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 higher rates.
One recent, tangible example is the collapse of the Francis Scott Key Bridge in Baltimore. The week prior to the collapse, rates for loads out of Baltimore were as low as $2.14 per mile. By Tuesday of the week after, the rate peaked at $3.28 per mile, a 53% jump.
Shippers face the tough task of balancing all of this variability in markets, demand, and capacity while still trying to keep their operations cost-effective and reliable.
Three Strategies to Demystify the Truckload Rating Process
If you’re thinking about adding that crystal ball to your Amazon cart right about now, wait! Shippers can use particular methods and work with technology partners to demystify the process of truckload rating. Here are three key strategies:
Strategy 1: Data-Driven Decision Making
The problem with crystal balls is that they rely too much on historical data. If you’re awarding freight based on stale old rates, it’s a recipe for disaster. Shippers pricing freight based on invoices they paid today for freight that was picked 90 days ago will create a carrier race to the bottom.
So, instead of peering into one a crystal ball, in hopes that it will provide answers about the future, look to the present.
Real-time market data provides useful information for shippers to make an informed decision about their freight pricing. Applying data analytics is a smart way to inform pricing decisions. Advanced data analytics tools can use real-time information to generate an optimal price.
Strategy 2: Transparent Pricing Information
Crystal balls aren’t the only transparent things. The logistics industry has moved toward more transparent pricing information shared between shippers and carriers.
If shippers can reference what trucks picking loads today are being paid for their deliveries, they can see the market swing before it happens and do what they can to build relationships with carriers and brokers.
It’s paramount for both parties to play their part in enhancing transparent pricing information. This fosters trust between shippers and carriers, creating mutually beneficial partnerships. Most importantly, it takes the cloudiness out of truckload ratings.
Strategy 3: Find the Price, Not a Price
Perhaps the only strategy more pointless than a crystal ball is wasting time on load boards. Loads are often priced well below the going rate, leading to potential delays in a shipper’s load being picked up.
A better solution is to offer a single, accurate price, based on real-time data and transparent pricing information. In other words, find the price rather than a price, to completely demystify the truckload rating process.
A Clear Pricing Picture with Farelanes
Freight rates are too dynamic, complex, and critical to leave to a crystal ball. Shippers who want to stay profitable and competitive need accurate, real-time data that lets them find the best freight rates.
Farelanes offers an innovative suite of products designed to do just that. For shippers, we provide real-time freight rates to compare against historical procurement data – which might just be the difference between winning and losing in any market.
We stand out by gathering, analyzing, and anonymizing lane data sourced from banks and factoring companies. Then, we hygiene this data to provide a valuable solution for industry players seeking accurate and timely lane pricing.
But we don’t stop there. More than just offering transparent pricing is needed. We offer accurate, transparent pricing in real time, not after the fact.
A lot of other companies claim to offer transparent pricing. We actually do it.
Farelanes offers a variety of lane pricing data to meet your specific needs:
- Silver: Unlimited line haul rates for city fair, up to three favorite lanes, and up to 27 trailer types. Farelanes Silver gives you the information you need when you need it.
- Gold: When you need more, upgrade to Farelanes Gold…everything silver offers, plus export level II detail, lead times, fuel surcharges, and much more.
- Bulk Data Publishing: If you already run your own backend data system, our Bulk Data Publishing allows you to plug our feeds directly into your system, giving you unlimited favorite lanes, charts and graphs, miles, export data, and much more, via a flexible API that can adapt to whatever you’re running now.
Get in touch today to discuss which service is right for you and how, together, we can demystify the truckload rating process.
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