Carrier Terms Intermediate

Tender

Also known as: Load Tender, Freight Tender, Shipment Tender

Definition

Tendering is the process of offering a shipment to a carrier. The shipper “tenders” the load, and the carrier either accepts or rejects it. Modern systems automate this with electronic tender processes.

Tender Process

  1. Shipper creates shipment
  2. System selects carrier (per routing guide)
  3. Tender sent to carrier
  4. Carrier accepts or rejects
  5. If rejected, cascade to next carrier
  6. Accepted load gets scheduled

Tender Types

Type Description
Primary tender First carrier offered the load
Backup tender If primary rejects
Spot tender Market rate request
Committed tender Contracted volume

Tender Acceptance Metrics

Tender acceptance rate: % of offered loads a carrier accepts

  • Target: 90%+ for contract carriers
  • Below 80% indicates capacity issues

Tender lead time: How far ahead loads are offered

  • Longer lead time = higher acceptance
  • Short lead time = more rejections

Electronic Tendering

EDI 204: Electronic tender transaction API/TMS: Automated tender workflows Load boards: Spot market tendering

Tender Rejection Reasons

  • No capacity in lane
  • Equipment not available
  • Rate too low
  • Lead time too short
  • Outside service area

Best Practices

  • Tender early (24-48 hours minimum)
  • Maintain accurate shipment data
  • Use waterfall routing
  • Track acceptance metrics
  • Address chronic rejectors
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