Spot market shippers reportedly choose quality carriers over lowest price
The lowest carrier bid wins spot market freight from enterprise shippers only about 25% of the time, according to historical data from PostBidShip
In reviewing data, PostBidShip found that the second lowest bid was awarded 55% of the time and shippers opted for the lowest bid in only 25% of the awards. Other bids were selected 20% of the time. PostBidShip says that this reflects the desire to select a carrier with a high quality of service rather than opting for the lowest rate.
However, as it is based on PostShipBid data only, it is unclear whether this could be a result of the platform or it could also be a reflection psychological pricing perception, where lower than average values are associated with reduced quality irrespective of the reality.
"We see that a high percentage of shippers aren't selecting the lowest bid; instead, they are choosing to work with high-quality carriers they have confidence in," said CEO Sam Levin. "PostBidShip uses a comprehensive review process to ensure our carriers meet the highest standards for safety, operating authorities, insurance coverage, our customer rating system and other factors that reflect a commitment to quality."
Subscription-based PostBidShip hosts reverse auctions for spot market freight, creating a marketplace for shippers and carriers but is not involved in the transactions as a broker.