Why is Univar Solutions emphasizing carrier relationships over spot-rate bidding?

Univar operates in the liquid bulk hazmat niche, where only a small pool of DOT-registered carriers hold the specialized equipment (e.g., rubber-lined 53-foot tankers) needed to transport specialty chemicals like hydrochloric acid. During tight capacity periods, multiple shippers compete for the same limited assets. Long-term partnerships with committed volume commitments give Univar priority access to capacity, whereas spot-rate bidding leaves the company vulnerable to rejection and service failures. The strategy costs more upfront but provides measurable returns when the market tightens.

What is the 'Shipper of Choice' award and how does it apply to Univar?

The FreightWaves Shipper of Choice Award recognizes shippers that maintain strong, mutually beneficial relationships with carriers. Univar was the first chemical distributor to receive this award, an achievement the company did not actively pursue but rather earned through operational practices. The company demonstrates this mentality through annual carrier kickoff events (significant financial investments), direct engagement with carrier terminals and drivers, and disciplined performance management that balances cost discipline with carrier profitability.

How does Univar balance cost control with capacity security?

Univar employs a route-guide strategy that identifies flexible lanes where cost savings can be achieved, then reinvests that margin into high-service lanes where capacity security is paramount. The company also applies strict performance management: underperforming carriers receive a structured 90-day improvement window with formal rack-and-stack reviews. If metrics don't recover, the partnership ends. This creates a disciplined, transparent framework that rewards reliable carriers and maintains operational standards.

What market conditions is Univar expecting through 2025-2026?

Rob McCray flagged rising tender rejection rates as a leading indicator of tightening capacity. He expects carrier-favorable conditions to persist through the remainder of 2025 and potentially into the first half of 2026, driven by erratic fuel prices and geopolitical uncertainty. Univar has already adjusted its fuel surcharge policy in response to carrier feedback. These dynamics reinforce the strategic imperative of maintaining strong carrier partnerships during a structurally tight market.

What role does Univar's third-party carrier strategy play in its overall transportation network?

Univar deliberately routes approximately 50% of its liquid bulk hazmat volume through third-party carriers by design, rather than relying solely on its private fleet of 3,500 railcars. This hybrid approach allows the company to reach customers outside its private fleet's normal delivery zones while maintaining control over service quality through partnership discipline. The company frames itself as a full multimodal platform encompassing air freight, river barges, ocean vessels, LTL, rail, and specialized services to remote areas like Alaska's North Slope.

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Why Carrier Partnerships Matter More Than Spot Rates in Hazmat

Jul 31, 2026

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Univar Solutions is deliberately building long-term carrier partnerships rather than chasing spot rates in the specialized liquid bulk hazmat market, a strategic shift that costs more upfront but delivers operational resilience when capacity tightens. With approximately 90% of its volume moving through liquid bulk hazmat—a severely constrained carrier niche—the company has adopted a 'shipper of choice' mentality, backing it with annual carrier kickoff events and disciplined performance management. Rob McCray, VP of Transportation at Univar, noted that rising tender rejection rates and erratic fuel surcharges signal a carrier-favorable market that is likely to persist through 2025 and into early 2026, making relationship-based capacity strategies increasingly critical.

The article underscores a fundamental shift in how shippers approach carrier management during volatile market conditions. Rather than treating transportation as a transactional, low-cost service, Univar invests in face-to-face engagement, consistent volume commitments, and performance accountability to attract and retain carriers willing to invest in expensive, specialized equipment like rubber-lined 53-foot tankers. This approach is particularly important in hazmat logistics, where regulatory barriers and equipment specificity mean only a small pool of DOT-registered carriers can serve the market.

For supply chain professionals, this case illustrates that in constrained, specialized transportation markets, brand value and relationship depth function as competitive moats. Univar's willingness to reinvest margin savings from flexible lanes into high-service lanes, combined with structured 90-day performance improvement windows, creates predictability that carriers value—especially when competing for scarce assets during capacity crunches. The market outlook McCray provided signals sustained pressure on spot rates and service availability, making proactive carrier relationship management a strategic imperative, not an operational luxury.

#shipper-of-choice

#carrier-relationships

#chemical-logistics

#hazmat-transportation

#capacity-management

#third-party-carriers

#tender-rejection

#fuel-surcharge

#long-term-partnerships

#liquid-bulk

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Simulation Suggestion

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What if tender rejection rates increase 15% year-over-year through 2025?

Simulate a scenario where Univar experiences a 15% increase in carrier tender rejections across its liquid bulk hazmat lanes due to continued capacity tightening and competing shipper demand. Model the impact on on-time delivery rates, cost per shipment (including spot-rate premiums to secure alternative capacity), and the cash flow required to accelerate carrier relationship investments.

Run this scenario

Simulation Suggestion

this month

What if fuel surcharge volatility forces a 12% transportation cost increase mid-year?

Model the financial impact of erratic fuel surcharges translating into a 12% increase in transportation costs midway through 2025. Evaluate whether reinvesting margin savings from flexible lanes into high-service lane capacity is sufficient, or if pricing to customers must increase. Assess the break-even point for the carrier kickoff event and relationship investment strategy.

Run this scenario

Simulation Suggestion

strategic

What if two major carrier partners exit the hazmat market due to profitability pressure?

Simulate the loss of two established third-party carrier partners (representing, for example, 8-12% of third-party volume) due to carrier profitability pressure or market consolidation. Model the operational and financial impact on capacity availability, tender acceptance rates, emergency spot-rate costs, and the timeline to rebuild relationships with replacement carriers in a constrained hazmat market.

Run this scenario

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