The Fallacy of Transportation Contracts

Most contracts read like this: “we’ll give the carrier x lots per year (maybe) and the carrier will accept some of them if they feel like it.”  Sounds like a great basis for a partnership.  So, what is happening:

  • Ocean carriers are refusing contract loads and doing spot loads for others (Source NY Times).
  • Some truck carriers have been caught refusing a contract load and then showing up at the spot rate (Source client data).

Contracts are a sham.

 

What is the problem here? Class 8 truck sales down 28% from March and 56% from April last year (Source FTR).  Is it because truck manufacturers can’t make enough, or carriers aren’t in a buying mood?

 

Leveraging lessons learned from Tier 1 CPG organizations like P&G, General Mills, Nestlé, Unilever and others, an executive level deep dive on five things you can do to improve your warehousing strategy right now. All in 15 short minutes.  A Webinar on June 9th.

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Future delivery prices are an indication of the direction the market may go. They specifically exclude all taxes.