Convoy announced the launch of Dynamic Backup, a new program that gives shippers real-time market prices for their backup freight. According to the company, the program will help reduce spot and short-notice shipments and ultimately maintain predictable tender acceptance and pricing even with changing market conditions.
The standard process for offering loads to a shipper’s backup network leads to unpredictable and costly freight. When the static rate doesn’t match market opportunities, brokers and carriers may reject tenders, which means more loads end up on spot.
Additionally, each carrier may take an hour or two to make an accept/reject decision. As more time is needed to cover the load, prices increase, as does the risk of the load going to spot, increasing the possibility of a service failure.
“With Dynamic Backup, shippers get a real-time and guaranteed market rate that is instantly bookable into the routing guide, allowing them to immediately cover loads," according to Convoy. “We have built technologies that rely on real time market signals to secure the most competitive price and most relevant carrier for a specific load. This means that when Dynamic Backup inserts a real-time rate in the routing guide, we guarantee coverage at that price and will never give the load back, leading to benefits like operational efficiency, increased load coverage and freight cost savings.”