Why Your Company’s Future Depends on Carrier Development
The relationships that companies have with their carriers play a key role in their long-term success. In this RFP season, the emphasis on dedicated freight will further underline the importance of these partnerships.
Q. How do you think the changing freight market and a company’s carrier relationships will affect their business?
A. In the market, we’re going to see much lower pricing when it comes to the spot market than it’s currently been.
From what we’ve heard, the next six months are going to be flat, and there’s going to be a decrease in the cost difference between contractual and transactional freight rates.
So, in this RFP season, we’re going to see a lot of carriers and shippers double down on dedicated freight. What’s going to play a big part in a company’s success is the relationships that they have with carriers.
Q. Would you say carrier development strategies are more important now?
A. It’s always been important. Just think about the recent pandemic cycle we went through. The companies that had carrier development strategies in place, that had strong relationships with carriers—whether working with them directly or through a freight broker—are the companies that have done well and continue to do well as the market changes.
I think it has become a priority for a lot of organizations to have a carrier development strategy because the last thing anyone wants is to be blindsided by that kind of rapid market change again.
To that point, developing strong carrier relationships is as important as it has ever been to not have problems as we go into the next market cycle.
Q. How has Trinity Logistics evolved their carrier development strategy?
A. In the past couple of years, we’ve really refocused on being more open to contracted freight.
This not only allows us to offer greater service to our shipper relationships, but it also provides us the opportunity to aid in the success of our carrier relationships by offering them more consistent volumes of freight.
With more contracted freight available, we’re able to build closer relationships with carriers, keeping their businesses successful and providing drivers with more opportunities at home.
Meanwhile our shipper relationships gain the benefit of reduced risk since there’s less of their freight on the spot market, where there’s been an increased risk for double brokering and other freight scams.