Freight shipping rates are consistently going through various ups and downs. It is the most challenging and time-consuming task to get the most favourable rates. And when your struggle is never-ending to get good rates then you need to maintain your bottom line. The situation worsens more in a deflationary market to secure the best freight shipping rates that you deserve. No doubt it may be difficult, but it is not impossible. 

Let us delve into more details on how to make sure that you are getting the best freight shipping rates for your mid-sized freight. Let us first understand what is a deflationary market. 

What is a Deflationary Market?

Deflation is a state in which the costs of products and services decrease and the value of money boosts. Often, a deflationary market foregoes a slump or implies hard financial times. Typical conditions of a deflationary market are the following: 

  • Dearth in production costs
  • Surplus of goods
  • Lessened price of goods and services
  • Reduced demand
  • Augmented purchasing power for consumers

Why Secure Contract Rates in a Deflationary Market? 

In a freight industry, often a deflationary market refers to lower spot rates as compared to contract rates. In such a market, it is an optimal strategy to select freight contract rates for primary lanes. However, with routing guides more susceptible to failure, it is also judicious to plan for more transactional spot loads, particularly for mid-sized freight that cannot fill a truckload.  

Spot Rates vs. Contract Rates

  • A spot rate is a price offered by a freight service provider on a one-time basis. It is subject to market fluctuations and changes on a daily basis due to supply and demand. On the other hand, a contract rate is a fixed price and volume for a specific lane and period. These rates offer stable, long-term pricing for freight services. 

Choosing contract rates over spot rates has several benefits.

  • Less subject to market fluctuations
  • Offers security for price and capacity
  • Ability to negotiate fuel and accessorials
  • Easier to track performance
  • Lead to strategic carrier relationships

How to Save Even More on Shipping Rates? 

Let us find out how you can save more on shipping rates. 

Recognize 10-44 Linear Feet of Freight That can’t Reload a Truck

Shipments that fall in the range of 10 to 44 linear feet are often too large for less-than-truckload (LTL) shipping, but too small to fill a full truckload. These shipments are also more likely to experience high shipping costs, delays, and damage. To mitigate these issues, it is important to identify the shipments falling in this range and determine the best course of action for shipping them.

  • How are these currently moving?
  • What are your rates in each lane?
  • How many of these do you have shipment details for more than 24 hours before pickup?

If you’re trying to decide on the best shipping method for your needs, it’s important to reflect on certain questions. This will help you identify areas that can be optimized, compare different options fairly and ultimately choose the right shipping method. Even if you don’t have enough freight to fill a truck, you can still access full truckload prices with shared truckload (STL) service. With STL, your freight is combined on one truck with other freight that’s heading in the same direction. This service is ideal for shipments between 10-44 linear feet and it’s not priced by class. By choosing STL, you can still enjoy the benefits of full truckload service, but with less damage, faster delivery times, no accessorial fees, and cheaper rates overall. 

To Conclude 

Above mentioned tips are the best to secure the best rates for your shipment in the deflationary market. You can always find the right solutions when it comes to problems, given that you are aware of what are the best practices to follow under different challenging circumstances.

For more such information, you can read the other blogs of Desired Transport.