Long-term contracts are valuable for trucking companies as they provide steady income streams. However, securing such commitments requires diligent efforts. Carriers must adopt a professional approach, such as maintaining and building strong relationships with shippers to enhance the chances of contract awards and long-term agreements. This article will teach us about various contract types, search venues, and partnership strategies that help carriers find and bag enduring agreements.
Types of Trucking Contracts
Trucking contracts can be of various types. Some can be dedicated, while other agreements can be seasonal demand-based. Understanding these key contract types aids carriers in strategizing operations pricing accordingly.
Let us see some of them in detail:
- Dedicated Contracts: As the name suggests, these involve carriers exclusively transporting the goods of one shipper between specific locations on pre-determined schedules. This ensures sustained volume and revenue. Further, dedicated contracts offer maximum stability.
- Seasonal Contracts: Demand fluctuates with seasons, so these cover intermittent transportation needed mostly for agriculture products during harvesting or replenishment periods.
- Retail Contracts: Retailers need reliable delivery of inventory to different distribution centers and stores. These contracts provide regular loads to their vast networks.
- Rate/Tariff Contracts: Under these, carriers transport shippers’ freight anywhere within their network as per rated/negotiated tariffs for flexible loads.
- Government Contracts: Transport contracts are standard between governments/municipal bodies and fleets for ferrying goods and materials.
What Are The Ways Carrier Can Secure Long-Term Contracts?
Apart from familiar load boards and 3PLs, approaching prospective shippers yields opportunities. Carriers need to build relationships with third-party logistics service providers who can help them connect with potential new shippers. Let us now go through some ways carriers can secure long-term contracts:
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At platforms like DAT, Load board, 123Loadboard
Available on platforms such as DAT, Loadboard, and 123Loadboard, this digital marketplace can be used by truckers and carrier services to establish a good name for themselves and create long-term contracts. They must fulfill it with top-quality services, the highest safety standards, and timeliness. Carriers should take an active role in managing their online profiles to demonstrate reliability and expertise.
This would help identify potential long-term partners since shippers often use these platforms and may ship again occasionally or be based only on specific lanes. Take proactive steps to reach out to shippers at competitive rates and emphasize your track record of excellence, thus differentiating you from other players in the market. Furthermore, carriers can depend on data analytics tools in these platforms, allowing them to discover trends that make their operations more efficient and appealing to shippers who want stable and effective partners.
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Building Relationships with Shippers
Shippers desire their shipments to be shipped on time and at a fair price to get long-term contracts. To build a relationship, you must maintain clear communication trustworthiness and fulfill last-mile delivery expectations. To build trust with shippers, do regular check-ins and offer value-added services like real-time shipment tracking or flexible scheduling. This could make your carrier service stand out in the industry by providing that extra service that others do not offer.
Understanding the shipper’s business needs and aligning your services accordingly demonstrates commitment and fosters loyalty. By consistently delivering exceptional service and cultivating personal connections, carriers can position themselves as indispensable partners worthy of long-term commitments.
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Submit Proposals for Government Contracts
Government contracts can be a goldmine for carriers, but they’re not for the faint of heart. These opportunities often pop up on government portals, covering everything from routine deliveries to emergency relief efforts. Don’t rush in with a quick quote when you spot one that fits your wheelhouse. Treat it like you’re pitching for a blockbuster movie. Dive into the details, showcase your experience like it’s your most fantastic hits album, and lay out your resources like you’re planning a military campaign.
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Working With Freight Brokers
When working in the shipping industry, carriers must maintain a good relationship with brokers. That’s because 3PL brokers have deep and personal contact within the industry and can help you secure contacts that earn you big bucks. Every load you handle for them is a chance to prove your worth. So, keep in touch with them even when you’re not hauling for them. It will let them know you are available and ready to ship the load.
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Attend Industry Events and Join Associations
Attending trucking industry meetings and associations can help you grow your network and get new clients. Industry experts usually gather and organize such meetings to meet carriers and shippers and get to know new challenges everyone faces in the industry events. Therefore, instead of being a fly on the wall, participate in conversations, offer your experiences, and pay attention to others. Because this is where partnerships are formed, the more you put yourself out there, the more you’ll be presented with opportunities. It all comes down to memorability, audibility, and visibility.
Conclusion
In the ever-shifting landscape of trucking and transportation, securing long-term contracts isn’t just about having wheels on the road – it’s about steering your business toward stability and growth. To be successful in the industry, carriers must maintain a personal relationship with 3PL partners and shippers. Further, attending industry-level events will help them meet new potential clients and boost their understanding of the trucking and transportation industry. At the end of the day, securing long-term contracts is about positioning yourself as a service provider and an indispensable part of your partner’s success stories.