Global supply chains continue to sway in response to disruptions, unprecedented demands and ongoing digital transformation. More freight brokers are turning to technology and transportation data to grow their businesses by understanding the true freight market rate.
As explained by Supply Chain Dive, “Companies like Convoy, Transfix, Uber Freight and Loadsmart use algorithms to match carriers and loads based on origin, destination, type of load, price, and timing. Frost & Sullivan estimates the digital freight brokerage market will reach $54.2 billion by 2025.”
It’s not solely about knowing basic rates – it’s about using freight data to make the best decisions for all loads – playing both the buy-side and sell-side aspects of freight brokering. With that in mind, freight brokers need to tap the digital freight brokerage market to stay competitive. Part of that strategy lies in using the right transportation data, analysis and insightful reports, such as those provided within FreightWaves SONAR, to guide day-to-day operations.
Take a moment to consider this fact. Up to 70% of all OTR trucking in the U.S. derives from imports. Without the ability to plan drayage and account for imports and export activity in other countries, such as China, freight brokers miss part of the picture. Instead, brokers could use the Ocean Shipments Report to understand the expected volume over the next seven days, review the year-over-year shipments index, and view import volume activity. It adds up to more insight into drayage and better planning for market distribution.
Predictive rates are another critical SONAR feature that helps freight brokers use transportation data. As a broker, it’s essential to play both buy-side and sell-side market dynamics. That means getting the best freight rates per load for shippers and getting a more profitable carrier rate. It’s a precarious balance of power. Predictive rates within SONAR can indicate possible changes in the market over the upcoming week, month, quarter, six months, and year. That’s available across any origin/destination pairing. Plus, brokers can see all-in rates for each lane to better guide quoting and booking processes.
Lane Scorecard combines the value of predictive rates with Lane Signal data – indicating whether carriers or shippers have more substantial bargaining power – in an accessible, API-driven resource for brokers. Instead of relying on a manual search of lanes in SONAR, brokers can see a full snapshot of the lane’s movements, costs and indices to manage freight and assets better.
In transportation data, it all comes down to a simple fact; loads in and loads out direct total freight spend. With more than $250 billion in freight spend connected to SONAR, the Outbound and Inbound Tender Rejection Indices (OTRI and ITRI) reveal market rates and activity. Remember that a broad market rate datapoint is excellent, but it could overshadow smaller market fluctuations in specific locations. Having access to that granular data is critical to getting the best loads, sourcing the most competitive capacity, and delivering value as a broker.
And lastly, FreightWaves Passport brings together FreightWaves’ transportation analysis and insights into a cohesive strategic positioning guide to help brokerages better manage operations, derive more value, and manage frontline workers’ performance. In today’s world, competitive advantage is everything. And Passport is the icing on the transportation data cake.
Transportation data and technology will continue growing in value throughout the disruptions of today and those of tomorrow. Freight brokers that take the time to consider the top five transportation data and insight reports in day-to-day operations will better position their organizations to maximize profitability and efficiency. Request a SONAR demo online to learn more.