Recently, several carriers announced general rate increases of between 5-6% for LTL shipments. According to FreightWaves, the increases are made to cover the cost of inflation and to make investments in real estate, equipment and technology.
Mitigate Carrier Rate Increases with an Innovative Digital Solution
The increases are also a result of decreasing volume with year-over-year tonnage declines accelerating during November. Several carriers reported high-single-digit declines while others recorded declines of roughly 20% or more during the month, according to FreightWaves.
As LTL shipping rates increase due to lower volumes and inflating costs, and economists predict more changes on the horizon, Shippers and 3PLs would be wise to plan now to minimize the long-term impact on their operations. The most immediate and long-term solution to minimize that impact is a flexible and innovative technology solution that provides flexibility and visibility into multiple modes and captures critical data to predict and respond to industry trends.
Shippers and 3PLs can leverage powerful business intelligence and integrated product features to help protect the bottom line through increased visibility, extended reporting capabilities, data solutions, and money-saving tools. Access to these critical resources help Shippers and 3PLs effectively analyze shipping performance, cost, and revenue to quickly identify cost-saving opportunities. Comprehensive data and document retrieval functionality utilizing multiple data points is key for aggregating critical business data in one place to review trends over time. Another critical element to managing freight spend is invoice auditing such as automated validation of all freight bills which provides more control over inbound and outbound shipments.
A digital solution that offers access to all over-the-road (OTR) shipping modes is especially effective for cost-savings. The ability to rate, compare, and execute shipments for all OTR modes (LTL, Truckload, Local Carrier, and Parcel) from a single screen will save Shippers and 3PLs significant time and money comparing costs while rating and scheduling their next shipment.
Save 12% on Your LTL Shipping
Banyan Technology provides access to carrier and freight bill data captured in LIVE Connect™, the digital freight management platform with access to 3x more carrier connections for all over-the-road modes.
This extensive network of carriers and the data aggregated daily means clients are better positioned with more intel and visibility into available rates and schedules, which has allowed them to consistently experience more than 12% savings on LTL shipping and 5% savings on Truckload.
LIVE Connect’s reporting capabilities and suite of dashboards provides enhanced visibility into business intelligence and analytics for all your OTR shipments, including LTL, Truckload, Parcel and Local Carrier. Access to valuable data means you can analyze key cost metrics like average cost per Carrier, spend summary – average fuel, average weight, average variance – which will help manage freight spend as rates and other shipping costs continue to rise.
Banyan offers more carrier options than any other provider, including more than 10,000 Local Carrier and Parcel assets and drivers in the U.S. and Canada. Recently enhanced Truckload services now provide access to the public Spot Market, direct carrier APIs and automated management of contracted rates for Truckload shipping, in addition to Banyan’s long-standing historical expertise for LTL shipping capabilities.
Contact Banyan Technology today to learn how our LIVE Connect platform can help you manage rate increases through cost-savings and business intelligence.