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:

1. Shorten the annual bid term to quarterly or six months, increasing the tender acceptance percentage through the bid term.
2. 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.
3. 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.
4. 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.
5. Lastly, shake up your standard carrier pool and add some newcomers that can be a competitive benchmark on pricing and potentially improve your service.

Need TMS Help?

Please reach out to Rockfarm for a deeper dive into how you can achieve supply chain ownership with a TMS transformation at info@rockfarm.com.

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By Brad Stewart

Co-Founder, CCO

Brad’s journey into logistics began as a Marine Officer and transitioned from the LTL docks to the non-asset side within the logistics service provider arena.  As a co-founder of Rockfarm, Brad drives our business development efforts and delivery of our promise. An Arizona native, Brad enjoys spending time outdoors in his home state with his wife and family.

“Our approach to the market allowed us an opportunity to push forward in 2008 and enable our mission, “lower the cost to serve” to stand as a cornerstone to our company today.”

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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