C.H. Robinson Market Rate IQ Debuts
September 22, 2021
tight trucking capacity and market volatility pushing more freight into
the spot market, global logistics provider C.H. Robinson has launched
Market Rate IQ – a new tool that shows companies how their spot rates
compare to a trusted third-party benchmark and breaks down where they
could save money.
Created by C.H. Robinson’s technology incubator, C.H. Robinson Labs,
Market Rate IQ is the only tool in the industry that shows shippers
which factors in their U.S. spot pricing are market-driven and which
they can control. It’s also the only tool in the industry that
incorporates DAT’s RateView, the most comprehensive and reliable
database of U.S. spot freight rates.
“Virtually every company is looking for a solution to help them navigate
the spot market, so we built one,” said Tim Gagnon, head of Robinson
Labs and C.H. Robinson’s vice president of analytics and data science.
“Now, for the first time, they can see what’s driving their rates and
what they can do about it. Then we take that transparency a step further
and show them how their rates compare to the average for each of their
shipping lanes and locations. It’s like going to the grocery store and
instantly being able to see how the price of everything on your list
compares to the market. Who doesn’t want to know if they’re paying more
Companies have had to turn to the spot market more as global disruptions
ripple through their supply chains, requiring more last-minute changes
and short-term decisions. Since January 2020, load postings are up 176%
while postings from trucks looking for loads are down 5%. That imbalance
drives rates up and companies often cope with that by spreading their
spot freight among many transportation providers – even though that
added effort doesn’t always result in better rates.
During its incubation phase, Market Rate IQ uncovered $75 million in
potential customer savings across $1.2 billion in spot freight spend.
These were the top five reasons customers paid more than they might have
needed to, even when their rates were below market average:
Lead time – Carriers charge a premium when given too little lead time
for pick up.
Uneven freight – Because any given shipping lane has a finite number of
trucks, putting too much freight in the same lane on the same day
instead of spreading it out means you might be paying extra for carriers
elsewhere to drive out of their way.
Weekend pickup – To avoid the higher cost of Saturday and Sunday
pickups, some companies might find it beneficial to run freight out of
their warehouses only five days a week.
Multiple stops – Adding too many stops to fill a truck has diminishing
returns. Other optimization strategies could be more cost-effective.
Delivery geography – Carriers charge more if they have to drive empty to
get their next load. When shippers have spot loads going to a remote
destination, they could save money by working with a logistics partner
who can pair up loads originating nearby.
Market Rate IQ is offered within C.H. Robinson’s Navisphere™ platform
and powered by C.H. Robinson’s unmatched freight dataset – the largest
in the industry. Some of the largest retailers in the world, as well as
other global B2C and B2B companies, have now begun taking advantage of
this technology built by and for supply chain experts.
Rate IQ gives us this window into our spot rates that just wasn’t
possible before,” said Terry Laluk, Senior Director of Logistics of
Valmont, a global provider of infrastructure for transit, utilities,
agriculture and other industries. “We have confidence and assurance that
we’re getting good rates, especially under market conditions no one has
ever experienced. But it’s also so easy to see where adjusting our
shipping strategy could add to our bottom line. We just started using
the tool, and the potential for significant cost savings is already
C.H. Robinson teamed up with DAT on Market Rate IQ because DAT’s spot
rate benchmark, based on $110 billion in shipment data across 68,000
shipping lanes, is widely considered the industry standard.
“Shippers don’t have to be at the mercy of these uncertain times,” said
Mike Weaver, Vice President of Sales at DAT. “The right technology and
data can make a powerful difference. Market Rate IQ represents two
industry leaders coming together to help all parties negotiate with
confidence, transparency and the most trusted rate benchmarks in the