Why is relationship-based procurement winning in the current freight market?

After a four-year freight recession, capacity has tightened significantly, particularly in specialized segments like liquid bulk hazmat. Tender rejections are climbing and rates are rising. Shippers who built relationships with carriers during the downturn have first priority access to assets when demand spikes, while those relying on transactional procurement face capacity unavailability. According to the article, this dynamic is structural—carriers are recapturing margin and prioritizing freight from partners who invested in them during soft markets.

How does Univar Solutions' 50/50 private-fleet-to-third-party split strategy work?

Univar Solutions intentionally routes roughly half its volume through third-party carriers despite operating a private fleet. This isn't a capacity constraint but a deliberate design choice: it allows the company to reach geographies its private fleet cannot serve, maintain availability spikes, and build deeper relationships with a curated carrier network. By not maximizing private fleet utilization, the company preserves partnership capacity and creates personal continuity with carriers—McRae said the goal is for customers and carriers to think 'it's James from Univar Solutions,' mimicking the small-parcel delivery model at scale.

What is breaking down in traditional truckload contracting?

The waterfall model—locking in contract rates on lanes months in advance—is increasingly dysfunctional when spot rates diverge dramatically from contracted rates. Brian Reilly (RXO) noted that spot rates now run 40-70% higher than contract rates, making contracted rates 'paper rates that are never going to be honored.' This forces shippers to renegotiate continuously or lose carrier capacity. The implication is that procurement teams must shift to dynamic, collaborative rate-setting rather than static annual contracts.

What business outcomes has Univar Solutions achieved with this strategy?

Univar Solutions became the first chemical distributor to win FreightWaves' Shipper of Choice award and has earned it for three consecutive years. McRae emphasized the company did not seek the award but instead 'did the right things and followed the right processes.' The award reflects carrier and market recognition that Univar Solutions delivers reliability, consistency, and fair treatment—attributes that translate to priority capacity allocation during tight markets.

How does carrier profitability affect shipper procurement strategy?

Carriers are now recovering margin after years of accepting freight below cost during the recession. According to Hadley (Saia), carriers 'need to get paid for the services we're providing' and must 'cover costs and be safe and compliant with quality drivers.' This means shippers cannot assume downward rate pressure will return. Procurement teams must accept that freight costs are structurally higher and that fair pricing is a precondition for reliable capacity access—attempting to suppress rates will result in capacity rejection.

Procurement

High Impact

Univar Solutions Wins Freight by Investing in Carrier Relationships

Aug 13, 2026

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Univar Solutions hosted its annual Carrier Kickoff event in Chattanooga, bringing together 100 transportation providers and 200+ attendees to emphasize that **relationship-building, not just rate negotiation, drives freight movement in a tightening capacity market**. Following a four-year freight recession, the industry is experiencing a structural shift: tender rejections are climbing, insurance costs are rising, and shippers who cultivated carrier partnerships during the downturn now have reliable access to capacity. This shift has profound implications for procurement teams and supply chain strategy. The company operates in the specialized liquid bulk hazmat segment—a niche representing roughly 90% of Univar Solutions' volume—where qualified carrier capacity is inherently scarce.

By intentionally routing about half its volume through third-party carriers rather than maximizing private fleet utilization, Univar Solutions maintains a network of trusted partners rather than treating carriers as interchangeable vendors. This model has yielded measurable results: the company became the first chemical distributor and has now won FreightWaves' Shipper of Choice award for three consecutive years. Rob McRae, VP of Transportation, framed this as akin to the parcel delivery model—building personal continuity so customers and carriers alike recognize familiar faces and operate with deeper mutual understanding. Carrier representatives at the event validated this thesis.

Brad Hadley (Saia) noted that capacity constraints have shifted shipments from truckload to LTL, while carriers themselves are recapturing margin after years of underpriced freight. Ben Caplenor (LRT Solutions) emphasized that in a commoditized service landscape, differentiation now comes from customer service and operational excellence rather than price alone. Brian Reilly (RXO) highlighted a critical dysfunction: the waterfall contracting model—locking in rates months in advance—is breaking down when spot rates run 40-70% above contracted rates, making paper contracts worthless. The takeaway is clear: **shippers must shift from transactional procurement to strategic partnership management**, proactively engaging carriers to solve for reliability and capacity access, not just optimizing for the lowest bid.

#carrier-relationships

#capacity-tightening

#procurement-strategy

#logistics-partnerships

#freight-market

#shipper-of-choice

#supplier-management

#hazmat-transportation

#contract-rates

#capacity-constraints

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What This Means for Your Supply Chain

Simulation Suggestion

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What if your contracted LTL rates are 50% below current spot rates for 6 months?

Simulate the scenario where contracted rates with LTL carriers remain fixed per agreement, but spot market rates for the same lanes spike 50% above contract rates due to capacity constraints. Model the financial and service-level impact if carriers begin rejecting tendered freight in favor of higher-margin spot shipments. Test mitigation strategies: rate escalation clauses, volume commitments, and relationship-based capacity reserves.

Run this scenario

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strategic

What if hazmat carrier capacity tightens by 20% and tender rejection rates double?

Model a scenario where liquid bulk hazmat carrier availability declines by 20% due to regulatory tightening or driver shortages, and tender rejection rates climb from current baseline to 2x. Simulate the impact on service levels and on-time delivery if your company relies primarily on transactional procurement versus a curated partner network. Test the value of maintaining a 50/50 private-to-third-party split versus a 80/20 model.

Run this scenario

Simulation Suggestion

this month

What if you shift to dynamic collaborative rate-setting instead of static annual contracts?

Simulate the operational and financial impact of moving from waterfall (fixed annual contract rates) to a dynamic, collaborative model where rates adjust quarterly based on market conditions and carrier cost indices. Model the cost, service-level, and relationship outcomes versus a competitor locked into static contracts during a capacity-tight market. Include sensitivity to rate volatility, carrier satisfaction, and tender acceptance rates.

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