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 inefficiencies.
This is especially true in a dynamic market like the freight and supply chain industry. Market conditions can change 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 no longer price competitively.
One very recent, tangible example is the collapse of the Francis Scott Key Bridge in Baltimore. Following the incident, spot rates on some loads out of Baltimore jumped by 25 cents, according to an article in Trucking Dive.
Relying on historical data doesn’t capture these types of market fluctuations. If a shipper were using historical data, they would be pricing their loads well below the going rate, possibly delaying a load being picked up. The use of past data can render a past price virtually obsolete, given the current or future state of the market. Shippers could create outdated freight pricing decisions that are inaccurate or inefficient.
In addition, manual processes are prone to human error. They don’t always allow shippers to be nimble and respond quickly to a market change. Plus, manual operations take time, further leading to reliance on past data rather than real-time information.
The Benefits of Real-Time Rating for Effective Freight Pricing
So, now that we know the issues with traditional freight pricing, what’s the solution? This is where real-time rating for lane pricing comes in.
Real-time rating takes the guesswork out of freight pricing. It streamlines the freight pricing process with up-to-date information. It enables shippers to respond rapidly to any kind of market change with accurate and dynamic pricing information. It also shows pricing trends so shippers can gauge the best way to stay competitive and profitable.
Maybe oil and diesel prices suddenly spiked due to a geopolitical conflict. Perhaps capacity tightened due to a winter storm that rendered roads impassable. Whichever the factor influencing freight pricing, the real-time rating takes all of these possibilities into account — something that historical, static data cannot do.
The benefits of real-time rating in freight pricing truly speak for themselves. Armed with information on market trends, demand patterns, and competitor pricing, shippers can adjust their pricing strategies in real time, maximizing their competitiveness and profitability.
Farelanes: Empowering Real-Time Rating for Unparalleled Freight Pricing
We’ve established the problems with historical freight pricing. We’ve established how to solve the issue in the abstract. Now, let’s bring it into reality — with Farelanes.
Farelanes is a solution for real-time rating in lane pricing. Our company provides real-time ratings for lane pricing by sourcing validated data directly from factoring companies.
Farelanes provides real-time, vetted freight rate data to help shippers navigate the complex world of freight pricing. This empowers them to analyze pricing trends, demand patterns, and operational metrics to secure competitive rates in ever-changing market conditions.
Our tools enable shippers to make decisions based on accurate, timely, and transparent pricing information. Access to this information is the best way for shippers to stay competitive in the market.
Implementing Real-Time Rating: Three Best Practices
Shippers, together with Farelanes, can start to incorporate real-time rating and freight pricing into their operations using three key steps:
1. Utilize Reliable Data Sources
Ensure your business has access to reliable and accurate data sources for real-time pricing information. Partnering with a trusted provider like Farelanes ensures access to validated and up-to-date lane pricing data.
2. Invest in Data Analytics Tools
Invest in data analytics tools and technologies that enable real-time analysis of pricing data. Use algorithms to derive insights and trends from the data to make optimized pricing decisions. Farelanes offers a variety of solutions to help with that, which you can learn more about below.
3. Embrace Efficiency
Utilize automation in pricing processes to streamline operations and improve efficiency. Implement automated systems that can update pricing dynamically based on real-time data feeds, reducing manual errors and delays in pricing adjustments.
Stop Guessing and Start Empowering with Farelanes
Freight pricing is too dynamic, complex, and critical an area to leave to guessing games, manual processes, or outdated data. Shippers who want to stay profitable and competitive need accurate, real-time data that gives them the viewpoint they need to make informed decisions and set competitive pricing.
Farelanes offers an innovative suite of products designed to do just that. We have a different idea. 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 take the guesswork out of freight pricing.
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