5 Ways Technology Is Aiding Shippers & Brokers on the Spot Freight Market

Like most industries dealing with market disruptions, the freight industry continually changes based on economics, climate, and technology. Spot freight opportunities have increased at surprising rates over the last few years, especially as demand began to soar. The growth and availability of this high-overdrive, e-commerce driven and digital freight market have helped carry the transportation and shipping industry to new heights. And thanks to advances in technology, shippers and brokers alike can better collaborate and capitalize on the opportunities that the spot contract freight market offers. 

What Is the Spot Freight Market?

This unique shipping setup works when a company that needs to ship goods seeks bids and quotes from logistic service providers to move those goods from point A to B as a one-off need. Bids and agreements are only for that one shipment, and no long-term contractual agreement exists. This shipping method can be utilized across local and global markets, across all industries, and for all manner of transportation services. Shippers, carriers, and freight brokers alike can all benefit from proper utilization of the spot market, especially since the spot market serves to set the standard for contracts in both short-term and long-term outlooks. 

Technology Reduces Confusion and Boosts Collaboration

Like everything else in the shipping and transportation industry, spot freight relies heavily on technological advancements, innovation, and data analysis. Many automated load-matching technologies and transportation monitoring systems exist. However, other technology solutions cover a much wider area of the shipping industry as they work to connect carriers, shippers, and freight brokers seamlessly.  According to TruckingInfo.com, the goal is making logistics and supply chains run more efficiently and drive more profits for users by helping shippers to avoid overpaying and recognizing which moves will make the most sense, assuming a broker’s view. The power of modern shipping software and logistics technology, combined with industry-wide relationships, has the potential to create a much more efficient and effective global supply chain network. In turn, that improves collaboration, helps brokers find more capacity for shipper customers, helps shippers streamline tendering processes, and helps carriers better predict load availability. 

Specific Ways Technology Helps Shippers and Brokers Interact in the Spot Freight Market

While few would argue against the value and importance of modern technology and up-to-date innovations within the supply chain, unlocking the value of spot freight markets means putting technology to work to do the proverbial heavy lifting of freight management. Technology can help shippers and brokers interact with each other and engage the freight market in the following ways:

1. Connecting them through digital matching tools based on set parameters. Access to state-of-the-art tools and dashboards, load-boards, and platforms make communication fast and easy.
2. It allows for instant scheduling and shipment acceptance or rejection notification. Speeding up the bidding process and improving success rates create a win-win for shippers and digital freight brokerages alike.
3. Technology can provide shippers a source of more capacity, more loads for brokers and more brokers for shippers to keep freight moving. Creating an organized, central location for collaboration makes the entire process faster and more streamlined.
4. It helps accommodate spot loads at a lower price point than blindly contacting carriers based on assumption. With predictive data and planning capabilities, every bid is more likely to land with a suitable carrier or the right load.
5. Automated data entry and integrated systems provide a complete view of each shipment's needs. Viewing end-to-end production, processes, and strategies allows management to “spot” problem areas sooner and helps them figure out the best way forward.

Navigate the Spot Freight Market More Easily With newtrul

Like any industry today, the freight industry has had to deal with its share of disruptions and market volatility in recent years. Spot freight opportunities have become a vital component of the modern supply chain network, especially with respect to transportation procurement and management through the expansion of e-commerce. Capitalizing on the data behind the spot freight market has kept many shippers afloat during these trying times, and it has helped carriers maintain higher profitability despite overall year-over-year miles being down. Further, as markets continue to recover, understanding how to use technology to manage the spot freight market will ensure the stability of brokers and shippers alike. Contact newtrul today to learn more about how technology comes together to enable spot market stability during the most volatile of disruptions, and don’t forget to request a demo while you’re at it.