Freight bidding season can be daunting for shippers. Whether you’re new to the market or a veteran, understanding how to manage your bids and ensure that you get the best deal for your shipments can be tricky.
Read on to learn more about what’s involved in the freight bidding process and how you can ensure you get the best possible deal.
Where Brokers Bid on Freight
Brokers intermediate between shippers and carriers. They put out requests for freight bids from multiple carriers, allowing them to compare and select the best deal.
There are many platforms where brokers can go to post and receive bids, including:
- Carrier-specific websites or load boards
- Broker-specific networks
- Industry associations
- Local businesses
How To Bid on Freight Loads or Contracts
When bidding on a load, shippers must provide the following information:
- Origin and Destination of the Shipment
- Pickup and Delivery Date(s)
- Turnaround Times
- Price per Mile
- Estimated Time of Arrival
- Payment Terms
- Insurance Requirements
- Special Handling Requirements
Carriers will then submit bids on the load or contract. Shippers can decide which bid to accept depending on the quality of the carrier, pricing, service offerings, and turnaround times.
How the Freight Bidding Process Works
Freight bidding starts when shippers post an RFP (Request for Proposal) to carriers or brokers. This document includes the necessary shipment information. Carriers then respond to the RFP with their bids. Then, the shipper selects the winning bid and chooses the carrier based on price, service quality, transit time, delivery reliability, sustainability, and more.
Advantages and Disadvantages of Freight Bidding
Freight bidding offers both advantages and disadvantages. On the plus side, it’s an efficient way for shippers to find carriers for their shipments and secure competitive prices. It also allows them to put out bids quickly and easily without negotiating with multiple vendors.
On the downside, bidding can be time-consuming and complex, requiring careful consideration of each bid. Additionally, hidden fees or extra costs can be added to the total cost of the shipment when working with brokers.
Tips for Mastering Freight Bidding
Here are some tips for getting the best value out of your bids:
- Know Your Market: Understand the current market conditions, including spot rates and fuel prices. This will help you make better decisions when evaluating bids.
- Research the Carrier: With over 1.1 million carriers, it’s crucial to know your potential carrier. Look at their safety rating, customer reviews, and delivery reliability.
- Get Multiple Bids: Put out bids to multiple carriers to get the best deal possible.
- Consider All Costs: Ensure you understand all the costs associated with each bid, including hidden fees and extra charges.
- Negotiate if Needed: Feel free to negotiate the terms of a bid if you think you can get a better deal.
Freight bidding can be challenging. However, with the right approach and knowledge, it’s possible to make sure you get the best deal every time.
If you need comprehensive shipping services, Jansson can help. As a Landstar agent, we specialize in providing logistics solutions tailored to your shipping needs.
Whether you need full truckload (FTL), less-than-truckload (LTL), or intermodal services, we can help get your shipment to its destination on time.
Contact us today to learn more.