Logistics provider C.H. Robinson recently released a technology tool designed to give shippers better visibility into the freight spot market, showing how their rates compare to a third-party benchmark and breaking down where they can potentially save money. The solution addresses the tight market conditions that have pushed more freight into the spot market recently, company leaders said this month.
Called Market Rate IQ, the tool was created by Robinson Labs, the company’s technology and innovation incubator, which works with customers to develop solutions to a range of supply chain challenges. Powered by C.H. Robinson’s Navisphere platform, the tool shows shippers which factors in their U.S. spot pricing are market-driven and which they can control; it incorporates data from DAT’s RateView, a third-party 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,” Tim Gagnon, head of Robinson Labs and C.H. Robinson’s vice president of analytics and data science, said in a statement September 20. “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 than market?”
While working with a handful of customers in the incubation phase, Market Rate IQ uncovered $75 million in potential customer savings across $1.2 billion in spot freight spend. Since then, the company has been steadily adding customers to the platform, and had more than 60 up and running as of this week—a typical start, according to Gagnon.
“We feel good about where we are out of the gate,” Gagnon said in a separate interview, adding that in addition to delivering more value to customers, Market Rate IQ is also an attempt to move the industry forward with a transparent, collaborative product—one that reflects its commitment to investing more heavily in both technology and innovation.
DAT echoed those sentiments in a statement announcing the launch.
“Shippers don’t have to be at the mercy of these uncertain times,” Mike Weaver, DAT’S vice president of sales said. “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 industry.”