iTECH: Online Freight Auctions

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ight capacity and rising freight rates are forcing shippers to reconsider the value of online freight auctions in cutting their transportation costs.

Carriers are in a position to be pickier about whose freight they handle, which means online bidders aren’t as hungry or desperate as they may have been in the recent past. Some freight haulers said they are offering additional capacity only to shippers willing to pay higher rates or offer higher-quality loads.

And many shippers indicated they are being more selective about who does their hauling.

Although there is no reason to expect Internet auction sites to close down — shippers said they are still getting competitive rate quotes from carriers — bidding traffic is lighter than it was a year ago.

“Carriers are not going online now to find freight because their cup is overflowing. And shippers want to know more about the quality of the carriers,” said Robert Rocque, one of the pioneers who envisioned a national freight exchange in which empty space on trailers could be bought and sold just like commodities or stocks and bonds.

For the full story, see the October/November issue of iTECH, which appeared as a supplement in the Oct. 25 print edition of Transport Topics. Subscribe today.