Long Term Contracting
The last two years has been very challenging looking at volume and financials for my 3PL when I separate out brokerage, carrier and warehousing from our Government/Military project work.
My 3PL primarily relies on commercial accounts in the local P&D, Crating and Pack and Ship services, all of which have been down these past two years.
I have certainly seen an uptick in these requests and in business volume in these areas the last two months though.
When looking at how we survived the last two years it’s easy to see that’s it has been the long term Government Contracts and Subcontracts that we have.
They have played a huge role in filling capacity, retaining employees and maintaining cash flow while the other business has been down.
Some of these contracts have been short term (A few months) but a few have been long term (10 years).
I’ve been building my 3PL since 2012. The freight markets change going up and down (Any fans of Rollercoasters? lol)
The bottom line is if you position yourself as a reliable partner and deliver great freight logistics results you receive and retain business (like long term Government Contracting work) that will keep you going through any kind of market.
Keep going my friends and have a great day
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6 comments
Steven Tittle
6
Long Term Contracting
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