When it comes to negotiating rates and contracts for freight, working with a 3PL that has great service and competitive rates for longer periods can be the most beneficial for a shipper’s bottom line. With today’s unpredictable freight markets, saving on shipping costs by working with a low cost 3PL may seem like a good solution. However, with low cost comes more opportunity for risk. Here are 4 reasons why choosing a trusted 3PL instead of the lowest cost 3PL can have advantages long term.
Level of service will not be compromised
With market change, it is not uncommon for a new 3PL to offer low rates in order to acquire new shippers. The lowest rates are not always with reliable carriers that have established, dependable, and well serviced equipment to deliver freight in a safe and timely manner. It may be tempting to take these rates. However, opting for a trusted 3PL will more likely ensure the level of service that shippers have come to expect will not be compromised.
More reliable carriers for key lanes
One of the greatest benefits of working with a 3PL is their large carrier networks. Consistently working with a trusted 3PL on specific lanes gives them the opportunity to build their carrier base and relationships with carriers that like to run those lanes. The result is even more reliable services and better rates.
More opportunity for rate stability
A good 3PL has the connections to help ride out brief upsurges in rates. By strengthening relationships with carriers and consistently working with shippers on specific lanes, a 3PL is more able to provide stable rates in the long term.
Less risk of problems during the shipping process
Finally, when working with a trusted 3PL, shippers will less spend time worrying about whether their freight will pick up or not.
Choosing a 3PL offering very low rates may not always guarantee a smooth shipping experience. Carriers that are contracted for low rates are often accepting those rates because they are a new carrier, or have had issues moving freight in the past. Either way, they put shipper’s schedules and freight at risk. Opting for your trusted 3PL greatly decreases that risk and any problems that can occur during shipping.
Here at Route, we work steadfastly to assess changing market conditions and find reliable carriers for competitive quoting. We take the time to get to know our shippers needs and lanes so that we can build long term relationships based on trust. If you’re ready to see how Route can help make shipping easier, click the button below to request a quote.