Contracted Freight Shifts To Spot

Last week, spot van rates hit record highs. Here’s what Dean Corbolotti, Shipper Engagement at Sleek Technologies, had to say about the topic. #SleekPOV

“For the first time in almost two years, spot rates jumped higher than contract rates. In the short term, I don’t see this changing. Outbound tender volumes are at all-time highs, while truck capacity has decreased due to COVID. Tender rejections hit 25%, on average, causing contracted freight to shift into spot which is costing significantly more. I predict this market will continue through at least the end of September, if not longer. Contract rates will need to be renegotiated in order to mitigate costs in many markets.”

Technology, like Sleek OTS Plugin, can help shippers manage market ups and downs. The software plugs directly into a shipper’s TMS, and runs behind the scenes opening up capacity backed by a shipper’s pre-determined price to help stabilize pricing during tight markets. “Sleek OTS Plugin is a seamless, and simple way, for shippers to successfully navigate market fluctuation,” said Corbolotti.


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