Trends in the logistics industry have significantly changed with the active and widespread emergence of freight exchanges. As business rhythms become more dynamic and technologies advance, the popularity of various innovative online platforms, or freight exchanges, in everyday work is fostered.
For trading or manufacturing companies, finding a loyal transportation service provider to build a long-term partnership with has never been easy. However, with the development of freight exchanges in recent years, it’s no longer that complicated. Using online platforms for freight and available vehicles, and without consuming much time and other resources, it’s possible to act promptly in the current transport transaction market.
How do freight and transportation exchanges work?
Freight and transport exchanges are used by, and collectively bring together, several road transport and logistics companies, as well as various trading or manufacturing companies, connecting partners from thousands of exchange users who need freight delivery or transport load in a certain route. Freight exchanges operate with the goal of facilitating logistics processes, including streamlining communication and promoting transactions between freight senders and carriers.
Freight exchanges are particularly valuable in compiling mixed or less-than-truckload (LTL) shipments, as a full truckload can be assembled on a single online platform. For example, with the help of a freight exchange, a carrier receives notification of the available truck cargo meters and the appearance of corresponding freight on the exchange. By responding timely to the transport demand, not only is the truck’s maximum load capacity ensured, but a good price is also offered to the freight sender.
Advantages and disadvantages of freight transportation exchanges
Company registration in a freight exchange is often a paid service, and the registration price may vary. However, it’s worth considering that the registration costs in a transport exchange are small compared to the financial benefits that registered companies can gain, such as time savings and an expanded network of contacts or potential long-term partners. More about the advantages and disadvantages of freight transportation exchanges below:
Advantages
- Thousands of freight and transport offers in one place, promoting effective competition;
- Carriers can avoid empty truck journeys, reducing transportation costs;
- Full utilization of the fleet, increasing carriers’ transportable freight capacity;
- Transparent current offers of freight and transport;
- Every meter of space in a freight truck filled, finding cargo that matches the available space in the vehicle.
Disadvantages
- The sender cannot control the carrier’s chosen delivery route and process;
- An oversupply of freight truck demands and vehicle offers, saturating mutual competition;
- There might be a possibility that the freight exchange does not cover all geographical regions in a route;
- Not all necessary types of transport for a particular transport may be available;
- Dependence and influence from technology.
Evaluating the advantages and disadvantages of freight exchanges, they still provide an opportunity to encounter various types of freight transportation offers and different transport requests on one exchange platform. Freight transportation exchanges open opportunities for their users to not only build long-term business partnerships but also find other additional possibilities for cooperation between current freight and transport transactions.
The role of freight exchanges in the logistics industry
The role of freight exchanges in the logistics industry is continually increasing. Thanks to international freight exchange platforms, general logistics processes are simplified, transportation-related costs (road tolls, customs fees) are reduced, and the efficiency of various supply chains is enhanced. Considering the diversity of freight available on the exchanges, companies are provided with increasingly broader options to choose the most successful freight delivery times, as well as the transport route and its corresponding price tariff.
Thanks to the development of new technologies in the fields of telematics and transport management systems, which are integrated into the daily work of freight exchanges, the number of empty trips during transportation is reduced, saving not only fuel but also reducing CO2 emissions.
Popular freight exchanges in Latvia
Like elsewhere in Europe, various advantages and collaboration opportunities offered by freight exchanges are widely used in Latvia to quickly find partners for available freight that provide suitable transportation services.
When choosing to register on an online platform of a freight exchange, it’s essential that connecting to this platform is quick, simple, and convenient, and that the platform offers quality content with a wide range of route choices.
As successful examples, below are a few of the most popular freight exchanges in Latvia:
Cargo.lv: A freight exchange platform where both individuals and legal entities with verified reliability can register. Cargo.lv offers extensive opportunities to add current freight for transportation or add available transport. This freight exchange provides extensive options for searching for freight or transport in easy-to-understand and clear sections.
Trans.eu: A stable, fast, and modern freight exchange platform, where reliable and verified carriers, senders, and freight forwarders compile both local and international transport offers for any type of vehicle body from all over Europe. The application supports transactions from Android and iOS mobile phones.
Top 5 popular freight exchanges in europe
| Name of freight exchange | Link |
|---|---|
| Timocom | www.timocom.co.uk |
| Trans EU | www.trans.eu |
| Teleroute | www.teleroute.com |
| Wtransnet | www.wtransnet.com |
| LKWOnline | www.lkwonline.de |
