Stop Buying Freight Like It’s 2019: Why Global Freight Needs a New Tendering Model

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If you’re still locking in most of your global freight once a year, you’re not managing risk—you’re outsourcing it to luck.

For a long time, the annual RFP rhythm made sense. You spent months cleaning data, aligning stakeholders, running a big tender, negotiating hard, signing 12‑month contracts, and then “living with†those decisions until next year. In a world of relatively stable demand and infrequent disruption, that was a reasonable trade‑off.

That is not the world we operate in anymore.

Today, trade lanes are shaped by tariff headlines, conflicts, port incidents, cyber disruptions, and sudden capacity shifts. Prices can move double‑digits in a single quarter. Yet many enterprise shippers are still trying to force this volatility into a process designed for a much calmer era. The result is familiar: budgets blown, capacity lost, and procurement teams spending too much time defending decisions that were “right†when the RFP went out and “wrong†by the time the first shipment moved.

It’s time to reconsider not just how often we tender, but how we think about tendering itself.

The Problem With Treating Tendering as a Once‑a‑Year Event

In almost every conversation with large shippers, the same pattern appears:

  • Contracts are negotiated based on assumptions that age quickly.
  • When the market declines, shippers remain over‑indexed to old rates.
  • When the market rises, carriers quietly deprioritize unprofitable flows.

Both sides know the numbers are wrong. Both sides are waiting to see who blinks first.

The real issue is not that annual tenders are “badâ€. It’s that, on their own, they are too slow and too blunt for a market that changes faster than the contract cycle. We’ve taken a process designed to create stability and stretched it into an environment where stability simply doesn’t exist.

When the market shifts, you have three options:

  1. Ignore it and hope it comes back.
  2. React informally, through one‑off renegotiations and spot buys.
  3. Build a repeatable way to realign your rates and commitments with reality.

The first is wishful thinking. The second is what most teams do today, and it’s exhausting. The third is where mini‑tendering comes in.

Mini‑Tendering: From One Big Bet to a Series of Smart Adjustments

Mini‑tendering is not a buzzword for “more RFQs.†It’s a different way of thinking about alignment between your contracts and the market.

The core idea is simple:

  • Keep your most important global lanes under structured framework agreements.
  • Refresh the lanes where price and risk actually move, several times a year.
  • Automate and standardize everything that doesn’t require human judgment.

Instead of betting your entire freight budget on one moment in time, you convert a single big decision into a series of smaller, data‑backed adjustments.

In practice, the teams getting this right usually have three building blocks in place:

  1. A portfolio view: Not all lanes deserve the same treatment.
  2. A cadence: There is a clear rhythm for when and why mini‑bids happen.
  3. A system: The heavy lifting is handled by tools, not extra headcount.

Let’s take those in order.

Step 1: Admit That Not All Lanes Are Equal

One of the biggest shifts I’ve seen among leading shippers is moving from “tender every lane once a year†to “treat lanes according to how they actually behave.â€

Think of your global network in three buckets:

  • A‑lanes – the backbone. A relatively small set of lanes carry most of your volume. They are commercially and operationally critical, and you can forecast them with some confidence. These should absolutely sit under longer‑term agreements—but with review mechanisms and, on some lanes, index‑linked clauses instead of fully fixed prices.
  • B‑lanes – the opportunity. These lanes have meaningful volume and very real impact on your P&L, but they are more exposed to seasonality, product launches, trade shifts, or corridor‑specific volatility. This is where mini‑tendering earns its keep. Running structured, focused events on these lanes two to four times a year keeps you close to the market without overwhelming your team.
  • C‑lanes – the long tail. Hundreds of origin‑destination pairs that each move a small number of shipments. Trying to lock down all of them in an annual RFP is a paperwork exercise, not a value‑creation one. For most shippers, it makes more sense to handle this long tail through guided spot or index‑linked mechanisms with pre‑qualified partners.

The point is not to make your network look neat on a slide. The point is to stop spending the same amount of time and energy on lanes that are fundamentally different in importance and behavior.

Step 2: Replace “Tender Season†With a Real Cadence

Once you accept that your portfolio behaves differently by lane type, the logical next question is: how often should we touch each bucket?

The answer will vary by organization, but a pattern is emerging among enterprise shippers:

  • A‑lanes: Annual or multi‑year frameworks, with scheduled check‑ins and, on selected flows, index‑linked review clauses. The commercial conversation is less about “what’s the spot rate today?†and more about “how do we share risk over the long term?â€
  • B‑lanes: Structured mini‑bids on a quarterly cadence, plus the ability to trigger an event when specific conditions are met (for example, when an index moves beyond a threshold or your rejection rate crosses a line). You’re not “chasing†every wiggle in the chart, but you’re also not waiting a full year to correct obvious gaps.
  • C‑lanes: Mostly automated, with attention focused on exceptions and genuine service issues rather than pricing every small shipment from scratch.

In other words, tendering stops being something you “do in Q1†and becomes part of how you manage your network year‑round.

Step 3: Accept That You Can’t Do This With Spreadsheets

If this sounds like more work, that’s because it would be—if you tried to do it manually. No team has the bandwidth to run several structured events a year on top of a full annual RFP, using the same tools and methods they’ve used for the last decade.

The teams that have made mini‑tendering stick have quietly changed their underlying operating model:

  • Shipment histories and lane definitions live in one place, not in five versions of a spreadsheet.
  • Benchmarks and indices are plugged into that same environment, so every lane has context.
  • RFQs can be generated from templates, distributed to the right carriers, and ingested in a structured way.
  • Scoring models are defined up front, so a new event means new data—not reinventing the criteria.

Once those bricks are in place, the marginal cost of a mini‑bid drops dramatically. A seven‑day cycle stops being a heroic sprint and becomes just “how we do this.â€

That’s also where the tone of work changes. Instead of spending weeks copying and reconciling numbers, procurement people spend more time on the things only they can do: balancing cost with service and risk, explaining trade‑offs to internal stakeholders, and building trust with carriers.

What Changes for Your Organization

If you take this seriously, a few things tend to happen:

  • Finance conversations become easier. Instead of arguing about why your January forecast missed a market shift in August, you can show how your rates track benchmarks over time—and where you chose to lock in versus stay flexible.
  • Operations gets fewer unpleasant surprises. When carriers are not stuck in obviously unprofitable contracts, they are less likely to walk away from your freight when the market turns. That doesn’t remove all risk, but it changes the nature of the relationship.
  • Carriers see you as a partner, not just a price‑taker. A shipper who brings data, clarity, and a predictable cadence to the table is more attractive than one who disappears for a year and then demands a huge rate cut with 10 days’ notice.
  • Procurement becomes more credible internally. When your sourcing rhythm matches the market’s rhythm, it’s much easier to defend both your costs and your strategy.

A Simple Way to Start

You don’t need a multi‑year transformation roadmap to begin. You need one concrete experiment. For example:

  • Run an ABC segmentation on your current global lanes.
  • Pick a small set of B‑lanes where you suspect a mismatch between current rates and the market.
  • Design a single, structured mini‑bid on those lanes using a clear seven‑day process.
  • Measure not only the rate outcomes but the internal effort and carrier feedback.

If that one experiment delivers better alignment with the market without overwhelming your team, you have a proof point. If it doesn’t, you’ll have hard data about what needs to change—data, process, or tooling—before you scale.

The point is not to “do more tenders.†It’s to stop making one big, brittle bet and start managing your freight portfolio as if volatility is the norm—because it is.

The best shippers I work with aren’t trying to predict the next disruption. They’re building a procurement model that can absorb disruptions without breaking. That’s the real promise of mini‑tendering.

Oliver Esch

Oliver brings 15+ years of logistics and supply chain expertise to the table. Before joining Freightos Procure™ (formerly SHIPSTA), he worked as a consultant, uncovering optimization potential in global supply chain operations for industry leaders. Now, he’s focused on delivering cutting-edge solutions to Fortune 1000 companies, helping them streamline both strategic and operational processes for maximum value.

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