The Fallacy of Transportation Contracts

Written by Tom Moore | May 10, 2022 5:00:00 AM

Most contracts read like this: “We’ll give the carrier x lots per year (maybe), and the carrier will accept some of them if they feel like it.” Sounds like a great basis for a partnership. So, what is happening:

Ocean carriers are refusing contract loads and doing spot loads for others (Source NY Times).
Some truck carriers have been caught refusing a contract load and then showing up at the spot rate (Source client data).

Contracts are a sham.

What is the problem here? Class 8 truck sales were down 28% from March and 56% from April last year (Source FTR). Is it because truck manufacturers can’t make enough, or carriers aren’t in a buying mood?

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