Before we start with this post, do we know what exactly are cargo bags?
A freight exchange is a platform that provides a web-based service for carriers to search for and bid on freight that is available for transport in order to take advantage of return trips and available truck space. As we have also indicated, a carrier can not only see loads, but also offer them for the same process to take place, but in reverse, i.e., we have a space left on the truck, because it is offered and other carriers offer to fill it with their own loads.
How exactly do the cargo bags work?
The carrier offers online the characteristics of the trip with the dates and the interested parties start calling and an agreement is reached between both parties.
What is the purpose of the cargo bags?
The purpose of the freight exchanges is that transport companies, agencies… get in touch and can obtain benefits by communicating with each other, taking advantage of return trips.
Carriers offer their vehicles on specific routes, i.e. on their own routes in order to achieve profitability and finish filling their vehicles in the event that they become empty. Users of freight exchanges can range from carriers to logistics operators, which generates supply and demand in transportation contracting.
Freight exchanges, when bringing carriers and shippers together, have to stipulate a legality between what is agreed upon and the compliance of what is stipulated to ensure that standards are met at all times.
What are the benefits of freight exchanges?
The transport companies opt to use this type of platforms, since they are a help when looking for loads for returns as we have already indicated above. But are there any other benefits?
- Productivity and kms: Possibility to offer empty spaces in trucks, which increases the productivity of the trip and allows transporting much more goods, providing a better service.
- Good relationships (long term): A bond of trust is created if you are always in contact with the same suppliers, which can bring long-term benefits.
- More security: The merchandise is guaranteed to arrive at its destination in good condition and with an adequate service, since the companies that are in freight exchanges have the reliability guaranteed by this platform.
I am not a freight forwarder, should I bid on freight bags?
It is true that we have been all the time orienting all the time the freight exchanges for transport and logistics companies, yes.
And the reason is that a company that wants to make a trip for example from Madrid to Barcelona of 5 pallets would not only have to offer the trip but also negotiate the prices, be aware of the calls, know in which part of the truck the merchandise goes (often depending on how the merchandise is it must go in the front of the truck or in the back), must know if it can be reassembled or not ….
Freight exchanges are oriented to the logistics sector, multimodal logistics or traffic agents who are constantly moving trucks and up to date with what is happening in the traffic department. Why have headaches when there are qualified people to do it?