What Is a Spot Quote?
A spot quote is a carrier rate that differs from contract rates, which provides the long-term security of price and capacity. A spot rate happens under the circumstances that a shipper suddenly has an urgent shipment or a carrier doesn’t have enough space. That is to say, spot quotes are more short-term (for tight deadline shipments) and spontaneous, and rates are also extremely sensitive to market conditions.
What Is the Decisive Factor of Spot Rates?
In the spot quote universe, price is like the moon. To be more specific, the relative position of the Sun and the Earth will affect the shadow on the moon. As a result, similar to the moon, the spot freight rate also depends on multiple participants in the market, such as suppliers, distributors, and brokers.
What Is the Process of Spot Quotes Like?
- The freight provider receives a quote request.
- The shipper set the standards for the shipment, including weight, load type, distance, deadline and other factors.
- The freight team takes all available resources into consideration and figures out a proper rate.
- The shipper then decides to use the service or continue to shop around for the best rate.
So, How Do We Get an Adequate Spot Rate?
First of all, remember to offer detailed shipment information, or you may still end up paying an extra fee later if you exclude important information, such as pickup date and product weight. Furthermore, you should communicate with your providers about special requirements for your shipments if needed. You also have to keep in mind that you request spot quotes as early as possible. As the pickup day approaches, the price will become even higher. Last but not least, it’s critical for you not to set your appointments during holidays or weekends because you are about to pay more.
Above all, we need to consider plenty of situations before choosing the provider. And it’s important for you not to settle for the cheapest provider. You should take their trust, profession, and service into account. Otherwise, a cheap quote may cost you more by damaged goods or missed products.
If you’re in need of expert advice, come talk to SFI today and we will provide you with the best possible service and quotes for your shipping needs. Feel free to email us at email@example.com or call us at (909) 594-3400.