Shippers are facing a tough road in 2022.
A relief valve to remove all the pressure on transportation networks isn’t coming, at least in the near future as capacity constraints are seemingly endless. The semiconductor shortage, a tight labor market, increased consumer spending and congestion at the ports are all constraints that haven’t improved over the past six months.
Shippers are in the difficult position of putting bids out in the current carrier-friendly market. Shippers also face elevated transportation costs in 2022. At the same time, shippers are facing inflationary pressures from nearly every other cost outside of transportation – labor, materials, packaging and energy, just to name a few.
The free white paper, Another rough year for shippers to manage bid process and carrier networks, highlights data from the FreightWaves’ SONAR and Supply Chain Intelligence (SCI) platform. Shippers can use the platform to manage the day-to-day volatility in the market as well as manage a bid cycle. We recommend using SCI to:
- Determine whether carriers are charging rates in line with the market.
- Understand whether you are getting the service you are paying for.
That will allow shippers to approach bids strategically, strengthening carrier relationships when adequate service and fair prices are prevalent. Additionally, shippers are able to act when evidence of poor service levels or price gouging is seen and potentially foster new carrier relationships.
From there, using data sets within SONAR will aid in quantifying the degree of inflation (or deflation) in rates for the freight being put out to bid. Those SONAR data sets include:
- National contract rate data
- Tender rejection rates by market
- Historical and predicted spot rates by lane
Download the free white paper to understand how FreightWaves’ SONAR and SCI platforms can aid in navigating the daily volatility while also putting out a fresh RFP.