Let’s face it, freight procurement isn’t getting any easier. Between constant market volatility, carrier consolidation, and unexpected disruptions, knowing whether you’re getting a fair deal has become nearly impossible without the right tools.
We’ve gathered the most common questions we hear from logistics professionals about rate benchmarking and why it’s become essential, not optional, in the modern freight market.
How do I know if I’m overpaying for freight?
Without benchmarking, you don’t. It’s that simple.
Most logistics teams rely on some combination of:
- Last year’s rates (in a market that’s completely different now)
- Gut feeling (expensive guesswork)
- Whatever your carrier tells you (not exactly unbiased)
The result is that you might be overpaying by 15-20% on key lanes without even realizing it. Or worse, locking in those inflated rates for months in your contracts.
With Freightos Terminal, you get instant visibility into live market rates across all your lanes. No more wondering if that Shanghai-US East Coast quote is fair because you’ll know exactly where it stands against real market data.
Can’t I just compare quotes from different forwarders?
Getting multiple quotes is smart, but it only tells you who’s cheapest among your current options – not whether ALL of them are above market rate.
Think about it: If Carrier A quotes $3,800, Carrier B quotes $4,000, and Carrier C quotes $3,900, you might feel good choosing Carrier A. But what if the actual market rate for that lane is $3,200?
Benchmarking gives you the whole picture, not just a relative comparison. It’s the difference between choosing the best available option and knowing what’s actually possible.
What makes Freightos Terminal’s data reliable?
This is the big one. Unlike traditional benchmarking that relies on voluntary submissions (often cherry-picked to look good), our data comes directly from transactional systems where actual bookings happen.
The difference is crucial:
- Traditional data: “Here’s what carriers say they charge”
- Freightos data: “Here’s what shippers actually paid yesterday”
We’re processing real transactions representing over $50B in freight spend – not estimates, not averages, not outdated information. When you see a rate on our platform, it’s because people actually booked at that price. Our data originates from Freightos’ transactional systems, which facilitate quoting, booking, and shipment management for carriers, forwarders, and shippers (BCOs).
How current is your benchmarking data?
Daily updates. In the present market, weekly or monthly data might as well be ancient history.
Remember when Shanghai-US West Coast rates jumped 67% in a single week during the Red Sea crisis? Shippers using outdated benchmarks were suddenly negotiating in the dark.
Our daily refreshed data ensures you’re never caught off guard by sudden market shifts. Plus, we track the top 10 market events driving rate changes, so you always understand the “why” behind the numbers.
I’m drowning in different rate formats. Can your system handle this?
Absolutely. We’ve built our system specifically to solve the “different forwarders, different formats” headache.
Upload your contracts, however they come, and we’ll standardize everything for true apples-to-apples comparison. Excel sheets, PDFs, proprietary formats… we handle it all. No more manual spreadsheet gymnastics, trying to align different surcharge structures or terminology.
What about all the surcharges? That’s where I often get hit.
We don’t just benchmark base rates – that would be useless in today’s market.
Our system gives you granular visibility into all the surcharges that matter: BAF, PSS, GRI, IMO/LSS, temperature-controlled, dangerous goods… the works. Filter exactly what you need to see, where the real costs are hiding.
Because let’s be honest – a great base rate means nothing if you’re getting hammered on surcharges.
How do I use benchmarking data in actual negotiations?
This is where benchmarking truly pays for itself. When your carrier proposes a 10% increase, showing them that market rates have actually decreased by 5% completely changes the conversation.
Our users typically approach negotiations with:
- A clear view of lanes where they’re overpaying
- Historical trends showing where rates should be heading
- Specific surcharges that are out of market alignment
For example, one customer recently avoided a proposed 12% increase and instead secured a 3% decrease by bringing accurate benchmarking data to the table. That’s the power of negotiating with facts, not feelings.
“Benchmarking ocean freight with Freightos Terminal allows us to make targeted negotiating decisions while continuously knowing where we are against the freight market.”
— Tony Heldreth, Chief Procurement & Supply Chain Officer, Cabinetworks Group
See how Cabinetworks managed freight spend to below median lane prices →
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Is my rate data kept confidential when I use your platform?
Absolutely. Your uploaded rates are only visible to you and are never shared with other users. All benchmark data is completely anonymized and aggregated, so there’s no way to identify specific companies or contracts.
Your procurement edge stays your edge.
Can I see historical trends, not just current rates?
Yes, and this is crucial for effective planning. Our historical view shows you:
- How rates have moved over time on your key lanes
- Where seasonal patterns might affect your strategy
- Whether current spikes are anomalies or part of a trend
This context is invaluable when deciding between spot and contract rates or timing your RFQs. You’re not only reacting to today’s market but anticipating tomorrow’s.
How quickly can I get started with benchmarking?
You can be up and running in minutes. Unlike complex procurement systems that take months to implement, Freightos Terminal is designed for immediate value:
- Book a demo to set up your benchmarking-enabled account
- Upload your current rates (optional but recommended)
- Start benchmarking immediately
No lengthy onboarding, no IT projects, no waiting for “data to populate.”
Can I share insights with my team?
Of course. Export reports, create custom views, and share insights across your organization. Whether you need a quick snapshot for a meeting or a detailed analysis for quarterly planning, the data is always ready to go.
Because good procurement decisions shouldn’t happen in a silo.
Ready to stop guessing and start benchmarking?
Every procurement manager we talk to has the same question: “Am I paying too much?”
Whether you’re facing contract negotiations, evaluating spot quotes, or just trying to understand if your current rates make sense, benchmarking provides the clarity you need.
The best part is you can start right now – a short demo, a seamless setup, and you’re ready.
Learn about our rate benchmarking feature to see how easy it is to gain the upper hand in your freight procurement.
Because in a market this volatile, the only thing worse than overpaying is not knowing you’re overpaying.
