Shippers save 15-30 percent by circumventing freight contracts and going direct
June 15, 2016 08:00 AM Eastern Daylight Time
AUSTIN, Texas–(BUSINESS WIRE)–uShip announced today that its online less-than-truckload (LTL) instant-rate marketplace grew 228 percent in Q1 2016 compared to the same period last year as shippers circumvented their freight contracts in today’s soft market by going online to find more favorable, non-contract rates.
uShip also announced that UPS Freight® has been added to its roster of 30+ national and regional LTL carriers, including the nation’s top five — FedEx Freight®, XPO Logistics, YRC Freight, Old Dominion Freight Line and UPS Freight — offering direct, instantly-bookable quotes. uShip’s LTL marketplace now features rates from a vast majority of capacity in the $35.1 billion LTL market, according to SJ Consulting Group, Inc.
“While the truckload industry is struggling to hold rates due to overcapacity, the LTL carriers are getting rate increases resulting from better capacity management and shift in pricing from honor system to actual shipment characteristics. In addition, the LTL carriers have gotten better at managing broker relationships and tapping into electronic marketplaces like uShip that directly connect carriers and shippers at a lower cost generating higher profit margins and expanding the LTL industry by attracting a new customer base,” says Satish Jindel, President, SJ Consulting Group, Inc.
“Right now shippers hold the pricing power — and they shouldn’t be afraid to flex it,” says Jim Bramlett, senior vice president, SMB at uShip. “The uShip LTL marketplace gives shippers, especially small-to-medium-sized businesses, direct access to market rates and shipping technology they may not otherwise have, especially as LTL carriers claim contract rates are actually increasing by 3 to 5 percent. Shippers can now simply go online to directly book with top carriers like UPS Freight and many others.”
Shippers Saving 15 to 30 Percent
uShip has a total of 3.5 million registered shipping customers, including over 350,000 self-identified business shippers. One example is a maker of high-performance 3D printers that saved 20 percent on its LTL shipping costs after discovering uShip. Other shippers — from auto parts dealers to LED light producers to pet food distributors — are saving anywhere from 15 to 30 percent by switching to uShip, and commonly report substantial time savings by shifting shipping operations from phone calls to online.
About uShip
uShip’s online transport marketplace connects consumers and businesses with thousands of customer-reviewed carriers that often have empty truck space offered at a discount, whether through uShip’s offer-based marketplace or instant-rate LTL marketplace. Based in Austin, Texas, and Amsterdam, the company operates globally with localized sites in 19 countries and regions on six continents. It is backed by Benchmark Capital, DAG Ventures and Kleiner Perkins Caufield Byers, and is featured on “Shipping Wars,” A&E’s real-life series syndicated worldwide. http://www.uship.com
Contacts
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Gina Manassero, 512-960-8222
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