Empty container space means lost revenue. And the best way to avoid this from happening to your shipping operations is to create a diversified bidding strategy for shipping loads. To do so, you should focus on three aspects:
- Where to find shipping loads that suit your operations
- How to calculate a profitable but affordable quote
- What to include in your shipping bid
Today, we’ll walk you through all three aspects so you can bid on shipping loads like a pro and eliminate empty container space for enhanced revenue.
Let’s get started.
6 Tips to Bid on Shipping Loads Like a Pro
1. Know Your Costs Before You Bid on Shipping Loads
To successfully bid on shipping loads and new hidden revenue streams, you should first understand your costs precisely. For instance, if you’re bidding on an LTL load, you need to know:
- The fuel prices
- Driver allowance
- Potential surcharges
- Insurance cost
- Tolls and taxes
Also, factor in costs for any additional services required for the load. This may include specialized equipment, white-glove handling, expedited transportation, and residential delivery.
The total figure will tell you the base price that you must charge to break even. This is critical, as, in its absence, you might lose money on the load.
2. Estimate the Market Rates for Profit
What makes bidding on shipping loads difficult is that you never know who you’re competing against. You might be facing national carriers with a vast network of vehicles and equipment that can come in with low bids. You may also face competition from regional carriers who operate with lower overhead.
So, you must estimate the market rate to understand how much profit margin you can charge on a bid without losing money or coming in too high. We also recommend going through past rates that other carriers have charged for similar shipments. This will give you an idea of what a winning bid looks like.
3. Leverage Cutting-Edge Technology
One way to bid on shipping loads is to harness the power of technology. This means you can create a custom algorithm that automatically places bids on loads that match your criteria. Here’s what your criteria can look like:
- Load Type: FTL Loads or LTL Loads up to 10,000 Pounds
- Categories: Household, Machinery, and Auto Parts
- Origin Destination: New York, Illinois, California, Texas, or Florida
- Delivery Destination: New York, Illinois, California, Texas, or Florida
- Time Estimate: 3-7 Days
- Ancillary Services: White Glove, Expedited, or Specialized Shipping Equipment
Based on this template, you can create criteria that match your carrier reach, network, and collaborations. Simply put, using technology to bid on shipping loads will help you narrow down freight that you can profitably deliver.
4. Work with Shipping Marketplaces, Freight Brokers, and Shipping Companies
Shipping marketplaces are like the Amazon of shipping. So, if you’re placing bids on shipping loads, you can consider yourself the equivalent of an Amazon seller. And some shipping marketplaces have tiered levels of carriers. This means you could be a trusted carrier for a huge shipping marketplace, and it could help you offer special discounts to clients who work with you.
If you don’t want to use technology to identify profitable shipping loads, another option is to build relationships with freight brokers. They can often help you find bids that suit your network, region, and specialization. Plus, you have a great chance of landing loads that aren’t even open to bidding.
Yet another way to place successful bids is to directly contact the shipping company. They might be able to give you useful information and context on a load. You can use it to create an optimal bid that balances your profits and the load requirements!
5. Include Your Credentials for Trust
Next, let’s discuss how you should create a bid that has the maximum chance of winning the load. So, be sure to include your US FMCSA certification and DOT number. This will tell the client that they can trust you because you have the necessary licenses to ship loads and comply with governmental regulations.
If you’re bidding on a regional load, you should also include your port shipping qualifications, such as the Drayage Truck Registry certification, emissions compliance paperwork, and port-specific clearances.
6. Highlight What Sets You Apart
While every bid will have the basic information we’ve explored above, only successful bids show their strengths within the bid. For instance, if you have a 99% on-time delivery rate, you must include this information in your bid. Similarly, if you offer industry-leading insurance coverage, you should also emphasize this through your bid.
You should also include links to positive customer reviews on third-party review websites. You can also direct users to check out your portfolio or reputation.
Start Bidding on Shipping Loads Like a True Pro
Through this post, we’ve discussed the A-Z of bidding on shipping loads. We’ve explored three different aspects of a shipping bid:
- How to estimate a profitable bid
- Where to look for bidding opportunities
- How to create a successful bid
Remember, you must focus equally on all three aspects of shipping bids to master the art of bidding on shipping loads. So, create a diversified strategy, see what works, refine the process, and place your next bid like a pro.