Freight Benchmark / Benchmarking

Freight benchmarking is the process of measuring your transportation rates and carrier performance against external reference points – market indices, peer averages, or historical trends – to determine whether you're paying fair prices and getting competitive service. It answers the question every logistics leader eventually asks: "Are we getting a good deal, or are we leaving money on the table?"

Benchmarking typically compares your contracted and actual rates on specific lanes against current market pricing for the same origin-destination pairs, equipment type, and mode. The data sources vary: load board indices like DAT or Truckstop provide spot market benchmarks, while some platforms aggregate anonymized shipper data for contract rate comparisons. The most useful benchmarks are lane-specific and mode-specific – a national average tells you very little about what you should be paying on a reefer lane from Salinas to Chicago.

The real value of benchmarking isn't just knowing where you're overpaying – it's having the data to do something about it. When you walk into a carrier negotiation or RFP evaluation with market rate data on every lane, you shift the conversation from "what will you charge?" to "here's what the market says – can you beat it?" That's a fundamentally different negotiating position. Benchmarking data also helps prioritize procurement efforts: if you have 300 lanes, benchmarking tells you which 30 are most misaligned and deserve attention first.

Benchmarking should be continuous, not a once-a-year exercise before RFP season. Markets move, and a rate that was competitive six months ago may be 15% above market today – or 15% below, meaning your carriers may start rejecting tenders. Ongoing benchmarking keeps your pricing strategy aligned with reality.