Finding and Checking Carriers
Before you hand anyone a container of someone else's goods, you need to know who they actually are.
Where to find reliable carriers
You will learn the realistic sources of new carriers and how much each can be trusted.
| Source | Reliability | Watch for |
|---|---|---|
| Referral from a trusted peer | High | Their needs may differ from yours |
| Trade association membership lists | Good | Membership is a filter, not a guarantee |
| Existing carriers' partner networks | Good | The introducing party may have a commercial interest |
| Industry events and direct approach | Variable | Sales contact is not operational capability |
| Load boards and freight exchanges | Low without checks | Anyone can list; this is where fraud concentrates |
| Unsolicited approach by email | Lowest | Verify everything independently before engaging |
What to establish before a first conversation
- Which lanes and modes they genuinely operate — not what they will subcontract
- Whether they own assets or broker everything onward
- How long they have traded under the current company
- Who their comparable customers are, and whether you may speak to one
A carrier that subcontracts your cargo onward is not necessarily a problem — most of the industry works this way — but you need to know it. If they subcontract, ask how they vet their subcontractors. If they cannot answer that clearly, your cargo will end up with someone neither of you has checked.
Ask for a reference customer on the same lane, with similar cargo, and actually call them. Very few people do this, and the ten-minute conversation tells you more than any questionnaire. A carrier who cannot produce one is telling you something.
- Referrals and association lists are the most reliable sources
- Load boards and cold approaches require the most verification
- Always ask whether they subcontract, and how they vet subcontractors
Licences, insurance and compliance checks
You will learn the verification steps that prevent cargo theft and uninsured loss.
Freight fraud is real and simple: a criminal poses as a legitimate haulier, collects a full load of valuable goods, and disappears. It happens most often on a busy Friday when someone needs a truck urgently and skips the checks.
- Verify the operating licence against the official registerNot against the document they emailed. Documents are trivially forged; public registers are not.
- Verify insurance directly with the broker or insurerAsk for the broker's details and confirm the policy is live, covers the cargo value, and covers this type of goods. A certificate is a photograph of a fact, not the fact.
- Confirm the legal entityRegistered name, company number and address. Watch for a company registered recently using a name almost identical to an established firm.
- Check they are who is answering the phoneCall the number on the official register or their established website, not the number in the email.
- Confirm driver and vehicle before collectionName, registration, phone number, in advance. On arrival, the driver's identity should match. This single step stops most load theft.
Fraud arrives dressed as urgency: a cheap truck, available immediately, take it now or lose it. Any carrier unwilling to wait twenty minutes for standard checks is telling you something important. Treat urgency as a reason to slow down, not as permission to skip steps.
A forwarder needs a truck at short notice on a Friday afternoon. A haulier responds within minutes at an attractive rate, sends a licence certificate and an insurance certificate by email, and collects a full load of consumer electronics that evening.
The goods never arrive. The certificates were copies of a genuine company's documents, altered. The phone number belonged to the criminals. The real company knew nothing about it.
Checking the licence against the public register and phoning the number listed there — ten minutes — would have exposed it immediately.
- Verify licences against official registers, not emailed documents
- Confirm insurance with the broker, not from a certificate
- Urgency is a reason to slow down, not to skip checks
Financial health checks
You will learn why a carrier's finances are your operational risk.
A carrier in financial distress cuts maintenance, loses drivers, delays subcontractor payments and eventually stops trading — sometimes with your cargo in their network.
What to look at
- Filing history — are accounts filed on time, or consistently late?
- Trading history — how long under this entity? A new company with experienced directors is different from a new company with none.
- Court judgments against the company
- Director history — previous companies, and how they ended
- Payment behaviour — are they paying their own subcontractors promptly? Their subcontractors will tell you
Warning signs in day-to-day behaviour
- Requests for faster payment terms or upfront payment
- Increasing use of subcontractors for work they used to do themselves
- Staff turnover, particularly in operations
- Deteriorating vehicle condition
- Slower responses and more service failures without explanation
If an NVOCC or forwarder fails while your cargo is in transit, containers can be held against their unpaid account with the actual carrier — even though your client paid in full. Financial checks on anyone issuing you a House Bill of Lading are not bureaucracy; they are cargo risk.
A carrier suddenly asking to shorten payment terms is one of the earliest and most reliable distress signals. It is usually presented as a policy change. Treat it as a prompt to review, not as an administrative matter.
- Financial distress becomes your operational and cargo risk
- Check filing history, trading history, judgments and director history
- A request to shorten payment terms is an early distress signal
Trial shipments
You will learn to test a new carrier before trusting them with anything important.
Paperwork tells you whether a carrier is legitimate. Only a shipment tells you whether they are any good.
Designing a trial
- Choose low-value, non-urgent cargoSomething where a failure is an inconvenience rather than a crisis.
- Use a lane you already understandSo you can compare their performance against a known baseline.
- Do not warn them it is a trialYou want normal behaviour, not best behaviour.
- Define what you are testingCommunication, documentation accuracy, timing, and how they handle a query.
- Run three or four shipments, not oneOne shipment tells you almost nothing. A pattern over several tells you a great deal.
- Test them with a problemAsk a difficult question mid-shipment. How they respond under mild pressure predicts how they respond under real pressure.
CARRIER TRIAL ASSESSMENT Carrier: ____________
Shipments 1-4, Oct-Nov 2026
S1 S2 S3 S4
Collected on the agreed date Y Y N Y
Documents accurate first time Y N Y Y
Proactive update sent N N Y N
Responded within 4 hrs Y Y Y N
Delivered within window Y Y N Y
POD returned within 48 hrs Y Y Y N
Invoice matched the quote Y Y Y N
OBSERVATIONS
- Operationally sound. 2 of 4 fully clean.
- Communication is reactive. We chased every update.
- S4 invoice included an unquoted waiting charge.
Queried; they withdrew it without argument.
- Handled our deliberate mid-shipment query on S2
promptly and accurately.
VERDICT: approve for non-critical volume. Review after
3 months. Do not place time-critical cargo until the
communication gap is addressed - raised with them 18 Nov.
How a carrier handles being told about a mistake is more informative than whether they made one. Everyone makes mistakes. A carrier who investigates, explains and fixes is worth more than one who never errs but becomes defensive when they do.
- Trial with low-value cargo on a lane you already understand
- Run three or four shipments — one tells you nothing
- Their response to a problem matters more than the absence of problems
Onboarding a new carrier properly
You will build an onboarding checklist that becomes your standard process.
CARRIER ONBOARDING Carrier: ______________
Completed by: ________ Date: ______
IDENTITY AND LEGITIMACY
[ ] Registered company name, number and address confirmed
[ ] Operating licence verified AGAINST THE OFFICIAL REGISTER
[ ] Contact number verified independently, not from their email
[ ] Trading history and director history reviewed
INSURANCE
[ ] Liability insurance confirmed DIRECTLY WITH THE BROKER
[ ] Cover level adequate for our typical cargo values
[ ] Cover includes the commodity types we ship
[ ] Expiry date recorded and diarised for renewal check
FINANCIAL
[ ] Accounts filing history reviewed
[ ] Any court judgments checked
[ ] Credit position assessed
[ ] Payment terms agreed in writing
OPERATIONAL
[ ] Lanes, modes and equipment confirmed
[ ] Subcontracting policy understood and documented
[ ] Named day-to-day contact and escalation contact
[ ] Out-of-hours contact obtained
[ ] Reference customer contacted
COMMERCIAL
[ ] Rates agreed in writing, with validity dates
[ ] What is included and excluded, in writing
[ ] Trading conditions received and reviewed
[ ] Free time, waiting time and surcharge terms documented
BEFORE FIRST LOAD
[ ] Driver name, vehicle registration and phone confirmed
[ ] Trial shipments planned (3-4, low value)
[ ] Scorecard set up for monthly review
[ ] Review date set: ____________
THE ONE THING THAT MAKES US WALK AWAY
____________________________________________________
(write your own - and honour it)
That last line is not a gimmick. Decide in advance what would make you decline a carrier — refusal to provide broker details, an unverifiable licence, a reference they will not supply — and write it down. Deciding in the moment, under time pressure, is exactly when standards slip.
Diarise insurance expiry dates at onboarding. Cover lapses, and a carrier whose insurance expired four months ago is still carrying your cargo with everyone assuming otherwise. An annual re-check is a five-minute task that prevents an uninsurable loss.
- Onboard against a written checklist covering identity, insurance, finance, operations and commercial terms
- Decide your walk-away condition in advance
- Diarise insurance expiry and re-check annually
Module 1 review
A haulier emails you a licence certificate and an insurance certificate. What do you do?
Documents are trivially forged. Registers and brokers cannot be. Also call the number on the register, not the one in their email.
A carrier suddenly asks to shorten payment terms. What does this often indicate?
It is usually presented as policy. It is one of the earliest and most reliable distress signals, and distress becomes your cargo risk.
How many trial shipments should you run with a new carrier?
One shipment tells you almost nothing. Paperwork proves legitimacy; only a pattern of shipments proves capability.
Negotiating Rates and Terms
Getting a better deal by understanding the other side's economics rather than by applying pressure.
Preparing with data
You will learn what to bring to a rate negotiation.
NEGOTIATION PREP Carrier B, annual review, Dec 2026
OUR VOLUME WITH THEM (12 months)
Containers 118
By lane CNNGB-GBFXT 74
ESVLC-GBFXT 28
NLRTM-GBFXT 16
Total spend GBP 291,400
Average per container GBP 2,470
OUR BEHAVIOUR AS A CUSTOMER
Payment - average days to pay 26 (terms 30)
Late payments in 12 months 0
Bookings cancelled after confirmation 2 (1.7%)
Booking accuracy - amendments required 4 (3.4%)
Average container turnaround (detention) 2.1 days
OUR DIRECTIONAL VALUE TO THEM
We ship predominantly INBOUND to the UK.
They have publicly noted equipment imbalance
at UK ports - our empties return to their
shortage area. This is worth money to them.
MARKET POSITION
Two comparable quotes obtained for CNNGB-GBFXT:
Carrier C GBP 2,390 (7 free days)
Carrier E GBP 2,505 (10 free days)
Current rate GBP 2,470 (7 free days)
WHAT WE WANT, IN PRIORITY ORDER
1. 10 free days on demurrage (worth ~GBP 90/container
based on our collection history)
2. Rate held flat for 12 months
3. Guaranteed allocation of 8 TEU/month in peak season
WHAT WE CAN OFFER
- Commit 100 containers over 12 months
- Consolidate our Rotterdam volume with them too (+16)
- Extend payment terms to 21 days if the rate improves
The "our behaviour as a customer" section is the most under-used lever in freight negotiation. Paying on time, booking accurately and returning containers quickly all have real value to a carrier, and almost nobody quantifies them. A customer who can show this data is materially cheaper to serve, and that is a legitimate argument for a better rate.
List what you want in priority order before the meeting, and know which one you will trade away. Going in wanting everything equally means conceding randomly under pressure, and you will give up the thing that mattered most.
- Bring volume, behaviour, directional value and honest market evidence
- Your payment and booking behaviour is a genuine bargaining asset
- Rank what you want before the meeting
Understanding the carrier's costs
You will learn what drives a carrier's economics, so your requests are realistic.
| What matters to them | What you can influence |
|---|---|
| Vessel or vehicle utilisation | Predictable volume they can plan around |
| Equipment positioning | Shipping in their empty direction |
| Container turnaround time | Returning empties quickly |
| Cost to serve you | Accurate bookings, few amendments, no cancellations |
| Cash flow | Paying on time |
| Peak-period revenue | Flexible timing where you have it |
Why this changes what you ask for
A request that improves the carrier's economics can be granted permanently. A request that simply transfers money from them to you will be resisted, and if granted under pressure will be recovered elsewhere or returned as poor service.
Two shippers approach the same carrier for a rate reduction on the same lane.
Shipper A demands 8% off, citing a competitor's quote, with no other change.
Shipper B offers to consolidate two smaller weekly shipments into one larger fortnightly booking, commit to a twelve-month volume, and return containers within 48 hours. They ask for 6%.
B gets their reduction and keeps it. A gets a smaller one, and finds over the following months that their bookings are the first to be rolled when space tightens.
B made the carrier better off. A only made themselves better off.
Ask the carrier directly: "What would make us a cheaper customer to serve?" Almost nobody asks, the answer is usually specific and achievable, and acting on it earns a rate reduction you did not have to fight for.
- Carriers care about utilisation, positioning, turnaround, cost to serve and cash
- Requests that improve their economics stick; pure transfers do not
- Ask what would make you cheaper to serve
Volume, commitment and what you can trade
You will learn what you actually have to offer beyond the promise of volume.
- Volume commitment — a minimum number over a period. Only offer what you will genuinely ship.
- Contract length — longer gives them planning certainty.
- Lane consolidation — moving volume from other carriers to them.
- Timing flexibility — accepting a different sailing day helps them fill gaps.
- Faster container turnaround — directly improves their equipment economics.
- Payment terms — paying faster is worth real money to them.
- Booking discipline — fewer amendments and cancellations reduces their cost.
- Reference and case study — modest value, but genuinely wanted by their sales team.
Committing to volume you cannot deliver to secure a rate. Carriers track actual volume against commitment. Falling significantly short means the rate is withdrawn at review, and you have damaged your credibility for the next negotiation. Commit to a number you are confident of, not an optimistic one.
Check what happens if you undershoot a volume commitment before agreeing it. Some agreements simply adjust the rate going forward; others allow retrospective recovery of the discount across shipments already made. That difference can be substantial and it is rarely highlighted.
- You have eight things to trade beyond price
- Only commit to volume you are confident of delivering
- Check the consequence of undershooting before agreeing
The negotiation conversation
You will learn to run the conversation itself.
- Open with the relationship, not the ask"We've shipped 118 containers with you this year and it's worked well. I want to talk about next year."
- Present your data before your requestVolume, behaviour, directional value. Let them see you as a customer worth keeping before they hear what you want.
- Ask an open question first"What would make us a better customer for you?" You may learn something that costs you nothing and is worth a great deal.
- State what you want, in priority orderAll of it, at once. Drip-feeding requests is exhausting and produces resistance.
- Say what you are offeringExplicitly paired with what you want.
- Be silent after you make the askThe most common negotiating error is filling the pause by immediately softening your own request.
- Confirm in writing the same dayWhat was agreed, what was not, and what happens next.
If they cannot move on rate, pivot to free time, allocation and terms. Carriers often have more flexibility there because rate is benchmarked and visible across their whole customer base, while free time and allocation are not. These are frequently worth more than the rate cut you were asking for.
Inventing a competing quote to create pressure. Freight is a small market and carriers talk to each other. Being caught destroys credibility permanently, and what you lose is far larger than the rate you were negotiating.
- Data first, open question second, request third, offer fourth
- State everything you want at once, in priority order
- If rate will not move, pivot to free time, allocation and terms
Payment terms and credit
You will learn how payment terms affect both sides and where the negotiating room sits.
Payment terms are a financing arrangement. Every day of credit a carrier extends costs them money, and every day you delay payment saves you money. That makes terms genuinely tradeable.
ANNUAL SPEND WITH CARRIER GBP 291,400
Cost of financing (assume 9% annual)
Moving from 30 days to 45 days
Extra 15 days of credit
291,400 x (15/365) x 0.09 = GBP 1,078/year
Worth to you: GBP 1,078
Cost to them: GBP 1,078
Moving from 30 days to 14 days
16 days LESS credit
291,400 x (16/365) x 0.09 = GBP 1,150/year
Cost to you: GBP 1,150
Worth to them: GBP 1,150
THE TRADE
If faster payment is worth GBP 1,150 to them, a rate
reduction of up to that amount leaves them neutral.
On 118 containers that is GBP 9.75 per container.
Modest - but it is real, it is arguable with numbers,
and most shippers never make the argument at all.
CAUTION
Only offer faster payment if your own cash position
genuinely supports it. Agreeing 14-day terms and then
paying in 35 is worse than never offering.
Carriers may require a credit check and set a credit limit before extending terms at all. A limit that is too low means bookings get blocked mid-month when you hit it — an operational problem disguised as a finance one. Agree the limit with your volume in mind, not just the terms.
- Payment terms are a financing arrangement and genuinely tradeable
- Quantify what a change in terms is worth to each side
- Agree a credit limit that supports your actual volume
Closing and recording the agreement
You will learn to document what was agreed so it survives staff changes.
Subject: Confirming agreed terms - Carrier B - effective
1 Jan 2027
Hi Marta,
Thanks for the call this morning. Confirming what we agreed
so we both have the same record.
AGREED
Rate CNNGB-GBFXT 40'HC GBP 2,415 (from 2,470)
Rate ESVLC-GBFXT 40'HC GBP 1,980 (unchanged)
Free time - demurrage 10 days (from 7)
Free time - detention 5 days (from 3)
Rate validity 1 Jan - 31 Dec 2027
Payment terms 21 days (from 30)
Peak allocation 8 TEU/month guaranteed,
Sep-Dec, on 14 days notice
OUR COMMITMENTS
Minimum volume 100 containers in 2027
Rotterdam volume moving to you from Feb (est 16)
Container turnaround target 48 hrs
NOT AGREED - noting for clarity
We asked for rates held if fuel rises; you confirmed BAF
applies as standard. Understood and accepted.
NEXT STEPS
You: send the formal rate sheet and updated trading
conditions by 20 Dec.
Us: confirm Rotterdam transition date by 15 Jan.
Review meeting: June 2027.
If anything above does not match your understanding, let me
know this week.
Recording what was not agreed is as valuable as recording what was. It prevents the conversation six months later where someone half-remembers a concession that was never made, and it shows you were listening rather than only pushing.
People move constantly in freight. An agreement that exists only in two people's memories disappears when either leaves. A written confirmation, stored with the carrier file, is what lets a successor understand what was agreed and why — and stops terms quietly reverting.
- Confirm in writing the same day, in structured form
- Record what was not agreed as well as what was
- Written records survive the staff changes that memories do not
Module 2 review
Shipper A demands 8% off citing a competitor. Shipper B offers consolidation, volume commitment and fast turnaround for 6%. What happens?
B improved the carrier's economics, so the concession is sustainable. A only improved their own position, and carriers exercise discretion on allocation.
A carrier will not move on rate. What should you pivot to?
Rate is benchmarked and visible across their customer base; free time and allocation are not. They are often worth more than the rate cut anyway.
Why record what was NOT agreed in a negotiation confirmation?
It also shows you were listening rather than only pushing, and it protects both parties when staff change.
Contracts and Service Level Agreements
What belongs in a freight contract, what an SLA is actually worth, and what to check before signing.
What belongs in a freight contract
You will learn the components of a freight agreement and what each one settles.
| Component | What it settles |
|---|---|
| Scope | Which lanes, modes, services and cargo types are covered |
| Rates and validity | Prices, currency, what is included and excluded, review dates |
| Surcharge mechanism | How fuel, currency and other adjustments are calculated |
| Volume commitment | What each party commits to, and what happens if missed |
| Service levels | Transit, on-time, documentation and response standards |
| Free time | Demurrage and detention days, and the rates after |
| Liability | Which convention or terms apply, and any agreed limits |
| Insurance | What each party must hold |
| Payment | Terms, credit limit, disputed invoice process |
| Term and termination | Duration, notice periods, exit arrangements |
| Governing law | Which country's law applies and where disputes are heard |
Most freight moves on standard trading conditions rather than a negotiated contract, and that is normal for smaller volumes. A negotiated contract makes sense when volume is significant, when service levels genuinely matter, or when you need certainty on allocation. Below that, the effort exceeds the benefit.
- Eleven components cover scope, money, service, risk and exit
- Most freight runs on standard trading conditions, which is fine at smaller volumes
- Negotiate a contract when volume, service certainty or allocation genuinely matter
Service level agreements that mean something
You will learn to write an SLA that can actually be measured and enforced.
Most SLAs fail because they are unmeasurable. "The carrier will provide a professional service" cannot be assessed, so it cannot be breached, so it does nothing.
| Weak SLA term | Measurable version |
|---|---|
| "Timely delivery" | "95% of shipments delivered within the agreed window, measured monthly against the first confirmed date" |
| "Prompt communication" | "Response to operational queries within 4 working hours" |
| "Accurate documentation" | "98% of Bills of Lading issued without amendment required" |
| "Proactive updates" | "Notification of any ETA change within 24 hours of the carrier becoming aware" |
| "Careful handling" | "Damage rate below 0.5% of consignments, measured quarterly" |
| "Reasonable rates" | Not an SLA term — this belongs in the rate schedule |
Every SLA term needs four things
- A measureSomething countable.
- A targetA specific number.
- A measurement periodMonthly, quarterly — and who measures.
- A definitionIncluding what is excluded and why.
Agreeing an SLA without agreeing who measures it and from which data. If both parties measure on-time performance from their own systems using their own definitions, they will produce different numbers every month and the SLA becomes an argument rather than a standard.
- Unmeasurable SLA terms do nothing
- Each term needs a measure, target, period and definition
- Agree who measures, and from which data
Liability, limits and the conventions behind them
You will learn how liability is set in a freight contract and what can be changed.
Liability in international transport is largely set by convention, by weight rather than value, as covered in FF·03. A contract sits on top of that framework rather than replacing it.
What a contract can typically address
- Which terms apply — the carrier's trading conditions, a convention, or a negotiated position
- Declared value arrangements — some carriers will accept higher liability for an additional charge
- Notification and claim deadlines — sometimes negotiable, often not
- Consequential loss — almost always excluded; be clear it is
- Insurance obligations — who insures what, and at what level
Consequential loss — lost profit, lost sales, the cost of a stopped production line — is excluded under almost every freight contract and convention. A client who believes a late delivery makes the carrier liable for their lost sales is mistaken, and it is better they learn that from you in advance than from a rejected claim.
Where cargo value per kilo is high, the answer is almost never to negotiate higher carrier liability — it is cargo insurance, which covers value rather than a weight-based cap and is usually far cheaper than the additional charge for declared value.
- Conventions set the framework; contracts sit on top of it
- Consequential loss is almost always excluded — tell clients in advance
- For high-value cargo, insurance beats negotiating liability
Penalty and bonus clauses
You will learn whether performance incentives are worth including.
| Penalty clauses | Bonus clauses | |
|---|---|---|
| Intent | Compensate for failure | Reward exceeding standard |
| Typical effect | Carrier prices the risk into the rate | Carrier prioritises the measured metric |
| Risk | Disputes over whether a failure counted | Gaming the measure |
| Enforceability | Varies by jurisdiction; a penalty may be unenforceable if it exceeds genuine loss | Generally straightforward |
Why penalties often disappoint
A carrier facing financial penalties for late delivery will do one of three things: price the risk into the rate, refuse the clause, or dispute every failure. None of these produces better service. The clause changes the accounting, not the performance.
What works better
- Volume consequences. Performance below a threshold means volume moves. Carriers respond to this far more than to modest financial penalties.
- Review triggers. Falling below a level triggers a formal improvement plan with a deadline.
- Earned allocation. Good performance earns guaranteed peak-season space, which carriers value highly.
In many jurisdictions a clause that imposes a sum out of proportion to genuine loss may be unenforceable as a penalty, while a genuine pre-estimate of loss is enforceable. This distinction is legally technical and varies. Take advice before relying on a financial penalty clause.
- Penalties usually get priced into the rate rather than improving service
- Volume consequences and earned allocation work better
- Penalty clause enforceability varies — take advice
Reviewing before you sign
You will learn what to check in a freight contract before it is signed.
CONTRACT REVIEW CHECKLIST Carrier: __________ SCOPE [ ] Lanes and modes listed match what we actually ship [ ] Cargo types we ship are not excluded [ ] Services included are clearly listed MONEY [ ] Rates match what was agreed, line by line [ ] Currency stated; conversion basis clear [ ] Validity dates correct [ ] Surcharge mechanism stated - index AND percentage [ ] Surcharge can move DOWN as well as up [ ] What is excluded is listed explicitly COMMITMENT [ ] Volume commitment is a number we can hit [ ] Consequence of undershooting is stated [ ] Is any discount recoverable RETROSPECTIVELY? <<< check [ ] Their commitments to us are stated, not just ours SERVICE [ ] SLA terms are measurable, with targets and periods [ ] WHO measures, and from whose data, is stated [ ] Exclusions from the measure are defined RISK [ ] Which trading conditions or convention applies [ ] Liability basis understood [ ] Insurance obligations on both sides [ ] Consequential loss position understood EXIT [ ] Contract duration [ ] Notice period - for both parties [ ] Can they terminate more easily than we can? <<< check [ ] What happens to cargo in transit on termination [ ] Rate protection during any notice period LEGAL [ ] Governing law and jurisdiction [ ] Reviewed by someone qualified <<< do not skip Signed by someone with authority: ______________
The two marked items catch most unpleasant surprises. Retrospective discount recovery can turn a missed volume target into a large unexpected invoice. Asymmetric notice periods — where they can exit in 30 days and you are committed for 180 — leave you exposed precisely when performance deteriorates.
Read the termination clause first, before the rates. It tells you how much freedom you retain if this goes badly, which is the thing you care about most and think about least when the relationship is new and promising.
- Check scope, money, commitment, service, risk, exit and legal
- Watch for retrospective discount recovery and asymmetric notice periods
- Read the termination clause before the rates
Module 3 review
Which is a usable SLA term?
An SLA term needs a measure, a target, a period and a definition. Unmeasurable terms cannot be breached, so they do nothing.
What usually happens when you impose financial penalties for late delivery?
Penalties change the accounting, not the performance. Volume consequences and earned allocation influence carriers far more.
Which clause should you read first in a new freight contract?
It tells you how much freedom you keep if this goes badly — the thing you care about most and think about least when the relationship is new.
Scorecards and Reviews
Measuring carriers fairly, raising problems so they get fixed, and rewarding the ones who deserve it.
Building a carrier scorecard
You will build a scorecard that measures what matters and can be defended.
CARRIER SCORECARD Carrier B Month: November 2026
Loads: 11 Prepared: 2 Dec
MEASURE WEIGHT SCORE WEIGHTED
On-time collection 20% 85 17.0
On-time delivery 30% 73 21.9
Damage-free rate 20% 100 20.0
Documentation accuracy 15% 91 13.7
Communication & responsiveness 15% 70 10.5
----------------
TOTAL 83.1
GREEN 85+ AMBER 70-84 RED below 70
STATUS: AMBER (second consecutive month)
DETAIL
On-time delivery 8 of 11 on time. All 3 failures were
missed transhipment connections at the
same hub.
Communication We initiated 9 of 11 status updates.
Two ETA changes were not notified at all.
Damage No incidents. Consistently strong.
Documentation One B/L required amendment (weight).
TREND
Sep 91 GREEN
Oct 82 AMBER
Nov 83 AMBER
ACTIONS AGREED WITH CARRIER (call 2 Dec)
1. Transhipment connection alerts to be sent proactively.
Owner: Carrier ops. From: immediately.
2. ETA change notification within 24 hrs, as per SLA.
Owner: Carrier ops. From: immediately.
3. Review at January scorecard. If still amber, we move
the Rotterdam lane volume.
Next review: 6 January 2027
Designing the weights
Weights should reflect what actually matters to your business, not a generic template. A client shipping to production lines weights on-time delivery heavily. A client shipping fragile goods weights damage. Set the weights deliberately and keep them stable, so scores are comparable month to month.
Share the scorecard with the carrier every month, including the weights and the calculation. A scorecard used privately as evidence for a decision they never saw coming is unfair and produces resentment. One shared openly gives them the chance to improve, which is the point.
- Weight measures according to what matters to your business
- Show the detail behind each score, not just the number
- Share the scorecard with the carrier every month
Monthly performance reviews
You will learn to run a review meeting that improves performance rather than assigning blame.
- Send the scorecard in advanceAt least two days. Nobody performs well when seeing bad news for the first time in a meeting.
- Start with what went wellGenuinely, not as a technique. If damage was zero, say so first.
- Present the failures as facts, not accusations"Three shipments missed the transhipment connection" rather than "you keep failing".
- Ask for their explanation before offering yoursThey often know a cause you do not.
- Agree specific actions with owners and datesNot "we'll improve communication".
- State the consequence of no improvementClearly and without drama, so it is not a surprise later.
- Confirm in writing the same day
A forwarder's scorecard shows a carrier's on-time performance falling for three months. At the review, instead of listing failures, they ask what has changed at the carrier's end.
The carrier explains they lost two experienced planners and the replacements are still learning the lane. They are recruiting, and expect to be back to normal within eight weeks.
The forwarder holds volume steady rather than moving it, and agrees weekly check-ins for the period. Performance recovers. The carrier remembers who stayed.
Moving the volume would have been defensible. Asking first was better business.
Ask "what could we do differently that would help you deliver better?" It sounds soft and it is frequently the most productive question in the meeting. The answer is often something cheap — earlier bookings, better delivery information, faster container returns — that you can simply do.
- Send the scorecard in advance; never ambush in a meeting
- Ask for their explanation before offering yours
- Ask what you could do differently to help them perform
Raising problems constructively
You will learn to raise a performance issue so it gets solved rather than defended.
| Destructive | Constructive |
|---|---|
| "Your service has been terrible." | "On-time was 73% in November against our 95% target. Three failures, all the same transhipment hub." |
| "You never tell us anything." | "We initiated 9 of 11 status updates last month. The SLA says ETA changes within 24 hours; two weren't notified at all." |
| "This is the last straw." | "This is the second amber month. If January is also amber we'd need to move the Rotterdam volume, and I'd rather not." |
| "Your people don't care." | "The responses have been slower recently. Has something changed at your end that we should know about?" |
The pattern
- Specific numbers, not adjectives. Numbers can be verified and acted on; adjectives can only be disputed.
- Behaviour, not character. "Two ETA changes weren't notified" is fixable. "Your people don't care" is an insult.
- Consequence stated calmly, in advance. So it is never a surprise.
- An open question. Leaving room for a cause you have not considered.
Never raise a performance issue for the first time at the point of ending the relationship. If a carrier is dropped over problems they were never formally told about, that is a failure of management rather than of service — and word travels in a small industry.
- Use numbers, not adjectives
- Address behaviour, never character
- Never let a termination be the first time a problem is raised
Improvement plans that work
You will learn to structure a formal improvement plan.
PERFORMANCE IMPROVEMENT PLAN
Carrier B Issued 2 Dec 2026 Review 6 Feb 2027
POSITION
Scorecard amber for two consecutive months (Oct 82, Nov 83).
Primary issues: on-time delivery and proactive communication.
Damage and documentation performance remain strong.
REQUIRED IMPROVEMENTS
1 On-time delivery to 90%+ by January, 95% by February
Measured: monthly, against first confirmed date,
from our job log, shared with you each month.
2 ETA changes notified within 24 hours, per SLA
Measured: count of unnotified changes. Target zero.
3 Proactive status update on every shipment at
load-on-board and at discharge
Measured: count of updates we had to initiate.
Target: fewer than 20%.
WHAT WE WILL DO
- Provide bookings 10 days ahead rather than 7, giving
you more planning time (you raised this - agreed)
- Return containers within 48 hrs
- Weekly informal check-in call, Thursdays, until Feb
REVIEW POINTS
6 Jan 2027 Interim review, December scorecard
6 Feb 2027 Formal review, January scorecard
IF TARGETS ARE MET
Volume maintained. Rotterdam lane consolidation
(additional 16 containers/year) proceeds as planned.
IF TARGETS ARE NOT MET
Rotterdam lane volume moves to an alternative carrier
from March. Existing lanes reviewed at that point.
Agreed: ______________ (Carrier)
______________ (Us)
The "what we will do" section is what makes an improvement plan work rather than feel punitive. Almost every performance problem has some contribution from the customer — late bookings, poor information, slow container returns. Naming yours makes the plan a joint effort rather than a warning letter.
State both outcomes — what happens if they succeed as well as if they fail. A plan containing only threats produces compliance with the letter and resentment underneath. One containing a genuine reward for improvement produces actual effort.
- Specify measures, targets, dates and how they will be measured
- Name what you will do differently too
- State the positive outcome as well as the consequence
Rewarding good performance
You will learn what carriers actually value, which is rarely just more volume.
| Reward | Cost to you | Value to them |
|---|---|---|
| More volume | None, if they earn it | High |
| Longer contract term | Some flexibility | High — planning certainty |
| Faster payment | Cash flow | High |
| A written reference | Ten minutes | Genuinely valued by their sales team |
| Telling their manager they did well | Nothing | Higher than you would expect |
| Advance notice of volume changes | Nothing | High — helps them plan capacity |
| Being an easy customer | Some discipline | High and reciprocated |
The cheapest one is the most neglected
When a carrier's operations team pulls a container forward, finds space on a full sailing, or fixes a problem over a weekend, almost nobody emails their manager to say so. It costs nothing, it is remembered for years, and it is the reason your next emergency gets prioritised.
A forwarder emails a carrier's operations director after their team recovered a critical shipment over a weekend, naming the two people involved.
Eighteen months later, during a severe capacity shortage, that carrier finds space for them twice when others are being told the vessel is full. One of the named individuals is now the regional manager.
The email took four minutes to write.
Make it a habit: once a month, send one email thanking someone at a carrier for something specific they did, copied to their manager. It is the highest-return four minutes available to anyone in this industry.
- Volume, contract length, payment speed and references all have real value
- Recognition to someone's manager costs nothing and is remembered
- Being an easy customer is itself a reward, and it is reciprocated
Module 4 review
Should a carrier scorecard be shared with the carrier?
A scorecard used privately as evidence for a decision they never saw coming is unfair and produces resentment. Sharing it gives them the chance to improve, which is the point.
A carrier's performance has fallen for three months. What should you ask first at the review?
They often know a cause you do not. In the case study it was staff turnover with a known recovery timeline, and holding volume steady was better business than moving it.
Why include a "what we will do" section in an improvement plan?
Late bookings, poor information and slow container returns all contribute. Naming yours turns a warning letter into a joint effort.
Ending a Bad Relationship
Deciding it is over, exiting without disrupting customers, and moving volume safely.
Deciding it is genuinely over
You will learn to distinguish a temporary problem from a relationship that should end.
| Recoverable | Usually terminal |
|---|---|
| Performance dip with a known, temporary cause | Sustained failure after a formal improvement plan |
| Staff turnover they are actively fixing | Repeated failure to respond to raised issues |
| A single serious incident, handled well | A serious incident denied or concealed |
| Rates above market with good service | Financial distress affecting service |
| Occasional billing errors, corrected | Systematic overcharging or disputed invoices as routine |
| Capacity constraints during a market squeeze | Compliance or integrity concerns of any kind |
Two tests before deciding
- Have they had a fair, documented chance?Raised formally, in writing, with specific measures and a deadline. If not, you are not ready to end it — you are ready to raise it properly.
- Is the alternative genuinely better?Onboarding a new carrier costs time, carries risk, and the replacement may be worse. Compare against a vetted, trialled alternative, not against a hopeful assumption.
The bottom row is different from the others. Compliance concerns — unverifiable licences, lapsed insurance, pressure to mis-declare, evidence of subcontracting to unvetted parties — are not performance issues to be managed through an improvement plan. They end the relationship, and they should be escalated internally rather than handled quietly at operational level.
Before deciding, check whether the problem is the carrier or the lane. A carrier performing badly on one congested routing may be excellent elsewhere. Moving that lane rather than the whole relationship is often the better answer, and keeps a good supplier.
- Distinguish temporary causes from sustained failure after a documented plan
- Compare against a vetted alternative, not a hopeful one
- Compliance concerns end a relationship and should be escalated internally
Exiting without disruption
You will learn to end a relationship without your customers noticing.
- Check the notice period firstAnd whether it is symmetric. Exiting early may carry cost.
- Do not tell them before you are readyService can deteriorate once a carrier knows they are losing the account. Have the replacement onboarded and trialled first.
- Resolve open items before noticeOutstanding claims, disputed invoices, cargo in transit. These become much harder to settle afterwards.
- Give notice professionally and in writingFactual, brief, no recriminations.
- Agree how in-transit cargo is handledExplicitly. Shipments already moving must complete cleanly.
- Transition in phases, not overnightMove one lane at a time so a problem with the new carrier affects part of the volume, not all of it.
- Keep the door openMarkets change and people move. Leave without burning anything.
Subject: Notice of termination - transport services agreement
Dear Marta,
I am writing to give formal notice of termination of our
transport services agreement dated 1 January 2026, in
accordance with clause 14.2, effective 90 days from today
(termination date 4 March 2027).
This follows the performance improvement plan issued on
2 December 2026 and reviewed on 6 February 2027, under which
the agreed on-time delivery targets were not met.
TRANSITION ARRANGEMENTS
- All shipments booked before the termination date will
be completed by you under existing terms.
- We will place no new bookings after 18 February.
- Please confirm the position on the three open claims
(refs listed below) - we would like these settled
before the termination date.
- Final invoice reconciliation by 31 March.
I want to acknowledge that your damage and documentation
performance was consistently strong throughout, and that
your team handled the recovery on NG-4421 in November
particularly well.
This decision reflects the on-time performance on the
Rotterdam lane specifically. Should that position change
in future, I would be open to discussing working together
again.
Thank you for the last twelve months.
Yours sincerely,
Acknowledging what they did well is not a courtesy — it is accurate, and it makes the stated reason credible. A termination letter listing only failures reads as a justification. One that is balanced reads as a decision.
- Onboard the replacement before giving notice
- Settle claims and disputed invoices before termination
- Transition one lane at a time, and leave the door open
Moving volume safely
You will learn to transition volume without creating the very problems you are trying to escape.
CARRIER TRANSITION PLAN Carrier B -> Carrier C
Issued 10 Feb 2027
PHASE 1 Weeks 1-2 Rotterdam lane only (4 containers)
- Lowest volume, highest problem rate, best test case
- Daily monitoring, all shipments
- Checkpoint: week 3. Proceed only if clean.
PHASE 2 Weeks 3-6 Valencia lane (7 containers)
- Medium volume, stable lane
- Checkpoint: week 7
PHASE 3 Weeks 7-12 Ningbo lane (18 containers)
- Highest volume, moved last
- Full transition complete by week 12
THROUGHOUT
[ ] Carrier C fully onboarded and trial-shipped BEFORE
phase 1 begins
[ ] Rate sheet, trading conditions and SLA agreed in writing
[ ] Named contacts and escalation path documented
[ ] Clients NOT told a carrier change is happening unless
it affects them operationally
[ ] Carrier B completes all pre-notice bookings normally
[ ] Backup: original carrier remains onboarded (not deleted
from systems) until week 12 checkpoint passes
ROLLBACK TRIGGER
If Carrier C's on-time falls below 85% in any phase,
pause the transition and review before proceeding.
Do not move further volume onto an unproven performance.
RISKS
- Peak season falls in phase 3. Consider delaying that
phase by 4 weeks if capacity tightens.
- Carrier C's equipment availability at Ningbo is
"variable" per onboarding notes. Monitor closely.
Keep the outgoing carrier onboarded in your systems until the transition is fully proven. If the new carrier fails, you need to be able to place a booking immediately rather than re-onboarding someone you removed three weeks earlier. Removing them is the last step, not the first.
Moving all volume at once to make a clean break. If the new carrier has a problem, every shipment is affected simultaneously and you have no fallback. Phased transition means a failure affects a quarter of your volume and can be paused.
Move the worst-performing lane first. It is the lowest-risk test because the current performance is already poor, and it is where the new carrier has the best chance of visibly outperforming — which builds confidence for the phases that follow.
- Transition in phases with checkpoints and a rollback trigger
- Move the worst lane first, the highest-volume lane last
- Keep the outgoing carrier onboarded until the transition is proven
Module 5 review
When should you tell a carrier you are terminating?
Service can deteriorate once a carrier knows they are losing the account. Settle open claims and disputed invoices before notice too.
Which lane should move first in a carrier transition?
Current performance there is already poor, so the downside is limited, and a visible improvement builds confidence for later phases.
A carrier cannot produce verifiable insurance and has pressed you to mis-describe goods. How should this be handled?
Compliance and integrity concerns are not managed through improvement plans. They end the relationship and belong above operational level.
Course Assessment
Twelve questions covering all five modules. You need 10 of 12 correct to meet the 80% pass mark. You can retake it as often as you like.
Complete all 24 lessons to unlock the final assessment.