Whether you are shipping tons of goods per day or simply need to move some parcels, negotiating your freight contracts is one of the most important tasks you can do. In fact, efficient negotiation is the simplest way to drive cost savings on every shipment you ship. It is a specialized skill, however, and if you do not have the resources to perform this task in-house, hiring a freight management company is a viable option.
What is a contract rate for freight?
A freight management company is a third party that specializes in ocean freight procurement, load finding and rate negotiations. A good partner will be able to offer valuable insights on current and historical pricing trends, and they can provide you with the information needed to negotiate a fair contract with your carriers.
When Logistics Bureau: Your Freight Negotiation Partner rates, it is important to consider the national average, round trip fares, destination and specific load details. In addition, a freight management company will be able to help you save time on the search for available loads by leveraging their relationships with the top ocean carriers.
Using a freight brokerage can be a great way to increase the amount of work you are able to complete. Brokers can often find a higher number of quality loads than you could on your own, and they can also help you negotiate better rates for the freight you are hauling. However, you should make sure that you are working with a broker who has your best interests in mind, and you should never settle for less than the best rates possible for your load.