Subscribe to our free, weekly email newsletter!


Aggregate Low Volume Lanes, Lower Transportation Costs

image

Research by students at the Massachusetts Institute of Technology showed that shippers who aggregated low volume lanes acquired favorable pricing. See how aggregating lanes and contract pricing can save shippers up to 15 percent.




September 21, 2011

By default, most shippers send RFPs that ask carriers for point-to-point pricing on long haul loads (moving more than 250 miles from origin to destination). As a result, most lanes will be classified as “low volume,” subject to more costly spot market pricing, rather than contract pricing. Our research shows that by aggregating low volume lanes—by defining origin and destination sizes more broadly than point-to-point—shippers can increase the total shipments moving in a lane at more favorable contract pricing, saving up to 15 percent over spot market rates.

Research by students at the Massachusetts Institute of Technology showed that shippers who aggregated low volume lanes acquired favorable pricing. See how aggregating lanes and contract pricing can save shippers up to 15 percent.

Shippers may already have a general sense that combining and redefining some lanes—particularly those identified as being low volume lanes—could lead to transportation cost savings.


Download this paper:
Aggregate Low Volume Lanes, Lower Transportation Costs
Sponsored by:
image
* Indicates a required field
*Email:
*First Name:
*Last Name:
*Title:
*Company:
*Country:
*Address 1:
Address 2:
*City:
*State:
Province/Region:
*Zip/Postal Code:
*Phone Number:
Save my data on this computer (do not use on public/shared computers)

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

FedEx Ground, a subsidiary of FedEx Corporation, reports today that a decision by a three-judge panel of the United States Court of Appeals for the Ninth Circuit reversed previous rulings by the District Court for the Northern District of Indiana in three class action cases involving mostly former independent contractors for FedEx Ground

More talking remains before the deal is done

The transpacific U.S.-flag carrier has been ranked number one in the ocean carrier category for Logistics Management magazine's Quest for Quality award

This year, the Containerization & Intermodal Institute (CII) will be staging the “Connie” Awards dinner in conjunction with IANA’s Intermodal EXPO in Long Beach

Middlemen comprising the Transportation Intermediaries Association made money last quarter, say researchers.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA