The dark rate

Most benchmarking rate tools divide rates into two categories: either shipper-to-carrier contract rates or broker-to-carrier spot rates. There is a third category that nobody really talks about: broker-to-carrier contract. Let me set the stage first. One of the most reliable ways that the tools gather their information is to ask motor carriers and brokers to export their load information to them every night in Excel or some flat file. That information is separated into those two categories based on what type of company is sending the information. If a motor carrier is sending the information, then it is a shipper-to-carrier rate. The assumptions are pretty accurate: There is a contract in place, a large shipper awarded contracted business to this carrier and the rate the carrier is getting paid is shipper-to-carrier contract. If a broker is sending the information, then, it is categorized as a broker-to-carrier spot rate. The assumption is inaccurate: A broker is moving this shipment on the spot market and the rate the carrier is being paid is a broker-to-carrier spot rate.