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Convoy rolls out spot rate benchmarking tool for shippers

Offering allows shippers to see how competitive the spot rate being offered is

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Convoy has launched a new rate quote benchmarking tool that allows shippers to easily see if the spot quote they are being provided is comparable to, higher or lower than the average. Automated quote benchmarking is now available within the Convoy shipper platform.

“Shippers currently spend a lot of time logging into multiple online platforms or contacting several brokers for spot auctions to ensure they get a fair price-to-quality balance. This process alone can increase shipping costs substantially as the time-to-pickup gets shorter,” the company said in a release.

According to Convoy, COVID-19 has led to large swings in spot volumes and as a result pricing, leaving many shippers paying more than necessary — or spending too much time looking for the best price — to move their goods.

“The need for efficient spot freight booking is greater than ever,” Convoy said. “This is a problem that digital freight networks are uniquely suited to address.”

Automated quote benchmarking allows shippers to see Convoy’s spot quote along with averages within the workflow. The tool uses the company’s proprietary algorithm to scan pricing indices as well as historical quote data. The new insight in spot rates allows for faster booking decisions that cut costs, Convoy said.

“Convoy pricing can be well below the market average on our highest-volume lanes, which benefit from exceptional carrier efficiency,” the company said. “Shippers will now be able to see how much they can save compared to market average rates when booking with Convoy.”

The tool provides accurate rates up to the minute, and all loads are protected by Convoy’s pricing guarantee that will cover the load and recover from driver fall-offs at no additional cost to the shipper.

“When the spot market is surging, the turnaround time on a shipment is very tight, or when we have low carrier density on a particular lane, our rates can be above prevailing market rates,” the company noted. “With spot quote benchmarking, we are now able to deliver visibility and context as to why rates may be high.”

Like it has done for its carrier partners, Convoy has continually rolled out new tools for its shipper customers, including a streamlined and automated contract rate process so smaller shippers can secure and book contract freight through the Convoy shipper platform within two business days. Personalized shipment insights and supply chain visibility metrics are provided monthly to help shippers improve forecasts and adjust to market shifts.

For shippers with sustainability initiatives in place, Convoy offers green appointment windows, which it said allow shippers to maximize efficiency and reduce carbon emissions by up to 36%. These delivery windows provide more load flexibility for carriers, which potentially opens up more capacity for shippers as a result.

“We’re excited about the impact that digital freight technology can have with small and medium businesses to optimize operations, improve quality and achieve sustainability goals,” Convoy said. “As we all learn to adjust to the ‘new normal’ created by the COVID-19 pandemic, we are putting continued and focused investment in product and service improvements to meet evolving shipper needs.”

Click for more FreightWaves articles by Brian Straight.

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Brian Straight

Brian Straight covers general transportation news and leads the editorial team as Managing Editor. A journalism graduate of the University of Rhode Island, he has covered everything from a presidential election, to professional sports and Little League baseball, and for more than 10 years has covered trucking and logistics. Before joining FreightWaves, he was previously responsible for the editorial quality and production of Fleet Owner magazine and fleetowner.com. Brian lives in Connecticut with his wife and two kids and spends his time coaching his son’s baseball team, golfing with his daughter, and pursuing his never-ending quest to become a professional bowler.
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