How Select Carriers’ Network of Asset Based Carriers and Capacity Solutions Can Help You Combat Market Volatility and Punishing Spot Pricing

Posted by Gabe Dee

Select Carriers is your doorway to direct relationships with high-quality, asset based carriers.  We provide business development support and freight sales management to our asset based carriers.  Unlike a broker, we make a direct match between our freight shipping partners and our asset based carriers.  Our services enable our carriers to secure high-quality, consistent freight from “Shippers of Choice,” and our services allow our shipper clients to receive dependable, reliable, competitively priced transportation solutions.  The result is true “win-win” partnerships!

Source: FreightWaves

The past month has brought on unprecedented capacity challenges.  Truck availability has been extremely tight, particularly for this time of year; weather disruptions then strained and stretched an already tight capacity market.  Too few trucks were left to move too many loads.  The result:  astounding record highs in spot market pricing.

Where do we go from here?  As Spring arrives, a respite from winter weather will be most welcome.  But the underlying capacity shortage still exists, and additional forces that drive demand loom on the immediate horizon.  Produce has started to run, and that volume will build steadily in the coming months.  Covid-19 restrictions are being lifted, vaccination rates are steadily climbing, and government stimulus funds are flowing to households.  All of these forces will converge, and together they should fuel increased demand for transportation services.

These market dynamics exposed the inability of brokers to hold long-term contract rates.  Too many shippers are too dependent on brokers within their transportation network, and those shippers have experienced the pain of inflated spot rates, diminished service performance, and unhappy clients that levy significant fines and penalties for late/missed deliveries.

To mitigate the impact of these market dynamics, shippers must look long-term and forge strategic partnerships with asset based carriers.  The shippers that invested in direct relationships with asset based carriers have been far more successful that their broker-dependent competitors.

Want to learn more about the Select Solution?  Please contact me at [email protected] to learn more.