Understanding the difference between spot rates and contract rates is crucial for shippers, brokers, 3PLs and carriers. This guide delves into the intricacies of these two types of rates, their impacts on the freight market, and how they can be leveraged for optimal performance.

In order to earn a positive return on capital, carriers have to avoid hauling loads for free. That requires pricing their headhaul loads high enough to compensate for the probability of having to accept low-rated brokered loads on backhauls.

By targeting the sales efforts of asset-based account executives or freight brokers, SONAR customers’ sales teams are able to utilize their valuable time by targeting the areas that are experiencing an increase in demand and tightening of capacity.

The US truckload market can generally be measured by looking at both contract and spot market activity. Carriers are mainly judged by their rates and service, which means these are the two most important data points to use to measure the market. Taking a top-down approach using both data points can allow you to increase the odds of expanding margins or hedge your exposure to swings in market conditions.