How shippers buy freight directly impacts costs, reliability, and overall agility. The challenge? Market swings, demand spikes, and stricter delivery expectations make it tough to stick with one approach. Transportation managers now face a constant balancing act to move faster, cut inefficiencies, and still keep service consistent.
That’s where the question of how to buy freight comes in. Some situations call for flexibility to move freight at a moment’s notice. Others demand the stability of contracts. Most shippers decide based on current market realities, shipment volumes, and performance priorities.
Before looking at long-term contracts, it’s worth starting with the other side of the equation: spot freight procurement.
Spot freight procurement is essentially on-demand buying. Shippers secure capacity load by load at market rates rather than locking into a fixed, long-term agreement.
Spot freight isn’t just for last-minute shipments — it’s an essential part of a balanced freight strategy. Many lanes, due to irregular volumes or inconsistent demand, aren’t well-suited for long-term contracts. In addition, market fluctuations can make the spot market temporarily more cost-effective than contract rates. While urgent needs like late production runs or sudden demand spikes still drive spot activity, the broader role of spot freight is to complement contract freight, providing flexibility, cost advantages, and access to capacity when market conditions shift. With strong planning and the right tools, shippers can strategically use spot freight to stay agile and control overall transportation spend.
While it offers flexibility, spot procurement also exposes shippers to market swings. Rates rise and fall quickly, and capacity isn’t always guaranteed. For transportation managers, the challenge is knowing when the spot market adds strategic value versus when it becomes a cost risk.
Rather than bidding load by load, contract procurement secures a longer-term deal with carriers. Pricing and service expectations are fixed for a defined window, which is sometimes months or even a full year.
There’s no one-size-fits-all answer in freight procurement. What works best comes down to your specific network and today’s business pressures, such as the need to cut costs and respond to market shifts. These factors often tip the scales:
Most shippers don’t choose one exclusively. They adapt procurement strategies to fit different lanes, timelines, and objectives.
Spot freight often raises practical questions for shippers weighing it against long-term contracts. Here are clear, straightforward answers to some of the most common considerations.
It depends on timing and conditions. Contracts bring price stability, which protects budgets over months. Spot freight reflects real-time market swings, which are sometimes higher and other times surprisingly competitive. Smart shippers blend both, using contracts for steady lanes while turning to the spot market when flexibility outweighs predictability.
Yes, many shippers use both. Contracts handle predictable freight, keeping costs stable and service reliable. Spot freight covers the unexpected, including surges in demand, urgent shipments, or market shifts. A blended approach gives transportation teams both consistency and flexibility, aligning procurement decisions with changing business needs rather than locking into one path.
Balancing spot and contract freight doesn’t have to be a guessing game. ShipperGuide brings procurement into one hub, giving you the visibility and insights needed to make smarter, faster decisions. Access spot benchmarking to compare live market rates against your contracted rates, review carrier scorecards to assess performance KPIs and leverage Tender Acceptance Likelihood to predict how likely a carrier is to accept a spot tender.
From agile spot buys to stable contracts, ShipperGuide helps you optimize spend and performance across all modes. Schedule a demo today!