In what’s considered a “carrier’s market”, Shippers and 3PLs are scrambling to secure carriers to pick up and deliver their freight. Many are paying premiums in tight capacity lanes because carriers can be selective in what they move and how much they charge.
According to the Journal of Commerce, Shippers are preparing for another year of elevated less-than-truckload (LTL) rates and tight capacity, as a 2022 surge in demand from consumers, retailers, and manufacturers looks increasingly likely. The Cowen/AFS index is also showing that capacity constraints will push up prices on the LTL side, as the top 10 carriers control 75% of all LTL freight.
So, how do you control costs when demand exceeds carrier capacity and rates continue to rise?
Embrace Freight Digitization
The most effective way to manage your freight spend in this market is to embrace freight digitization. It transforms static information into real-time usable data sources. That means using digital rating and routing information instead of paper or batched EDI processes. Freight digitization requires live connections that allow the software to talk to each other in real-time.
To control costs, pricing technology makes it possible to provide real-time rate visibility so all parties can adapt to supply and demand on the fly. Rates can be adjusted monthly throughout the year so Shippers and 3PLs can respond to short-term market pressures, allowing for more precise pricing decisions.
Your best bet for controlling freight costs in 2022 is to partner with a pricing platform with the most carrier connections in the shipping industry to give you more options for booking a load. Banyan Technology has more than three times the number of connections in LIVE Connect™. Shippers and 3PLs have access to real-time freight rates from multiple carriers all in one spot for easy comparison, which can result in significant freight cost savings in a “carrier’s market”.
Did You Know?
As the top-performing freight pricing platform, Banyan Technology is continuously evolving our technology to fit our clients’ needs. We recently added the QuickShip™ feature to our LIVE Connect™ platform that will positively impact your bottom line. This new tool was designed as another way to save Shippers and 3PLs time and money by creating efficiencies in your shipping operations.
QuickShip™ streamlines data entry in as few as five points expediting the process you utilize to drive a rate and book a transaction. This new tool also gives Shippers and 3PLs the ability to set inbound and outbound shipping rates through your own contracted carriers -- resulting in significant cost savings. Clients who worked with Banyan during the beta testing of this product experienced a savings of greater than 10% using this tool.
Contact Banyan Technology today to learn more about how Banyan’s LIVE Connect™ platform can help you manage carrier rate increases in 2022.