Long-term contracts between shipper and LSPs create an atmosphere of trust and commitment which creates propensity to deliver. A precise long-term contract, with clearly defined expectations, responsibilities and performance parameters, forms the basis for an enduring relationship. Nevertheless, the conflict resolution mechanism should also be clearly included in the contract. Long-term contracts leading to quantifiable standards of performance forms the basis of the good relationship. As per [10] Bradley (1994), long-term business relationship can provide required transition time to improve the business. According to [79] Webb and Laborde (2005), long-term arrangements must be amenable to changing market conditions, technologies, and customer demands. According to [38] Langfield and Greenwood (1998), long-term contracts, is a vital variable in long-term relationship between shippers and LSPs.