Ask Your Broker About Dynamic Pricing

Ask About Dynamic Pricing

Record Freight Market for Carriers

If you have freight to move, it’s no secret that the pandemic has contributed to an extremely strong freight market for carriers. Freight transportation consultancy FTR recently reported that March was a record month. Avery Vise, FTR Vice President, said that “Robust demand and tight capacity no doubt are big operational headaches for many trucking operations, but those factors are supporting the best market conditions ever for carriers.” He continued, “We have yet to see signs of a loosening in driver capacity, so the near-term outlook [for carriers] is strong.”

And you know what it means. As ACT Research’s Vice President and Senior Analyst Tim Denoyer said, “This is perhaps the strongest freight market ever for carriers and the most challenging ever for shippers.”


Dynamic Pricing

A few months ago, I wrote about the power of dynamic pricing in a volatile freight market. When the market is upended for any length of time–as has been the case since the advent of the COVID-19 pandemic–manufacturers and distributors tend to experience a higher rate of tender rejections from primary and secondary carriers.

Dynamic pricing is one way your freight broker can help you weather the storm. So what exactly is dynamic pricing? Simply put–dynamic pricing is a short-term rate lock-in. What that means is we commit to a rate for 30 days, and we’ll honor that rate, no matter what the market does. At the end of the 30 days, we reevaluate the rate based on current market conditions.

This means you don’t have to worry about rate hikes for 30 days, and, after the past year, that’s no small deal.


The Benefits of Dynamic Pricing

If you’re like most manufacturers and distributors we know, you are uncomfortable locking in a higher rate. In your experience, those rates never come back down. But that’s not how dynamic pricing works at AM Transport Services.

If you lock in a dynamic pricing rate, we commit to that rate for 30 days no matter what the market does. After 30 days, we present you with complete freight market evaluation, and we adjust rates based on the market. If the rates go down, we can and will adjust, but if they keep rising (as has been the case recently) you don’t have to worry about it during our short-term dynamic pricing 30 days. 

We’ve been working with many shippers on these short term contracts, and they’re all quite happy when they can look back over the past 30 days and see that the dynamic pricing rate saved them lots of money and headaches.


If you’d like to get smart with dynamic pricing, give us a call at AM Transport Services today. We’d like nothing more than to save you time and money.