Cheapest Freight

Businesses that don’t ship a lot are disadvantaged and often cannot secure the cheapest freight rates. As major shippers, 3PLs use their bargaining power to overcome that disadvantage.

“Why Aren’t Long-Term Contracts Always the Wisest Choice for Businesses?

While long-term contracts may seem attractive at first glance, their inherent limitations, fixed rates, and lack of flexibility can pose challenges for businesses. Opting for a 3rd-party logistics provider like FreightCenter to secure the cheapest freight rates empowers you to reduce shipping costs, maintain control, access a broader range of services, and adapt to changing needs while still enjoying competitive pricing and expert guidance in the ever-evolving world of freight shipping.

In freight shipping, carriers often present long-term contracts as an enticing prospect, promising attractive discounts and rates for small and medium-sized businesses (SMBs). While these offers may appear advantageous, it’s crucial to understand that they come with their fair share of drawbacks that can potentially outweigh the benefits. Here’s why long-term contracts may not always be the smartest deal for businesses and how opting for a different approach, providers like FreightCenter, can offer a more strategic and flexible solution:

1. Limited Service Scope: Many carriers specialize in offering only a narrow range of services, focusing on one or two specific aspects of freight transportation. As a result, when businesses commit to long-term contracts with such carriers, they often find themselves restricted in terms of the types of services available to them. This can be highly limiting if your shipping needs vary or expand over time.

2. Locked-In Rates: While long-term contracts promise discounted rates, they usually include a catch – they lock you into fixed shipping rates for an extended period. While this may seem advantageous initially, it fails to consider changes in market conditions, fuel costs, or seasonal fluctuations that can impact your shipping expenses. As a result, you may pay more than you would with more flexible rate structures and often will not get the cheapest freight rates.

3. Lack of Flexibility: Business needs evolve, and unforeseen circumstances arise. By their nature, long-term contracts need more flexibility to adapt to changing requirements. This can lead to inefficiencies, additional expenses, or the need for supplemental services outside the contract’s scope.

4. Hidden Costs: Long-term contracts may contain hidden costs or fees that become apparent only after signing. These additional expenses can erode the perceived savings and disrupt your budget.

5. Limited Carrier Choices: Committing to a long-term contract with one carrier restricts your ability to explore and compare different carriers to find the cheapest freight for each shipment. This can result in missed opportunities for cost-effective and efficient solutions.

6. Uncertain Service Quality: Quality of service can be uncertain when locked into a long-term contract. The carrier may not prioritize your shipments as they would for customers without contractual obligations.

Why Choose a 3rd-Party Logistics Provider Like FreightCenter?

Utilizing a 3rd-party logistics provider such as FreightCenter offers a distinct advantage. We have access to a vast network of carriers specializing in various services. We can help you navigate the complexities of the freight industry without the constraints of long-term contracts. Here’s why it’s a more intelligent alternative:

Service Variety: We connect you with carriers offering a wide range of services, ensuring you have access to the right solutions for your specific shipping needs.
Flexible Pricing: Our approach allows for flexible pricing structures, adapting to market fluctuations and ensuring you get the best value for your shipping expenses.
Adaptability: As your business requirements change, we can swiftly adapt and provide the necessary shipping solutions without the constraints of a long-term contract.
Transparency: We provide transparent pricing with no hidden costs, ensuring you understand your shipping expenses clearly.
Choice and Quality: You have the freedom to choose from a diverse pool of carriers, each carefully vetted for their quality of service, ensuring your shipments receive the attention they deserve.

Securing Cheap Freight Rates: Broker (3PL) vs. Direct Approach

When getting the cheapest freight rates, you have two primary options: using a freight broker or dealing directly with a freight carrier. Each approach has pros and cons, depending on your specific needs and preferences. Choosing between using a freight broker or dealing directly with a carrier depends on your circumstances, preferences, and shipping requirements. By carefully assessing your needs and considering the advantages of each approach, you can make an informed decision that leads to the most affordable freight rates for your business.

1. Using a Freight Broker:

• Diverse Carrier Network: Freight brokers have established relationships with numerous carriers. They can tap into a vast network to find cost-effective and efficient cheap freight shipping solutions for your needs.
• Negotiating Power: Brokers often have strong negotiation skills and can leverage their volume of shipments to secure competitive rates from carriers.
• Expertise: Brokers are experts in logistics and can help you navigate the complexities of the shipping process. They can provide valuable advice and solutions to optimize your shipping strategy.
• Time and Resource Savings: Outsourcing your shipping needs to a broker frees up your time and resources, allowing you to focus on your core business activities.

2. Going Directly to a Freight Carrier:

• Consistency: Dealing directly with a carrier can offer consistent pricing, especially if you have a long-term contract. This stability can be beneficial for businesses with predictable shipping needs.
• Cutting Middleman Costs: By bypassing a broker, you may avoid paying broker fees or commissions, potentially reducing your shipping costs.
• Direct Communication: Direct access to the carrier can lead to quicker response times and more transparent communication regarding your shipments.
• Total Control: You have direct control over the carrier selection and shipping process, which can be advantageous if you have specific carrier preferences.

Considerations To Secure Cheap Freight Costs:

• Shipment Volume: For businesses with lower shipments or irregular shipping needs, brokers can often provide better access to competitive rates.
• Complex Shipments: A broker’s expertise can simplify the process if your shipments are complex or require multiple carriers and services.
• Long-Term vs. Short-Term Needs: Evaluate whether your business requires long-term rate consistency or flexibility for changing shipping needs.
• Comparative Quotes: Regardless of your chosen approach, obtaining comparative quotes from brokers and carriers ensures you get the best deal.