How Flatbed Transportation Customers Can Hold Down Costs in Today's Market
Posted on Tue, Mar 16, 2010 @ 03:13 PM
It’s hard to believe that a year ago we were practically begging for shipments and moving freight at a rate that barely covered our costs. We were not alone, as evidenced by the lack of trucks available for freight right now. As rates and freight decreased more and more truck owners found they could not make a decent living so had to give up their life on the road. Now, just one year later (albeit a very long year) we have seen an increase in freight, but not in available trucks to haul the freight. The laws of supply and demand will tell you this type of market will see rising prices.
How does a customer hold down costs? If that customer has ongoing business and volume either inbound or outbound they can contract with a carrier. At Area Transportation, our contract customers can count on our services all the time, regardless of the market and at a set price. When using a carrier that has their own tractor and trailers, a contracted customer can have peace of mind knowing that their loads will be covered regardless of rates or truck shortages. As a carrier, this is the benefit to having company-owned trucks. As a customer, this is the benefit of using a carrier that owns their own equipment!
Pricing for customers that need one truck for one move can be a bit more difficult and the rate will be reflective of the current market conditions. Whenever possible any buyer of a transportation services should look into contract transportation purchasing and select a carrier with company-owned equipment. This will ensure their loads will be covered and their costs will always be the same no matter what the market.
Article submitted by Marie Studniarz.