Flexibility to take over from contracts

Long term logistics contracts will be on the way out as the UK economy recovers. Thats the forecast of Transporeon, the German-based electronic logistics platform company.

Before the credit crunch and the recession it was perfectly normal for shippers and carriers to enter into long term relationships that bound their hands when they wanted to react to economic changes. Now the development of new software and technology means that such contracts do not make economic sense. An era of dynamism and flexibility is beginning, now it is not just changes in fuel prices that a company can react to, declared Charlie Pesti, UK Key Account Manager for Transporeon.

 Shippers and carriers who move fast to find the best deals in the marketplace will make considerable savings over those who have tied themselves down to fixed terms on long contracts, as well as ensuring the highest quality of service and minimising the impact on the environment. They will be dealing with todays marketplace, not the marketplace as it was when they signed the contract, he continued.

Transporeon recently highlighted the first signs of an improving situation in the UK economy based on evidence that there was less transport capacity free for the market to take up.

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