Freight Rates: How to Streamline Management to Improve Your Bottom Line
How Teknowlogi Manages Freight Rates
TMS now integrates freight rates with carriers around the country. It uses their APIs and your contract rates. This is to better able to view the whole idea of what you can get from pricing. This is whether it’s volume rating, LTL rating, truck load rating, or white glove rating.
It looks at everything and gives you the best price you can give your customers. Then you can get the best margin available to move the freight. Between that and tracking, tracing and all that stuff. It’s a full-stack automation that helps you from start to finish to get the freight. And then to make money on the freight as you move freight along around the country.
Teknowlogi’s TMS Difference
Our freight software connects the carriers around the country using your contract pricing. It shows you what pricing you’re going to get for that piece of freight. This is whether it’s white glove, truck load, LTL, or volume rating. It’ll show you the best price. It’ll give it to you so you can have the best chance to get that freight to run and then make money on it.
We designed our TMS software to take your pricing and generate freight rates from the carriers. It’ll send you rates from LTL, from truck load, from white glove, and then it’ll send it back. From there you can choose the best pricing that’s going to get you the freight. And then you can track along for the rest of the lifetime of the shipment.
This makes it easy. This is instead of having to go to each carrier and ask them for each piece of freight. How much it’s going cost in each system. You would need to rely on them to summarize up all the rates, all your contracts, and gives you the ability to make money. In the industry, carriers will set rates for certain lanes that they prefer. They will give you better pricing, and then they’ll set pricing for lanes that they don’t want to service. Then they’ll increase the price on those lanes.
Teknowlogi Streamlines Logistics
Different carriers will give you different pricing in different lanes. So, one carrier may be great from California to New York. And another carrier may be great from California to Texas. What our system does is it takes all those rates, rates against your contracts and the carriers. Then it gives you the best rate for that specific lane across all the carriers you have contracts with.
Freight rates are constantly being affected. You can have weather that’ll increase your pricing. Carriers raise their pricing as they go along. Other things are fuel pricing. That’s a big one as fuel changes and fluctuates. Our pricing fluctuates automatically along with those. It gives you the most accurate pricing you can get to with the carrier. Another piece of it is where carriers want to go, a lot of carriers don’t like to go to Florida, because it’s hard to get freight out of Florida, and then back into the country, and then they have empty trucks, so what you end up getting to is these contracts.
Other Factors of Freight Rates
Freight rates over time generally go up. Price of fuel goes up. Price of trucks goes up. Not having enough drivers make the price go up. The age of your vehicle, having to replace vehicles, all that stuff goes into a pot. Then at the end of the year, they mix it up and they give you a new pricing.
Fuel is a little more live. It’s one of those things that adjusts with the US oil and energy. They send out prices. Then those carriers adjust those prices on the fly as fuel goes up. For moving equipment with trucks, fuel is the most important thing. It’s expensive and they’re moving a lot of equipment.