Spot Rate / Spot Market

A spot rate is the price a carrier quotes to move a specific shipment right now, based on current supply and demand. Unlike contract rates that are locked in for months, spot rates fluctuate daily – sometimes hourly – reflecting real-time market conditions like available truck capacity, seasonal demand, weather disruptions, and fuel costs. The spot market is where shippers go when their primary carriers can't cover a load.

Shippers end up on the spot market for several reasons: their routing guide carriers reject the tender, they have unexpected volume that exceeds contracted commitments, they're shipping on lanes not covered by contracts, or they're a smaller shipper without the volume to justify annual RFPs. Spot rates are typically higher than contract rates in a tight market and lower in a loose one – making them both a risk and an opportunity depending on timing.

The real cost of spot freight often goes beyond the rate itself. The scramble to find coverage – calling brokers, posting loads on load boards, waiting for callbacks – eats into team productivity. And because spot decisions are made under pressure, shippers frequently accept the first available option rather than the best one. This is where rate visibility matters most: seeing spot pricing alongside contract rates and LTL tariffs in a single view lets the team make informed decisions even when time is short.

Many shippers also use spot market data strategically, tracking spot rate trends by lane to inform contract negotiations and identify lanes where the market has shifted enough to warrant a mini-bid or renegotiation. Spot data isn't just a fallback – it's a procurement intelligence tool.