Freight moves two ways. On the spot market, a load is booked once at today's rate, often through a load board. Contract or dedicated freight is an ongoing arrangement at agreed rates for a lane or customer.
Spot market
- Rates rise and fall with demand, sometimes sharply.
- Flexible: you choose loads and lanes week by week.
- More time spent searching and negotiating, and more deadhead risk.
Contract or dedicated freight
- Steady volume and predictable revenue.
- Rates are usually lower than spot in a hot market and higher in a slow one.
- Commitments: on-time performance, capacity and sometimes equipment requirements.
A practical mix
Many carriers keep a base of regular lanes with a few dependable customers or brokers, then fill the gaps and the return trips from the spot market. That smooths cash flow without giving up good spot rates when they appear.
Know your floor
Whichever way you book, know your cost per mile and the rate you need. Our target rate per mile and cost per mile tools give you that number.
This article is general information, not legal, tax or regulatory advice. Rules change; confirm current requirements with the responsible agency or a licensed professional.
