To say that trucking capacity was difficult to come by in 2021 would be an understatement. Spot rates rose sky high as a driver shortage stretched the ability of carriers to keep up with demand. Now the truck market is beginning to cool and spot rates are softening. This does not mean, however, that shippers get to take a break. Instead, businesses should use this time to explore what technology will make the next feeding frenzy easier to manage. One such technology is digital freight matching software.
Digital freight matching uses an application or a digital platform to match shippers with available truck capacity. In this online marketplace, companies can post the details and requirements of their loads; logistics companies can then search and book loads that match their availability and equipment requirements. Typically, a carrier must complete their profile and fill out information regarding their fleet size, preferred lanes, insurance information, weight limitations, and the type of commodities they haul.
Freight matching software uses AI, machine learning, and predictive analytics to find the best match in terms of price and availability. For example, a load in Chicago going to Phoenix would likely be matched with an IL or AZ based carrier who had listed in their profile that they run that particular lane. Carriers can then bid, negotiate, and accept or reject offers for their service.
These days, it’s not uncommon for digital freight matching platforms to handle carrier agreements, freight invoices, and the bill of lading. Some apps even provide business insights, like driver performance and on-time delivery rates.
Efficiently Finds Spot Truckload Capacity - Instead of hunting around for optimal rates, Edge Logistics’ Capacity software uses analytics to find and present matches. Users can submit quotes and receive real time rates just by hitting the “accept” button.
Digital freight matching is quickly becoming standardized in logistics.. But in volatile markets, the combination of digital freight management and brokerage services provided by a 3PL is key to securing spot market capacity as quickly as possible. Here’s how.
The shipping market isn’t static. A freight broker will always keep up with market innovations and look for new ways to help clients maintain a competitive edge.
Believe it or not, brokers aren’t just relying on phone calls and emails to find carriers. They utilize technology to optimize the matching process too. The difference is that a broker also has extensive knowledge of and relationships with a pool of carriers.
If there’s one thing brokers don’t have time for, it’s phone tag. Freight brokers will rarely get caught up in tedious negotiations, voicemails, or endless email back-and-forth. This helps them cover more loads at a rapid rate.
It’s both an advantage and a disadvantage that platforms don’t play favorites. Brokers, on the other hand, can foster strong relationships and secure favorable rates with reputable carriers, which is valuable no matter what the market does.
A freight broker’s expertise and service combined with the technology of a digital freight matching platform is the ideal combination for finding capacity in a crowded spot market.