Online Load Boards Deliver Spot Market
Services that match freight with eligible trucks are a bit like dating services, say industry analysts. Personalities and physical attributes bring people together in the singles scene, but when it comes to marrying 20 pallets of toothpaste with a truck, the criteria are destination, availability, rates and service guarantees.
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Shippers and carriers prefer stable relationships that give them predictable service and business from regular partners. More than 80% of U.S. freight, by most estimates, is moved under long-term contracts.
The rest of the shipments are transacted on the spot market. This is the niche in which load boards operate. During the height of the Internet boom, this market became overcrowded with high-tech matchmakers trying to divide a small piece of the transportation pie.
For the full story, see the July 8 print edition of Transport Topics. Subscribe today.
