Managed Freight Services

Independent freight procurement support

What are managed freight services?

A managed freight arrangement is a provider or coordinated arrangement that plans, books, moves and tracks a shipper's freight across the right modes and carriers, rather than the shipper booking each load. It gives businesses a controlled way to organise regular freight movements through a managed freight service model.

Managing freight in-house versus using a managed freight arrangement

Managing freight in-house can work well where volumes are small, routes are simple and movements are occasional. Teams with limited freight activity may prefer direct bookings with individual freight companies because the administration is manageable. A managed freight arrangement becomes valuable when operations involve multiple lanes, mixed modes, regular volume or a requirement for one point of control and consolidated reporting.

• In-house freight management: Suitable for businesses with straightforward requirements, fewer shipments and limited carrier administration.
• Managed freight: Suitable for businesses that need coordinated carrier management, consistent processes and clearer oversight across regular freight movements.

What do managed freight services cover?

Managed freight services can cover the full process of arranging freight transport, from selecting suitable carriers through to performance reporting. The exact scope depends on the buyer's requirements, freight profile and operating model.

Freight transport modes and planning

• Road freight: Including full load FTL, part load LTL and groupage services, pallet network freight and other domestic transport options. Road carriers should hold the appropriate operator licensing requirements, which can be checked through the UK goods vehicle operator licensing guidance.
• Container and sea freight: Supporting import and export movements where container planning, port coordination and international freight forwarding knowledge are required.
• Air freight: Providing options for urgent, time sensitive or high value goods where speed is a priority.
• Multimodal freight: Combining road, sea, rail or air movements where a coordinated transport solution is needed.

Carrier management and freight control

• Carrier selection and management: Identifying suitable freight companies and freight providers based on capability, service requirements and the type of goods being moved.
• Booking and consolidation: Managing shipment bookings, combining compatible movements and reducing unnecessary administration for internal teams.
• Customs and documentation: Supporting international freight movements with the required paperwork, customs processes and coordination between parties.
• Tracking, KPIs and reporting: Providing visibility of freight activity through shipment tracking, agreed performance measures and consolidated reporting for operations, supply chain and procurement teams.

For many businesses, managed freight services provide a practical alternative to building a larger internal transport function. A suitable arrangement allows the buyer to retain control of supplier selection and commercial decisions while having a structured process for managing regular freight requirements.

How freight is priced

Freight pricing is built around the characteristics of the movement being managed. The main factors include the transport mode, actual weight and volumetric or dimensional weight, distance and lane, fuel costs, and the overall consignment profile. These are indicative observed UK market factors, not a CTS quotation or a guaranteed price guide. Buyers can use them as a practical way to sense-check proposals from freight companies and freight management providers.

For road freight, pricing is often based on the consignment, pallet quantity, vehicle requirement or agreed lane rate. Groupage freight is commonly priced around chargeable weight, pallet space or other measures used by the network provider. Container freight is usually influenced by the container type, origin, destination, route and associated handling costs. Air freight is commonly based on chargeable weight, which takes account of both actual and dimensional weight.

Fuel surcharge mechanisms are another important part of many freight services agreements. These may be reviewed periodically or linked to an agreed fuel index or formula. A managed freight provider may also reduce overall cost by consolidating compatible loads, improving trailer or container utilisation, and reducing avoidable empty movements. The right approach is to understand how each proposal has been built rather than comparing a headline price alone.

What a managed freight agreement should cover

A managed freight agreement should define responsibilities clearly before regular movements begin. The detail will vary by business, but buyers should normally consider the following areas:

• Modes and lanes in scope: which freight movements are included, such as road freight, pallet networks, containers, international freight forwarding or other transport requirements.
• Carrier selection and substitution: how freight companies are appointed, when alternatives can be used, and who remains responsible for service delivery.
• Rates and fuel mechanism: how pricing is agreed, reviewed and adjusted, including any fuel surcharge arrangements.
• Transit times and service levels: expected delivery windows, booking requirements, escalation routes and performance commitments.
• Tracking, reporting and KPIs: the information provided, reporting frequency, delivery performance measures and management reviews.
• Claims, goods-in-transit liability and insurance: who manages claims, the applicable liability limits, and what insurance arrangements apply.
• Customs responsibility for international freight: which party manages customs documentation, declarations, duties and related compliance requirements.
• Review and exit terms: how the agreement is reviewed, changed or ended if requirements or service expectations alter.

Choosing and vetting a freight management partner

The right managed freight partner should fit the buyer’s operating requirements rather than simply offer access to transport capacity. Independence from any single carrier is important, as it allows recommendations to be based on the freight requirement rather than a fixed vehicle fleet or preferred supplier list.

Buyers should consider the breadth of available modes and carrier access, along with the compliance position of the underlying operators. For road freight, checks should include the operator licence position, financial standing, insurance cover and relevant accreditations. Systems capability, shipment visibility, reporting quality, sector experience and references from similar customers should also form part of the assessment.

For example, a manufacturer moving mixed UK pallet freight alongside occasional container imports may currently spend time booking separate carriers, checking delivery updates and reconciling invoices from different providers. Moving to one managed arrangement could provide a coordinated service model with consolidated reporting while still using suitable specialist carriers for each movement type.

CTS provides an independent, asset-neutral procurement service for businesses seeking managed freight solutions. CTS owns no vehicles or warehouses and is free for shippers. It checks operators and providers, including DVSA operator licence status, financial standing, insurance and relevant accreditations, then issues one private brief to a checked shortlist.

The buyer receives proposals directly, compares the options and appoints the preferred freight company or freight management provider. CTS does not rank, rate or endorse operators. The appointment decision remains with the buyer, supported by a structured and independent procurement process.