Contracted pricing
Contracted pricing is a rate agreement between a shipper and a carrier (or broker) that sets pre-negotiated per-shipment, per-CWT, or per-pallet rates for a defined period (typically 6-12 months). Unlike spot rates (which fluctuate with market conditions), contracted rates lock in a number that both sides commit to honor regardless of capacity tightness or fuel volatility. Contracted pricing is the standard for shippers moving consistent recurring freight volume.
Why it matters
Contracted pricing is the difference between predictable freight cost and chaos. Without a contract, a shipper pays whatever the market charges that week — and during peak (Q4, produce season, hurricane response), spot rates can be 2-3x the typical level. With a contract, the carrier commits to capacity and pricing in exchange for committed volume. Both sides win when the volume holds.
When to use it
Move to contracted pricing when freight volume on a given lane is consistent enough to justify the negotiation effort — typically 5+ shipments per month per lane, or 100+ shipments per month total. For volume below that, spot rates and tools like Warp's per-pallet pricing make more sense.
How Warp thinks about it
Warp offers contracted pricing through enterprise programs while keeping self-serve per-pallet rates available for ad-hoc and recurring shipments alike. Enterprise contracts include dedicated capacity commitments and SLAs. The self-serve rate stays current with real-time network conditions — no contract negotiation required.
Frequently asked questions about contracted pricing
What is contracted pricing?
Contracted pricing is a rate agreement between a shipper and a carrier (or broker) that sets pre-negotiated per-shipment, per-CWT, or per-pallet rates for a defined period (typically 6-12 months). Unlike spot rates (which fluctuate with market conditions), contracted rates lock in a number that both sides commit to honor regardless of capacity tightness or fuel volatility. Contracted pricing is the standard for shippers moving consistent recurring freight volume.
Why does contracted pricing matter in freight?
Contracted pricing is the difference between predictable freight cost and chaos. Without a contract, a shipper pays whatever the market charges that week — and during peak (Q4, produce season, hurricane response), spot rates can be 2-3x the typical level. With a contract, the carrier commits to capacity and pricing in exchange for committed volume. Both sides win when the volume holds.
When should you use contracted pricing?
Move to contracted pricing when freight volume on a given lane is consistent enough to justify the negotiation effort — typically 5+ shipments per month per lane, or 100+ shipments per month total. For volume below that, spot rates and tools like Warp's per-pallet pricing make more sense.
How does Warp handle contracted pricing?
Warp offers contracted pricing through enterprise programs while keeping self-serve per-pallet rates available for ad-hoc and recurring shipments alike. Enterprise contracts include dedicated capacity commitments and SLAs. The self-serve rate stays current with real-time network conditions — no contract negotiation required.