Ask Ahab: April 2026

Dear Ahab:

With contract season upon us and rates being low I was wondering why should I not rely solely on contracts with carriers? Why do I need to mix spot rates into my supply chain strategy?

– Contract Curious

Dear Contract Curious:

While low contract rates can feel safe, the reality is that locking all of your volume into fixed agreements can limit your flexibility. History has shown that markets rarely stay soft for long. When demand increases and capacity tightens, those same low rates can quickly become restrictive rather than protective, especially if carriers prioritize higher‑paying freight over your low fixed rate contract, which means your cargo is more likely to get delayed.

A blended strategy allows shippers to benefit from stability while keeping options open. Fixed contracts provide predictable pricing on core lanes, while allocating a portion of your volume to the spot market creates flexibility. This approach allows you to take advantage of temporary pricing dips, manage volume surges, and adjust routing without renegotiating long‑term commitments.

Ultimately, diversification is not about chasing the cheapest rate. It is about balancing cost control with flexibility, so freight keeps moving regardless of market conditions. Shippers who rely entirely on fixed contracts during low markets often find themselves with fewer options when conditions change.

Dear Ahab:

I have not been shopping for very long. What do savvy shippers do differently during volatile periods?

– Nautical Newby

Dear Nautical Newby:

Savvy shippers accept that volatility is not an exception, but an expectation. Instead of trying to time the market or chase the lowest rate, they focus on consistency, flexibility, and preparation. They diversify their transportation strategies, balancing contract stability with spot market agility so they are not overexposed when conditions shift unexpectedly.

Savvy shippers also prioritize relationships.

They work closely with logistics partners that have broad carrier networks and multiple routing options, which becomes critical when capacity tightens or disruptions arise. This gives them alternatives rather than forcing last‑minute decisions that are rarely in their favor.

Most importantly, savvy shippers plan beyond price alone.

They evaluate reliability, transit time, service performance, and risk alongside cost. In the end, what they value most is a supply chain that continues to move smoothly, even when the market does not.