Although freight pricing has gone down over the last year, as carriers battle harder to contract a lower overall volume of freight, it will inevitably rise again as the economy recovers. Most economists are forecasting that the freight industry will see solid recovery beginning in the second quarter of 2010. For shippers, this may mean that the shipping bargains they’ve been getting will be much harder to find.
For heavy shippers, even the slightest increase in freight rates can add up. Carriers generally issue “annual general rate increases” which can actually occur more than once a year.
Shippers should also be aware that these general rate increases are “weighted average increases”. Carriers usually make higher increases in longer haul lanes, minimum charges and lower weight shipments.
Freightquote.com’s customers won’t have to worry quite as much as shippers who try to negotiate directly with the carriers though. Freightquote’s shipping volume allows it to negotiate at a higher level with carriers, protecting its customers from biannual rate increases. Although shipping rates will most likely rise with the rest of the economy, Freightquote will leverage its relationship and volume to minimize the rate increase for its shippers. The increases will be much smaller through Freightquote because of its enhanced negotiating position.
Smart shippers use Freightquote.com to instantly quote shipping rates – side-by-side comparison of several different shipping options, so they know they’re getting the best rates available from the most reliable carriers in the industry. By booking through Freightquote, shippers are not only taking advantage of Freightquote’s superior bargaining position with the carriers but also guarding themselves against multiple mid-year rate increases as the economy rebounds.