If you are in the carrier, trucking, or shipment business, you might have come across a spot quote once or twice. It is a term that anyone in the transport business should familiarize themselves with. But it can be a little tricky to understand at first.
But don’t worry; if you want to know what is a spot quote in trucking, we’ve got you covered. We’ve broken down everything that you need to know regarding the spot quote in this article.
What Is A Spot Quote in Trucking?
To put it bluntly, a spot quote is an instant on-the-spot contract that a shipper can make to carriers. This contract is made on short notice, and it can be designed for a single shipment with a partial or complete load or a large group of shipments.
So, we can say that a spot quote is nothing but a one-time shipping quote that a shipper makes with a carrier to meet urgent deadlines. As it is a sudden contract, most of the terms are made on the spot, and you don’t have to have a previous relationship or contract with the carrier.
This is a good deal when someone has to ship an immediate order. It is also suitable for carriers as this gives new trucking carriers to come into the spotlight to do an emergency order.
How Does A Spot Quote work?
The process of making a spot quote is easy. Unlike other contracts or quotes in the transport business, you don’t need to have many preparations, research, or meetings to get a spot quote. It is as simple as just using your phone to call the shippers and book a spot quote.
A spot quote contract can be created within a short time. All that is needed is consent from two parties. The parties concerned must agree that they will ship the other party’s cargo or products on short notice in a desirable amount that helps both parties equally.
So, you can easily apply for a spot quote by contacting the shipper personally via phone, email, website forms, or by directly approaching in person. As it requires urgency, the negotiation period on spot quotes is small, but the negotiating terms can change in a split second depending on the situation.
How to Apply for Spot Quote?
The process of starting a spot quote is easy. You contract the broker or shipper and mention that you want to go for a spot quote deal with them. Upon sending the request, the shipper starts the negotiation process of a spot quote contract.
After the broker or the provider receives the request, the shipper and the carrier will agree regarding the volume, weight, load, space, delivery time, etc. After the details are gathered, the broker or the trucking company will give the shipper a financial number that can change with the product details.
When the shipper gets the amount that the broker wants to ship his products, he may now decide whether this is the best deal for him. If yes, then the agreement is finalized, and the shipper gets a spot quote from the carriers.
Things to Consider before Going for A Spot Quote
It might seem simple to go with a spot quote anytime as it appears to be an easy solution to deliver your goods. Despite that, you still need to consider a few things before opting for a spot quote.
Urgency of Delivery
The most crucial factor that defines a spot quote is urgency. Do you need your products delivered immediately? Do you need it to be done right now? Otherwise, you won’t be able to meet the deadline? If that’s the case, then going with a spot quote is the best decision.
But if you are not in such urgency, it would be wrong to go for spot quote contracts.
If you already have a contract quote, then going with a spot quote is a waste of money unless it is an emergency. As you’ve already come into a long-term contract with a carrier/trucking company, why should you go for another option? It’s not like you will be refunded.
Details Regarding Delivery
If you want to have a planned delivery and are a sucker for trim details, then spot quote contracts will give you a lot of trouble. As spot quotes are made instantly, you cannot come with a comprehensive warranty covering every detail at an affordable price.
If you try to add specific details to the already agreed spot quote contract, you will have to face extra costs that could’ve been easily avoided if you were in the contract quote.
Amount of Load of the Delivery
For spot quotes, you can send a small portion or a whole load of your products. But if you want the best deal out from the shippers, then go with as much load as possible because every dealer wants to have their truck filled before sending it out for delivery.
Also, if you have a small load and already have a contract with a trucking dealer, try to put the small bag with your other products. But if that doesn’t work, then go for a spot quote.
Budget plays a crucial role when deciding whether or not you should go for a spot quote or not. If you are on a small budget and don’t have the financial backing to go with a long-term contract with a contract quote, it is best to go with a spot quote.
The budget also comes into play when deciding on the financials of spot quote deals. As you are not restricted to a single dealer, you can go to multiple trucking dealers for spot quotes. The one who offers the best financial deal should be the choice for you.
But that being said, trusting a party that you don’t know much about isn’t very ideal. It might surprise you, but you can have a spot quote with a dealer with whom you already have a contract quote. This way you’ll be able to be sure of the delivery quality.
Benefits of Spot Quote
Spot quotes are a lifesaver for some while a nightmare to others, but this simple shipping deal comes with a good number of benefits, and these are:
- An emergency urgent delivery solution
- A good deal for small-time business owners who can’t afford long time contract deals with big-time shippers
- A good option to use the shipping route that your contracted dealers don’t use as it will give you information over which shipping route is perfect for you
- Spot quote is also an excellent way to give a chance to small-time shippers and allow them to show how they can perform; it might also lead you to your next contract deal
- Although the contract details will have some hazy terms, spot quotes are less complicated than most other shipping contracts you’ll face.
Spot quote is a good option in the trucking shipment business as it allows shippers to deliver their products on time. It is an instant solution to an emergency, and it is not half bad.
So, if you ever face off with a situation where you need to deliver a few goods on a deadline, but your contracted trucks are already gone, then spot-on quotes will become your lifesaver.
If you’ve come this far, we’re optimistic that you’ve found the answer to what is a spot quote in trucking. And hopefully, it will give you an edge with trucking.