FreighAI
FreighAI · Playground article
Playground · Checklist article

Where does AI get partner and carrier rates from?

Question B1 of the twelve, and the hardest on the sheet. Some of your rates sit in a file. Some sit behind a carrier login. Some sit in the head of a partner in Jakarta who answers when he answers.

No vendor has solved the last group, and that includes us. This article explains why, what an honest answer sounds like, and how to test it on your own lanes.

The short answer

Carrier and contracted rates can be fetched by software. Rates that live in another agent’s head cannot. No vendor has solved agent-sourced pricing, FreighAI included. Ask any vendor to split your lanes into what they can price on day one and what still waits on a person.

Why is this the hardest question on the checklist?

Because the answer decides whether the product works on your business or somebody else’s.

Quoting looks like one job. It is really two. One is arithmetic: take a rate you have, apply your rules, produce a number. The other is diplomacy: work out who might price this lane, ask them, wait, read what comes back, and ask again.

Software has been good at the first for years. The second has resisted everybody, because it is not a data problem. It is a relationship, conducted by email, with no obligation on anyone to reply.

The checklist puts it plainly: nobody has fully solved agent-network rate sourcing, so the honest answer is a map, not a claim. That is why B1 has two halves. “Where do you get rates from” invites a list of logos. “What happens when the rate is not there” tells you what the software does on a Tuesday afternoon when your customer wants a number for Dar es Salaam.

Written by a vendor, and we fail this one too

FreighAI has not solved agent-sourced rates either. The checklist names B1 as one of three questions we cannot yet answer well, on purpose, because a checklist we always pass is an advert. Hold our answer to the standard below.

Where do your rates actually come from?

Before you can test a vendor’s answer, you need your own. Most forwarders have never written it down.

Sort your lanes into four buckets. Not by mode or customer, but by where the number comes from.

The four rate buckets. Sort your own lanes into them before you speak to anybody.
  1. Your own contracted rates
    How the rate reaches you today
    A file, a folder, a spreadsheet. Signed with a carrier or an NVOCC, valid for a period.
    Can software reach it
    Yes, once it is uploaded and kept current.
    What it means for the reply
    The reply is arithmetic. Nobody is waited on.
  2. Carrier live rates
    How the rate reaches you today
    A carrier API, or a portal somebody logs into and reads.
    Can software reach it
    Usually, with real work behind the word “usually”.
    What it means for the reply
    Fast, and it depends on the connection holding.
  3. Spot market
    How the rate reaches you today
    Published references for a small number of high-volume port pairs.
    Can software reach it
    Partly, and only for covered lanes.
    What it means for the reply
    Useful as a sanity check, rarely as the quote itself.
  4. Partner and agent rates
    How the rate reaches you today
    An email to two or three agents. A WhatsApp message. Sometimes a photograph of a spreadsheet.
    Can software reach it
    Not as a rate. The asking can be handled. The number cannot be conjured.
    What it means for the reply
    The reply waits on a person who does not work for you.
One enquiry, sorted
    1. 01Enquiry arrivesEmail, WhatsApp forward or a call written up.
    2. 02Which bucket?Contracted, carrier, spot or agent.
    3. 03Your rate cardsLooked up if the lane is one you hold.
    4. 04Carrier checkA connection or a portal read for a live number.
    1. 05Agent RFQLanes you do not hold go out to the agents who might price them.
    2. 06ChaseThe ones who went quiet are asked again.
    3. 07Priced draftWhatever came back, checked against your margin rules.
    4. GATEYou decideIt goes out in your name, or it does not go.
FreighAIYour own rate cardsYour team approves
One enquiry finding its rate: sorted into a bucket, priced from what is reachable, sent out to agents for what is not, chased, drafted. You make the call at the end, not the vendor.

Now count. Put a bucket against each of your top ten lanes. Most forwarders who do this are surprised twice: by how much sits in bucket four, and by how much of bucket one is out of date.

That count is your evaluation. A vendor who covers buckets one and two brilliantly is a strong buy for a forwarder whose business is mostly bucket one, and close to useless for one whose business is cross-trade through agents. Neither comes out of a demo.

Why has nobody solved agent-sourced rates?

Six reasons, and none is about how clever the software is.

  • The rate does not exist until somebody makes it. An agent’s price for a shipment is a decision, made when asked, based on their space and how much they want your business. There is nothing to fetch.
  • The reply is not a rate, it is a paragraph. It arrives with inclusions that differ by agent: terminal handling at both ends, documentation, ISPS, chargeable weight rounding, free time. Two prices for the same lane are often not comparable, and the gap is where the margin goes.
  • There is no standard to plug into. DCSA’s published standards list names bill of lading, booking, track and trace, VGM, arrival notice, port call and vessel schedules, described as common data models for digital interoperability between carriers, ports, terminals, shippers and freight forwarders. Pricing is not among them. In air, IATA’s ONE Record is described as a standard for data sharing that creates a single record view of the shipment. Pricing is not in that scope either.
  • Published references cover very few lanes. Drewry’s World Container Index is a weekly spot assessment across eight major East-West routes, widely used as an independent reference for index-linked contracts. Your enquiry is door to door, on a lane nobody indexes.
  • Validity is short and the clock is unforgiving. A partner quote good for seven days is a different object from a contract good for six months. Software that stores it as a rate will quote it three weeks later, which is worse than no rate at all.
  • It is reciprocal. You quote for their inbound, they quote for your outbound. A tool that blasts a thousand requests at your network damages the network.
What can be reached and what waits
Both products
The quote your customer sees
One number, whatever it took to get thereOne set of inclusions the customer can read
Fetched without waiting on anybody
Machine-reachable
  • Your uploaded rate cards
  • Contracted tariffs still in validity
  • Carrier connections and portal reads
  • What that customer paid on that lane before
Waits on whoever is answering
Person-dependent
  • Agent pricing for a lane you do not hold
  • Negotiated one-off deals
  • Charges quoted over the phone and never written down
  • The second opinion on an odd routing
The split that decides every answer to B1. Both columns end in the same place: one number, with one validity, that somebody has to approve.

The second column is not hopeless. It is a communication problem rather than a lookup problem, and the two need different promises from a vendor.

What does a good answer to B1 sound like?

A map, not a claim. A map of your lanes rather than theirs.

A strong answer has four parts, and you can ask for each by name:

  • 01What is covered, by bucket. Which of the four they can price without a person, in your buckets rather than in general.
  • 02The number on your top ten lanes. The checklist’s own follow-up: how many of my top ten would you have a rate for on day one? Any answer other than a number is not an answer.
  • 03What happens when the rate is not there. Does a person get a task, does the agent get an email, does the enquiry just sit.
  • 04What it costs you to improve the coverage. Rate cards to upload, credentials to hand over, an agent list to clean up. Ask how many hours from your side.
Recommendation

Ask for the top-ten-lane number in writing before the second meeting, and give them the ten lanes yourself. A vendor who answers “seven, and here are the three we would not have” has told you more than an hour of screens.

What are the traps?

Four, and the first is the one the checklist warns about.

Vague talk about integrations

A long list of connections is not a coverage answer. Ask what each one returns: a rate, a schedule, a booking, or a page a person still has to read. A login and a screen is fine, and it is not a rate you can quote from.

A carrier count instead of a lane count

A large number of carriers means little if none of them price the lane you sell. Bring your ten lanes and ask about those.

An index mistaken for a rate

Market references tell you where a lane sits. They do not tell you what you can sell it at.

“A person handles it” described as a feature

A fallback where a person does the work is not wrong, and for bucket four it may be the only truthful answer. What matters is whether that person is yours or theirs, and whether the chase happens without anybody remembering.

One more, which is an asymmetry rather than a trap: a demo runs on a lane with excellent coverage. The twenty enquiries you choose under question A1 should include the three lanes that give your team the most trouble.

What does an honest fallback look like?

Nobody can conjure a rate that has not been made yet. What a product can do is take the asking off your team.

That is the shape of an honest answer to the second half of B1, from any supplier. As an example, here is ours, in the wording we publish elsewhere on this site.

  • Emails all your agents for a lane in one go, with the route and charge lines filled in, then chases the ones who do not reply.
  • Where a lane has to be priced by another agent or over the phone, the wait belongs to whoever is answering — not to the software. FreighAI still writes the RFQ, chases the reply, and turns whatever comes back into a priced, margin-checked quote the moment it lands.

The shape matters more than the vendor. It does not claim to know the rate. It claims to remove the asking, the waiting and the re-typing, and it says out loud that the delay belongs to the third party. That is the most anyone can honestly promise on bucket four.

Hold us to it in the same words. If any vendor, us included, describes bucket four as solved, the checklist has told you something.

How do you write the answer into a decision?

One page. Four rows, one per bucket, one column per vendor, filled in the same day.

The whole record of question B1, per vendor, on four rows.
  1. Bucket one, your contracted rates
    What you write in it
    Can they load them, in the format you hold them in, and who does the loading.
  2. Bucket two, carrier live rates
    What you write in it
    Which carriers, returning what, and what happens when the connection fails.
  3. Bucket three, spot
    What you write in it
    Whether they use a reference, and whether they present it as a rate.
  4. Bucket four, agents
    What you write in it
    The top-ten-lane number, and what the software does while the agent is quiet.

Then decide with a rule you set in advance. Bucket four is never a reason to reject a vendor. A claim to have solved it always is.

Two things belong in the pilot rather than the meeting. Put your three worst lanes in it deliberately. And agree in writing what “covered” means before anybody counts: a lane is covered when a quote can go out without a person leaving the product to find something.

Finally, run B1 on yourself. How long does an agent rate take today, who chases it, and how many enquiries die in that gap. That is what the software is competing against, and it is usually worse than anybody believes.

Questions

Common questions

01

Is any vendor closer to solving agent-sourced rates than the others?

Some are further along on the asking and chasing. Nobody is further along on knowing the rate, because it does not exist until an agent decides it. Treat a claim to have solved it as a warning sign.

02

We are almost entirely contracted rates. Does B1 matter to us?

Less, and it still matters at the edges. The lanes you cannot price are usually the new business and the odd routing, which is the part of the book you want to grow.

03

What is a fair top-ten-lane number from a vendor?

There is no fair number, because it depends on your book. What is fair is that the vendor gives you one and names the lanes they would miss. Ten out of ten, without seeing your lanes, means they have not understood the question.

04

Should we upload our rate cards during the evaluation?

Only what you would be comfortable leaving behind if you walk away, and only after you have asked question C1 about ownership and export. Three lanes is enough.

READY WHEN YOU ARE

Take question B1 into your next vendor call

Bring your top ten lanes, ask for a number against them, and ask what the software does while an agent is quiet. Then ask us, and expect a map rather than a claim.