Knowledge is Power

Today's small package contracts are more complicated and difficult to analyze than ever before. Perhaps the most important thing to understand in the freight negotiation process is how the carriers view your business. Carriers thoroughly analyze their customers' shipping profiles to determine what discounts to offer. That's why it's critical to know in the freight carrier's own terms how profitable your shipments are to them. Obviously, the more favorable the freight, the most demand there is for it, and in turn the better discounts and prices that will be offered. All of the major parcel and express carriers - and many larger forwarders - have been reviewing their shipper contracts over the past few years to ensure that they are profitable. Shippers who do not go through the same exercise from their point of view may be leaving themselves at the mercy of carriers.