The introduction of Trucking Freight Futures will provide advantages and opportunities for carriers, shippers, 3PLs and other companies that are exposed directly and indirectly to the U.S. trucking market. Most importantly, Trucking Freight Futures will provide those involved in moving goods more transparency into the cost of moving those goods.
Third-party logistics companies (3PLs) are exposed to the instability of spot shipping rates, which create issues for those seeking to manage their cash flows. By trading Trucking Freight Futures contracts, a 3PL can mitigate some of its exposure to trucking spot-rate volatility and therefore more accurately forecast its forward cash flows.
With the implementation of the Trucking Freight Futures market, 3PLs that utilize these risk management tools will gain a competitive advantage. 3PLs will be better able to negotiate rates with more perspective on the future. This will provide a huge advantage over using the out-of-date pricing and forecasting information now available.
Additionally, Trucking Freight Futures will allow 3PLs to hedge their positions in the market to protect against unforeseen price movements. Trucking Freight Futures will provide a measure of risk mitigation in instances where the physical market moves against them.