Long-Term Contracts vs. On-Demand Transport - What Still Works in 2025?

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For decades, long-term transport contracts have been the go-to strategy for companies seeking stability. Lock in a rate, secure capacity, and build a relationship — sounds like the perfect plan, right?

But in 2025, things look different. Supply chains are more unpredictable than ever. Production schedules shift. Demand spikes are harder to forecast. And those “guaranteed” contracts? They don’t always deliver what they once promised.

So maybe the question isn’t whether to ditch the old model — but whether it still works the way we think it does. It’s a call to reflect — and rethink.

The Traditional Promise: Long-Term Contracts

Long-term transport agreements were designed to bring peace of mind. With a signed contract in hand, logistics teams expected guaranteed truck availability at agreed-upon rates, usually even 12 months. For companies with regular, predictable routes, this made sense. It simplified planning and allowed for closer collaboration with transport partners.

These contracts also brought a sense of mutual commitment — a handshake in legal form. Many logistics managers built strong, reliable relationships with carriers over the years thanks to this model.

The Reality Today: Complexity, Not Certainty

Here’s where things get complicated. The transport world isn’t as stable as it once was. Supply chains fluctuate due to raw material shortages, labor issues, or even geopolitical tensions. Demand rises and falls rapidly — and transport providers can’t always keep up. Additionally, the dynamic growth of the e-commerce sector shortens supply-chains and makes the growth of on-demand services even more noticeable.

We’ve heard the story too many times: when market rates rise, logistics companies ask to renegotiate contracts. When rates fall, silence. It’s an unfair imbalance — and it leaves shippers frustrated.

Another issue? Planning. Forecasting transport volumes months in advance has become nearly impossible, especially for manufacturers, distributors, or retailers with volatile order cycles.

Even the structure of contracts is shifting. 12-month deals give way to 3- or 6-month terms. Still, the risk remains: a locked-in rate may turn out to be either too high or too low as the market changes — creating risk for both the shipper and the carrier.

The Market Speaks: Trends Toward Flexibility

According to IRU market data, contract rates have outpaced SPOT (On-Demand) rates for 7 consecutive quarters. The data from February 2025 also shows that contract rates rise much faster than the On-Demand rates.

We can observe that shippers are moving a portion of their volume to the SPOT market. Why? Because it reflects real-time pricing and supply. It’s fair. It’s responsive. And it fills the gap when long-term contracts fail.

Marketplaces and digital freight platforms are no longer a novelty — they’re becoming the standard. They allow companies to adapt to market conditions in real time, without the overhead of constant renegotiation.

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Enter On-Demand: The Netflix Moment of Transport

Think about how we order services today:

Need a ride? Open Uber/Bolt.
Want food? Tap into Just Eat/Glovo.
In the mood for a movie? Just hit play on Netflix.

Why should transport B2B be any different? With On-Demand platforms like DONE Quote&Go, companies can now book cargo transport across Europe — even for next-day or same-day delivery — in just minutes. It’s fully online, intuitive, and efficient. No email ping-pong. No waiting for quotes. No contract needed. It’s not just for one-off emergencies.

Businesses in manufacturing, distribution, and retail are using On-Demand as a core part of their transport strategy — especially when routes or customer demand are constantly evolving

Not Without Challenges – But Much Better Equipped

Let’s be honest: On-Demand once meant risk. You might not find a truck during peak season, or prices could spike unexpectedly. But technology has changed the game. Smart platforms now use data, automation, and real-time network monitoring to match loads with available capacity faster than ever.

The result? More reliability, better pricing, and faster decision-making — all without needing to sign a contract a month in advance. Example? With DONE Quote&Go you can book B2B transport across 37 European countries within 3 minutes from jumping on the page – without registration or subscription.

You can pay even 14 days after delivery or online during the booking – for which you receive an extra discount. And since prices reflect actual market conditions, both shippers and carriers are playing on equal ground.

Bridging the Two Worlds

This isn’t a zero-sum game. Many companies are blending models: long-term contracts for stable lanes, On-Demand for fluctuations or gaps. In fact, when long-term carriers fall short, On-Demand is often the safety net.

Platforms like DONE Quote&Go are becoming a key player in this hybrid strategy — the digital buffer that keeps your operations moving even when your plan A breaks down.

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What to Reflect On

If you're managing transport today, it might be time to ask yourself:

• Are your contract agreements still being fulfilled as promised?
• How much effort goes into renegotiating pricing every year or quarter?
• Can you accurately predict your transport needs 3-6 months ahead?
• What happens when your carrier fails in urgent delivery or runs out of capacity?

Conclusion: Maybe It's Time to Mix Things Up

Long-term contracts still have their place — especially for high-volume, recurring routes. But in a world where change is the only constant, On-Demand is no longer just a backup plan. It’s a strategic tool.  

But if you are a small-medium size company and don’t have the capacity for the contract, the answer is simple – rely on On-Demand transport.

It might not be about choosing one model over the other. It’s about knowing when to rely on each — and having the agility to switch when the market demands it.

So maybe the better question isn’t “Which model is best?”
But rather: “Are you flexible enough to use both?”