Published by Logistics Contract Optimizer, Green Bay, Wisconsin. Independent; not affiliated with any carrier.(920) 401-6815
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How fast can you reach $1 million in shipping savings?

Adjust the levers a negotiation can move, and watch the savings meter. Each lever is applied once so savings are never double-counted.

Your inputs

Defaults update weekly from live data
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Defaults to this week’s UPS Ground rate.

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Results

Total annual savings$944,297
Share of spend10.5%
Annual savings toward $1 million94% of $1,000,000

Savings by lever, sequenced to avoid double counting

Transportation rates (incl. fuel on them)
$369,000
Accessorial concessions
$324,000
Fuel reduction on the new base
$201,297
Minimum charge relief
$50,000
  • Rate cuts are applied first; the fuel reduction is then applied to the reduced charges, so no dollar is counted twice. Fuel is assumed to apply to accessorials.
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How this is calculated

Spend is split into transportation, fuel and accessorials, then each lever is applied in sequence.

Rates shown as defaults come from carrier publications or each carrier’s published table applied to the EIA price; see the methodology. Estimates and examples are labeled. Results are illustrative and do not represent any carrier’s reported financial results.

Questions

How much can a contract negotiation save?

Contract Optimizer clients typically recover 3% to 15% of freight spend.

Let’s find your first million.

Logistics Contract Optimizer reviews parcel, LTL and truckload agreements for free. Clients typically recover 3% to 15% of freight spend, and with savings-share pricing there is no fee without savings.