In the article we discuss what is a spot freight quote is and how to get the best rates even under time pressure.
To put it simply, when #ShipHappens, spot quotes are needed. In a pinch with deadlines looming and logistic nightmares on the horizon – there’s no time for anything but a quick phone call and spot quote request.
Let’s answer some of the important questions when it comes to spot freight quotes.
A spot quote, or spot price, is a provided rate for a shipment that needs to be sent immediately or urgently. In the spot quote world, price is king. Spot freight refers to the trucking industry where suppliers, distributors, and brokers coordinate for competitive prices and 24/7 efficiency. Spot quotes are a necessity in a number of situations (more on that below).
The spot quote process generally works like this:
The process is relatively simple which allows for tight deadline shipments to occur. But the simplicity also takes out the advanced research and forecasting that goes into a contract rate process. Let’s look at more differences between these two methods.
In a contract quote environment, there’s significant time scheduled for cost analysis which includes an inspection of all the project details and how they will change over time. The key driver of freight rates is the load-to-truck ratio, as in available truck capacity compared with the amount of shipments. For spot freight quotes, this number is just a snapshot of the current environment. For contract quotes, this ratio can be analyzed and forecasted which leads to cost savings over time. Also, shippers are not as affected by supply and demand or market forces with long-term agreements. A few additional factors go into the decision process:
Many companies find themselves in a bind when trying to decide between spot quotes and contract procurement. The contract option might be too expensive or time-consuming and some companies just don’t have the available resources.
Conversely, with spot quotes, the process can be overwhelming. With so many things to track, manage and coordinate, a platform that automated every process sure would be nice, oh that’s right we offer just that, Cargobase.
In addition to road freight, Cargobase can assist with spot quotes for ocean, parcel, air, and rail freight. The platform is designed to be a one-stop-shop for all freight processes and modes. The integration of shipping management automation to your business can reduce 80% of your workload and cut costs by 25%.
Get started using Cargobase for free today, and manage all of your logistics from one place in an easy to use online platform.