leaning into that fact is one of the most effective ways carriers can ward against turmoil during market shifts.
“The most important thing for carriers to focus on, regardless of how the...
Capacity is loosening and spot rates have dropped steadily over the past few months, shifting the pricing power from carriers to shippers. This shift comes after two years of constricted capacity and soaring volumes that allowed carriers to benefit from sky-high spot rates.
A slight decrease in consumer demand has played a role in this market turn, but last year’s contract rate increases also have fueled it. FreightWaves research analyst Michael Rudolph recently explored how rising contract...
The logistics industry is in the midst of a widespread technological revolution. Spurred by the 2018 ELD mandate, the logistics software space has exploded over the past few years. Thousands of new solutions have hit the market, including dozens of new load boards, forecasting services and tracking applications.
At the same time, the coronavirus pandemic sent the market into a tailspin, causing seriously strained capacity and historic rate hikes. As a result, these new-to-the-scene technologies...
https://www.freightwaves.com/news/api-integrations-offer-pathway-to-compete-in-connected-market
Shippers have long relied on Excel spreadsheets and emails to handle their freight procurement processes. When pandemic-fueled headwinds pushed historic amounts of freight into the spot market, however, many shippers found themselves running an unmanageable amount of seasonal bids to compensate for annual contract failures.
From there, the traditional Excel spreadsheet and email system started to fall apart.
“If you have 20 or 30 carriers, you don’t really need a robust system to run bids. You...
https://www.freightwaves.com/news/new-rfp-landscape-building-strong-contracts-in-2022
After years of soaring rates and strained capacity, shippers have been buoyed by a softening market over the past few months. As capacity loosens up and spot rates fall, shippers and carriers alike are taking a look at their contracts. While carriers are hoping to lock in new annual rates before they dip even lower, shippers may be interested in evaluating shorter-term options that allow them to take advantage of future market shifts.
“For the first time in more than 3 years, the market is more...
https://www.freightwaves.com/news/shorter-rfps-gain-ground-as-market-softens
Every year around this time, shippers start seeing increased demand for all the quintessential summer fun foods as folks stock up on hot dogs, chips and beer for their July 4 barbecues. This year, American consumers are expected to spend $7.7 billion – a number that has climbed over $1 billion since 2019 – on food items leading up to the holiday, according to the National Retail Federation.
This year’s holiday spending estimate shakes out to roughly $84 per person across the country, and this...
https://www.freightwaves.com/news/summer-holiday-surge-provides-perfect-use-case-for-shorter-rfps
“Data” has become a popular word in the transportation and logistics industry over the past several years. At this point, shippers are well aware that they need access to data in order to make the best decisions possible for their business. There tends to be some confusion, however, around determining which data points are important and what exactly to do with that information once it is secured.
For shippers, the true value of data lies in its cost-saving and performance-enhancing potential....
https://www.freightwaves.com/news/data-driven-decision-making-creates-change-in-supply-chain
The logistics industry is characterized by volatility, and companies hoping to thrive in the space need to be able to adapt to change more or less instantaneously. Agility is more important than ever as pandemic-related headwinds continue to play out and new technologies strengthen competing companies by offering increased flexibility.
A few weeks ago, carriers had the market cornered, leading to fluctuating volumes and soaring spot rates. Now, volumes are beginning to stabilize, tender...
As more shippers move away from annual contracts in favor of more frequent bid processes, knowing exactly when and how to build RFPs throughout the year can be a challenge. Most shippers are used to executing one bid process per year, and learning how to take advantage of shorter contracts requires practice and a good partner.
No matter how long the contract term is, building the most effective RFPs possible requires self-awareness, attention to detail, industry insights, and a willingness to...
https://www.freightwaves.com/news/identifying-how-and-when-to-build-rfps-all-year-long