Shippers: AJC Logistics can help you arrange rate flexibility.
Long-term trucking rates are trending higher. “Shippers spent 12% more per mile for dry van truckloads on average through most of the fourth quarter of 2020 than they did in 2019,” Freightwaves reported recently.
The higher rates reflect limited capacity to meet higher demand, so there are fewer carriers for more loads. How can shippers minimize the impact on their trucking costs?
AJC Logistics can help. We advise our customers to get out of the wildly fluctuating spot market and help them negotiate long-term rate commitments with trucking carriers. Because of our relationships with carriers, many are willing to offer some longer-term rate commitments.
AJC Logistics can help you minimize the wild rate swings and the need to constantly put your loads on a spot board. In exchange for the shipper’s commitment to tender more loads, certain carriers are willing to adjust their committed rates during substantial market moves. The arrangements we negotiate for you will cushion the impact during major upturns and downturns in market rates.
This flexibility is crucial in times of major market disruptions like we have been experiencing since the second quarter last year, when all trucking rates continued to rise and/or have large fluctuations. Our customers with these arrangements were not trapped into taking spot rates at stratospheric levels.
Whether it’s horrible storms or major supply-and-demand imbalances, don’t let market disruptions hold you hostage to spot rates. Call us now and get our experts working on your behalf.