LogisticsExchange begins trading, bringing predictability to the transportation market

New digital platform secures capacity at fixed rates using binding contracts

By ·

After months of close collaboration with leading shippers, carriers and 3PLs, LogisticsExchange (LE) has begun buying, selling and trading LE Forwards contracts on its digital platform. With truckload rates rising to three-year highs entering 2018, LE is seeing a surge in demand for its binding, enforceable contracts that guarantee capacity to shippers and committed loads to carriers.

Using proprietary analytics, the LE Platform provides forward visibility and price discovery to help logistics industry practitioners improve service and price reliability. The company’s digital platform connects carriers, shippers and Logistics Service Providers (LSPs) to intelligently match demand with capacity and to execute enforceable, binding contracts.

LogisticsExchange provides benefits to all participants in the transportation market:

  • Shippers: Buy insurance and protect budgets with guaranteed capacity, service and cost with enforceable, binding digital contracts
  • Carriers: Pre-book capacity through guaranteed commitments, improving network balance, and informing strategic pricing and asset allocation decisions
  • Brokers: Secure margins by covering customer commitments with guaranteed capacity and rates, managing risks and reducing operational workload

Over the past year, the LE team has analyzed extensive datasets from shippers and Logistics Service Providers to identify opportunities to secure capacity at fixed rates using LE Forwards, the first of several types of contracts to be released on their platform.

“Our close collaboration with industry leaders has been critical for developing analytical tools, standardized contracts, and transparent trading rules that solve persistent problems for shippers, carriers and 2PLs,” said Anshu Prasad, co-founder and CEO of LogisticsExchange. “Delivering value for today’s logistics market participants is critical for establishing the foundation of trust and transparency we will need as we expand buying, selling and trading activity to a broader set of industry participants.

Prasad said that initial results have been promising, securing future capacity for several thousand shipments and avoiding service disruptions and overexposure to the spot market at rates 10 - 25 percent lower than through alternate approaches. Both shippers and LSPs have shared in these benefits, allowing them to focus their stretched resources on other challenges in their supply chains.

Although these initial contracts represent a small portion of the nearly $400 billion spent in the U.S. annually on for-hire trucking services, these contracts suggest the enormous benefits available for shippers, carriers and 3PLs through a common platform, transparent trading rules, and advanced analytics.

Prasad commented, “While there is much more to do, we are excited by the results our early customers have achieved. Over the next few months, we will continue to focus on enhancing the value to our customers, while expanding the analytics, data insights and tools we provide them via the LE Platform.”

For more information, visit http://www.logisticsexchange.com.

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.

Article Topics

All Topics
Latest Whitepaper
The Changing Landscape of Barcode Labeling
Every organization has its own unique set of business processes that it’s labeling must accommodate which adds even more to existing supply chain complexities
Download Today!
From the March 2019 Logistics Management Magazine Issue
Shippers are starting to see the incredible advantage that can be gained through the strategic management of e-commerce—especially as logistics professionals move out of their silos and into the C-suite. Industry experts further contend that walls will continue to be torn down before this disruption reaches an advanced and fully evolved stage.
LM Viewpoint on E-commerce Logistics: Time to simplify
Six Warehouse Management Trends to Watch in 2019
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly newsletter!
Latest Webcast
Strategies to Overcome the Labor Shortage and Skills Gap in Distribution
Join logistics industry expert Robert O’Dwyer and technical consultant Shawn O’Brien as they discuss how top companies are developing strategies to do more with less, and identifying technology solutions that will enable managers to overcome their skills gaps. This webinar illustrates how top companies are developing strategies to do more with less and identifying technology solutions that will enable managers to overcome their skills gaps.
Register Today!
Ember: Finding the perfect temperature
Inventor of the world’s first temperature-controlled mugs turns to a single third-party logistics...
2019 Rate Outlook: Pressure Builds
In 2019, the world economy will enter a third straight year of broad-based growth, but many...

2019 Transportation Management Systems (TMS) Market Update: Keeping pace with the times
The transportation management systems market is growing right along with the number of challenges...
The Logistics News that Shaped 2018
Every year at this time, group news editor Jeff Berman combs through the mountain of news that was...

У нашей компании нужный интернет-сайт на тематику акриловая краска цена акриловая краска цена
морилка для дерева