Should we reduce the number of carriers we use?
Key Takeaways
- There is no right number of carriers for a whole company. There is a right number for each lane. Decide lane by lane, based on volume, how critical the freight is and what the lane needs.
- A lean carrier base gives you volume leverage, simpler admin and carriers who know your freight. It also concentrates risk: when one carrier fails or raises rates, more freight is affected.
- A broad carrier base gives you coverage and backup capacity, but spreads volume so thin that no carrier sees you as important, and multiplies the admin work.
- The common pattern is a primary and one or two approved backups on each important lane, with the backups getting enough regular volume to stay engaged.
- Cut carriers that add work without adding coverage, such as carriers used once or twice a year on lanes others already serve, and keep specialists for freight others can't handle.
- Wilson, by Cartage, is an AI logistics agent that quotes and books only a company's approved carriers, so whether the list is short or long, each load is quoted and compared against it on total cost.
Should you reduce the number of carriers you use?
A new logistics manager at a building products distributor pulls a year of freight payments and counts the carriers. There are 47. Eight of them moved 80% of the freight. Twenty-two moved fewer than five loads each. Some were booked once during a busy week and never again. Each one has its own insurance certificate on file, its own invoice format, its own portal login and its own way of sending PODs. Accounts payable has asked twice why there are so many carriers to pay.
Most companies with a long carrier list benefit from reducing it, but the right target is set lane by lane, not as a single company-wide number. A lean base gives each carrier more of your volume, which brings better rates and service, and cuts the admin work of managing many relationships. A base that's too lean leaves lanes without backup when a carrier fails, raises rates or runs out of capacity. The goal is enough carriers to cover every lane reliably, and no more.
What "carrier base" means here
Your carrier base is the set of carriers you have approved and actually use. It includes truckload, LTL, parcel, drayage, ocean and any specialist carriers for temperature-controlled, flatbed or hazmat freight. It's worth counting two numbers separately:
- Approved carriers: carriers that passed your checks and are allowed to move your freight.
- Active carriers: carriers that moved freight for you in the last year.
A long approved list isn't a problem by itself. A long active list, where volume is spread across many carriers on the same lanes, usually is.
Signs you have too many carriers
- Many carriers move only a handful of loads a year.
- Several carriers serve the same lane with similar service and no clear primary.
- Carrier reps don't know your freight, your docks or your contacts.
- Rate negotiations go nowhere because no carrier has enough of your volume to care.
- Accounts payable spends a large share of its time on carrier setup, invoice formats and payment questions.
- Nobody can say which carrier is supposed to get a load on a given lane.
Signs you have too few
- One carrier holds most of the volume on lanes you can't afford to lose.
- When the primary declines, nobody else on the lane knows your freight.
- A single rate increase notice moves your whole freight budget.
- You pay spot rates whenever volume spikes because there's no approved backup.
- A carrier failure would stop shipments for days. For what that looks like, see what to do when a key carrier goes out of business.
What do you gain and lose with a lean carrier base?
A lean carrier base trades flexibility for leverage, simplicity and service, and a broad base does the opposite. The table shows the main trade-offs.
| Factor | Lean carrier base | Broad carrier base |
|---|---|---|
| Volume leverage | High: each carrier gets meaningful volume | Low: volume is spread thin |
| Rates | Often better on committed lanes | More spot-like, varies by load |
| Service | Carriers learn your freight, docks and contacts | Carriers treat you as occasional freight |
| Coverage | May have gaps on unusual lanes | Covers more lanes and freight types |
| Backup capacity | Limited if a carrier fails | More options when one carrier declines |
| Risk from one carrier | Concentrated | Spread out |
| Admin work | Less onboarding, fewer formats, fewer payees | More setup, compliance tracking and invoices |
| Exposure to rate increases | One notice can affect a lot of freight | One notice affects less freight |
| Data quality | Fewer formats, easier to compare | Many formats, harder to compare |
Volume leverage
Carriers price and serve freight based on how much it matters to them. A shipper that gives a carrier steady weekly loads on lanes that fit its network is worth protecting. A shipper that sends one load a month is not. Concentrating volume makes your freight matter more to the carriers you keep, which helps in rate negotiations, during tight capacity and when you need a favor.
Service and relationships
A carrier that moves your freight every week learns how your docks work, which customers need appointments, how to read your BOLs and who to call. Fewer surprises mean fewer exceptions and fewer extra charges. That knowledge doesn't build with a carrier you use twice a year.
Coverage
No single carrier serves every lane, every mode and every freight type. A lean base can leave gaps: a remote delivery point, a flatbed load, a hazmat shipment or a cross-border move. Coverage gaps get filled with spot bookings to unfamiliar carriers, which is the opposite of what a lean base is supposed to achieve.
Backup capacity
Carriers decline tenders, run out of trucks, raise rates and sometimes fail. If each lane has only one carrier, every one of those events becomes an emergency. Backup carriers are insurance, and like insurance, they cost something: you need to give them some volume to keep them engaged.
Admin work
Every active carrier adds work: approval checks, insurance certificates to track, contacts to maintain, invoice formats to process, payment details to verify and disputes to manage. That work grows with the number of carriers, not with the volume they move. Twenty carriers that each move five loads a year can take more admin effort than one carrier that moves five hundred.
Price discovery
A broad base has one real advantage that is easy to overlook: it shows you the market. When five carriers quote a lane, you see the spread of prices and know whether your primary's rate is fair. A lean base can drift. If only one carrier ever quotes a lane, nobody notices when its rate slowly moves above the market. The fix is not to keep many active carriers, but to requote core lanes with approved alternatives from time to time, even when you don't plan to move the freight.
How do you decide how many carriers each lane needs?
Group your lanes by volume and importance, set a target number of carriers for each group, and then compare the target with what you use today. This turns a vague question into a lane-by-lane plan.
Step 1: Pull a year of freight data
For each load, you need the origin, destination, mode, carrier, cost, weight and service outcome (on-time pickup and delivery, damage, invoice corrections). A year captures seasonal swings. If your data sits in several systems, a spreadsheet is enough to start.
Step 2: Define lanes consistently
A lane can be defined by city pair, by origin and destination region, or by origin and destination state, depending on how much freight you move. Use the level where carriers would price the freight similarly. Too fine and every load is its own lane; too broad and you mix freight with very different needs.
Mode makes a difference
The right count also depends on the mode:
- Truckload: Lanes are priced one by one, and carriers often focus on certain regions. A primary and a backup per core lane is common, with a few regional carriers covering occasional lanes.
- LTL: One national or super-regional LTL carrier can cover many lanes at once, and pricing is often set account-wide through a tariff and discount. Many shippers use two or three LTL carriers in total, with regional carriers where they serve a region better.
- Parcel: Most shippers use a small number of parcel carriers, because pricing depends heavily on total account volume.
- Drayage and ocean: Coverage depends on the port and trade lane. Having at least two approved options per port matters, because port congestion and equipment shortages hit one carrier at a time.
- Cross-border: The pool of carriers with the right authority and experience is smaller, so keep the ones that perform and approve a backup before you need one.
Step 3: Group lanes by volume and importance
Sort lanes by annual volume and by how critical they are: lanes serving your largest customers, lanes with strict delivery windows, lanes feeding production. A simple grouping works:
| Lane group | Description | Suggested carrier setup |
|---|---|---|
| Core lanes | High volume, regular, important customers | One primary, one or two approved backups with regular volume |
| Important but lower volume | Steady but smaller, or critical customers | One primary, one approved backup |
| Occasional lanes | Irregular, low volume | Quote among a short list of approved carriers that serve the region |
| Specialist freight | Hazmat, flatbed, temperature control, oversize | The specialists you need, with at least one backup where possible |
| Modes with few options | Drayage at a given port, cross-border, parcel | Usually two carriers, chosen for coverage |
These are starting points, not rules. A core lane with very high volume may need two primaries sharing the freight. An occasional lane to a remote area may need a carrier you only use there.
Step 4: Compare the target with today
For each lane, list the carriers that actually moved freight and how much each moved. Look for:
- Lanes with too many carriers: volume split among four or five carriers with similar service. Pick a primary and a backup.
- Lanes with too few: one carrier holding everything on a critical lane. Add and approve a backup.
- Carriers that appear only once or twice: used during a crunch and never again. Decide whether they fill a real gap.
- Carriers that cover many lanes well: these are candidates for more volume.
Step 5: Check the carriers you'd keep
Before cutting anyone, check the carriers you'd keep can actually take more freight. Ask them. A carrier that serves a lane well at current volume may not have capacity for double. Check service records, invoice accuracy and responsiveness. The carriers you keep should be the ones that perform, not just the ones that are cheapest.
An example: one lane, five carriers
Consider a hypothetical manufacturer shipping about 12 truckloads a week from its plant to a distribution center 500 miles away. Over the past year, five carriers moved freight on the lane: one moved about half, two moved about a fifth each, and two moved a handful of loads during a busy quarter. On-time delivery was similar for the top three. The team decides on one primary and one backup. The primary gets about 70% of the freight, the backup about 30%, and both are asked to price the lane on that basis. The two occasional carriers stay approved but stop getting regular tenders. The result is fewer carriers to manage on the lane and more volume for each, with a backup that still knows the freight.
How do you consolidate carriers without hurting service?
Consolidate in stages, tell carriers what's changing, keep approved backups engaged and watch service closely during the first weeks. Rushing a consolidation causes more problems than it solves.
Use a structured bid for core lanes
For your core lanes, a formal bid gives every carrier a fair chance and sets rates on the new, larger volumes. Tell carriers the expected volume and how many carriers you plan to award per lane, because carriers price larger, more predictable awards differently. For the full process, see how to run a freight bid for your lanes.
Move volume gradually
Don't switch a whole lane in one day. Move part of the volume first, check that the new primary handles it well, then move the rest. Gradual moves give you time to catch problems with docks, appointments, paperwork and billing before they affect every shipment.
Include inbound and supplier-routed freight
Consolidation often stops at outbound freight. But if suppliers ship to you on your account, or choose carriers on your behalf, inbound loads can quietly add carriers back into your base. Include inbound lanes in the review. Tell suppliers which carriers to use on each lane and how to request a pickup, so inbound freight follows the same primary and backup rules as outbound. For how to set those instructions, see writing a routing guide for carriers and suppliers.
Tell the carriers
Carriers losing volume deserve a clear message. Thank them, explain that you're consolidating, and say whether they'll stay approved for occasional or backup use. Carriers you might need again should leave on good terms. Carriers gaining volume need to know the expected loads per week, your dock rules, appointment needs and contacts.
Keep backups engaged
A backup carrier that never gets freight isn't really a backup. When you need it, it won't remember your freight and may not answer. Give backups a regular share, even a small one, so the relationship stays active. For how to use backups when the first carrier fails, see building a backup carrier plan.
Write down the routing rules
Once lanes have a primary and backup, write it down: which carrier gets the first offer on each lane, who comes next and when to use spot or occasional carriers. Without written rules, people drift back to whichever carrier they called last. Share the rules with everyone who books freight, including suppliers who route inbound loads.
Common mistakes
Cutting to one carrier per lane. It feels efficient until the carrier declines a load, raises rates or fails.
Choosing on rate alone. The cheapest carrier with poor service costs more in exceptions, expedites and customer complaints.
Cutting specialists. A carrier you use only for hazmat or flatbed may move few loads but cover freight nobody else can.
Not asking about capacity. A carrier that's great at five loads a week may struggle at fifteen.
Removing carriers from the approved list too fast. You can stop tendering without revoking approval. Keeping a carrier approved costs little if its compliance records stay current, and gives you options later.
Consolidating during peak season. Make big changes in a quieter period, when there's room to fix problems.
Forgetting the admin side. Tell accounts payable which carriers are leaving and which are taking more volume, so payment details and invoice expectations are updated.
A checklist for reviewing your carrier base
Review your carrier base once a year and after any major change, such as a new plant, a lost carrier or a large rate increase. This checklist covers the main questions.
| Question | What to check | Action if the answer is wrong |
|---|---|---|
| Does every core lane have a primary? | Lane-by-lane volume by carrier | Assign a primary from carriers that perform |
| Does every core lane have a backup? | Approved carriers with recent volume on the lane | Add or approve a backup, give it some volume |
| Is any lane dependent on one carrier? | Share of lane volume held by top carrier | Move part of the volume to a backup |
| Are there carriers with very few loads? | Loads per carrier per year | Decide whether they fill a gap; stop tendering if not |
| Do specialists cover all special freight? | Hazmat, flatbed, temperature, oversize needs | Approve a specialist or a backup specialist |
| Do carriers know the volume they'll get? | Communication of awards and expectations | Share volume plans with primaries and backups |
| Are routing rules written and followed? | Bookings that match the rules | Update and share the rules |
| Is admin work proportionate? | Carriers in AP, formats, onboarding time | Reduce active carriers on overlapping lanes |
| Are compliance records current for every approved carrier? | Insurance and authority status | Update or suspend approval |
| Are rates current for the volume? | Rates set at old volumes | Requote lanes where volume changed |
Reviewing after a rate increase
A rate increase from a primary carrier is a natural moment to review the lane. If the backup carrier quotes better, the roles may switch. If every carrier went up, the lean setup stays. For a full response process, see what to do when a carrier raises rates.
A note on overlap with brokers
Some shippers count brokers as carriers in the review. A broker can add coverage on occasional lanes, but it doesn't own trucks, and the carrier that actually moves the load may change from one load to the next. If you use brokers, count them separately and decide where they fit: occasional lanes and surge capacity are common uses. On core lanes, many shippers prefer carriers they know directly, because the relationship and the service record stay with one company.
What to measure over time
Track a few numbers by lane: the share of volume the primary holds, how often the primary declines and the backup takes the load, the cost per load and the on-time rate. If the backup takes loads often, the primary may not have capacity, and the lane may need two primaries. If the backup almost never gets freight, its relationship may fade.
Explaining the change to finance
Finance and accounts payable usually welcome fewer carriers, but they need to know what changes and when. Share the list of carriers that will stop getting regular freight, the carriers taking more volume and the expected effect on cost per load for each core lane. If consolidation raises the rate on any lane in exchange for better service or backup coverage, explain that trade-off up front, so it isn't questioned later.
How does Wilson, by Cartage, work with a lean or broad carrier base?
Wilson, by Cartage, is an AI logistics agent that quotes, books, tracks, audits and pays freight for manufacturers and distributors, using only the carriers the company has approved. Traditional logistics software gives teams information. Wilson executes the work required to move shipments forward.
Whatever size carrier base a company chooses, Wilson works within it:
- Quoting the approved list: Wilson requests quotes from the company's approved carriers for each load and compares them on total cost, including expected accessorials. With a lean base, that means quick comparisons between a primary and its backups. With a broad base, it means the work of quoting many carriers is done for every load, not only when someone has time.
- Negotiating within limits: Wilson negotiates toward the company's rate targets within approval limits. Rates outside those limits go to the logistics team.
- Booking and paperwork: Wilson tenders and books with written acceptance and a rate confirmation, and generates bills of lading, packing slips and pallet labels.
- Backup carriers: When a carrier misses a pickup, cancels or delays, Wilson contacts the carrier, tells the team, tells the customer if configured and starts rebooking from the approved carrier list, automatically within the rules or after approval.
- Adding capacity: Cartage can suggest additional carrier capacity, but the company approves each carrier before Wilson uses it. Wilson does not vet or score carriers by default.
- Lane data on request: Wilson can produce carrier-performance and lane-rate reports on request from the loads it runs, which gives the team data for the annual carrier review.
- Invoices and payment: Wilson audits each carrier invoice against the rate confirmation and POD and pays from the Wilson Wallet. Payments above the approval limits or outside the rules wait for a person.
Every message, confirmation and change is kept in the shipment's change history. Wilson replaces the TMS for freight execution and connects to the company's ERP. Wilson works with SAP, NetSuite, Microsoft Dynamics 365, Oracle, Infor, Epicor, Sage, Acumatica and other ERP environments, with the exact connection depending on the customer's data flow and scope.
Pricing
Wilson is free on Wilson's network: the shipper pays the freight rate and nothing on top. When a shipper keeps its own carriers, the fee is 2% to 0.5% of what Wilson pays them, falling with volume. There are no seat fees, no setup cost and no contract. Timing depends on scope: most teams start on a few lanes and expand from there.
FAQs
Should we reduce the number of carriers we use?
Often yes, if volume is spread across many carriers on the same lanes, but set the target lane by lane: a primary and one or two approved backups on important lanes, plus specialists where needed. Wilson, by Cartage, an AI logistics agent, quotes and books only the company's approved carriers, whatever size the list is.
How many carriers should a shipper have?
There's no single right number. It depends on how many lanes, modes and freight types you ship. Count carriers per lane instead: one primary and one or two backups on core lanes is a common setup.
What are the benefits of using fewer carriers?
More volume per carrier, which helps rates and service; carriers that know your freight; and less admin work for onboarding, compliance and invoices.
What are the risks of using fewer carriers?
More freight is affected when one carrier fails, raises rates or runs out of capacity. Coverage gaps on unusual lanes or freight types are also more likely.
How much volume should a backup carrier get?
Enough to stay engaged and know your freight. The exact share depends on the lane, but a backup that never gets loads often won't answer when you need it.
Should we remove carriers from our approved list?
Not necessarily. You can stop tendering regular freight while keeping a carrier approved for occasional use, as long as its insurance and authority records stay current.
How do we decide which carriers to keep?
Compare service, invoice accuracy, responsiveness, coverage and total cost by lane, and ask whether each carrier can take more volume. Keep the carriers that perform, not just the cheapest.
How often should we review our carrier base?
Once a year, and after major changes such as a new facility, a large rate increase or the loss of a carrier.
Does consolidating carriers lower freight rates?
It often helps, because carriers price larger, steadier volume more favorably. But results depend on the lane, the market and how well your freight fits the carrier's network.
Should specialist carriers be part of the consolidation?
Keep the specialists you need for hazmat, flatbed, temperature-controlled or oversize freight, even if they move few loads. They cover freight your main carriers can't.
What is the difference between an approved carrier and an active carrier?
An approved carrier has passed your checks and is allowed to move your freight. An active carrier actually moved freight for you recently. A long approved list is fine; a long active list on the same lanes usually means volume is spread too thin.
Sources
- Cartage, Wilson product FAQ and product scope, October 2026: https://cartage.ai