Freight Pricing: Who REALLY Holds the Power?

A new freight pricing index from Tabi s rate management platform reveals that brokers and carriers still hold the upper hand in spot pricing, but this advantage has weakened over the past month. The index currently stands at 36, indicating brokers have maximum pricing power and shippers have minimum.

Brokers are still securing spot volumes at good margins, but it's not what it was three months ago. The index, which measures load volume, margin, awarded margin, and bid margin, is up 7 points in the last 30 days, showing spot market normalization.

Brokers are becoming more strategic, targeting large customers by lane and only pursuing profitable freight. Shippers, however, are feeling the squeeze differently due to their lack of growth in business volumes. Contract rates offer temporary relief, but tender commitments aren't truly enforceable, and shippers typically notice market shifts 3-4 months after brokers.

This data-driven approach is key to capturing peak-season upside, as those who make pricing decisions without analysis will miss out. Tabi's index, which is broker-favored, has risen 7 points in the past month, signaling the market's normalization.