Four criteria to select the best freight exchange

A freight exchange brings you new business, helps you cut costs, reduce empty running, and increases your profit. But how do you chose the freight exchange that is right for you?

These are the four main criteria to consider when determining the quality of a freight exchange: liquidity (the volume of freights and trucks), number of users, security, and geographical coverage.

1. Liquidity

For a freight exchange, liquidity is what makes the business run. It’s the main reason why transport professionals daily access a freight exchange. But what exactly is liquidity? Liquidity is nothing more than the number of freight or transport offers provided via the freight exchange at any given time.

For example, in the Teleroute freight exchange there are on average more than 200,000 freight and vehicle offers every day. With high liquidity, available freight and transport will be matched much faster. It’s a simple matter of supply and demand. Of course, imbalances can and will occur, both on the route level and on the market level. Also, you should bear in mind that some freight exchanges specialize in exchanging liquidity, greatly increasing your chances of finding a match.

2. Number of users

Freight exchanges are not free to use. Users subscribe to get access to view freight or trucks, or post offers. This means that the number of offers in a freight exchange is strongly influenced by the user base. More users means more potential for high liquidity – but high liquidity does not always mean that many different users are using the freight exchange.

For example, some of the big shippers or big freight forwarders are directly interfaced to the freight exchange and thus can post large volumes of freight in a very short time frame. You should also know that liquidity varies a lot. In a high liquidity freight exchange, you should be able to find a new deal within minutes or even seconds.

3. Security

Having many potential partners on the same freight platform is important, but it is just one part of the picture. You also want to know who you are dealing with. Are they a reliable partner? Freight exchanges that offer insight into the reliability, trustworthiness and payment history of their users will certainly help you make better decisions.

This kind of extra validation is a strong trump in the traditional, people-business sector of transportation.

4. Geographical coverage

Along with liquidity and security, you should also consider the geographic focus of a freight exchange. Some exchanges are strong in their country of origin, providing a high degree of liquidity and many users. For domestic transport, these freight exchanges are indeed a viable option.

When you do international transport, things become more complicated. Depending on the routes you service the most, another freight exchange might offer the liquidity you are looking for. For example, Wtransnet is very popular in Iberia, and Teleroute has a strong presence in France and the rest of Europe, as well as being strong in national markets for domestic transport.