US shippers get more ‘surgical’ in truck contract bidding
US shippers walloped by rate hikes in 2018 are taking their 2019 business to trucking companies one piece at a time, increasingly bidding lane by lane, a logistics CEO said. “This year, because of the performance of the market, we’ve done more minibids than ever in the history of this company,” said Frank McGuigan, CEO of logistics company Transplace.
That’s a shift from the recent trend toward putting an entire book of business up for bid each year, regardless of relationships with “core” carriers. Shippers who suffered double-digit price increases in 2018 increasingly are open not just to contracts of different lengths, but a more precise, pinpoint approach to bidding and contracting, according to McGuigan.