With the world becoming a global village, companies worldwide have started exploring opportunities for interstate and inter-country trade. Every day there are hundreds of cargo vehicles transporting goods and raw materials from one location to another. This new culture of globalization has acted as a boon for the businesses as this helps them penetrate in other geographies and achieve the goals of sustenance, growth, survival. Also, with the exponential technological development in the world, a good logistic setup has acted as a catalyst for these firms. Nowadays, several logistics companies help businesses in all their freight requirements from packing to delivering the goods at their destinations.
Source: Image from freepik.com
However, before availing the services of any of these companies, a business needs to analyze the different modes and also compare the freight costs charged by various agencies. It has been long since firms had to maintain a phone directory of various logistics partners or go with the word of mouth of a friend or two. Businesses today know how to work smartly along with saving a buck or two wherever possible. Today, technology has not only simplified the process of transporting goods, but it has also made the process of comparing the various freight rates and choosing the right one lot easier.
What are freight rates?
Freight rate/freight charge is the cost a firm has to pay for the transportation of goods from one place to another. These charges are quite variable as they depend on many factors such as pickup and delivery points, the weight and size of the cargo, etc. Businesses need to pay heed to these factors and many others to choose the right logistics service provider and mode of transportation. You can also discover freight rates online with https://www.cogoport.com/rate-discovery. Now let’s discuss some of the factors affecting freight rates in further detail here:
Weight of the cargo: The freight rates also vary as per the weight and the volume of the cargo. Instead of estimating or doing length calculations for the same, one can use free calculators online
Distance of the transportation route: Distance plays a crucial role in determining a suitable mode of transportation. With modern technology, one can track the shipment in real-time and keep a fair account of the distance, traffic, weather, and other factors to monitor the shipment
Points of Pickup and Delivery: Pickup and Delivery points are another important factor that would determine the freight charges. Various Federal governments and State governments in every state have different laws and taxes levied on different modes of transportation. Also, the weather and traffic conditions at both these points are crucial things which could affect the freight charges and delivery time
How has Technology Has helped in simplifying the freight rate discovery process:
Leveraging technology has been exceptionally helpful in simplifying the freight rates discovery process. Here’s how:
- Accessible Information: Earlier, it was not easy to get information about various logistics service providers. However, today this has become a seamless process with the help of data analytics. Analytics is helping businesses get a list of logistics agencies online with just a click. Firms can easily get the freight charges levied by all of these agencies and select the one they find the most suitable
- Real-time Shipment Tracking: A few years ago, the business manager could not get any information about his shipment until it would reach the destination. They were left unaware of the whereabouts of their cargo. However, today with the help of technology, businesses can easily monitor their cargo from their desks anytime. This facility has helped them make an informed decision about the precise delivery timings, fuel requirements, and adopt the most cost-effective mode of transportation
- RFID technology: Radio Frequency Identification (RFID) is yet another modern asset that is helping businesses in discovering ways to minimize their freight charges. Placing sensors on the cargo helps monitor the containers in the warehouses. This helps them in optimizing the inventory and plan their future shipments
- Easy Quoting, Booking, and Paying: Digitization has helped the logistics industry in a rather beautiful way. Initially, searching for service providers and then getting the quotation from them was a cumbersome task. However, today businesses can get multiple quotations sitting on a couch. Also analyzing and comparing the best quote has become easier with the use of online freight calculators. In addition to this, billing and making payments online with the help of technology has helped the industry simplify this task to a great extent
- Better Tracking: Some of the technological advancements such as Automatic Identification System (AIS), Container Track and Trace, Big & Real-time Data, Smart Containers, Mobile Apps, Ocean Freight Rate Benchmarking Platforms, and Online Marketplaces have helped firms keep a track on their shipments and manage their cargo accordingly. These have also helped them in improving their productivity and customer satisfaction
All in all, the logistics industry has come a long way with various technological advancements. Businesses not only need to select the cheapest freight rate platform but also the one which would help them optimize their processes and eventually result in lower costs in the long run.
