November 2021 Coaches Corner: 2022 Truckload Bid Strategies
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As we wind down 2021 and look ahead to 2022, truckload bid strategies are taking on a whole new meaning as forecasts become challenging based on the volatility we have seen over the last two years. Strategies being deployed include:
- Shorten the annual bid term to quarterly or six months, increasing tender acceptance percentage through the bid term.
- Adjust the lanes bid by implementing a higher lane volume to qualify for the bid. What once was a lane average of 4 loads per month to qualify for the RFP now becomes 10+ loads per month.
- Implementing a carrier strategy to mitigate what has become an imbalance in contract lane acceptance vs spot board use by limiting the tender sequence to a maximum of 5 to 8 carriers within a waterfall tender. Adding a strong asset base within the lane award strategy will allow for a strong presence of non-asset brokers to complement your asset solution by committing to your spot and low volume lanes.
- Expand the carrier solution by sourcing midsize regional carriers with enticements that may include shorter payment terms, load board engagement and committed volume by ship day.
- Lastly, shake up your standard carrier pool and add some newcomers that can be a competitive benchmark on pricing and potentially improve your service.
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REFERENCES
Dean, S. (2021 November). Cargo jam at L.A. and the Long Beach ports begins to ease as hefty fines https://www.latimes.com/business/story/2021-11-10/cargo-jam-in-la-ports-begins-to-ease-as-
hefty-fines-loom
US Inflation Calculator. (2021 November). Current US Inflation Rates: 2000-2021 https://www.usinflationcalculator.com/inflation/current-inflation-rates/
Lockridge, D. (2021 September). FTR’s Trucking Outlook: What the Numbers Say About Freight, Rates and Drivershttps://www.truckinginfo.com/10150820/ftrs-trucking-outlook-what-the-numbers-say-about-freight-rates-and-drivers
Container News. (2021 November). Transpacific box rates have fallen 50% since September https://container-news.com/transpacific-box-rates-have-fallen-50-since-september/
Cassidy, W. B. (2021 October). Hub Group grows cold transport business with Choptank buyhttps://www.joc.com/trucking-logistics/trucking-freight-brokers/hub-group-grows-cold-transport-business-choptank-buy_20211019.html
Ashe, A. (2021 November). UP, BNSF end metering from ports as inland congestion eases https:// www.joc.com/rail-intermodal/class-i-railroads/bnsf-railway/bnsf-end-metering-ports-inland-congestion-eases_20211111.html
