High-Volume-LTL-Pools-Able-To-Secure-Deeper-Discounts-Despite-Tough-Economy
April 14, 2008
Despite susbtantial fuel surcharge increases, LTL freight pooling entities might still have some luck negotiating better rates for 2008. These pooling entities, including warehousing groups, trade associations, and third party logistics companies, pool together LTL purchases in order to gain leverage in negotiations with carriers.
On pool logistics buyer comments, "LTL carriers know that folks need to save money on their freight shipping. That is why freight companies need to get competitive in the first place. Add a tough economy and lower demand to the table, these LTL carriers need to be reasonable in their rate structures."
LTL shipping pools (like FreightClick.com) are helping smaller volume shippers take advantage of the timing to get good rates for their loads. Pooling can help take the pressure off increases in fuel costs and pass-through costs of general inflation. "You can see it in the freight quotes you get," remarks John Sebastapool, a manufacturer. "We make about 2-5 LTL shipments a week, and we really need the power of the LTL pool to get us good value on freight shipments."