Beyond the bid: Rethinking truckload procurement in North America

For decades, the North American truckload market has relied on long-term, fixed-price contracts as its backbone. But in today's complex environment, this one-size-fits-all solution is becoming increasingly misaligned with reality. Shippers and carriers are grappling with unpredictable demand swings, inconsistent shipment volumes and the persistent challenge of "ghost lanes" — contracted lanes that never materialize.

The COVID-19 pandemic further exposed the limitations of rigid contracting, prompting industry leaders to ask: Is there a better way? Check out our eBook to learn more.

Based on extensive research from MIT’s Center for Transportation & Logistics, this eBook explores how dynamic pricing models, such as index-based contracts and API-driven pricing, are emerging to blend the stability of contracts with the flexibility of the spot market. These approaches harness real-time data and adaptive pricing mechanisms to offer a new and strategic option that is truly win-win.

Inside this eBook, you'll learn about:

• Rise of strategic spot use:Explore how shippers are increasingly willing to use the spot market more strategically, particularly for traditionally difficult lanes.
• Cost of "ghost lanes":See how lanes contracted but never used lead to higher rejection rates and can increase your future contract prices by an average of 7%.
• Benefits of dynamic pricing:Discover how dynamic-priced contracts for low-volume, high-variability lanes can lead to:
  • 1-5% reduction in shipper costs
  • 2-4% increase in carrier acceptance rates
  • 1-9% higher revenues for carriers
• Practical Implications:Understand the technological and behavioral challenges, and how solutions like Transporeon Autonomous Procurement and Freight Marketplace are helping to bridge the gap.