Pricing Terms Intermediate

Spot Rate

Also known as: Spot Pricing, Spot Market Rate, Transactional Rate

Definition

A spot rate is the current market price for shipping freight right now, without a long-term contract. It fluctuates based on supply and demand, capacity, fuel costs, and seasonal factors.

Spot Rate vs. Contract Rate

Spot Rate Contract Rate
One-time quote Locked-in pricing
Market-driven Negotiated
No volume commitment Volume commitment
Higher volatility Price stability
Immediate availability Guaranteed capacity

When to Use Spot Rates

  • Occasional shipments
  • Overflow capacity needs
  • Testing new lanes
  • Seasonal spikes
  • When spot < contract

Spot Rate Factors

What drives spot pricing:

  • Current truck/capacity availability
  • Fuel prices
  • Lane demand
  • Time of year (produce season, holidays)
  • Day of week
  • Load characteristics

Finding Spot Rates

  • Load boards (DAT, Truckstop)
  • Freight brokers
  • Digital freight platforms
  • Carrier sales reps
  • TMS spot quote features
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