Between elevated fuel prices, high delivery expectations, and a rising emphasis on supply chain sustainability, carrier negotiations have become an increasingly challenging phase in the shipping process. Shippers must identify reliable and ethical carriers and vet contract terms covering freight rates, delivery times, size limitations, and more—all while securing fair and favorable rates.
Moreover, today’s highly volatile markets and mercurial consumer demand mean that shippers must begin and renegotiate carrier relationships on a more frequent basis and with smaller negotiation windows.
With more moving parts than ever guiding carrier partnerships, shippers need heavy-lifting tools to quickly analyze carrier performance and terms. That’s where a transportation management system (TMS) comes in, bringing insights into delivery times, shipping spend, fuel surcharges, and more to make sure shippers conduct informed, productive negotiations every time.
Building trust and transparency isn’t easy
Poor transparency has long been an obstacle in the carrier negotiation process, especially when contracts contain countless terms. Though a complex undertaking, obtaining visibility into carrier surcharges, equipment availability, delivery times, and beyond is crucial for ensuring shippers get a fair deal. The Federal Maritime Commission—responsible for looking into unreasonable charges and contract violations—issued nearly three times the ocean carrier fines between September of 2022 and September of 2023 than they did two years before.
The key to avoiding incidents like this lies early in the negotiation process. Firms have to devote extra attention to the carriers they partner with—as well as what makes it into their contracts.
Volatile market conditions increase the stakes of negotiations
Supply chain disruptions and pricing shifts are another factor adding pressure to carrier negotiations. After all, a firm’s carrier contracts have a huge influence on how they field market volatility. For example, as fuel price volatility continues, some carriers may add fuel surcharges to the final shipping bill. And contracts without fixed pricing can leave carriers at the mercy of fluctuating prices. To secure more stable rates, shippers need technology that provides full transparency into rates and fees, helping them select the most cost-effective partner for each shipment.
TMSs decode the complexities of carrier analysis
A TMS provides detailed carrier insights and automation to ease the entire carrier negotiation process—from the start of negotiations to the post-contracting workflows. For example, CTSI-Global’s Honeybee TMS offers carrier report cards and an analytics dashboard. This feature allows logistics teams to compare carrier performance and examine important data on sizing, shipping zones, accessorial fees, fuel surcharges, delivery timelines, and other terms.
Quick access to these analytics and modeling features helps firms estimate pricing rigidity, optimize selections, and accelerate carrier negotiations. All completed contracts can then be stored within the TMS’s document center for easy reference.
Many TMS providers also bring established carrier relationships to the table. Firms gain access to a network of pre-vetted carriers, eliminating the lengthy vetting process and ensuring they only work with reliable partners. Honeybee TMS comes with thousands of high-quality carrier partnerships which enables back-up transportation if one carrier experiences delays.
Simple and efficient carrier negotiations start with a technology shift
Carrier negotiations don’t have to be overwhelming, even amid shifting prices and industry priorities. The key is leveraging technology and fostering relationships with dependable carriers. With a wide range of agile carriers at their disposal, firms of all sizes can turn market shifts into a competitive advantage and poise themselves for quick pivots in the face of new obstacles.
Honeybee TMS from CTSI-Global is designed to make this vision a reality. Through data-driven insights, rapid carrier analysis, and pre-vetted relationships, Honeybee TMS gives firms the extra brain power to oversee and optimize carrier negotiations with newfound speed and precision.
Contact CTSI-Global today to start building contracts that work for your team and your bottom line.
