Road freight tenders: postpone due capacity crisis in logistics?

People in shipper organizations wonder if they need to postpone road tenders as there is talk about capacity issues everywhere and apparently carriers don’t respond to tenders. The worry is right as the logistics world has changed but of course, you should tender if you feel like it.

The fact is that it should not be such a big deal to do a tender. But for many companies it is as they don’t have good data, have no tech or platform to run a tender or lack the resources. So technology is needed if you want to be agile in logistics procurement.

So what about the carriers? Well, shippers tend to invite the usual suspects which means the big names and the companies they know, of course, they are busy and overloaded as everyone and their mom contacts them.

Shortage of road transport capacity

The shortage of road transport capacity in Europe continues, resulting in high rates on the spot market while available capacity remains at a low level, especially in the automotive sector.

Shortages of truck capacity in Europe continue, resulting in high rates on the spot market while available capacity remains at low levels, especially in the automotive sector. This development is due to many factors and creates inflationary pressure on the economy, which may slow down the recovery. On the supply side, we expect more capacity to become available in the market again – but the demand side is equally important.

capacity europe road freight freightender

In July 2021, the index for road transport capacity in Europe remains at a low level of 76.7 points. Compared to June 2021, available capacity decreased slightly by -1.4 per cent. However, compared to July 2020, there was -26.9 per cent less transport capacity available on the spot market. Prices showed little fluctuation but remained at a high level.

Questions shippers need to ask!

With a growing lack of capacity, SHIPPERS will need to re-think their approach to carriers who will cherry-pick their customers.
Questions to ask:

• How will you strengthen relationships with carriers?
• Where do you find new carriers?
• How do you make your freight flows fit carrier appetite?
• How will you better manage carrier partnerships?

More about LTL and FTL, tenders and logistics costs

Shippers need access to the smaller carriers who you cannot easily find but who actually pass their factories and DC’s all the time yet cannot get the shipper’s business as many shippers have no time and tools to vet carriers or to simply search for them and small carriers themselves do not have the resources in sales or marketing to go beyond their local area or their own network. Catch 22. But it does not have to be like that.

freightender logistics procurement software tender sourcing

All it takes is a change of mind…

Follow my profile on LinkedIn and learn more while we are on the great journey to digitize logistics and make it fun and profitable for shippers and carriers.

Discover TendrX

How do you efficiently handle increasing capacity road freight shortages in road freight? By increasing your carrier database and by strengthening the relationships with your current logistics service providers. How? With the TendrX platform, the fastest growing #logistics #network platform.

Digitization in logistics sales is rapidly growing. There are great opportunities for logistics service providers who take a strategic digital approach to build and grow their businesses via marketplaces and emerging networking platforms like TendrX.

Join here and start using instantly! 

Website: https://tendrx.io

Pieter Kinds

Pieter Kinds

CEO Freightender.com

Freightender is the standard in freight tendering. It makes the tender process lean, smarter and much faster. 
Fully cloud-based. Curious? Request a free live demo and join the Freight Tender Revolution!

Schedule Demo Freight Sourcing

Schedule Demo RFQ Management

What is the difference between demurrage and detention

What is Demurrage and Detention in Shipping for Buyers? Are you a buyer seeking enlightenment on demurrage and detention? This piece is crafted for you. We look at what demurrage and detention entail, their interrelation, and the significance of understanding these...

Choosing a Freight Rate Management System

The freight rate management system has revolutionized the logistics industry, enhancing efficiency, and reducing costs. Shippers, carriers, and forwarders are now recognizing the importance of integrating such systems into their operations. In this comprehensive...

9 crucial tips for your freight RFQ

Are you going out to the market for new pricing and new partnerships? Here are 9 important suggestions for your freight RFQ based on our experience of working with hundreds of companies on their freight tenders. 1. Set a strategy and clear goals First and foremost it...

VIDEO – Mastering Carrier Negotiations: The Automation Advantage

Are you tired of wasting your precious time and energy on negotiating with carriers manually? Do you yearn for a future where technology takes care of all the heavy lifting, allowing you to focus on the bigger picture? If you find yourself pondering over the best...

Freightender at the Transport & Logistic 2023 in Munich

Freightender, a leading provider of digital freight procurement solutions, is excited to announce its participation in the upcoming Transport & Logistic 2023 exhibition to be held in Munich, Germany. The event, one of the largest trade fairs for logistics and...

Unlock the Secrets of Successful Transport Procurement

When it comes to transportation, it is important for companies to secure the most cost-effective and efficient solutions. One of the most important steps to achieve this is through transport procurement. Transport procurement is the process of sourcing the most...

A holistic approach to logistics procurement, what is that?

Logistics (procurement) has changed in the last couple of years as we all know. The volatility in capacity and pricing is also affecting how companies buy freight. Prices are no longer being kept stable without any change for a year or even two years. This has...

European road transport rates reach record levels

Rates in European road transport are breaking records. This according to the  Road Freight Rate Benchmark study, conducted by industry association IRU, research firm Transport Intelligence (TI) and transport platform Upply for the second quarter of this year....

Ocean freight RFQ: 3 experts tips for professionals in 2022

How can you run a successful freight RFQ? In this ultimate ocean freight procurement guide, we share 3 key topics to get in order before sending your tender: good communication, solid logistics data and dedicated and modern technology (freight procurement platforms)....

Freight Auditing: a critical component of the solution, not just a marketing gimmick.

Auditing invoices in logistics is not sexy, but it offers a key to many challenges. In this article, I dive into this somewhat obscure niche. What is freight auditing? So what is freight auditing? It's simply the conceptual term for various processes performed to...