Subscription Based Rating Programs Keep The Cost Of Freight Low. They continually bring up old rates that may not be applicable to the current conditions. Think about the hurricane situation we have had recently. No one even knows what to charge.
Everyone is rating truckloads today based on data that doesn’t exist in history. The old data is providing a false history and artificially keeping truck rates low in todays current trucking climate.
In comparison the live freight rates posted on the Free Load Board with Rates help raise the cost of freight. There is no data showing what things cost before only what freight costs are today. If a freight broker or shipper wants to move a load on a truck they basically have to use the spot quote market. Loads have to be covered and rates do go up.
By using historical data the shippers will always be nostalgic about what they used to pay and will try and use those rates to show what the lane should cost. It takes into account that some of this data is based on shippers with thousands of loads getting volume discounts from repeat carriers. These rates just don’t apply to the rates today and especially past the the 2 natural disasters and all the FEMA Loads.
If a trucking company is looking at thousands of loads and none of them have costs they have to call each one and get the rates. The negotiation of it is so repetitive. Constantly the only question is how much is the load paying. The poster of the freight knows this info. They know what the customer is willing to pay and if the freight broker used the free load board with rates they would know the going rate for a truckload. If more and more people post truckload rates the industry will become a lighting fast exchange of information.