Now is the time for shippers to run or rerun their annual RFPs as spot market rates continue to fall toward or below contract rates.
“Freight volumes typically begin to trend upward in the spring compared to the winter, but that’s something that we haven’t seen this year,” said Michael Colin, founder and CEO of MVMNT.
Colin suggests that declining freight volumes and the record volume of new truck orders over the past year may partly explain why spot rates have plummeted to around $3 per mile from their near $4 peak in mid-February. And the trend has recently accelerated.
Tender rejections have sunk to just below 10%, a far cry from this time last year when truckers were rejecting about 25% of contracted loads.
“What tender rejection rates really indicate is whether pricing power is in the hands of the shipper or the carrier — and it’s now in the hands of the shipper. With spot rates going below contract rates, it’s advantageous for shippers to run or rerun their RFPs,” Colin said, explaining that the window of opportunity is currently open for those wanting to lock down better prices.
How long the window will stay open is anyone’s guess, so it’s best to act fast — and smarter to do so with MVMNT.
The Chicago-based FreightTech startup has simplified the RFP process through its intuitive transportation management system, TMS 2.0.
Why is running an RFP so expensive? MVMNT had the same question. So it created a free-to-use model that goes above and beyond what’s expected of a TMS, adding an RFP tool to its technology suite.
“This is our RFP tool. It’s free and easy to use; you can run as many RFPs as you want, and you don’t need to be using the full TMS to take advantage of it,” Colin said, comparing it to other RFP softwares on the market today that often have six-figure price tags.
Whether managing annual RFPs or hosting seasonal mini-bids, MVMNT helps shippers get better prices at any time. Through its streamlined contract pricing, shippers can upload and bid out the same day and be under contract within a week.
From pricing to carrier procurement, load dispatching to payments and compliance, there’s no other freight management platform like MVMNT. Since rates have come down quite a bit, Colin believes now is the time for shippers to rerun their RFPs. With your next RFP, why not go with the smarter, easier and free solution?
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