What is Freight Exchange?

In a globalized economy, the transportation of goods is crucial. However, during transportation, there are often empty trucks running, which is good for anyone. Freight Exchange is a logistics service that started in 1985. It mainly connects shippers, carriers, freight forwarders and other logistics stakeholders to exchange cargo space and transportation services. Let’s take a closer look at freight exchange.

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What is Freight Exchange?

Freight trading is the process of matching freight from those trade transportation solutions with trucks that are empty on the return trip, optimizing the utilization of transportation assets.


For example, if a truck from China transports a backpack to Malaysia and needs to return to China, it will carry air during the return journey. To avoid wasting a trip, if a truck operator finds a shipment of produce in Malaysia that needs to be shipped to China, the truck won’t transport air on the return trip. Waste of resources is avoided.

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How Freight Exchange Works

Post cargo or available capacity: Shippers list the cargo you need to transport on the Modern Freight Exchange along with detailed information about the cargo, such as cargo type, quantity, shipping destination, date of shipment, etc. The carrier will need to list your available capacity, such as trucks, containers, etc.

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Waiting for a match: The freight trading platform will match cargo with available capacity, and shippers can browse the list to find carriers that meet the shipper’s requirements.

 

Booking and Confirmation: Once matched, shippers and carriers can connect on the platform to negotiate terms with each other. Including routes, prices, etc. Once agreed upon by both parties, documents can be generated on the platform, such as booking confirmation and bill of lading.

Start transportation: Once the preliminary agreement is completed, transportation can begin. Freight trading platforms often provide tracking and monitoring capabilities throughout the transportation process, allowing shippers to view the status and location information of their cargo in real time. Facilitate timely resolution of problems. Improved transparency of the entire process.

Benefits of Freight Exchange

  • Cost savings: Freight trading platforms eliminate the need for middlemen and reduce transaction costs by directly connecting shippers and carriers.
    As a shipper, you can set the price range you are willing to accept and see which carrier has the lowest bid, eliminating all the time spent negotiating between you and the carrier. Saves both time and money
    As a carrier, empty return freight means your company pays for the privilege of not shipping anything. But with freight exchange, you can fill your truck and meet your profit needs. If you’re feeling cheeky, you can bid just enough to cover your return costs, not only compensating them but also putting your name out there for other shippers to know.
  • Improve efficiency: From LTL transportation to truckload transportation, empty miles are reduced and logistics efficiency is maximized, optimizing the utilization of transportation assets.
  • Flexibility and Scalability: Freight exchange platforms provide shippers and carriers with the flexibility to adjust shipping capabilities and requirements to changing demand and market conditions. This scalability enables businesses to quickly adapt to fluctuations in supply and demand.
  • Visibility and Transparency: The freight trading platform features real-time tracking and monitoring capabilities for enhanced visibility of the shipping process. Shippers and carriers can track the status and location of their cargo, and shippers can rest assured knowing that their cargo is not lost anywhere. This improves communication and collaboration throughout the supply chain.
  • Access a broad network: Freight exchanges provide access to a vast network of shippers, carriers, and logistics providers, expanding opportunities for collaboration and partnership. This network effect promotes innovation and efficiency in the logistics industry.

You Need A Freight Forwarder

If these processes are a bit complicated for you or you don’t want to handle these tasks yourself, then you can find a freight forwarder and we will solve everything for you.

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