Maximizing Spot Rates While Leveraging Direct Shipper Freight
Rob Carpenter
6 min read
The freight market is volatile, and spot rates fluctuate daily, sometimes in real time, making it challenging for carriers to secure consistent, profitable loads. Many small fleets and owner-operators turn to load boards and brokers to find freight, but relying solely on the spot market is rarely a winning long-term strategy. Many fleets struggle to turn serious profits on spot-rate freight because the model often favors shippers and brokers over carriers.
So, how can trucking companies secure better, more consistent rates and avoid the roller coaster of load board pricing? The answer lies in establishing direct relationships with shippers. While spot freight has its place, direct shipper contracts provide stability, better margins and predictable revenue, which are critical for long-term success.
Understanding Spot Freight Rates and Why They Fluctuate
Spot freight rates are one-time pricing agreements for moving a load. The rates are determined by real-time market conditions and fluctuate based on capacity, fuel costs and supply chain disruptions. While spot rates offer flexibility, they lack consistency and make it difficult for carriers to plan for a steady income.
Several key factors influence spot freight rates:
Market demand and capacity – If more freight is available than trucks, rates increase. If too many trucks chase too few loads, rates drop.
Fuel prices and operational costs – Rising fuel prices directly impact freight rates, making long-haul loads less profitable when fuel costs surge.
Urgency of the shipment – Last-minute loads often pay a premium, but shippers may still secure cheap rates through desperate carriers if capacity is low.
Seasonality and freight volume – Peak seasons (e.g., produce season and holiday shipping) drive up rates, whereas slow seasons leave many carriers competing for limited freight.
While spot rates may occasionally work in a carrier’s favor, they are highly unpredictable. This makes it difficult for owner-operators and small fleets to plan fuel purchases, maintenance schedules and long-term financial decisions.
The Load Board Problem and Why Spot Freight Doesn’t Always Pay
Load boards are necessary for many carriers, especially those just starting out. Platforms like DAT, Truckstop and Convoy offer access to available freight but come with significant downsides:
Rate compression – With hundreds of carriers competing for the same loads, brokers drive rates down, maximizing their profits while carriers accept minimal margins.
Inconsistent freight – Loads posted on load boards are often last-minute, leftover or overflow freight. Shippers give their best lanes to contracted carriers, leaving the least desirable freight for the spot market.
Lack of direct relationships – Since brokers and 3PLs control the freight, carriers rarely build direct ties with shippers, making it harder to negotiate better rates.
Short-term thinking: Carriers that rely exclusively on spot market loads are at the mercy of rate swings, which prevent them from scaling their businesses.
Fleets that are dependent on load boards struggle to grow. The most profitable carriers move beyond transactional freight and secure direct contracts with shippers, providing them with consistent loads at stable rates.
Why Direct Shipper Freight is the Answer
Unlike load board freight, direct shipper relationships provide carriers with steady work and better pricing. Instead of chasing loads in a cutthroat market, carriers that establish direct agreements benefit from:
Stable, predictable revenue – No more gambling on whether next week’s rates will be good or bad.
Less competition – When you work directly with shippers, you avoid the rate wars seen on load boards.
Negotiable rates – Shippers value reliability and loyal carriers can negotiate better long-term rates than those found in the volatile spot market.
Faster payments – Instead of waiting for brokers to process invoices, direct shippers typically pay on net terms or offer quick pay options.
Consistent freight lanes – Direct contracts allow carriers to haul dedicated freight, reducing deadhead miles and improving efficiency.
A small reefer carrier hauling produce may struggle to maintain steady rates in the spot market, especially outside peak season. However, securing a direct contract with a regional grocery distributor could provide weekly loads at a fixed rate, ensuring stable income year-round.
How to Secure Direct Shipper Freight
Transitioning from load board freight to direct shipper contracts takes time, but the effort is well worth it. Here’s how carriers can start landing direct shipper freight:
Identify Potential Shippers in Your Region
Look for manufacturers, distributors and retailers that ship regularly in your preferred lanes. Focus on industries that match your equipment, such as:
Dry van – Consumer goods, food and beverage, electronics.
Flatbed – Construction materials, industrial equipment, steel and lumber suppliers.
Intermodal and drayage – Port and rail freight, container movements.
Use Google, LinkedIn and industry directories to find potential shippers.
Leverage Load Boards for Initial Shipper Connections
While load boards aren’t ideal for long-term profitability, they can be a starting point for building shipper relationships. If you consistently move loads for a specific shipper, ask about direct agreements instead of going through a broker.
Cold Call and Email Shippers Directly
One of the most effective strategies is contacting shippers directly. Call logistics managers or send professional emails introducing your services. Highlight:
Your equipment type and coverage areas.
Your safety and service record.
How you can help reduce their transportation costs and improve reliability.
Persistence is key. Not every shipper will say yes immediately, but staying in touch increases your chances.
Attend Industry Events and Join Networking Groups
Trade shows, trucking associations and logistics networking events connect carriers with shippers looking for reliable transportation partners. Some events to consider:
Mid-America Trucking Show (MATS)
FreightWaves events
Specialized transportation and logistics expos
Offer Exceptional Service and Reliability
Shippers want dependability. If you secure a one-off load from a shipper, treat it as an opportunity to prove your value. Deliver on time, communicate effectively and avoid service failures. A good first impression can lead to consistent, direct freight opportunities.
Why Spot Freight Isn’t Always the Long-Term Answer
While spot freight has its place, it is not a sustainable strategy for growth and profitability. Many carriers lose money or break even chasing the next load at a low margin. The key to long-term trucking success is establishing direct shipper freight, which ensures stable revenue, consistent freight lanes and reduced competition.
Carriers that focus on building direct relationships, providing exceptional service and strategically targeting shippers will find themselves far stronger than those relying solely on the uncertain world of spot market freight.
If you’re tired of fighting for low-paying loads on load boards, it’s time to pivot your business strategy toward direct shipper contracts, the key to financial stability in trucking.
