Finding the best loads is key to your business’s profitability. Few tools in your toolbox have as much impact on your bottom line as your load board of choice, and that’s just when it comes to finding freight. When it comes to having a clear picture of your rates, a good load board can show you insights you might not be able to access elsewhere.
Historically, carriers have faced difficulty negotiating acceptable rates when they don’t have the same breadth of information as the broker with whom they’re working. That’s why DAT engineered the DAT One load board to level the playing field, with the depth of information you need to negotiate rates that keep your business profitable. Now, when you enter a negotiation on rates with a broker, you can do so knowing what others are being paid on the same lane – so you’ll know a good rate when you hear it.
If the freight market’s recent fluctuations are indicative of anything, it’s that rate is king. In many cases, the very survival of a trucking business depends upon its ability to secure more generous rates – and when the environment is this volatile, every conceivable type of guidance and insight pays for itself.
Leveraging Market Data To Negotiate Higher Rates
One way carriers can take advantage of available market rate data is to review it before talking with a broker. DAT One’s Quick Rate Lookup tool shows the 30-day or 15-day average market rate for every lane you search, powered by DAT iQ Analytics, so they can be reconciled against the rates you’re offered. Trendlines, another DAT iQ product, shows a weekly snapshot of rates, load-to-truck ratios, fuel prices, and more. Carrier-generated reviews and myriad other available information puts carriers quite literally in the driver’s seat when it comes to gaining leverage in negotiations. By examining the load details before negotiation commences, carriers can elevate themselves to a position of strength and wisdom when brokers are ready to talk rates.
Data Accuracy is Exceptionally Important
In terms of accuracy and utility, DAT’s freight data stands above. Based on $150 billion in real transactions from 68,000 North American lanes, the data is thoroughly vetted to maintain accuracy, and it’s the same process whether the markets are up or down. The processes in place also ensure that no company is able to manipulate the rates reported in the load board.
To ensure accuracy, every market rate reported in DAT One:
- Includes data contributions from at least three different companies
- Requires a minimum number of shipments before being calculated
- Is based on actual transactions, not bids or quotes
- Accounts for outliers so you get useful insights to help with negotiations
As we mentioned, rate is king, and DAT is committed to ensuring all our carrier customers have easy access to the throne.
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The post How Do I Know I’m Being Paid Fairly? appeared first on DAT Freight & Analytics – Blog.