Freight Marketplace

How a Freight Marketplace Works

Freight marketplaces function similarly to load boards and resemble other online marketplaces like Facebook Marketplace and Craigslist. However, some marketplaces are software-based and need to be downloaded for use. After installation, users must create an account and log in to the platform.

What users do after that depends on their role. Shippers and brokers can post their load and the initial rate. The platform’s team must evaluate the post before posting and will need to have as many details on the load as possible, including:

• Location
• Route
• Type of load being transported
• What equipment is needed
• Rates

Brokers and shippers can then view and accept a bid from the most appealing carrier. They can also search for individual carriers registered on the platform for targeted offers and view their previous track records for successful freight deliveries.

A freight marketplace verifies carriers and drivers before they can browse through bids. Once approved, they can search and filter various listings based on their criteria. Carriers can also compare offers in real-time, allowing them to adjust bids to differentiate themselves from others while also being able to save their preferences for future load searches.

Aside from posting, searching, and bidding on loads, users can also use freight marketplaces for other things:

• View user profiles, including location, route, available equipment, and travel preferences.
• Research data like average rates and use them during negotiations with one another.
• Track and update shipments throughout the delivery process.
• Analyze data from e-commerce metrics tools
• Set up payment transactions
• Manage fleets remotely
• File paperwork digitally

Benefits of Using a Freight Marketplace

Freight marketplaces are an excellent tool for drivers specializing in FTL shipments, especially independent owner-operators not affiliated with a major carrier. They consolidate the booking process into one software or platform, from initial load offers to final payment. Carriers can find quality, pre-screened loads, while shippers are provided quality service from professional, vetted drivers.

However, while freight marketplaces are a tremendous upcoming tool, load boards are still the predominant platform for finding and biding loads. While they don’t have as many features as the former, the latter are easier to understand, popular with drivers, and cheaper for beginner drivers.

That doesn’t mean freight marketplaces are a total waste of time and money. There are several reasons why drivers may decide to invest in a freight marketplace instead:

• Comprehensive system: These platforms are an all-in-one system for freight loads. Not only can you post and bid on loads, but you can also file paperwork, process payments, track shipments, and much more, all in one system.
• Easy-to-use: Freight marketplaces are designed to be user-friendly for all levels. They can be a little more complicated than load boards, but that’s because of the sheer number of features the platform offers.
• Accessibility: The platform is available to drivers 24/7, wherever they can access an internet connection. If the marketplace is on software, it usually can be downloaded onto computers, tablets, and smartphones.
• Less competition: Since these sites are relatively new, there aren’t many users online. Carriers and drivers tired of fighting for loads with others on load boards might find the lack of competition refreshing.

However, there are some drawbacks to using freight marketplaces:

• Fewer loads: Fewer carriers on the platform mean less competition, which also means fewer shippers are online. This results in fewer loads for carriers to find.
• Lack of long-term relationships: These marketplaces prioritize performance metrics and damage risk percentages over long-term relationships between carriers and shippers. This implies that neither side is obligated to work with the other after completing a transaction.
• Expensive subscription: Freight marketplaces can cost a lot, whether you pay monthly or annually. While that payment comes with many features, some users may find that they don’t need some features and that the core features they need can be found on the less expensive load boards.