A study of 1 million truckload transactions has indicated that giving more lead time to truckers or third party logistics providers can help reduce overall transportation costs. The reason behind this savings is if given enough lead time the shippers preferred trucking company will have the proper capacity to handle a load but if less lead time is given shippers will have to rely on second or third preferred carrier with higher pricing. Currently there is excess capacity in the trucking industry but this could all change very fast so it is important to establish a good working relationship with preferred carriers. Additional details are available at:
Journal of Commerce:
