Big data is a booming business. Companies across all different industries — including logistics — are doubling down on data-driven analysis and decision-making initiatives. While this focus has helped countless organizations become more efficient and profitable, it has also made it possible for skewed, inaccurate or just plain misrepresented data to creep onto the scene on a large scale.
The International Organization of Securities Commissions — best known for its work spearheading international security regulation standards — works to spot this bad data in its tracks. The organization drafted an aspirational set of ideals — Principles for Financial Benchmarking — to provide a framework for index administrators, as well as people who submit data that supports indices. These guidelines encourage documentation to prove the avoidance of conflicts of interest, a robust control framework for managing data as the data set grows and utilizing data that is based on values formed by the forces of supply and demand.
The goals outlined by IOSCO are aimed at ensuring that data is ethical, accurate and objective. FreightWaves works hard to comply with these data standards, and the company has implemented processes and procedures that make that compliance possible even though it’s not yet an industry norm.
FreightWaves Trusted Rate Assessment Consortium, for example, adheres to IOSCO standards. This provides shippers and brokers with valuable peace of mind when using the data to benchmark, analyze, monitor and forecast rates. Logistics leaders need data to succeed in their roles but they need good, trustworthy data sources to feel confident in their decisions. Knowing that their decisions are based on a very robust set of standards, tested and proved in the rigorous financial markets, should give them that confidence.
FreightWaves TRAC rates stand apart from the rest thanks to this focus on ethical and accurate data gathering.
What makes FreightWaves TRAC rates different?
- Data is collected at the time a load is covered or accepted by the carrier.
- Enhanced data science methodology eliminates biased data, resulting in a more accurate lane representation and a truthful freight market view.
- TRAC rates are from the day before and are updated daily at 11 a.m. ET.
- Spot rate market data includes over 650,000 unique van lanes and 300,000 unique reefer lanes.
- Rates are weighted based on distance and time to prioritize the more recent loads that are closer to the precise O/D pair the user specifies. This is superior to simple geographic and temporal expansion techniques in which all rates are valued equally.
In addition to IOSCO compliance, FreightWaves has created its own robust Data Provider Code of Conduct, which requires SONAR data partners to adhere to certain deadlines, report misconduct, identify errors and comply with audits.
This code — coupled with the international standards — helps FreightWaves ensure that all data presented in SONAR is current, objective and correct, creating a product that shippers and brokers can trust when analyzing the market, making decisions and planning for the future.
While bad data can lead shippers and brokers into poor decisions and financial losses, good data does the opposite. Indices like those provided in SONAR have the power to propel users to new heights, helping them avoid financial pitfalls and lay the groundwork for success.
Schedule a free consultation to see how SONAR can reduce your costs and performance risks.