Contracted freight refers to shipping capacity secured through long-term agreements between a company and a carrier. Rates and service levels are fixed for a set period, usually through annual tenders or RFPs. This provides price stability and guarantees capacity on critical lanes.
Contracted freight is the backbone of most logistics strategies. It protects against market volatility, supports long-term partnerships, and ensures predictable costs. However, it can lack flexibility when demand fluctuates, making it essential to balance with spot or on-demand options.
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