How asset-based carriers are using predictive freight rates

Adam RobinsonFreight Market Blog

asset-based carriers

Asset-based carriers have found using predictive freight rates improves their business. The ability to accurately predict both trucking and load execution costs or rates is a wonderful tool for all carriers. In turn, they can better prepare for the needs of enterprise shippers and survive disruptions. According to Transport Topics, the majority (66%) of freight management parties believe analytics will be essential to staying competitive in the near future. For that reason, freight carriers need to know how predictive rating capabilities amount to more proactive, data-driven and efficient freight management.

It’s time to face facts; disruptions are inevitable. The costs of running an asset-based carrier may at times seem insurmountable. However, there are solutions available that can make the task of cutting costs easier and offer the advantage of more proactive and data-driven back-office load management tactics. For instance, the benefits that accompany the use of predictive freight rates surround the actionable, meaningful use of freight analytics

The challenges of failure to leverage data and applied analytics

In an ever-changing world, asset-based carriers need a strategic advantage to move assets and maximize resource utilization. Technology continues to progress and provide innumerable opportunities for companies to improve their ways of doing business. Because of this, carriers must strive to stay ahead of the curve when it comes to managing their assets by knowing what to expect. It is far too easy for businesses to fall by the wayside in today’s economic climate by simply leaving data and money on the table. And one of the best ways to ensure that any enterprise does not fail in a volatile industry is to implement modern solutions to its problems. It’s all about digital transformation and how companies can better position their assets through freight management analytics.

Asset-based carriers need a strategic advantage in managing assets

Freight logistics and analytical technology form a strong foundation for lifting any business into the modern market. The tools that come with the utilization of modern tech and logistics provide a strategic advantage, especially for carriers looking to improve how they manage their fleet assets. Asset-based carriers have significant financial resources committed, and any knowledge that can bolster the management of these assets is an absolute must. Trucking costs amount to only a portion of the overall business cost, and asset-based carriers will find that to stay relevant within the modern market, they must do everything within their power to adapt and improve. 

Now consider this. The old way of planning for shipping freight rates leaves carriers with multiple issues, including unvalidated or unconfirmed freight quotes, overextended trucking capacity and countless other issues that all add up to lost profitability per load. Predictive freight rates are an excellent tool for asset-based carriers that need more insight into preparing both spot quotes and trucking RFP bids. When they can reap the rewards of greater visibility and transparency in the freight rate process, they are able to better manage assets. 

Additional uses of predictive freight rates for asset-based carriers

The benefits of predictive freight analytics are not necessarily limited to improving carrier freight pricing. These benefits include the ability to stay strategic and make the right decisions that promote greater business management and load execution. For instance, a few leading benefits of applied analytics among carriers include:

  • Knowing when to outsource more capacity.
  • Planning driver routes and schedules.
  • Avoiding overbooking by forecasting freight demand and rate fluctuations.
  • Recognizing when to accept or reject a tender.
  • Prioritizing moves based on rates and shipper relationships, such as whether a shipper currently has shipper-of-choice status with your company.

It’s clear that implementation of predictive freight rates improves efficiency for asset-based carriers. 

Grow more strategic with the right freight data forecasting solution

Asset-based carriers should recognize the strategic advantages possible with predictive freight rates. From improved freight rate accuracy to better scheduling and routing, the advantages of predictive analytics and freight rates make this an absolute must for carriers and shippers alike. And carriers seeking to grow more strategic with the right freight resources need a platform built on experience and real-time data. That’s where FreightWaves SONAR is setting a new standard. Request a FreightWaves SONAR demo today by clicking on the button below to get started.