Should I sign a multi-year freight contract or stay flexible?
Honest answers from Gateway Distribution, manufacturer logistics partnerships in Kansas, KS.
A freight company is pushing you to sign a long-term contract for better rates. You ship regularly across Kansas and the Midwest, but you're worried about getting locked into something that doesn't work. The commitment feels risky, but the rate savings look real.
Multi-year freight contracts make sense when you have consistent shipping volume and want protection from rate spikes. The carrier offers lower rates because they can count on your business. But you give up flexibility to change providers if service gets worse or your shipping needs change.
Most contracts run 2-3 years with rates locked for the first year, then annual adjustments based on fuel and market conditions. You'll typically save 10-15% over spot rates, but only if you meet minimum volume commitments. Missing those minimums can trigger penalty rates that cost more than staying flexible.
Look for contracts with volume adjustments that match your seasonal patterns and clear service level guarantees with penalties if they don't deliver. Avoid contracts without performance standards or reasonable exit clauses. Gateway Distribution structures manufacturer logistics partnerships with built-in flexibility for volume changes and service standards you can count on.
The right contract gives you predictable rates and reliable capacity without boxing you in. You'll have one contact who knows your business and can adjust when your shipping needs change. Bad weather or supply chain disruptions won't leave you scrambling for trucks.
Other things people in Kansas ask
consistent monthly freight shipping
Set up a dedicated trucking contract. You get the same drivers and trucks on your schedule. Gateway Distribution builds custom routes around your shipping calendar so you never compete for truck space.
freight contract cost vs spot rates
Multi-year freight contracts typically cost 10-15% less than spot rates and lock in pricing. Calculate your annual shipping volume first. If you ship consistently, dedicated capacity contracts protect you from rate spikes and guarantee truck availability.
dedicated trucking cost vs regular shipping
Compare your total monthly freight spend to a dedicated contract. Include the hidden costs like delays, damage, and staff time spent booking trucks. Most companies with 20+ shipments per month save money going dedicated.
dedicated trucking services
Dedicated trucking gives you the same driver and equipment on a schedule you set. It costs more than spot freight but less than owning trucks. Gateway Distribution offers dedicated services for businesses with regular shipping needs.
buy trucks vs hire trucking company
Calculate the total cost of ownership. Include truck payments, insurance, maintenance, driver wages, and DOT compliance. Most companies save money outsourcing until they ship 40+ loads per month consistently.
Ready to talk?
Gateway Distribution handles manufacturer partnerships in Kansas and the area around it.