What is Freight Forecasting?
Freight forecasting is the process of developing predictive models of what the freight market will look like in the future. This could range from short-term (24 hours) to long-term (more than one year). The freight market is the area of the economy where the movement of goods are priced and take place. In other words, it’s all about the liquidity of the global supply chain.
A freight forecaster develops a model of what freight rates will be in the future, as well as projecting risks (financial and physical) to supply chains that will impact the flow of cargo or the cost to ship cargo from one location to another. Examples include weather, natural disasters, geopolitical or capacity disruptions.
Freight forecasters have a pulse on the global freight market, understanding the context of how freight moves between modes and how capacity and freight demand are impacted by external elements (regulations, economic activity, weather, seasonality, geopolitical events).
A freight forecaster tracks different segments of the economy and has a pulse on how freight is moving across all modes of traffic.