You’ve probably heard a lot of people say “now is the time to buy a house”, or “you will never get a better deal on a car than you will right now.”
Let me add one to the list. Now is the time to negotiate new long term rates with your carriers. In fact, there has never been an opportunity if you are buying transportation, like there is today. You will find that many carriers will jump at the chance to sign up for three and sometimes five year contracts for less than a buck a mile.
If you have a private fleet, now is the time to think outsourcing. In 90 days you could have your fleet outsourced and realize savings of up to 50% of costs you were paying. Carriers are fighting to survive and they are not only willing to give unbelievable rates and terms but they will buy or help sell your equipment, negotiate revenue sharing on back hauls, and will be using the newest, most fuel efficient equipment in many cases, all of which puts money in your pocket.
Carriers are having a tough time. Many are seeing volumes down as much as 80%. According to industry experts, bankruptcies are at record levels for carriers and the survivors are looking to simply survive. They are getting pressure from all sides, including their bankers who are pushing them to go after long term contracts that provide steady, reliable income until things get turned around.
All of this spells opportunity for you. If you have a private fleet, now is the time to consider outsourcing. If you outsource today, now is the time to renegotiate and lock in record setting low rates for the next three to five years.
You could dramatically reduce the cost of transportation this year.