Logistics provider CH Robinson recently released a technology tool designed to give shippers greater visibility into the freight spot market, showing how their rates stack up against a third-party benchmark and indicating where they can potentially save money. money. The solution responds to the tight market conditions that have recently pushed more freight into the spot market, company executives said this month.
Called Market Rate IQ, the tool was created by Robinson Labs, the company’s technology and innovation incubator, which works with customers to develop solutions to a range of supply chain challenges. Powered by CH Robinson’s Navisphere platform, the tool shows shippers which factors in their US spot pricing are market driven and they can control; it integrates data from RateView from DAT, a third-party US spot freight rate database.
“Virtually every business is looking for a solution to help them navigate the cash market, so we’ve built one,” said Tim Gagnon, director of Robinson Labs and vice president of analytics and data science. by CH Robinson, in a September 20 statement. “Now, for the first time, they can see what determines their rates and what they can do about it. Then we take that transparency even 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? ”
While working with a handful of clients in the incubation phase, Market Rate IQ discovered $ 75 million in potential savings for clients on $ 1.2 billion in cash freight expenses. Since then, the company has been steadily adding customers to the platform and had more than 60 operational this week, a typical start, according to Gagnon.
“We feel great where we are at,” Gagnon said in a separate interview, adding that in addition to delivering more value to customers, Market Rate IQ is also an attempt to move the industry forward with a product. transparent and collaborative. —One that reflects its commitment to invest more in technology and innovation.
DAT echoed those sentiments in a statement announcing the launch.
“Shippers don’t have to be at the mercy of these uncertain times,” said Mike Weaver, vice president of sales for DAT. “The 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.