Transportation providers have historically been challenged with providing long-term contract pricing while maintaining a strong service record. However, increasing market fluctuations are creating an environment in which carriers are not always able to meet their performance metrics and shippers cannot count on capacity.
The Good News
Nobody gets “a good deal” on long-term pricing commitments in a fluid capacity environment. The good news, though, is that we are entering a new era of strategic pricing that enables shippers and supply chain partners to avoid hedging by “cushioning” longer-term pricing to adjust for market fluctuations.
In this white paper, Bennett’s David Carpenter outlines the factors driving unpredictability in trucking pricing and discusses how a collaborative pricing method can help shippers face these challenges. Carpenter is vice president of customer solutions for Bennett International Group. He has 30 years of experience in the transportation and logistics industry, supporting all modes of transportation and supply chain management.