ARTIFICIAL INTELLIGENCE IN MARKET RATES ANALYSIS
When it comes to market trendlines, it can be challenging to grasp the market as a whole, especially if you are oblivious of the current market rates. The fluctuation of these numbers must be understood initially. If you control RPM + fuel surcharge, you are aware that the market, beginning with the cost of fuel, determines the increase or decrease of these rates. However, if you are controlling RPM plus fuel surcharge, you are aware that fuel is not always the primary cause of these surges. Produce season can have a significant effect on the market by driving up freight costs due to the abundance of produce and the hurry to get it to consumers before its shelf life expires. Produce ties up the preponderance of reefer haulers and some dryvans on rates.
What about the overall market, and what causes such a sharp increase in the overall market? Many factors, including driver availability, production, and operational expenses. All of these factors have a substantial impact on market trends.
How then would our shippers determine the appropriate market value for each lane? Five TMS AI employs AI to collect market rate data, system analysis data from each lane, and input to assemble intelligent market trends and a precise measure of each lane. Five TMS AI actually dissects each lane by expenditure and overall rate, then collects information regarding how this rate was determined. Five TMS AI cannot control market rates, but we can provide our users with the most competitive rate when it comes to awarding freight.
How does it work? Each time you build a load in Five TMS AI, as soon as you input the equipment type and the complete address, our AI server will gather details and provide you with the most accurate rate possible for this lane. To prevent our shippers from overpaying for freight, we desired to develop a system that analyzes rates according to the science of each lane. We can only do this in an official capacity by operating multiple lanes and analyzing market trends down to the last mile.
Does it effect all equipment types? Yes and no, some equipment types, such as flatbeds and stepdecks, rely on factors unrelated to the general reefer and van, such as overall cargo availability, type of load, and specialized equipment to haul the load. (tarp, chains and etc.). We can fairly say that fuel covers an overall expense record, but our general input to this is also the economy (inflation or deflation). If the economy is in an inflationary state, then expect the rates to be higher than usual. This is why Five TMS AI recommends holding RFP events via our digital RFP, where carriers can maintain their current rates.
Five TMS AI is creating a massive breakthrough when it comes to market rates. In the current transportation industry, the overall market trends are a massive unknown, which is why Five TMS AI is creating a better visibility to the market, becoming a leading technology company to breakthrough the industry of better market rates and analysis of true data that can be used for competitive freight awarding.