Spot market: present and future in the logistics sector

Hugo Álvarez - COO & Co-founder
October 14, 2021

In the case of logistics and transportation, critical to a successful negotiation is the ability to accurately predict specific types of merchandise to keep unit loading rates under control.

This will be highly dependent on the data and analysis to provide timely follow-up.

After all, how many times is there not a big difference between transportation rates?

To avoid this, planning a predictive analysis where current rates are identified will be the key.

Price and/or spot market

The spot price or current price of a product is the price that is agreed for transactions (purchases or sales) immediately. At this rate, any asset is bought or sold at the current market price.

It is precisely this market in which the trucking industry has relied on to face current challenges. The pandemic put pressure on this sector, but fortunately, it has come out ahead.

According to refrigerated trucking companies, the spot market has performed strongly in the North American region since last year, maintaining a more than 100% increase in price.

TrackChain, the best ally in the spot market

However, a problem arises. Requesting a quote can take forever. If we add to this the negotiation time and the period to close the deal, we are facing a tedious and complicated process that can generate several headaches.

The slow process is intensified by searching endless phone calls, to later match with the team and thus identify the correct prices.

Can you imagine that this entire 6-hour process could be done in just 5 minutes? The answer is in your hand.

That's right, automation stands as the main support to optimize time and money in this type of operation. It is the present and the future of the spot market.

The TrackChain platform uses machine learning to estimate the transportation rate for the spot market based on actual historical costs, third-party sources, lanes, risk, market conditions, and seasonality.

The competitive advantage is that different quotes can be obtained in just a few minutes under different criteria such as the year of the unit, the most punctual carrier, the best qualified, etc.

At the same time, it will recommend appropriate rates to shippers at the time of receiving quotes and use them as a basis for comparison.

Spot price and its automated future

The key to staying competitive in the spot market is to carry out consistent strategies supported by analysis and data-driven information.

TrackChain is uniquely positioned to provide primary and spot cargo services and can help shippers reduce risk in tight and soft markets by allocating cargo to their digital cargo network.

The key to TrackChain is automated pricing on high-density freight routes through the spot market, this is significant and definitive for a truly automated brokerage future.

Do not hesitate and be part of a new logistics experience. For your peace of mind, you can request a free demo.