How to use the transport barometer to inform yourself about the freight market
It is essential to have an overview of the current market situation for freight forwarders and carriers to stay competitive, be profitable, and plan for the future of their business. We discuss how freight rates impact your company, factors influencing freight rates, and how you can negotiate the best freight rate for your business and become more profitable.
What is the TIMOCOM Transport Barometer
TIMOCOM offers a free tool, the Transport Barometer, which indicates the current situation of freight and cargo space offers throughout European road freight transport.
TIMOCOM’s transport barometer is updated every 15 minutes with information for 46 countries across Europe which reflects the European road freight transport market and the ratio between supply and demand even for individual countries. For freight forwarders, carriers, and shippers, it is invaluable for getting the latest data reflecting the marketplace, import and export scenarios, seasonality, and domestic demand and supply in road transport.
You can use the transport barometer to negotiate freight rates according to the balance of supply and demand within the road transport market. By using the barometer, you can stay up-to-date with changes in the market. Carriers can plan their schedule, and know the possibilities for getting a paid tour back, for example if there are many freight offers and a low supply of cargo space. Shippers, forwarders and carriers can assess the capacities on routes to several destinations and consider it in their negotiations if there is a high supply of vehicle space. It can be accessed on TIMOCOM’s website and in the TIMOCOM marketplace on both desktop and mobile.
Freight rates negotiation and how the quotes are calculated
The freight rate fluctuates with market pressures but TIMOCOM’s free transport barometer tool ensures transparency by using the data of its freight exchange to give an overview of the market. This helps you to plan efficiently for these fluctuations, to identify market trends at an early stage, and keep up-to-date with supply and demand in road freight transport.
To calculate freight rates, you may have to consider several factors including:
Distance and route
The longer the distance, the more expensive the freight rate will typically be.
Market demand and supply
When there is high demand but limited capacity, freight rates tend to increase. Whereas low demand makes freight rates more competitive. The TIMOCOM Transport Barometer displays the supply and demand of freight and loading space capacities in almost real-time to allow you to plan your resources and negotiate prices.
Weight and volume of cargo
The heavier the item, the more difficult it is to ship and therefore it can be more expensive. The more volume hauliers/carriers are transporting, the more competitive the freight rate will tend to be.
Type of cargo
For perishable, hazardous, or other goods, it will typically cost more as they are either specialised or need to be delivered quickly.
External factors
Factors such as fuel prices, driver shortages, or other global events can mean an increase in the freight rate.
Future influencing factors
There are many factors which can impact the future of freight rates, but some factors are increasing in importance.
Digitalisation
Using the latest technology to optimise your processes and become more profitable is essential in logistics. Online freight exchanges can connect shippers and carriers to vetted partners and generate additional income. They allow businesses to react quickly to market changes and plan.
Sustainability
There is an increasing focus on being environmentally friendly. These trends may impact the logistics industry as companies lean towards pricing structures that favour green shipping methods. For example, digital ecosystems like the TIMOCOM Marketplace help participants reduce empty running, and therefore reducing gas emissions and costs.
Dynamic pricing
Some carriers are adopting dynamic pricing models by changing rates based on real-time demand and supply.
How to get the best freight quote
The difference between being profitable for a carrier and losing money is as thin as borders between countries. For all your transportation costs, you need to ensure you are getting the best deal to grow your profits, which is why using a tool like TIMOCOM’s Transport Barometer is essential for your growth.
Research
Understanding freight classification and freight rate benchmarks can help you negotiate freight rates. Knowing the standard and predicting freight rates can help you get the best rate for you. Using TIMOCOM’s Transport Barometer, you can check freight rate trends for over 46 countries across Europe to help you negotiate prices. You can also avoid empty loads by checking TIMOCOM’s tool.
Volume discounts
By consolidating shipping and moving larger volumes of cargo, you can negotiate better rates. By being a part of a marketplace like the TIMOCOM marketplace, you can access over one million international freight and vehicle offers daily, you can get the best rate for your business.
Flexibility
If your shipping dates or routes are not concrete, then you can make the most of this flexibility by getting discounted rates during off-peak times.
Build relationships
When you build relationships with other businesses, they are more likely to trust you and use your business. Having a wide range of contacts or using a freight forwarder to supply vetted partners is a good way to decrease your costs.
Use a freight forwarder
A freight forwarder can pool the shipments of lots of customers and get better terms and freight rates because of the size of the shipments, unlike individual shippers. Having a big network of partners, both carriers and shippers, means they are able to do this.
Using TIMOCOM’s Transport Barometer to negotiate rates
By using an up-to-date tool like TIMOCOM’s Transport Barometer, freight forwarders, shippers, and hauliers, are in a better position to negotiate the best rates. You can take advantage of this to avoid empty loads on your return journeys. With TIMOCOM you can find trusted partners to do business with and with the Transport Barometer tool you can negotiate the best rate for you to ensure you are profitable.
Companies often consult the Transport Barometer before they make a decision for things such as market price trends since TIMOCOM reflects freight and cargo capacity supply and demand in road transport in near equal measure. With this tool, companies have a solid base for price negotiation and can also deal better with price fluctuations, as it provides greater market transparency. TIMOCOM uses data from our freight exchange which has more than 154,000 users generating up to 1 million international freight and loading space offers every day.
How to use the TIMOCOM Transport Barometer
It’s simple to use the transport barometer.
- Select which country you are leaving from
- Select which country you are going to
- You will see the ratio between freight and cargo space offers for 2021, 2022, and 2023 on a month-by-month basis.
Freight and vehicle in balance is good situation for all sides. In reality, supply and demand hardly balance each other
Have a look at the Transport Barometer and start increasing your operations by having the latest updates on the road transport market. Check out the latest freight rates trends.
Tram Trinh Thanh
Marketing Manager Northern Europe
