[Stay on top of transportation news: Get TTNews in your inbox.]
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.
We’re excited to introduce Convoy Guaranteed Primary, an industry-first pricing program that reduces freight costs by up to 19% while guaranteeing capacity. Available today to shippers of all sizes.— Convoy Team (@convoyteam) September 17, 2020
Learn More: https://t.co/FEFQpHlz8H pic.twitter.com/TDnC8vHK60
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
Want more news? Listen to today's daily briefing: