What is a Freight Exchange? Basics and Principles of Operation

Freight Exchange - Definition and Operational Basics

The transport industry requires effective tools to connect carriers with customers needing logistics services. This is precisely the role that freight exchanges play - digital platforms serving as places for information and service exchange between carriers, forwarding companies, and individual clients.

The definition of a freight exchange describes it as an interactive online market where logistics providers can report the availability of free loading space, and businesses can post information about available loads. It’s worth noting that modern freight exchanges operate online in real time.

Moreover, freight exchanges offer users possibilities such as:

1. Searching for and posting offers for loads or vehicles;
2. Contacting counterparties;
3. Completing transactions for transport services.

It’s also worth adding that transaction systems exist on freight exchanges that often resemble auction bidding - carriers propose prices for transporting specific loads, and the client selects the most favorable offer.

History and Development of Freight Exchanges

The first electronic freight exchange was established in 1985 in France, based on the Minitel system. The platform, known as Teleroute, changed how the transport industry functioned, enabling the exchange of information about loads and available loading spaces in real time.

Main Goals and Advantages of Freight Exchanges

The primary goal of transport platforms is to optimize logistics processes, which provides many advantages to their users. As a result, the operation of a freight exchange provides benefits such as:

• Minimization of empty runs, meaning journeys made without cargo;
• Enabling optimal use of loading space;
• Acquiring additional transport orders;
• Matching supply and demand offers in real time.

It’s worth adding that freight exchange users also include manufacturing companies, for which the benefit of using such platforms is, for example, the ability to find transport offers from carriers with fleets having appropriate vehicle bodies for their goods, e.g., for groupage cargo.

Business Models and Platform Availability

Using freight exchanges may require paying a subscription or involve a commission charged on the value of orders obtained through the service. Some exchanges require installing special software, while others are accessible via web browsers or mobile applications.

Many freight exchanges with varying reach and specialization operate in the market. Some cover the territory of one country, others operate internationally. The most popular freight exchanges present in the market include: Timocom exchange, Trans.eu platform, Clicktrans, Teleroute, Cargo.pl, Wtransnet, and 123cargo.

Classification of Freight Exchanges

Freight exchanges for forwarders are characterized by significant diversity of platforms, which can be classified according to several key criteria. Understanding these divisions allows transport companies to make informed choices of tools best suited to the specifics of their operations.

Geographic Reach: Local and International Platforms

The basic division criterion is the geographic reach of the platform’s operation. National exchanges focus on handling transport within one country, while international platforms cover dozens of countries with their reach.

Among the leading international exchanges are the Trans.eu platform, which operates in 24 countries, or the Timocom exchange serving as many as 46 European markets. Teleroute, meanwhile, operates in 29 European countries. These numbers show the scale of impact of the largest platforms on the European transport market.

Local exchanges often better respond to the specific needs of regional markets, offering more detailed knowledge of local regulations and commercial customs.

Types of Transport: Road, Sea, and Air

Traditionally, freight exchanges focused exclusively on road transport. However, the development of the freight exchange as a common platform, as well as the development of the logistics industry, led to the creation of services handling multimodal transport.

An example of such evolution is Cargo.PL, which expanded its offer to include categories of sea and air transport. The platform allows posting offers even three months in advance, which significantly facilitates long-term planning of logistics operations. The system allows for precise searching of offers according to specific seaports or airports.

Specialized Platforms

Modern freight exchanges also enable finding specialized transports. Some platforms focus on handling specific types of loads requiring a specialized approach.

The most commonly encountered specializations include:

• Transport of dangerous goods (ADR);
• Temperature-controlled transport (refrigerated transport);
• Oversized loads requiring special equipment.

Among the most popular categories of orders are also transports up to 3.5 tons, pallet transport, industrial machinery transport, and vehicle transport.

Financing Model: Free or Paid Platforms?

The choice between a free and paid freight exchange is a key business decision that affects available functionalities and the level of cooperation security.

Paid platforms usually operate in a subscription model, where the cost depends on the number of users in the company. They offer advanced tools such as real-time vehicle monitoring or transport cost calculators. Additionally, they also provide detailed verification of counterparties and access to a larger database of loads and additional functions, like factoring or advanced monitoring.

Free freight exchanges allow free registration and browsing of offers, though they often charge fees for posting advertisements. However, they are characterized by simplified user verification, which may mean a greater risk of cooperation with unreliable counterparties.

Before making a final decision, it’s worth using trial periods offered by most platforms, which last from several days to even 4 weeks. This allows for practical testing of functionalities and assessment of fit to company needs.

Who Uses Freight Exchanges?

Freight exchanges attract a wide spectrum of logistics market participants - from one-person transport companies to international forwarding concerns.

Carriers are the basic group of users of these platforms. Transport company owners, regardless of fleet size, use exchanges to find load transport offers for their vehicles.

Example of transport order offers: A sole proprietor after unloading in France and partial loading still has free space in the truck and is looking for an additional load to avoid returning “empty”. Such situations are everyday occurrences in the transport industry, and exchanges allow carriers to optimize vehicle use and increase profitability.

The second key group is forwarders. Freight exchanges for forwarders are, above all, the possibility of finding carrier offers for their clients and acquiring new contracts. For forwarders, the ability to verify counterparties is also particularly important.

The use of a freight exchange is becoming increasingly common among manufacturing and trading companies. These companies can easily post their loads on the platform and receive offers from transport companies. Initially, the application of freight exchanges mainly concerned forwarding and carriers, but recent years have brought a clear increase in the activity of manufacturing and trading companies that directly seek transport contractors.

It’s also worth mentioning individual clients who use freight exchanges occasionally, usually not executing regular orders. For this group, a free freight exchange is a common choice.

The scale of operations of the largest transport exchanges

The numbers best illustrate the popularity of these platforms. TIMOCOM connects over 55,000 companies from 46 European countries. Trans.eu has about 44 thousand users, of which about 25 thousand are verified carriers. Meanwhile, Teleroute operates in 29 European countries and covers a network of over 85,000 transport companies.

How to Use a Freight Exchange?

Effective use of a freight exchange is a process that requires knowledge of several key stages. The right approach to each of them allows for maximizing the potential of these platforms and achieving assumed business goals.

Registration and Building a Credible Profile

Online freight exchanges first require registration, which includes filling out a registration form and submitting required documents. Providers of leading exchanges then conduct account verification, checking the authenticity of company data and the credibility of the potential user.

This verification process is crucial for the security of the entire platform and minimizes the risk of cooperation with unreliable counterparties. After successful account activation, it’s important to complete a detailed company profile - the more reliable information, the greater credibility in the eyes of potential business partners.

Publishing and Efficient Searching for Offers

After registering, freight exchange users can both publish their own transport offers and browse available transport order offers. When adding an offer to the platform, all key information should be included: exact data about the load or available loading space, loading and unloading locations, and execution deadlines.

When searching for orders, it’s worth maximizing the use of available filters, which allow narrowing results according to specific criteria. Thanks to this, you can quickly find transport offers that best match the company’s capabilities and needs.

Effective Negotiations with Counterparties

The negotiation process on freight exchange platforms requires an appropriate strategy. You shouldn’t start conversations by presenting the highest possible rate. Instead, it’s better to start with a reasonable price proposal, leaving room for further negotiations.

Moreover, direct telephone communication often significantly facilitates reaching an agreement and reduces the distance between parties. Personal contact builds trust and allows for better understanding of the counterparty’s needs.

Monitoring Execution and Service Quality Control

Modern freight exchanges offer advanced tools for real-time vehicle monitoring. This function enables constant tracking of vehicle location through integration with telematic systems.

Thanks to this approach, both the client and the contractor have continuous insight into the status of the transport being executed. This solution significantly increases the transparency of cooperation and allows for quick reaction to any unforeseen situations.

Rating System and Building Reputation on the Platform

After completing cooperation, users can evaluate the quality of services provided. Rating systems allow assigning from one to five stars in various categories, such as communication, timeliness of execution, or care for the transported goods.

Users usually have 30 days from the date of transport completion to submit an opinion. These ratings play a key role in building the credibility of companies on the platform and constitute an important source of information for other users when choosing potential business partners.

Freight Exchange vs. Transport Exchange and Load Exchange

On the topic of freight exchanges, it’s worth distinguishing also concepts close to it - load exchanges and transport exchanges. These terms are often used interchangeably, but it’s worth noting that they are not completely identical - they differ in scope, function, and target user group.

Freight Exchange - Overarching Concept

A freight exchange is the broadest term encompassing a digital platform for exchanging transport and logistics services. It enables both:

• Publication of loads for transport (by forwarders, manufacturers, wholesalers),
• Posting available vehicles (by carriers),
• Executing transactions, negotiating rates, verifying counterparties, and integration with telematic systems and TMS.

In practice, a modern freight exchange serves as an interactive market that connects supply and demand for transport services in real time.

Load Exchange - Function Within a Freight Exchange

A load exchange is a module or segment of a freight exchange where load offers for transport are published. It is used mainly by:

• Loading companies;
• Forwarders;
• Warehouses;
• Carriers looking for return orders or additional loads.

It’s in this section that a carrier can find a specific transport order and submit a price offer.

Transport Exchange - Informal or Regional Concept

Transport exchange is a term used less frequently and often informally. It may mean:

• A freight exchange in colloquial terms;
• A place where carriers offer their services (i.e., an exchange of available vehicles).

This concept doesn’t have an unambiguous industry definition and is used mainly in a regional context or by people outside the TSL sector.

What is a Freight Exchange? - Summary

Freight exchanges have become an essential tool for companies operating in the TSL industry. Thanks to them, it’s easier to optimize routes, limit empty runs, and quickly react to the changing market. Regardless of whether you’re just starting your business or looking for new solutions for your fleet - a well-chosen platform can significantly increase your company’s efficiency.

If you need help choosing the right freight exchange or support in running a transport company, e.g., with accounting in transport or drivers’ payroll calculation - contact us. We’ll help you take care of finances, HR, and driver settlements, so you can focus on business development.