EDEN PRAIRIE, Minn.--(BUSINESS WIRE)--With tight trucking capacity and market volatility pushing more freight into the spot market, global logistics provider C.H. Robinson has launched Market Rate IQ™ – a new tool that shows companies how their spot rates compare to a trusted third-party benchmark and breaks down where they could save money.
Created by C.H. Robinson’s technology incubator, C.H. Robinson Labs™, Market Rate IQ is the only tool in the industry that shows shippers which factors in their U.S. spot pricing are market-driven and which they can control. It’s also the only tool in the industry that incorporates DAT’s RateView, the most comprehensive and reliable database of U.S. spot freight rates.
“Virtually every company is looking for a solution to help them navigate the spot market, so we built one,” said Tim Gagnon, head of Robinson Labs and C.H. Robinson’s vice president of analytics and data science. “Now, for the first time, they can see what’s driving their rates and what they can do about it. Then we take that transparency a step further and show them how their rates compare to the average for each of their shipping lanes and locations. It’s like going to the grocery store and instantly being able to see how the price of everything on your list compares to the market. Who doesn’t want to know if they’re paying more than market?”
Companies have had to turn to the spot market more as global disruptions ripple through their supply chains, requiring more last-minute changes and short-term decisions. Since January 2020, load postings are up 176% while postings from trucks looking for loads are down 5%. That imbalance drives rates up and companies often cope with that by spreading their spot freight among many transportation providers – even though that added effort doesn’t always result in better rates.
During its incubation phase, Market Rate IQ uncovered $75 million in potential customer savings across $1.2 billion in spot freight spend. These were the top five reasons customers paid more than they might have needed to, even when their rates were below market average:
- Lead time – Carriers charge a premium when given too little lead time for pick up.
- Uneven freight – Because any given shipping lane has a finite number of trucks, putting too much freight in the same lane on the same day instead of spreading it out means you might be paying extra for carriers elsewhere to drive out of their way.
- Weekend pickup – To avoid the higher cost of Saturday and Sunday pickups, some companies might find it beneficial to run freight out of their warehouses only five days a week.
- Multiple stops – Adding too many stops to fill a truck has diminishing returns. Other optimization strategies could be more cost-effective.
- Delivery geography – Carriers charge more if they have to drive empty to get their next load. When shippers have spot loads going to a remote destination, they could save money by working with a logistics partner who can pair up loads originating nearby.
Market Rate IQ is offered within C.H. Robinson’s Navisphere™ platform and powered by C.H. Robinson’s unmatched freight dataset – the largest in the industry. Some of the largest retailers in the world, as well as other global B2C and B2B companies, have now begun taking advantage of this technology built by and for supply chain experts.
“Market Rate IQ gives us this window into our spot rates that just wasn’t possible before,” said Terry Laluk, Senior Director of Logistics of Valmont, a global provider of infrastructure for transit, utilities, agriculture and other industries. “We have confidence and assurance that we’re getting good rates, especially under market conditions no one has ever experienced. But it’s also so easy to see where adjusting our shipping strategy could add to our bottom line. We just started using the tool, and the potential for significant cost savings is already clear.”
C.H. Robinson teamed up with DAT on Market Rate IQ because DAT’s spot rate benchmark, based on $110 billion in shipment data across 68,000 shipping lanes, is widely considered the industry standard.
“Shippers don’t have to be at the mercy of these uncertain times,” said Mike Weaver, Vice President of Sales at DAT. “The right technology and data can make a powerful difference. Market Rate IQ represents two industry leaders coming together to help all parties negotiate with confidence, transparency and the most trusted rate benchmarks in the industry.”
About C.H. Robinson
C.H. Robinson solves logistics problems for companies across the globe and across industries, from the simple to the most complex. With $21 billion in freight under management and 19 million shipments annually, we are one of the world’s largest logistics platforms. Our Global Suite of Services™ accelerates trade to seamlessly deliver the products and goods that drive the world’s economy. With the combination of our multi-modal transportation management system and expertise, we use our information advantage to deliver smarter solutions for our more than 105,000 customers and 73,000 contract carriers. Our Technology is Built By and For Supply Chain Experts™ to bring faster, more meaningful improvements to our customers’ businesses. As a responsible global citizen, we are also proud to contribute millions of dollars to support causes that matter to our company, our Foundation and our employees. For more information, www.chrobinson.com (Nasdaq: CHRW).
About DAT Freight & Analytics
DAT Freight & Analytics operates the largest truckload freight marketplace in North America. Transportation brokers, carriers, news organizations and industry analysts rely on DAT for market trends and data insights derived from 249 million freight matches in 2020, and a database of $110 billion of market transactions. Related services include a comprehensive directory of companies with business history, credit, safety, insurance and company reviews; broker transportation management software; authority, fuel tax, mileage, vehicle licensing, and registration services; and carrier onboarding. Founded in 1978, DAT is a wholly owned subsidiary of Roper Technologies (NYSE:ROP), a diversified technology company and constituent of the S&P 500, Fortune 500 and Russell 1000 indices. For more information, visit www.dat.com.