Recently, the economy has shifted the balance of shippers and carriers to such a degree that there are now more shippers than carriers. This means that carriers now have more choices regarding shipping companies. Not all shipping companies have the most-desired qualities for a business partner, however. Choosing a shipping company with the right qualities can mean a vast difference in the amount and value of the business carriers receive.

Respect

Any time people or businesses work together, a measure of respect is necessary. If you are considering doing business with a shipping company, find out how respectful they are. Do they act professionally towards you with initial communication? Does management treat employees well? Working with a respectful business partner is far more satisfying than dealing with a partner who does not respect you or the drivers working under you.

Advertising and Finding Shippers

 

 

In the past, carrier companies largely advertised by offering shippers incentives to consider them for business. However, recent policy changes have restricted shippers from accepting tickets to events or other types of gifts. In the face of these changes, some carriers may need to re-evaluate their sales approach.

 

Cold calling still works as a way to find shippers interested in doing business with you, especially with the existence of more carriers than shippers, but carriers need to do their research before calling a shipping company. Be sure you know all that you have to offer shippers as a carrier. If you can call a shipper with an offer on something specific you’ve found out that they need, it will seem impressive and professional.

Money Skills

Money is the bottom line for both carriers and shippers, and partnering with a shipping company that knows how to handle the financial aspects of the business is essential. When choosing a shipping company to work with, try to be certain that they are financially stable. If they declare bankruptcy without paying for the loads you delivered, it could spell the end of your business as well.

 

Finding a shipper that is educated in the bid/tender process will save both sides a lot of frustration. Be certain that a shipper is able to give an accurate, logical price based off pertinent data. Always ask shippers for payment terms in writing, and if they refuse to give them to you, be extremely wary.

 

Carriers must know what they need to bid when going into negotiations with a new shipping company. If the shipper undercuts the lowest price the carrier is willing to take, they should consider walking away, as further negotiations may be a waste of time. On the other hand, the carrier needs to know a reasonable price to bid so that they can offer a fair, acceptable price to the shipper. Good shippers will also know what a reasonable bid is for the loads they offer before negotiations even start.

 

Shippers make certain commitments to carriers regarding the amount of freight they will need shipped. If shippers do not follow through on these commitments, that means less business for the carrier, and the carrier may have already made decisions based off the amount of money the commitments would have provided. If a shipper has a reputation for not following through on commitments, carriers may not want to do business with them. If you discover shippers who are having trouble keeping commitments after you have started doing business with them, do not be afraid to look for other business (just beware of breaking your own contracts).

Communication and Future Business

 

 

Carriers need information to plan their work: freight characteristic percentages, monthly volumes, and tonnage, among other things. Dealing with a shipping company that communicates such necessary information slowly, or not at all, puts a great deal of strain on the carrier and on the business relationship. Look for a shipping company that tells you everything you need to know when you need to know it, or even before.

 

As a carrier, you thrive on repeat business. Picking up extra loads on a one-time basis is fine on the side, but the core of your business needs to be with shippers who offer long-term contracts. If you are considering doing business with a shipper who does not seem interested in any future business with you, your time might be better spent looking for a different shipping company.

 

Find a shipping company that works with you. Some shippers might forget that while carriers provide them with a service, the carrier does not work for the shipper. Both businesses will prosper if they work together to open up new avenues of business and to solve any problems that may arise. Again, look for a shipping company that is willing to look toward a future with your company.

 

To ensure a healthy business relationship, carriers and shippers should be able to meet at least quarterly. These meetings can cover a variety of topics, from possible improvements in technology or procedures, to solving an ongoing problem. Shippers and carriers who are willing to work together will grow together.

 

The most important qualities a carrier needs to look for when choosing a shipper are the same ones vital in most business relationships: respect, prompt communication of important information, solid financial skills, and follow-through on their commitments.