Last week I hosted a webinar for Presidents and CEOs about how the closing of Yellow will impact the LTL market. Let’s cut right to the chase. Since the closure of Yellow two weeks ago, the LTL carriers have - as we predicted they would - been raining down rate increases from the sky!
There is a reason for this. In the wake of Yellow’s closure, capacity just got a bit tighter. And when you consider the fact that we are in the midst of a freight recession, what really ought to get your attention is this question: What will happen with your LTL rates when we come out of this freight recession?
We addressed this question on the call with these CEOs, Presidents, and their key associates. Our friend Geoff Muessig from Pitt Ohio offered several practical tips on how shippers can work with LTL carriers and improve rates by as much as 15% to 20%. And that is no misprint.
We were not surprised by Geoff’s comments. As we have highlighted in several Two Minute Warnings, as LTL sourcing experts, we know that there is a “right way” and a “wrong way” to conduct LTL sourcing events. Sadly, a lot of shippers are ignoring these insights, conducting souring events the wrong way, and paying much higher LTL rates than needed.
But having higher rates doesn’t have to be your reality. During the call Geoff also shared a list of six things shippers can do to work collaboratively with LTL carriers. The things on this list will get shippers the best possible rates from their LTL carriers.
If you’ll contact us, we’d be happy to share that list. You can give us a call, send us an email or schedule a 1-on-1 appointment to learn more about how to conduct your sourcing events the right way.
And you can also learn about how a great technology tool like our Constellation TMS can ensure you actualize LTL rate savings when you get in touch or sign up for a demo.
If you’re not sure where to start, we encourage you to simply get in touch.
BY MIKE REGAN, CO-FOUNDER OF TRANZACT
