Truckstop.com on Verge of Launching Rate Forecasting Tool
ORLANDO, Fla. — Truckstop.com will launch within three weeks the industry’s first rate-forecasting tool, a move that underscores the advantage of posting rates on the spot market, a company executive said April 10.
“The rate is the most important thing,” said Brent Hutto, chief marketing officer at Internet Truckstop Group, the parent of load matching Truckstop.com.
Hutto told the shippers and brokers in the audience that if they posted a rate with the load, the load will move 3.9 times faster compared with those posted without a rate, which then requires negotiations over the telephone.
He spoke during a session at the Nasstrac 2017 Shippers Conference and Transportation Exposition on April 9-12.
“When you think about rates, how do natural disasters, market conditions, market changes or regulations affect your ability to do rates? It’s kind of guess work, right,” Hutto said.
The forecasting tool is meant to take all of that into consideration, he said. The tool combines Truckstop.com’s data with research company FTR’s algorithm and analytics.
Hutto said the forecast “is week-over-week, a year out, adjusted every week."
"It’s never been in the marketplace before,” he said. “It’s accurate data that has been compiled for 10 years.”
The tool zeros in on three-digit ZIP codes [three-digit codes refer to the first three digits of the five-digit zip code], tracks about 160,000 active lanes and 6 million origin-destination pairs, even weather, he said.
One shipper underscored the practicality of posting rates.
“How many of you would like to go to a grocery store and have no prices on things, then have a haggling session when you go to check out over each item? Just have some perspective about what you are doing about loads,” said Nate England, manager of supply chain transportation for Stein Mart.
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