“Shippers are looking to lock in rates for a longer period to protect themselves from the volatility we’re seeing in the market right now,” said a senior executive at a leading third-party logistics provider. “With volumes fluctuating and rates bouncing around, locking in a rate for six months or even a year helps them plan and control costs.”

Contract rate increases are currently in the low to mid-single digits—lower than carriers had anticipated late last year but still positive compared to the significant decreases experienced in 2023 and 2024. This suggests that while the market remains uncertain, shippers are willing to accept modest rate increases in exchange for greater price stability.

“Neither shippers nor carriers have a clear picture of where the market is headed,” noted a carrier executive. “But both sides recognize the importance of locking in rates now, rather than risking larger swings later.”

In addition to longer-term contracts, more shippers are requesting mini-bids—smaller, more frequent negotiations—to keep flexibility amid changing freight volumes. This approach allows them to adapt quickly as market conditions evolve.

Industry analysts believe this trend reflects a strategic shift. “Shippers are increasingly aware that the market could stay volatile for some time, and they want to avoid the unpredictable spikes and drops in rates,” said transportation economist Steve Sanders. “Longer-term agreements help provide some certainty in an otherwise uncertain environment.”

As market dynamics continue to shift, both shippers and carriers remain cautious, balancing the need for rate stability with the desire for flexibility in an ever-changing freight landscape.