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Shipping guides

How to compare carrier contracts

Compare carrier agreements using minimums, surcharge treatment, service mix, and shipment-level cost instead of a headline discount.

Build a profile before requesting an offer

Collect a representative shipment history and organize it by service, destination, weight, dimensions, and surcharge type. Include seasonal variation and expected business changes. An agreement that fits one shipping profile may fit another poorly.

Give each proposal the same assumptions. Differences in volume, package mix, or service requirements can make two quoted savings figures incomparable.

Read beyond the discount

Review the rate basis, applicable minimums, surcharge treatment, and discount qualifications. Check whether a term applies to every service or only a specific category. A strong discount can have a limited effect when a minimum governs the charge.

Identify any volume or spend commitments and how they are measured. Record what happens when the business falls outside a qualifying band. Check renewal, termination, and change provisions with the agreement in front of you.

Reprice the same shipment sample

Calculate the total cost of your historical shipments under each proposed set of terms. Keep transportation, fuel, and surcharges separate in the output so the source of a difference remains visible.

Test sensitivity to changes in volume, package size, and destination mix. A proposal should remain understandable when your business grows, changes fulfillment locations, or enters another season.

Confirm the implemented terms

After an agreement starts, reconcile a sample of invoices with the agreed terms. Verify the account and service coverage, effective date, and treatment of the fees that matter most to your business.

Retain a dated copy of the agreement and the comparison. That record gives your team a baseline for future negotiations and helps distinguish a rate change from an implementation error.

Official references

An educational reference prepared by Kadima Logistics. Examples explain the concept. Consult the applicable service guide and agreement for your shipment.

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20–30%Typical savings
$1.7B+Invoices audited
1–2 daysTurnaround