Is stale freight spot rate data hurting your bottom line?
Current market spot rate data can be days or even weeks old, making it difficult to compete in today’s volatile markets. What if you had access to the freshest data, collected at the point of booking, to outbid and out-earn competitors? FreightWaves TRAC gives you the clearest insight into freight pricing.
FreightWaves TRAC collects data daily from a consortium of key market-driving companies adhering to a standardized protocol. FreightWaves TRAC Spot Rate methodology uses data when the load is covered to provide better insight into freight pricing and negotiate better contracts.
What makes FreightWaves TRAC rates different:
- Data is collected at the time a load is covered or accepted by the carrier.
- Minimum of 5 contributors with no single contributor accounting for more than 25% of the contributing loads in each lane.
- Rates are to the carrier (buy) and as of yesterday (updated at 8 a.m. ET)
- Spot rate market data for over 650k unique van and 300k unique reefer lanes (Linehaul + Fuel)
- Rates are weighted based on distance and time to value 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.
FreightWaves TRAC delivers better data than the current market standard. What does that mean for you? Better data means better dealmaking.
Do more with Market Dashboard
Market Dashboard is a new feature in SONAR that gives users access to thousands of data points on each lane within FreightWaves vast datasets, aggregated daily from companies driving market conditions. Within the Market Dashboard, FreightWaves TRAC users get spot rate market data in the following ways:
Spot PricesSee the most current rate for each data set above the chart in rate-per-mile format, showing the highest and lowest rates being aggregated for that lane.
Lane InsightsBring in the data you already know and love from SONAR into FreightWaves TRAC to get the views you need to make better decisions. Look at SONAR’s Capacity Lane Score that shows the state of carrier capacity at the origin and destination and the outbound rejection rates for shipments from the load origin location. With FreightWaves TRAC, SONAR users get better insights into lane prices to spot opportunities in specific lanes.
Margin CalculatorOn the Market Dashboard, the Margin Calculator lets you quickly calculate sell rates based on user-driven margin calculations. This data brings in the various rates and the calculated miles to show an all-in buy and sell rate based on various user-defined parameters.
Rate ChartRate Chart is a time-based chart reflecting the daily rate-per-mile for a chosen lane and equipment type. This section combines FreightWaves TRAC spot rates and long-standing scientific rates.
Lane ListStay on top of the lanes you search for the most using the Lane List. In the Market Dashboard, when you search a lane, you can choose to save the lane in the "All Lanes" list so you can quickly see spot rate data for your most frequently watched lanes.
MapFreightWaves Market Dashboard provides market detail to assist with quick and profitable decision making. A map that shows changes in capacity conditions is in the top right on the screen where blue indicates a market is tightening and red indicates loosening conditions along with a real-time animated radar.
All parties involved in transportation need trusted, timely information on rates and market fundamentals so they can optimize their business. For the first time, reliable daily spot pricing and FreightWaves proprietary market data will be layered together to give 3PLs, operators, and shippers the tools they need to be more effective, efficient, and profitable.
Get Ahead with Spot Rate Market Data
Although challenging to predict, spot rates, combined with more stable contract rates, play an important role in freight forecasting. FreightWaves TRAC collects and aggregates spot rate data daily from among the biggest players driving the market. Better spot rate data improves 3PL, carrier and shipper inputs to data models so their analysis and forecasts are more reflective of market conditions.
Transact in the Spot Market with Confidence
FreightWaves TRAC Spot Rates give you a near-time view into the spot rates from major brokers in the industry providing price transparency in what can be a volatile, opaque spot market. Fresher, aggregated data provides insight into the market ensuring that all parties are transacting with confidence.
FreightWaves TRAC Spot Rate Methodology
FreightWaves TRAC (Trusted Rate Assessment Consortium) calculates spot rate data by collecting data from contributors to provide daily load data by booking date based on near real-time rate information for hundreds of thousands of unique loads. Historically, this data exists privately within freight and logistics organizations, collected independently and reflective of past spot rates on record. FreightWaves TRAC sets a higher standard for benchmarking freight spot rates.
Daily Spot Rate Data Collection
FreightWaves TRAC receives daily spot data directly from our consortium members’ back-end systems. This data includes booked prices, origin, destination and equipment types on shipments recorded within the last 24 hours.
Clean Spot Data
Upon receiving the lane/rate data FreightWaves cleanses the data to increase the integrity of the rates being aggregated. Severe outlying rates are thrown out, and geographies are verified. Then, combining fuel surcharge and line haul data creates an “all-in” rate, while other data (including accessorial charges) are removed.
FreightWaves ensures the integrity of aggregated spot rate data by:
- Requiring a minimum number of Consortium Members on any published lane.
- Capping the percentage any single Consortium Member can be on individual lanes.
Freight Spot Rate Data Aggregation
FreightWaves aggregates the Consortium's data to populate per mile rates specific to a lane on a given day. Spot rate data is aggregated into zip3 regions, resulting in over 650,000 unique lanes for dry van and over 300,000 unique lanes for reefer (for the lower 48 states only, at this time with plans to add support for Canada and Mexico).
Historically, rate providers have aggregated rates using an expansion process that widens the search area incrementally. Responding to these drawbacks, FreightWaves TRAC Spot Rate Methodology uses a proprietary algorithm to introduce an inverse-distance weighting approach to aggregate rates from nearby lanes.
The resulting rates, which are weighted based on distance and time to value the more recent loads, are closer to the precise O/D pair the user specifies. This is superior to simple geographic and temporal expansion techniques where all rates are valued equally, resulting in more accurate rates for end-users.