Spot market trucking is a flexible option for shippers and carriers.
When a shipper needs to get a load out immediately, they can look at the spot market for an available truck. Carriers can match with those loads to utilize vehicle space and optimize routes.
There are mutual advantages for shippers and carriers in spot market trucking — and it’s vital to know how to navigate this dynamic market.
Let’s review the must-know tips for working in spot market trucking.
What Is Spot Market Trucking?
When carriers and shippers need to arrange quick transportation services, they turn to spot market trucking. In this particular market, services are negotiated on an as-needed basis, which means freight moves without a contract or long-term commitment.
Spot market trucking is a contract-free system. That’s what makes it a more flexible option when compared to traditional long-term agreements.
Spot market trucking is ideal for immediate, unexpected, peak shipping demands or overflow situations. It’s a solution for last-minute shipments and loads that are too small to fill a whole truck.
How Does Spot Market Trucking Work?
Spot market trucking operates through online boards and freight marketplaces. Shippers post available loads, and then carriers search for shipments that match their routes and equipment capacity.
Tips for Spot Market Trucking
Keep these tips in mind when working in spot market trucking.
1—Plan for a Short-Term Contract
If you’re looking for services for an immediate shipment, spot market trucking may be the best choice. Remember that negotiations take place without a long-term contract, which makes this a flexible option.
2—Keep an Eye on Market-Driven Pricing
The rates for spot market trucking can influence supply and demand in the industry. If there is a high demand for trucks and a limited number of carriers available, prices may rise. If there are more carriers than shipments, prices may drop.
Carriers can stay competitive in spot market trucking by:
- Remaining flexible with routes and schedules
- Regularly checking and refreshing boards to find available loads
- Considering backhauls to optimize routes and earnings
While there are ways for carriers to stay on top of the market, shippers need to remain competitive as well. Load consolidation is one way to make a shipment more appealing to carriers. Combining multiple shipments going to the same or nearby locations can result in cost savings.
3—Expect Transportation Flexibility
Spot market trucking provides flexibility for shippers and carriers. Shippers can find carriers quickly to transport immediate shipping demands, and carriers can reap the benefits of available loads to optimize route and capacity.
4—Understand the Dynamic Nature
The spot market can be complex. There are ever-changing rates and availability that are influenced by several factors, such as seasonality, weather conditions, industry trends, and economic fluctuations.
The dynamic nature of spot market trucking means you need to negotiate wisely. While the market can be complex, there are ways to help the process run smoothly.
Carriers can negotiate rates with shippers by considering factors like distance, load size, urgency, and market conditions. Effective communication between carriers and shippers is vital. Clear instructions for pick up and delivery, contact information, and specific requirements for the load can benefit both parties.
Trucking Services at Beitler Logistics
At Beitler Logistics Solutions, we have a reputation for stepping up and helping our customers.
As the leading third-party logistics provider service and non-asset provider, BLS is committed to the belief that we can help our customers reach long-term success. When you work with our team, you can expect superior customer service, communication, flexibility, integrity, and service.
You can expect these advantages when you work with BLS:
- Shipment flexibility to accommodate your needs
- Decades of experience in retail, trade shows and event logistics, fixture deliveries, and much more
- Nationwide service throughout the U.S. and Canada
- Expedited services by truck or domestic air freight
You can count on the BLS team to adapt quickly to any circumstance. We make sure your shipments arrive at the destination as planned — and we’re there to assist you every step of the way.