EDEN PRAIRIE, Minnesota – With tight trucking capacity and market volatility pushing more freight into the spot market, global logistics provider CH Robinson BB #: 100586 has launched Market Rate IQTM – a new tool that shows businesses how their spot rates compare to a trusted third-party benchmark and breaks down where they could save money.
Created by CH Robinson’s technology incubator, CH Robinson Labs, Market Rate IQ is the industry’s only tool that shows shippers what factors in their US spot price are market driven and that they can control. It is also the only tool in the industry that integrates DAT’s RateView, the most comprehensive and reliable database of spot freight rates in the United States.
“Virtually every business is looking for a solution to help them navigate the cash market, so we’ve created one,” said Tim Gagnon, director of Robinson Labs and vice president of analytics and data science. at CH Robinson.
âNow, for the first time, they can see what determines 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 seeing how the price of anything on your list compares to the market. Who doesn’t want to know if they are paying more than the market? “
Companies have had to turn more to the cash market as global disruptions impact their supply chains, requiring more last-minute changes and short-term decisions. As of January 2020, loader postings are up 176% while truck-seeking postings are down 5%.
This imbalance drives up fares and companies often address it by splitting their freight on-site among many transport providers, although this extra effort does not always result in better fares.
During its incubation phase, Market Rate IQ discovered $ 75 million in potential savings for customers on $ 1.2 billion in cash freight expenses. Here are the top five reasons why customers paid more than they could have needed, even when their rates were below market average:
1. Execution time – Carriers charge a premium when they are given too little time for pickup.
2. Unequal freight – Since a given sea lane has a finite number of trucks, putting too much cargo on the same lane on the same day instead of spreading it out means you could pay extra for carriers elsewhere to deviate from their path.
3. Weekend pickup – To avoid the higher cost of pick-ups on Saturdays and Sundays, some companies may find it beneficial to only move freight out of their warehouses five days a week.
4. Several stops – Adding too many stops to fill a truck has diminishing returns. Other optimization strategies could be more profitable.
5. Geography of delivery – Carriers charge more if they have to drive empty to get their next load. When shippers have one-off loads destined for a remote destination, they could save money by working with a logistics partner who can match loads from nearby.
Market Rate IQ is delivered on CH Robinson’s NavisphereTM platform and powered by CH Robinson’s unrivaled freight data set, the industry’s largest. Some of the world’s largest retailers, along with other global B2C and B2B companies, have now started to take advantage of this technology designed by and for supply chain experts.
âMarket Rate IQ gives us that window into our spot rates that just weren’t possible before,â said Terry Laluk, senior logistics manager for Valmont, a global provider of transit infrastructure. utilities, agriculture and other industries.
âWe have the confidence and assurance that we are getting good rates, especially in market conditions no one has ever experienced. But it’s also so easy to see where adjusting our shipping strategy might add to our bottom line. We have just started using the tool, and the potential for significant cost savings is already clear.
CH Robinson has partnered with DAT on Market Rate IQ because DAT’s benchmark spot rate, based on $ 110 billion worth of shipping data across 68,000 shipping lanes, is widely regarded as the industry standard. industry.
âShippers don’t have to be at the mercy of these uncertain times,â said Mike Weaver, vice president of sales at DAT. âThe right technology and the right data can make a big difference. Market Rate IQ represents two industry leaders who come together to help all parties trade with confidence, transparency and the industry’s most trusted rate benchmarks.
About CH Robinson
CH Robinson solves the logistical problems of businesses around the world and in all industries, from the simplest to the most complex. With $ 21 billion in freight under management and 19 million shipments per year, we are one of the largest logistics hubs in the world. Our global suite of services accelerates trade to seamlessly deliver the products and goods that drive the global economy. Through the combination of our multimodal transportation management system and our expertise, we use our information advantage to deliver smarter solutions to our more than 105,000 customers and 73,000 contract carriers. Our technology is designed by and for supply chain experts to deliver faster and more meaningful improvements to our customers’ businesses. As a responsible global citizen, we are also proud to donate millions of dollars to support causes that matter to our business, our Foundation and our employees. For more information, visit www.chrobinson.com.
About Freight and DAT Analysis
DAT Freight & Analytics operates the largest truck freight market in North America. Transportation brokers, carriers, news agencies and industry analysts rely on DAT for market trends and data insights derived from 249 million freight connections in 2020 and a database data of $ 110 billion in market transactions. Related services include a comprehensive directory of businesses with business history, credit, security, insurance, and corporate ratings; transport management software for brokers; authority, fuel tax, mileage, vehicle registration and registration services; and the integration of carriers. Founded in 1978, DAT is a wholly owned subsidiary of Roper Technologies (NYSE: ROP), a diversified technology company included in the S&P 500, Fortune 500 and Russell 1000 indices. For more information, visit www.dat.com .