Nick Dangles’ Post

Understanding the dynamics between contract and spot rates can make all the difference in managing your freight strategy. Dive into our latest blog post to learn how monitoring these rates can help you stay ahead in a volatile market. https://lnkd.in/gXui_zBH #freight #SONAR #FreightWaves #logistics #contractrates #spotrates #freightrates

#SupplyChainManagement #LogisticsManagement Are you overwhelmed by transportation jargon? Let's simplify a key concept: the Right of First Refusal (ROFR). What is ROFR? ROFR lets preferred carriers accept or decline shipments before others, streamlining operations and enhancing efficiency. Key Benefits: 💡 Faster Coverage: Preferred carriers get the first opportunity to take on loads, ensuring quick and reliable shipment coverage. 💡  Mutual Benefits: Companies like ATS Logistics use ROFR to keep operations smooth and efficient. 💡 Reduced Risk: Shippers can count on trusted carriers, minimizing the risk of delays and disruptions. Are you curious to learn more? Check out our latest article, written by Crystal Lahr, explaining how ROFR works and why it’s beneficial for shippers, carriers, and brokers alike. Click the link for valuable insight! Give it a 👍 if you found it helpful! #Logistics #Transportation #SupplyChain #Freight #Shipping #Trucking #FreightBroker #Transport

October Freight Market Update is ready! Click to read more. #freightupdate #TrinityLogistics #3PL #logistics

Transportation rates have increased over the past 2 months. Interesting that carriers are still adding equipment to the market. Adding equipment will be a good thing overall for shippers, as long as the rates continue to steadily increase. So those carriers can make the payments on their debts and not go bankrupt like 1000’s of carriers have in the last year alone. However, if rates dont continue to increase or if there is a prolonged period of stagnant rates, that is when shippers can expect a cycle of rapid and substantial rate increases. Hopefully for the betterment of shippers, carriers and everyone’s balance sheet there is a slow, steady increase in rates for everyone to remain as effective and efficient as possible. https://lnkd.in/gKJAUaRf

📈 📉 A recent piece from The Loadstar provides great summary of the growing separation between spot and contract rates going into peak season. To summarize, spot freight rates are surging, echoing pandemic trends and widening the gap with contract rates. This benefits large shippers over SMEs and freight forwarders, according to Xeneta. Market analyst Emily Stausbøll highlighted similarities with past crises but noted quicker mitigation in the current Red Sea situation. SMEs often pay more due to weaker negotiation power, while larger shippers benefit from long-term contracts. Freight forwarders face pressure from both shippers and container lines. The primary concern is the divergence between spot and contract rates, causing cargo rollovers and higher costs. Rates are expected to rise further into July. We've noticed this trend among our customers at Freight Right. The 2024 season has been marked by an aggressive tug-of-war between forwarders, carriers, and Beneficial Cargo Owners (BCOs). Despite initial appearances of stability with agreed rates around $1550 per container (Asia base ports to US West Coast), the aftermath reveals a landscape fraught with broken commitments, skyrocketing rates, and a palpable tension between key players. We wrote about this tension here and proposed some solutions here, https://lnkd.in/ei4wsj2w . To address this further we introduced a new service called Strategic Contracting, https://lnkd.in/ed6h9xU4 . The goal of this service is to help shippers identify opportunities with their freight partners to find more favorable, contract-grade rates at a time when favorable rates are becoming more scarce and for carriers and partners to identify opportunities for more equitable contract opportnities with partners. The underlying belief is that freight doesn't need to be a zero sum game. There's room for everyone to thrive given the right incentives and openness to hearing them. https://lnkd.in/eGFfsSbx

After a challenging two years, the trucking recession may be easing. This “freight recession” was driven by pandemic impacts, reduced demand, and overcapacity in the market. - https://lnkd.in/eCK2WrKi - #recession #domesticshipping #freightrates #overcapacity #coronavirus #truckingindustry #trumpadministration #freightbroker #fmsca #tenderrejections

Navigating Weekly Contract Changes: Why freight rates changing so fast you can’t keep up? 2024 has brought significant challenges and changes to the freight forwarding industry. Shifting to weekly contracts by carriers, volatile rates, and tight capacity have pushed aside annual contracts, creating instability and uncertainty. This scenario isn't expected to change for the rest of the year. In our latest article, we dive deep into the reasons behind the shift to weekly contracts, offer a historical perspective, and provide strategies for freight forwarders to navigate this challenge. Check out the comments for the full article and learn how to stay ahead in this dynamic market. #Freight #Ratemanagement #Forwarders #Cargofive

Mastering the use of contract rates in freight shipping is a cornerstone for achieving a robust logistics strategy, particularly vital for freight forwarders who are steering through the global market's complications. Contract rates are especially advantageous for businesses with consistent shipping volumes, seeking stability in their logistics operations, or aiming to secure long-term cost efficiencies. These rates are agreed upon in advance, locking in prices for an extended period and ensuring predictable shipping costs regardless of market volatility. Benefits of Contract Rates include: Stability: Provides a stable shipping cost structure, crucial for long-term budgeting and financial planning. Predictability: Eliminates the uncertainty associated with fluctuating market rates, offering peace of mind and reliable cost forecasting. Partnerships: Fosters stronger relationships with carriers, potentially leading to better service levels and priority treatment. By strategically integrating contract rates into your logistics operations, you can harness the benefits of stability and predictability, which are essential for navigating the complexities of freight shipping with confidence. #stelnogroup #logisticservices #supplychain #airfreight #seafreight #peakperformer #peakbusiness

Commenting on how rapidly increasing spot freight rates are diverging from contract rates, Emily Stausbøll observes that “The big shippers working directly with their carriers are probably in the best situation. A little shipper working with a SME freight forwarder is seeing a completely different picture of the market.” That said, “It’s not only the shippers, it’s also the freight forwarders that are being pushed in different ways.” Discover more from both Stausbøll and Peter Sand: https://lnkd.in/eGFfsSbx The Loadstar #carriers #freightforwarders #contractedrates

"Freight brokers need to be vigilant..." - VP of a $25M Freight Brokerage Read what other key decision makers in #logistics have to say about the "State of Logistics" right now and what is to come next in our free Q1 report: https://lnkd.in/gtW8whu3 #stateoflogistics #freightbrokers #freightbrokerage #3pl #transportation #stateoffreight #freightwaves #logistics #toptalent #toptalentinlogistics #supplychain