Why Most Brokers Get Freight Pricing Wrong (And How to Fix It)

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The Freight Show

Vooma

10 episodes

5 days ago

The Freight Show brings stories of freight and logistics leaders who’ve shaped the industry. Through in-depth conversations, we explore their journeys, the challenges they’ve overcome, and the insights that have driven their success. Each episode uncovers the lessons, strategies, and wisdom of these freight leaders.

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Management

Business,

Marketing

Why Most Brokers Get Freight Pricing Wrong (And How to Fix It)

The Freight Show

47 minutes

3 weeks ago

Why Most Brokers Get Freight Pricing Wrong (And How to Fix It)

Freight analyst ≠ data analyst. In this deep dive, Chadd Olesen, co-founder & CEO of AVRL, explains why averages lie, how “composition scoring” beats lane-by-lane thinking, and what it really takes to make automated spot bidding profitable at scale. We get tactical on separating cost from margin, building region-first strategies, measuring MAPE, and why speed to quote (sub-second!) wins planners’ attention. We also talk participation rules, when not to bid, and how to use routing-guide gaps to win awards.

Brought to you by

VOOMA — back-office automation for freight brokerages & 3PLs (AI document handling, workflow automation). Learn more: https://www.vooma.com/

What you’ll learn

Why averages are inflated (incumbents & core lanes) and how to price below “market” without racing to the bottom.
Region > lane: composition scoring by market area, factoring deadhead, facility effects, and lead time.
Cost vs. margin separation: modeling projected carrier cost at pick time, then layering margin—no black boxes.
Automation that actually makes money: who should own it (pricing, not ops), and the cultural buy-in required.
Speed as strategy: getting under 1s end-to-end to rank first in planners’ queues (Blue Yonder/API timeout realities).
Participation rules: how 70–80% “respond/decide” mandates change bidding strategy—and when to opt out.
Turning data into awards: using routing-guide gap analytics to win net-new freight.

Time-stamped highlights

00:01:02 — Chadd’s path from speaking at Walmart events to early enterprise 3PL customers; AVRL’s pivot to pricing.
00:06:09 — Elizabeth, NJ → Chicago vs. nearby Freehold: why two “identical” rates behave differently.
00:11:03 — How AVRL models probability of coverage by region and separates projected cost from margin.
00:17:06 — Who should own automated spot bidding (hint: your pricing org), and why MAPE matters.
00:20:00 — Market Intelligence Team: rebuilding rating engines, parallelizing data pulls, and getting sub-second.
00:24:45 — The real upside: 100% participation, routing-guide visibility, and data-led award wins.
00:29:30 — Avoiding nukes: why selective participation beats bidding “everything.”
00:33:55 — Benchmarks (DAT/Greenscreens): why people blame the data when they’re using it wrong.

Links & references

AVRL homepage (company info & “18 companies per year” model). (avrl.io)
Transport Topics on AI & optimization (AVRL’s monthly transactional volume quote). (TT News)
Additional long-form interviews featuring Chadd & AVRL’s approach. (The Logistics of Logistics)

Guest

Chadd Olesen — CEO & Co-founder, AVRL (Austin, TX)
LinkedIn: https://www.linkedin.com/in/chadd-olesen/
Company: https://avrl.io/ (AVRL — Automation & pricing tech) (LinkedIn)