FreightConnect

Core Features / Rate Negotiation

Rate Negotiation Engine

FreightConnect's AI rates loads and queries carriers in real-time. Understand the algorithm so you can price competitively and understand carrier responses.

How the Rate Engine Works

When you create a load, the system immediately suggests a rate by analyzing:

  1. Historical Data — your previous rates on similar routes
  2. Market Rates — rates from recent loads posted by other brokers (anonymized)
  3. Commodity & Equipment — LTL, partial truckload, or full load pricing tiers
  4. Timing & Seasonality — rush loads cost more; oversupply routes cost less
  5. Distance & Fuel — base rate adjusted for current diesel prices
  6. Shipper Relationship — returning customers may get volume discounts

The engine returns a suggested rate (what you should charge) and a floor rate (below which you lose margin significantly).

Example

Route: Los Angeles → Chicago (1,850 miles), Dry Van, 20,000 lbs electronics

  • Your historical average: $2.10/mile
  • Current market rate: $1.95–$2.20/mile
  • Fuel surcharge factor: +$0.08/mile (current diesel prices)
  • Suggested rate: $2.15/mile
  • Floor rate: $1.85/mile

You can post at $2.15 or adjust based on shipper urgency or strategic need.

Querying Carriers

Once you post a load at your chosen rate, the system queries available carriers:

  1. Filters — only carriers matching your minimum FSC, insurance, fraud risk thresholds
  2. Geolocation — carriers near pickup or with recent activity in that region
  3. Equipment — only carriers running the equipment type
  4. Capacity — carriers with available truck/trailer on your timeline
  5. Rate Acceptance — carriers whose average margin on similar loads suggests they'll bid

The engine sends a quote request to ~30–50 carriers simultaneously.

Carrier Responses

Carriers see:

  • Full load details (shipper, route, weight, commodity, your asking rate)
  • Your company FSC score
  • Pickup/delivery windows
  • Special requirements

They respond with either:

  • Quote — "I'll take it at $X/mile" or "I'll take it at your rate"
  • Counter — "I'll do it at $Y/mile (lower than your asking)"
  • Decline — "I don't have capacity" or "Rate too low for my margin needs"

Quotes arrive over 60–90 seconds. You see them ranked by price (low to high) or by FSC (high to low).

Negotiation

If you don't like the initial quotes:

  1. Lower your rate — click Adjust Rate and post a lower price. New carriers may come in; existing quotes expire.
  2. Extend deadline — give carriers more time to consider. Use this if you have a few hours before pickup.
  3. Negotiate directly — click a carrier's quote and Message Carrier. You can offer a mid-point rate or negotiate special terms.
  4. Accept best offer — if the best quote still doesn't meet your needs, you may decide this load isn't viable at that rate.

Margin & Profitability

FreightConnect tracks your margin automatically:

  • Revenue — what you charge the shipper
  • Cost — what you pay the carrier
  • Margin — Revenue − Cost
  • Margin % — (Margin / Revenue) × 100

After accepting a load, the margin is locked. This helps you see which routes are profitable.

Margin Targets

Set target margins in Settings → Financial Goals:

  • Target margin % — (default: 15%) minimum you want to hit
  • Minimum margin dollars — (default: $100) absolute minimum per load

Loads below these thresholds get flagged in your dashboard. You can auto-reject quotes that don't meet targets (optional feature).

Automated Pricing Rules

For bulk posting, you can set rules in Settings → Pricing Automation:

  • Base rule — "charge $2.50/mile on all 48-state loads"
  • Shipper override — "XYZ Corp always gets +10% discount"
  • Route override — "California intrastate loads cap at $1.50/mile"
  • Seasonal adjustments — "peak season (Jun-Aug) add 20%"
  • Fuel surcharge — "add 0.5% of base rate per dollar of diesel over $3.50/gal"

These rules apply when you bulk-upload loads. You still review each load before posting.

Dynamic Pricing

Enterprise customers can enable dynamic pricing, where the system automatically adjusts your asking rate 30 seconds after posting:

  • If 0 quotes in 30 sec → lower rate by $0.10/mile, re-query
  • If only 1 quote in 30 sec → lower rate by $0.05/mile to attract more competition
  • If 5+ quotes in 30 sec → your rate was too low; note this for future loads

This optimizes for high carrier engagement while protecting your margins. You can cap the adjustments (e.g., "don't go below $1.80/mile").

Benchmarking

Go to Analytics → Benchmarking to see:

  • Your average margin by route, carrier, shipper
  • How your rates compare to market (anonymized aggregates)
  • Seasonal patterns (when rates spike/drop)
  • Carrier-specific pricing (some carriers always charge less)

This helps you price smarter and spot underperforming lanes.

Rate Agreements with Carriers

If you have a preferred carrier, you can lock in rates:

  1. Go to Carriers → select the carrier
  2. Click Rate Agreement
  3. Set:
    • Rate format — $/mile, flat fee, or weight-based
    • Rate amount — e.g., $1.95/mile
    • Effective dates — when this agreement is active
    • Territory — which states/regions (optional)

Once set, when you quote this carrier on a matching load, their rate is pre-filled. They just confirm acceptance.

Next Steps

Last updated: April 2026