The 2:00 Minute Warning

In the wake of Yellow’s closure, events have played out as we predicted in previous Two Minute Warnings. LTL carriers are increasing rates and changing their accessorial schedules!

And that is why the webinar we hosted last week about LTL trends and opportunities was so important. While many shippers are focused on how increased rates and accessorial charges will impact their freight budgets, our panelists shared how you can actually retain current LTL rates or even lower them.

And that is no misprint! You can actually keep or lower your LTL rates – even in the current market!

But in order for that to occur, you will have to make some specific changes. And the biggest change may be the way your company is conducting its LTL sourcing events. At the risk of getting myself in to BIG TROUBLE, there is a right and a wrong way to conduct your sourcing events – and right now, based on feedback from the LTL carriers, too many shippers are overlooking important issues that must be addressed in LTL sourcing events.

For example, during the webinar Geoff Muessig, CMO of Pitt Ohio, shared six things that Pitt Ohio examines before they respond to RFPs and establish their pricing. In essence, you are being scored, or graded in these six areas. We are sourcing experts with experience in conducting billions of dollars in LTL sourcing events and we know that Pitt Ohio is not the only LTL carrier that is using this approach.

What does this mean for your company? If your company is an “A” student (a.k.a. shipper), your company will get the best possible rates. If your company is a “C” or (Lord, may it never be) a “D” shipper, your rates will be higher because your carrier will build an insurance factor into their rates to protect themselves.

One way you can start to address these issues is by using our Carrier Yield Test. This test is a worksheet that you can send to your carriers so you can learn more about what kind of student you are.

Don’t just sit back and let your LTL rates rise. If you want to make sure your LTL rates are not 15% - 20% higher than they need to be, let’s talk. We are experts at helping you improve your grades with your carriers and helping your company lower costs and improve profitability. We can walk you through a step-by-step process that will get you the best options to consider and overall results.

Start by contacting us to Benchmark Your Rates or set up a meeting.

BY MIKE REGAN, CO-FOUNDER OF TRANZACT

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