When demand for trucks is high, rates go up too. In June, spot market loads increased 63%. Now is a great time to re-evaluate your current contracts and consider new business opportunities.
Being locked in to a long-term contract is a double-edged sword. On one hand there is guaranteed recurring business, but on the other hand, during times like these, the rate you are getting paid may not be as good as it could be given current market conditions.
Even if you are in a long-term contract, do not assume you cannot re-negotiate your rate. The reality is simple. If you are unable to pick up a load for your customer, they know that another carrier will charge them more. If you established a good working relationship with your customer and deliver good service, you have a lot of negotiating power.
It’s a good time to say:
“We have an opportunity to make more money other places. If you like the service you’re getting from us, let's re-negotiate so we can run our business at a profitable rate and secure the service that you expect at a fair price.”
Can you renegotiate a contract?
Most customers want you to live with a contract for at least a year. But if there are service issues on the lane, or if things aren’t working out as expected, even if it’s a new contract, you can come back with this approach:
“Hey, we set this contract up some time ago, and now conditions have changed. We need to open negotiations back up so we don’t have service problems.”
When demand is high, get on the phone!
The other thing to keep in mind is, when demand for trucks is high, potential customers will talk to you in a market like this who wouldn’t talk you otherwise.
If you have local customers or anywhere, really, that you want to work with, this is a great time to contact them. Most shippers are having a tough time finding trucks, and they’re paying rates they’re not comfortable with, higher than normal. So it’s a great time to call them up and say “I have trucks in your area. How about giving me an opportunity to quote on some lanes?”
How can Getloaded and GetloadedOps help increase your truck load rates?
GetloadedOps allows you to monitor what your average revenue per mile is and your average expenses per mile, which are the most important numbers you need to know in a trucking company. Because you’re bidding based on a per mile rate, it’s important to know where you’re making money and where you’re not. Use GetloadedOps accounting tools to make sure you know your costs and what rate you need to run a profitable operation.
With Getloaded's rich load board features you can also find potential customers by testing the waters via unlimited lane bidding and truck posting, which is available on all Getloaded Trucker load board packages.