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September 18, 2020 2:15 PM, EDT

Convoy Launches New Pricing Program for Shippers

Convoy branded trailerConvoy

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Digital freight broker Convoy launched Convoy Guaranteed Primary, a pricing program designed to procure capacity and lower shippers’ costs.

When a shipper uses Guaranteed Primary for any particular lane, it eliminates the need for a request for proposal (RFP).

Instead, the shipper and Convoy agree to allocate all volume on the lane to Convoy.

In contrast to traditional contracts that set a fixed rate per mile, Guaranteed Primary establishes a fixed margin that shippers pay Convoy.

The margin can be up to 50% lower than the industry average of 15%-18%. Convoy’s pricing algorithm uses machine learning on historical and real-time data to predict truck costs on the awarded lanes at specific times, according to the Seattle-based company.

As the shipper tenders loads, Convoy guarantees 100% acceptance by tapping into its nationwide network of carriers. — Transport Topics

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