When is the worst time to negotiate with carriers?
The worst time is the last quarter of the year.
It once was that most everyone had pricing that ran from 1/1 to 12/31. That made it tough on your carrier representative to get special consideration outside of the general rate increases demanded by the upper management at that time of year. Invariably the Big Boys at a carrier will put pressure on everyone to increase revenue and increase the cost per hundredweight, raise the minimum charge, collect more accessorial charges, etc, etc. It’s a difficult time for your direct carrier contacts. Upper Management comes to work on October 10th and sees the daily report for October 9th showing shipments, weight, and revenue are all up, up, up. It’s natural for them to think, ‘This is a great time to go for an increase!’
Some very broad examples
- If you ship artificial Christmas tree and ornaments, try to negotiate with your carriers in March or April.
- If you ship grass seed, garden tools, and bug spray, go for the late July/early August time frame.
Once you’ve negotiated with the carriers, made your selections and entered a partnership with your carrier, try your best to make your freight as productive for the carrier as possible. Treat your carriers well. It is without question in your best interest.
About the author:
Working with more than 300 companies over his career, Russ is a transportation expert who has conducted 100s of assignments aimed at reducing transportation costs. Russ is involved in freight negotiations for clients at the level of more than $300 million annually.



