Truckload rates are up. So is rejection.

While carriers are charging more for truckload capacity, they’re also rejecting capacity at drastically higher levels than normal.

The average cost per mile for truckloads?increased 17% over the past year . Meanwhile, rejection rates averaged around 23% in 2021, compared to approximately 6% in?2019 before the pandemic.

Theoretically, increasing contract rates should improve carrier compliance, as shippers are less likely to be outbid. But labor shortages and spike in demand have caused the opposite to happen.

Here’s what we recommend:?Make sure your company is maintaining relationships with multiple carriers. As the article says, carriers favor their more consistent customers, even if the spot market offers higher rates.

So in the event you get a rejection from a carrier, having an existing relationship with other carriers will give you a leg up in finding an alternative.