The Importance of Finding Contract Shipping Opportunities for Small Trucking Companies

For small trucking companies, securing steady and reliable freight is essential to maintaining profitability and growing the business. Contract shipping opportunities offer a stable income stream and help reduce reliance on volatile load boards or one-time shipments. By securing long-term agreements with shippers, small trucking companies can improve financial stability and plan their operations more efficiently. Here’s why contract shipping is important and how to successfully identify and negotiate these opportunities while minimizing the risk of losing them. 

Why Contract Shipping Matters 

Unlike spot freight, where rates fluctuate based on market demand, contract shipping provides predictable revenue and consistent workloads. This allows small trucking companies to: 

• Stabilize Cash Flow – Predictable income makes it easier to budget and manage operating costs. 
• Reduce Empty Miles – Dedicated lanes minimize deadhead miles, maximizing efficiency. 
• Build Strong Relationships – Long-term contracts foster trust with shippers, leading to repeat business. 
• Improve Business Planning – Knowing future loads helps with fleet and driver scheduling. 

How to Identify Contract Shipping Opportunities 

1. Leverage Load Boards and Freight Marketplaces – Platforms like DAT, Truckstop, and Convoy offer contract freight options in addition to spot loads. 
2. Network with Shippers and Brokers – Attend industry events, join trucking associations, and use LinkedIn to connect with decision-makers. 
3. Cold Outreach to Local Businesses – Many manufacturers and retailers prefer working with reliable carriers rather than relying solely on brokers. 
4. Partner with Third-Party Logistics (3PL) Companies – 3PLs manage large volumes of freight and often seek long-term carrier partnerships. 
5. Check Government and Corporate Bidding Opportunities – Large corporations and government agencies frequently post transportation contract bids online. 

Negotiating a Contract Shipping Agreement 

Once you identify potential contract opportunities, negotiating favorable terms is crucial. Here’s how to approach negotiations: 

• Know Your Operating Costs – Before discussing rates, calculate your cost per mile to ensure profitability. 
• Understand Market Rates – Research industry rates to avoid underpricing your services. 
• Negotiate Fuel Surcharges – Include fuel cost adjustments to protect against price fluctuations. 
• Clarify Payment Terms – Ensure you have favorable payment terms (e.g., Net 30 instead of Net 60) to maintain cash flow. 
• Define Service Expectations – Outline responsibilities, performance metrics, and penalties for service failures. 

Reducing the Risk of Losing Contracts 

Securing a contract is just the first step—retaining it requires consistent performance. To reduce the risk of losing a contract: 

• Deliver on Time – Reliability is key to maintaining strong relationships with shippers. 
• Communicate Effectively – Keep shippers updated on load statuses and any potential delays. 
• Maintain High Safety Standards – Avoid contract termination by complying with safety regulations and maintaining proper insurance. 
• Offer Exceptional Customer Service – Go above and beyond to show shippers they can depend on your company. 
• Continuously Evaluate Costs – Monitor expenses and look for ways to improve efficiency while maintaining service quality. 

Final Thoughts 

Finding and securing contract shipping opportunities is essential for small trucking companies looking to grow and stabilize their business. By actively seeking out contract opportunities, negotiating smartly, and ensuring top-tier service, trucking companies can create a reliable revenue stream and build lasting partnerships in the industry. Prioritizing contract freight over inconsistent spot loads will help your trucking company thrive in a competitive market.