107 – How to Negotiate 2018 Carrier Contracts


September 20, 2017 12:40 pm - 1:30 pm

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2018 Rate Impact

Now that you know what to expect for 2018 carrier rates and accessorials, it’s time to prep for contract negotiations. You’ll learn critical bases to cover and, even though you may not realize it, how your invoice is already guiding you in negotiations. You’ll find out if 2018 will be harder or easier to negotiate than years past and what other shippers are saying will be the biggest negotiating obstacles. We’ll delve into the much-talked-about Zone 1 rates from UPS and FedEx, and how regional carriers and DHL can become part of the Zone 1 strategy. We’ll review the financial versus operational strategy to negotiating—it’s not just about offsetting the GRI anymore. You’ll gain an understanding of carrier cost models to better negotiate contracts as partners. Then we will dive into contract verbiage, where just one sentence can negate all savings you negotiated in rates. Finally, you will discover the importance of considering inbound freight to optimize outbound pricing.

LEARNING OBJECTIVES

  • Pre-negotiation bases every shipper should cover
  • Zone 1… regionals… DHL… oh my!
  • Cost models—are you the driver or passenger?
  • Hidden gems in your carrier invoice
  • Is your contract intact?
Brittany Beecroft