Spot Freight: The Solution to Agile Supply Chains

19/06/2025

Referring to shipments that are booked and priced individually, spot freight is something that can be utilized by both large and small businesses around the world.

The flexibility to use the current market rate for each shipment is one of spot shipping’s greatest benefits. With prices sometimes fluctuating daily, as a business you’ll be able to take advantage of lower costs during periods of freight recession (when cargo space is high due to low demand, and carriers have dropped their rates accordingly) to enhance your overall profitability.

Beyond the financial benefits, spot freight also helps make your overall supply chain more agile. As you’re not tied to contract pricing, you can allocate your cargo accordingly or look for alternative shipping options that match your current business need, helping you stay ahead of the competition and stand out to your potential customers.

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When Are Spot Shipments the Perfect Fit?

Knowing how and when to opt for spot shipping is critical to ensure your business gets the maximum benefits. Some key situations where spot freight can be used to ensure agile supply chains include:

Market Shifts

Spot shipping can also be used by businesses looking to test new markets. Generally shipping contracts will be negotiated for specific regions or port pairs, which may not be appropriate for your current business size. Instead, rather than committing to a long-term contract, you can investigate the impact that new markets can have on your overall profits on a case-by-case basis and adjust your overall logistics approach accordingly.

Similarly, for businesses operating in more volatile markets, spot freight provides the flexibility that allows you to be more dynamic in how you navigate market changes. This allows you to take advantage of favourable market shifts quickly and effectively, in turn aiding overall profitability.

Taking Advantage of Lower Rates

Monitoring market trends closely also allows you to make use of spot freight rates during periods of lower demand and reduce your overall shipping costs for a period of time.

Latest Shipping Services

New shipping routes and services are regularly developed, and spot freight allows you to utilize these when they become available. Not only can trying new routes help improve delivery times, but as a result help you develop more efficient logistics solutions that enhance your overall supply chain.

Empowering Agility: Spot Freight vs Contract Shipping

While both spot freight and contact shipping have huge advantages in different situations, there are some key differences which may mean that one is more suitable than the other in certain situations.

Spot Shipping

Adapt to market shifts - Scale your cargo volume up or down based on demand volume
Potential cost savings – Take advantage of competitive rates rather than fixed long-term pricing
Flexible carrier and route selection – More freedom to choose your carrier and shipping route to avoid delays and bottleneck
Supply chain resilience – Reduce your reliance on specific shipping providers and diversify your shipping options.

Contract Shipping

Fixed pricing and capacity – While less flexible than spot shipping, you’ll have the comfort of long-term rare stability and cargo capacity
Specific Routing options- You'll have the experience of working with specific carriers and build up a strong relationship with their teams
High Volume Shipments- For businesses with consistent, predictable shipping needs, contract shipping can be perfect.

Ultimately, both spot shipping and contract shipping have their place in supporting your overall approach to international trade. While spot freight offers greater flexibility, cost-efficiency, and adaptability, contract shipping provides a level of stability throughout your operations.

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The adaptability that comes from spot freight is one element that can be used to build flexible supply chains that allow your business to stay competitive.

At MSC, we work with your team to enhance your overall shipping operation. From our range of shipping solutions to our inland transportation services and approach to digitalization, we aim to bring our customers the most up-to-date shipping services that are designed to meet their needs.