If so, have you bid unusually high rates today for loads you know you won’t get?
Others, that you contract with, throw out stupid low rates. Those rates are a variable in the algorithm that calculates lane averages. There are people out there who see these low rates and actually take them because they believe the “average” rate just is what it is! This lowers the averages even further.
How do you combat low spot market rates? Carriers have a variable that we control which is a significant contributor to the algorithm. It’s called rejection rates. When a carrier bids high and the broker rejects the rates, the software/database keeps those numbers and pull them into calculation to determine what it thinks the rates should be. The rates used are NOT only actual rates, but these rejection rates as well.
So, if enough people are bidding high and causing rejection, it will move the average rates higher. If carriers did this ALL the time, it would keep averages higher.
If you wondering where I got this info, I spoke to one of the programmers for software that sounds like Radar. They call it artificial intelligence…I call it variables in an equation. Equations are manipulated by its variables. You are one of those variables. You can impact the average rates by forcing brokers to reject high bids. So get out there and bid while you sitting there…
