Reduce Truckload Shipping Costs with Managed Transportation

The truckload freight market is constantly evolving, with shifts in capacity, demand and pricing affecting truckload shipping nationwide. As businesses prepare for potential rate increases in 2025 and 2026, partnering with a managed transportation provider offers significant advantages in mitigating cost increases and optimizing carrier relationships. By leveraging data-driven insights, strategic procurement practices, deep industry expertise and end-to-end load execution support, a managed transportation provider helps shippers reduce truckload shipping costs and improve service levels.

Market Trends: Industry Benchmarks

The last major market swing in a non-pandemic year led to substantial rate increases across the truckload sector. Spot and contract rates for dry van, flatbed and temperature-controlled shipments all experienced significant upward pressure in 2018, according to detailed historical market data from DAT. National spot rates increased year-over-year in 2018 from 2017 by ~20% for dry van freight and ~22% for flatbed and reefer shipments, while national contract rates followed (several months later as they usually do) with year-over-year increases of ~10% for dry van freight and ~12% for flatbed and reefer shipments.

Proactive Strategies to Manage Truckload Shipping Costs in 2025 and Beyond

As market conditions set the stage for future increases, shippers need a strategic approach to procurement and carrier management. A managed transportation provider delivers critical support in ensuring businesses maintain cost control and supply chain resilience by:

• Optimizing the mix of contract and spot procurement rates to align with market trends and shipment volumes.
• Finalizing carrier networks and maintaining volume commitments to strengthen relationships and secure favorable pricing.
• Tracking and analyzing carrier performance metrics such as tender acceptance, capacity commitments and market competitiveness on a lane-by-lane basis.
• Leveraging strategic procurement teams to ensure a targeted and efficient approach to securing capacity.

How a Managed Transportation Provider Cuts Costs in Truckload Shipping

Most managed transportation providers engage with their clients in a variety of ways, allowing businesses to customize their level of support. We see a direct correlation between greater client cost savings and a more integrated partnership. Based on over 20 years of data and current market conditions, we have seen the following trends for our customers:

• Self-Managed FTL Procurement: Based on our data, shippers managing their own freight procurement typically operate at an average of 10% premium to the market.
• Assisted FTL Procurement, Self-Execution: TI clients that allow us to assist in carrier procurement, but manage their own execution, operate at an average of 2.5% premium to the market.
• Full FTL Procurement & Load Execution Support: TI clients leveraging both procurement and execution services see the best results—higher service levels, improved compliance with least-cost carriers and ultimately, operating at an average of a 2.5% cost deficit to the national market rate. We also typically see that technology like a TMS can help with further optimization and cost reduction.

The Advantage of a Data-Driven Approach to Truckload Shipping Cost Control

Managed transportation solutions provide shippers with more than just cost savings—they offer improved service, better carrier compliance and greater resilience against market fluctuations. By leveraging industry expertise, advanced analytics and a strategic approach to procurement, managed transportation providers ensure their clients remain competitive, even in volatile truckload shipping market conditions.

Why Work with a Managed Transportation Provider?

While the broader market experienced sharp increases in the last pre-pandemic market swing, clients working with a managed transportation provider like Transportation Insight to gain control over their truckload shipping costs have seen significant improvements. TI clients operating under a managed transportation solution:

• Experienced a ~10% increase in dry van and ~12% increase in flatbed and temperature-controlled rates—half the impact of the broader market.
• Saw only a ~3% increase in dry van and a ~5% increase in flatbed and temperature-controlled rates, demonstrating the effectiveness of strategic procurement strategies.

For shippers looking to reduce truckload shipping costs and optimize their freight networks, now is the time to take a proactive approach. Partnering with a managed transportation provider like Transportation Insight can provide the strategic support necessary to navigate market changes and maintain a cost-efficient, high-performing supply chain.

Ready to Optimize Your Truckload Strategy?

Connect with a Transportation Insight truckload shipping expert today to learn how a managed transportation solution can help your business drive truckload shipping cost savings, improve service levels and prepare for future market shifts.

About Author:

James Mathews

Vice President, Transportation

James Mathews is a logistics industry veteran with decades of experience in truckload market dynamics. At Transportation Insight, he bridges the gap between carriers and shippers, advocating for both communities to drive strategic freight solutions. By balancing freight contracts and spot market utilization, leveraging data analytics and fostering transparent carrier relationships, he helps shippers optimize truckload costs while ensuring capacity and operational efficiency in a fluctuating market.