Should I sign a multi-year freight contract or stay flexible?
Straight answers about freight contracts from Gateway Distribution in New Hampshire, NH.
A freight company wants you to lock into a multi-year contract for better rates. You're shipping regularly but worried about getting stuck with bad service or prices that don't stay competitive. New Hampshire manufacturers face this decision constantly as shipping volumes grow.
Multi-year freight contracts offer rate protection and reliable capacity in exchange for volume commitments. The carrier gets predictable business, you get locked-in pricing that won't spike during busy seasons. But you're also betting that your shipping needs won't change dramatically over two or three years.
Most contracts save 10-15% compared to spot rates, but the real value depends on your shipping consistency. If you move similar volumes monthly along the same routes, contracts make sense. If your business is seasonal or growing fast, you might outgrow the terms quickly. Bad contracts can cost more than spot rates if they include penalties or don't adjust for volume changes.
Look for contracts with volume adjustments, clear service standards, and reasonable exit clauses before signing anything. Ask about performance guarantees and what happens if they miss delivery windows. Gateway Distribution structures manufacturer logistics partnerships with built-in flexibility, so you get rate stability without getting trapped in rigid terms that don't match your actual shipping patterns.
The right contract gives you predictable freight costs and priority capacity during peak seasons. You'll spend less time negotiating rates and more time focusing on your core business, knowing your logistics partner is committed to consistent service levels.
Other things people in New Hampshire 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 New Hampshire and the area around it.