Spot Rate
A one-time freight rate negotiated for a single shipment based on current market conditions, without a long-term contract commitment. Spot rates fluctuate daily based on supply and demand in specific lanes and are typically higher than contract rates during tight capacity periods and lower during soft markets. They are commonly used for overflow freight or loads in lanes without established volume.
Detailed Explanation
A one-time freight rate negotiated for a single shipment based on current market conditions, without a long-term contract commitment. Spot rates fluctuate daily based on supply and demand in specific lanes and are typically higher than contract rates during tight capacity periods and lower during soft markets. They are commonly used for overflow freight or loads in lanes without established volume.
Example
During produce season in May, a shipper who normally pays $2.50/mile on contract sees spot rates spike to $4.00/mile on California-to-East-Coast lanes due to high demand.
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