Your buying power may be costing you money
Are you paying too much to ship freight? It might be your buying power. In shipping, buying power (or purchasing power), refers to how much leverage you have when negotiating rates with carriers. It’s shaped by your freight volume, shipping consistency and choice of modes.
Large shippers can often get lower rates because they give carriers steady freight that keeps trailers full. But small and mid-sized shippers don’t always have the volume to obtain the most competitive rates on their own. That’s where a logistics partner comes in. With the right strategy and partner at your side, you can boost your buying power and lower your transportation spend.
Why buying power matters
Buying power affects two things: rate negotiations and capacity access. The more freight you offer a carrier, the more willing they typically are to lock in competitive pricing and guarantee space in their trailers. Without this leverage, shippers often face higher spot rates or limited capacity. This is emphasized in tight markets or during peak seasons.
Think of buying power as your supply chain’s credit score. You can get by without a great one, but you’ll likely pay more and work harder to find what you need.
What impacts buying power in freight shipping?
Buying power is influenced by several factors, not just total volumes. Carriers consider how your freight fits into their network and how efficiently it can be moved. Here’s what they look for:
Shipment size and utilization. Fuller shipments, whether consolidated LTL or larger FTL moves, make better use of available space and can lead to more favorable pricing.
Consistency and predictability. Regular pickup schedules and volumes help carriers plan capacity more efficiently.
Lane density and distance. Freight moving on well-traveled lanes is often easier to price competitively than irregular or one-off routes.
Mode selection. Choosing the right mix of LTL, FTL or other modes impacts both cost and carrier flexibility.
Network efficiency. Freight that aligns well with a carrier’s existing routes and capacity is typically more desirable.
Use of data and planning. Understanding shipping patterns and committing freight strategically over time can strengthen negotiating power.
Together, these elements shape how carriers view your freight and how much flexibility they have when pricing it. The good news is that many of these factors are within your control.
How to increase transportation purchasing power
Even if your freight volume is modest, there are simple steps you can take to improve your purchasing power:
Consolidate shipments. Depending on the market and lane, it can sometimes be cheaper to combine smaller loads into fewer, larger shipments.
Ship consistently. Predictable pickup schedules help carriers plan capacity and may lead to discounts.
Simplify modes and carriers. Working with fewer carriers or using a single mode of transportation could give you more leverage.
Use data to negotiate. Analyze shipping patterns and costs to identify strategic opportunities to reduce spending or commit volume.
Why working with a logistics partner pays off
The fastest way to boost your buying power is to work with a logistics partner like ArcBest. Our broad carrier network and number of customers give you the benefits of a large shipper’s leverage without increasing your own volume.
ArcBest also provides technology for better visibility, cost control and multimodal solutions that keep your freight moving. Whether you need truckload, LTL or a mix of modes, we can help you secure competitive rates and reliable service.
Boost your buying power with ArcBest
Buying power can make the difference between paying premium rates and shipping cost effectively. ArcBest makes it simple. With our broad carrier network, advanced technology and expert support, you can maximize your leverage and keep your freight moving reliably. Explore our full suite of supply chain solutions and start improving your buying power today.
