The Devil is in the Details: Finding a Shipping Partner You Can Trust

It’s a shipper’s worst nightmare – they’ve signed a multi-year contract with a provider to realize months later that they never fully understood what they agreed to. 

Even for those who review and sign contracts every day, navigating the complexities of logistics and transportation contracts can be a daunting task for businesses. Ambiguous terms, confusing discount structures, unexpected costs and hidden hurdles lie buried within these agreements, leading customers to overpay for services they believed to be straightforward. 

We’ve seen it plenty of times in our 40 years of business. Recently, we were engaged by a prospective customer to understand their current LTL carrier relationships and find opportunities to create efficiency, improve service and save money. During the review, our team identified 15%+ (over $1.5 million) in potential savings based on the contract material. Evans also activated our Parcel Solutions team to understand the implications on the customer’s small parcel rates. While the carrier was proposing almost $2 million in savings on the parcel partnership, upon examination, much of that savings was tied to a rollback of recently announced price increases. The customer was being locked into steep contract termination penalties and eroding savings through hidden accessorial increases. More importantly, the proposed agreement tied Parcel and LTL volume so that any reduction would block LTL volume optimization, all without a financial obligation from the provider to meet acceptable service levels.

Our team of experts quickly determined the contract the customer was offered was not competitive, nor in their best interest. Despite customers entrusting carriers to be transparent with their service offering, many fall short. Stories like theirs show us how customers can be left in a lurch as transportation and logistics providers maximize profitability and focus solely on their bottom line, instead of their customer.

In that same vein, recent speculation about FedEx Corporation spinning off its FedEx Freight division has sparked conversations across the industry. This change would allow FedEx Corporation to streamline its business and focus more intently on its most profitable small parcel and express delivery services, but it would also lead to renegotiations, uncertainty and potential rising costs for their partners. 

What are the implications of the potential FedEx Freight Spin Off?

• For large LTL shippers, this change could lead to several potential outcomes, including increased competition, specialization and market volatility. 

• For customers relying on FedEx’s small parcel services, the spin-off may provide enhanced focus on its core small parcel operation and offer operational synergies through redeployed resources, but the likely change in pricing dynamics will impact not just customers using both services, but parcel-only shippers as well. 

In a time when uncertainty is high, the best choice for shippers is choosing a partner you can trust to be transparent and stable in an unpredictable market. 

What should I look for in a shipping provider?

A partner in the process – Evans Transportation helps customers understand the intricacies and implications of contracts and the services provided so they can make the right decisions based on their business needs. Our business is built on transparent communication, with a foundation of relational trust and mutual respect – no loopholes or hidden fees now or down the road. While competitors discontinue services, reorganize business and create confusion for clients, we’re committed to providing high-quality, holistic services at a reasonable cost. 

Stability and growth – Where others are cutting back and laying off, the Evans Transportation team is growing, and projected double-digit business growth in 2024 means we are staffed and ready to help our customers meet their goals. We’re leaning in to offer our customers more through the addition of our in-house parcel service and expansion with Mexico operations. 

Single-source shipping provider – Evans Transportation offers a full roster of services to customers – offering in-house expertise in parcel and LTL to serve a range of shipping needs and support optimizations. Not only does this approach strengthen our company against market turbulence and minimize the likelihood of reorganization, cutbacks and client headaches, it provides customers with a one-stop shop for their shipping needs, simplifying what can be an overwhelming process so they can focus on what matters. 

Evans Transportation prioritizes customers through the Evans Experience, looking out for their best interests every step of the way. With decades of experience, our team has asserted itself as a leader in the industry and a name customers can trust. 

To learn more about how Evans Transportation can be your full-service partner, contact us today.