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Contract freight refers to a shipping agreement between a business and a carrier, where the terms for transportation services are set for a fixed period or number of shipments, often at a predetermined rate.
Contract freight refers to an essential logistics solution for businesses that require consistent and reliable shipping services over an extended period. It involves negotiating terms that benefit both the shipper and the carrier, including pricing, delivery schedules, and performance expectations. By locking in a contract, businesses can enjoy cost savings, improved delivery reliability, and better service.
Contract freight works by establishing fixed terms for the transportation of goods, including agreed-upon pricing, shipping schedules, and service levels. By entering into a contract, your business benefits from predictable costs, a reliable shipping schedule, and potentially discounted rates for high-volume shipments. This stability allows for better budget management and more efficient supply chain operations.
Buske Logistics is a Top 40 3PL with over 35 warehouses across North America, specializing in warehousing, transportation, and value-added services. We provide tailored logistics solutions serving major Fortune 500 companies.
Contract freight helps businesses secure stable shipping rates and services, reducing the volatility of transportation costs. It allows for better budget planning and enhances operational efficiency, ensuring that shipments are delivered consistently and on time. By establishing a long-term relationship with a carrier, companies can streamline their logistics and avoid unexpected disruptions.
For example, a food and beverage company that regularly ships large volumes of goods can enter into a contract freight agreement with a trusted carrier. This provides the company with guaranteed rates, predictable delivery times, and priority service, ensuring that their logistics operations run smoothly and cost-effectively.
