A stable bet or a game of roulette: why you need to negotiate with road carriers in advance

Global logistics has long ceased to be simply the transportation of goods from point A to point B. Today it is a complex risk management system where the cost of car delivery can change in just a few days. This issue is especially acute for international transportation between Russia, China, Central Asia and Southeast Asia.

Market experts note that companies that pre-fix the terms of cooperation with road carriers and negotiate stable rates receive a significant competitive advantage. Those who work exclusively on the spot market risk a sharp increase in tariffs, a shortage of transport and disruption of delivery times.

Why Stable Rate Becomes a Strategic Instrument

Road transportation remains one of the most flexible and popular types of delivery. However, this segment is most susceptible to seasonal fluctuations and external factors.

In the absence of long-term agreements, the logistics company faces several problems:

• inability to predict the cost of transportation;
• the risk of loss of customers due to a sharp increase in tariffs;
• lack of free transport during high season;
• Dependence on the decisions of third-party carriers;
• Increased financial risks and cash gaps.

A fixed or agreed long-term rate allows you to plan the budget in advance, ensure the stability of supplies and form a transparent pricing policy for customers.

Seasonality is the main factor in changing rates

The road transport market has a pronounced seasonality. During the year, the cost of transportation can vary by tens of percent.

Low Rate Periods: May to August

The summer period is traditionally considered the most calm for the transportation market.

Main reasons:

• Decreased industrial activity;
• the end of the spring import season;
• reducing the number of urgent deliveries;
• Increasing the supply of free transport.

During this period, companies get the opportunity to conclude the most profitable long-term agreements with carriers.

Periods of high rates: September - December

In autumn, the market traditionally enters the phase of overheating.

Causes of growth:

Preparation for the New Year season

Importers aim to bring in goods before the end of the year.

The growth of e-commerce

Marketplaces and retail chains dramatically increase the volume of purchases.

Increased loading of international routes

This is especially true of areas:

• China-Russia;
• Central Asia – Russia;
• Southeast Asia – China;
• China is Europe.

Transport deficit

The number of applications begins to significantly exceed the available park.

As a result, rates can rise by 30-70%, and sometimes more.

Second peak: February to April

Many companies mistakenly believe that after the New Year holidays, the market stabilizes. However, a new period of growth begins in February.

The cost of transportation is affected by:

• Restoring business activity after the Chinese New Year
• launch of new production cycles;
• increase in exports and imports;
• seasonal growth in demand for raw materials and components.

That is why experienced logisticians begin to form transport capacities in winter.

Risks of working without stable partners

Many companies continue to work on the principle of finding the cheapest rate "here and now". Such a strategy can have serious consequences.

Risk number 1. A sharp increase in value

The carrier can agree on the price today, and tomorrow refuse the application due to the appearance of a better order.

Risk 2. Failure to deliver

In the absence of guaranteed partnerships, the cargo may simply not receive transport in the right time.

This is particularly critical for:

• industrial equipment;
• components;
• perishable products;
• contract supplies.

Risk 3. Poor quality of transportation

New contractors do not always have the necessary experience and responsibility.

This leads to:

• damage to cargo;
• loss of documents;
• violation of the temperature regime;
• additional costs.

Risk 4. Financial losses

Each day of delivery delays can result in:

• fines under contracts;
• disruption of production;
• loss of customers;
• deterioration of business reputation.

Weather conditions as a risk factor

Automotive logistics depends on natural conditions.

The most difficult periods:

Winter

• snowfall;
• ice;
• traffic restrictions;
• closing passes.

spring

• floods;
• blurred roads;
• seasonal load limits on the tracks.

Summer.

• fires;
• abnormal heat;
• Restrictions on heavy traffic.

autumn

• prolonged rains;
• Deterioration of road infrastructure;
• Increase in accidents.

The presence of permanent carriers allows you to quickly respond to such situations and quickly rebuild routes.

Why partnerships are more profitable than one-time transportation

Companies working with proven road carriers receive a number of advantages:

• priority provision of transport;
• the possibility of fixing tariffs;
• reducing the risk of disruption of transportation;
• transparent budget planning;
• access to the reserve fleet;
• Accelerated solution of force majeure situations;
• Higher level of responsibility of partners.

How to build relationships with carriers

Experts recommend following several principles:

Partner diversification

It is necessary to have several reliable carriers in each direction.

Conclusion of long-term agreements

Fixing the terms of cooperation allows you to minimize seasonal risks.

Volume planning

The earlier the volume of transportation is known, the more favorable the conditions are.

Joint risk management

It is necessary to coordinate in advance actions in case of weather restrictions, rising rates and shortages of transport.

Modern logistics is not a fight for the lowest rate, but competent risk management. Companies that build relationships with road carriers in advance, fix tariffs and form stable partner chains gain a strategic advantage in the market.

It is especially important to take into account seasonal peaks in demand – from September to December and from February to April. It is during these periods that the presence of stable carriers becomes not just an advantage, but a prerequisite for successful business operation.