A new invention is out on the market: a supply chain crystal ball, which shippers can look into and see freight demand, capacity, and rates of the future … ah, if only! Seeking out the best freight rates is often easier said than done. Everything from market volatility to fluctuating demand to variable carrier capacity can make finding the best freight rate a daunting task. A crystal ball certainly seems like a solution to the problem. But psychic tools aren’t needed to make it easier to find the best freight shipping rates. There are plenty of ways to demystify the truckload rating process, with tools that navigate the ups, downs, and sideways of the trucking market. The Complexity of Truckload Rating Day to day, markets can fluctuate rapidly. One moment, freight capacity might be swiftly flowing and readily available. The next moment, a natural disaster hits, carriers redirect their capacity to relief efforts, and shippers are left with a market of tight supply and … [Read more...] about Finding the Best Freight Rates Shouldn’t Require a Crystal Ball: Three Strategies to Demystify the Truckload Rating Process
Lane Pricing
Real-Time Rating: Take the Guesswork out of Freight Pricing
If someone offered you the choice to make a decision either based on real-time, current data or based on information that’s two weeks old, it seems like a no brainer to pick the former. Yet in the world of freight pricing, shippers too often continue to use the latter. Many businesses use historical, static data that doesn’t account for rapid changes in the market, especially in an industry as dynamic as freight and logistics. Shippers that use traditional freight pricing are playing a guessing game and not optimizing their business for efficiency, accuracy, and profitability. The Problem with Traditional Freight Pricing Using traditional lane pricing methods comes with tons of limitations. Traditional freight pricing uses historical data rather than real-time insights, and manual processes instead of automation. The past doesn’t always reflect the present or the future, and using data from the past and manual methods can lead to inaccuracies and … [Read more...] about Real-Time Rating: Take the Guesswork out of Freight Pricing
Which Came First: The Bid or the Ask Price?
Much like the age-old “chicken and egg” debate, we may never know how the very first load appeared on a load board. Did the shipper post an asking price? Did a carrier post a bid to win a load? But one thing is certain: Shippers and carriers need to move quickly. If a load is posted with a price and avoids back-and-forth negotiation, carriers will swoop in to pick it up. In fact, loads posted with an asking price on load boards are typically booked five to 10 times faster than those without an asking price. Low-balling a price is risky, because it could risk delaying a shipment, as carriers pick up more competitively priced loads. While it may be tempting for shippers to gamble for the best price, it’s not always the best practice in a fast-moving industry. That’s why it’s pivotal to provide transparent pricing on loads, to ensure your goods get to their destination quickly, securely, and at the right price. Modern technology and real-time pricing information are key, so … [Read more...] about Which Came First: The Bid or the Ask Price?
“The” Price vs. “A” Price: Why Price Obfuscation is Bad for Everyone, Including the Freight Market
Think about the last time you went online to buy tickets to a baseball game or to see your favorite artist in concert. One moment, the tickets are $70. Dozens of fees and a mountain of service charges later, your ticket is now more than $100. So frustrating! In this scenario, opaque pricing doesn’t help anyone. Customers become irritated and might even throw their hands up and abandon their carts altogether. The ticket seller doesn’t benefit either, as customer trust is eroded, and possibly, the sale is abandoned. The same is true whether we’re discussing a sporting event or the freight market. Price obfuscation in the logistics industry is detrimental not only to shippers but also to carriers and other partners. Instead, transparent pricing is key to ensuring shippers, carriers, brokers, and 3PLs understand the full cost of a service, and that everyone is on the same page when pricing a service. Defining Price Obfuscation in the Freight Market While price … [Read more...] about “The” Price vs. “A” Price: Why Price Obfuscation is Bad for Everyone, Including the Freight Market
