Freight exchange

Freight exchange or platform?

Increasingly often the freight exchange is referred to alternatively as an internet platform. This is the natural evolution of IT systems, as only such solutions allow the use of the computing power of an online platform without having to rely on the limited computing resources of one's own computer.  The need also arises from the numerous new functionalities that are only possible to implement in the Internet space. It is now increasingly common for the name "freight exchange" to be replaced by "transport platform" or for reasons of habit to be used interchangeably. Regardless of whether we are talking about an exchange or a platform, it is an IT system that enables the conclusion of transactions and the transmission of relevant information from the point of view of transport orders (e.g. type of free load, destination, loading space, etc.). Thanks to the presence of exchanges, we are witnessing a dynamic change towards optimisation, a reduction in transport costs resulting from a reduction in the complexity of processes regulated by individual countries in the context of transport law. 

In recent decades we have seen a dynamic development of online platform solutions.

Working from phones, faxes and emails is being replaced by complex solutions, where transactions take place in real time. It is no different in the TSL transport industry. 

The aim of this text is to present the most popular freight exchanges in Europe. 

The most popular freight exchanges on the old continent are:

• Timocom exchange
• Teleroute freight exchange
• wtransnet Exchange
• Trans.eu freight exchange

This seems to be obvious and unquestionable, because the more popular an exchange is in a given territory, the more resources it has - and the probability of finding e.g. a transport order or a freight depends on the resources. The number of offers is dynamic and depends on many variables, related among others to a given situation arising from local conditions and demand at a given time.

The exchanges mentioned above have from several dozen to several hundred thousand offers daily. If we compare from the point of view of market existence, we should mention above all the French freight exchange Teleroute, which was the first in Europe. 

Other exchanges were established at a very similar time. The youngest entity in Poland is our native Polish exchange trans.eu.

The exchanges usually offer free of charge access, however in this mode they have limited possibilities with regard to the creation of relations or active participation in the exchange. Access to the exchanges is only intended to show the quantity and quality of resources and specific solutions for the execution of transport orders.

The cost of access varies, but is based on the subscription principle for access. The price is of course dependent on the type of subscription as well as the duration of the contract. Normally, the shortest subscription period for access to the exchange is one month, while the longest is one year. Logically speaking, the longer the subscription, the lower the price of monthly access to the exchange.

The offer of each exchange differs not only in terms of price and resources, but also in terms of specific solutions related to:

• security policy
• method of communication
• complementary services as well as specific solutions resulting from the specificity of a given country.

On the Polish market the transport exchange trans.eu stands out as the best solution. The advantage arises first of all from a better understanding of the specifics of the Polish market as well as from the approach to the security of transactions. On the Central European market, the reliability of counterparties proves to be crucial. Due to weak state mechanisms, asserting one's rights before the courts is time-consuming and very often inefficient.  Every client of a freight exchange is subject to verification in order to become an active user, which is specific to the type of exchange he decides to join. The verification is also conditioned by the differences resulting from the authorizations and transport documents held, in some cases the analysis can be deepened due to the type of transport orders and resulting from specific authorizations.  Each contract may be terminated in a manner and time specified by the rules of a specific exchange.

To sum up, there are 4 transport exchanges dominating the European market: timocom, teleroute, wtransnet, trans.eu, each of them offers opportunities for the execution of orders, however the choice of exchange is usually determined by two factors: the saturation of offers for transport orders in a given latitude and the level of security. When choosing a particular solution, it is important to take into account the price of the subscription as well as the additional features that allow you to optimise the process of transport transactions.

 

 What does the future hold for the stock exchange? Logistics 4.0 on the march

Logistics 4.0 is the result of synergies and system integration based on the growing opportunities offered by digitisation.

Digitalisation in industry solutions is particularly important in the road transport sector, as it is estimated that three quarters of goods reach the end buyer thanks to road transport.

McKinsey in its report "Route 2030: "The fast track to the future of the commercial vehicle industry" predicts that within 10 years trucks will be moving without the driver having to physically drive the vehicle. It also predicts a reduction in transport costs of up to 45%, reductions in co2, increased road safety.

It is already clear that the leading truck manufacturers (DAF, Iveco, Scania and Volvo) are investing heavily in the development of autonomous trucks.   

Digitalisation is taking place on many levels: ERP, CRM, TMS or RPA - robotic process automation.

Activities in the transport industry are usually structured and repetitive (e.g. documentation resulting from the need to settle accounts between entities or related to specific legal requirements). The biggest challenge in the development of a transport exchange is the huge amount of data, but thanks to the use of telematic systems (a solution integrating IT, telematic and telecommunications systems), we can use the results of analyses in real time and apply the data in the decision-making process.

In the near future, we can also expect an increase in the use of loT (internet of things) systems, which seems to be useful, for example, in the optimisation of numerous repetitive processes (traffic, road tolls, etc.). Another milestone in the digitisation of transport exchanges is the use of the blockchain philosophy. Using the principle of a distributed system, it is particularly applicable in the situation of an extended supply chain where the overall picture is not traceable.

In the context of the development and digitisation of transport exchanges, it is also impossible not to mention artificial intelligence (AI). Artificial intelligence has the technical capabilities of so-called machine learning, which is applicable, for example, in the connection of vehicles with transport order offers in real time. 

All in all, the market for freight exchanges is seeing an increase in solutions that make use of the latest advances in civilisation. As can be seen in the article above, transport exchanges naturally compete not only on the supply side, but also on the degree of adaptation to the changing conditions associated with the new requirements of digitisation of logistics processes. 

Polish freight exchanges

Two transport exchanges dominate in Poland: Timocom and Trans.eu. This article will however focus on the native Polish freight exchange trans.eu. The reason for this is the larger geographical coverage as well as the greater amount of educational material available, from where one can draw knowledge for the entire process of a trasnport order. 

In a nutshell, an exchange can be defined as a virtual space where entities meet to carry out a cargo transport transaction. Shippers, forwarders and carriers all meet in this virtual space. A good visualisation of how exchanges work is the mechanism of Allegro, with the exception that on Allegro consumers meet to purchase goods, while the basis of the exchange is the conclusion of transactions related to transport services. The essence of the goal motivating entities to purchase access subscriptions to the exchange is, among others 

• reduction of empty runs
• access to thousands of orders according to individual matching keys
• maximise space utilisation 

The key to the success of a freight and vehicle exchange is communication, as it determines the quality, speed and the matching of the transactions between the actors involved in the virtual space: forwarders, shippers and carriers. 

The entities participating in the exchange

As mentioned earlier, three entities meet on a transport exchange:

• carriers (i.e. operators with their own fleet)
• shippers (i.e. operators interested in transporting the manufactured product (semi-finished product) or selling it)
• forwarders (intermediaries between shippers and carriers)

The most common relationship on the exchange is between carriers and shippers. The establishment of a relationship occurs at the moment of convergence: the direction, the type of transport, the specific requirements, the authorizations, as well as the agreement on the rate resulting from the specificity of the transport order.  Matching is the essence of entering into transactions on the exchange. The degree of matching determines the probability of concluding a transport contract. 

Why do we need an exchange? 

One of the obvious advantages is the ability to quickly find transport orders. Thanks to the automatic analysis, only those results matching the current needs of the operators are displayed. For example, the number of orders in the Polish freight exchange oscillates in millions of orders, with several tens of thousands of companies logged on in just one day.  In order for the cooperating entities to operate efficiently and quickly, they should, for their part, bear in mind the quality of data related to their specific needs.

For their part, companies seeking relationships must ensure quality and reliability with regard to 

• geolocation of loading and unloading (town, postal code, street, building number and other specific data related to the destination, e.g. dock number)
• time - exact date, time 
• size and weight of the loading 
• specifics of loading (e.g. side or rear)
• additional specifics related to the type of goods being transported (e.g. refrigerated, ADR, customs bonded, etc.)

Already at the stage of defining our needs, quality is important. If we don't care about the quality of the description of our transport needs, we run the risk of being inundated with mismatched offers. It's worthwhile in the first stage to define the variables of transport as well as possible, because each time we can use a repetitive template if our needs do not change.  Everyone is aware of the evolution of the way we communicate: from the landline phone to the internal messengers implemented in the online platform. The communicator "built in the exchange" has its own internal functions that make it possible to have everything in one place and in one window. The communicator is used to specify the offer or to negotiate the issued requests.  

What are the advantages of using a Polish freight exchange?
Firstly, speed: all you need to access your transport orders is a computer with Internet access. Of course data transfer is important here, so make sure you have a stable speed from your internet provider.  Secondly, reliability: algorithms and human analysis detect non-specific behaviour, i.e. anomalies, which are quickly analysed to prevent fraud.  In the Polish stock exchange trans.eu a user is assessed via the TransRisk reliability index. The index is a reliable information about the reliability of contractors regardless of whether we are dealing with freight forwarders, carriers or shippers. The higher the index, the better the reliability. In a natural way, by evaluating cooperation on various levels, we have reliable information on the credibility of a potential contractor.  After each order, the users of the exchange have the task to assess the quality of the cooperation, thanks to which over time we obtain reliable information which is the basis for taking a decision on cooperation.

The solution proposed by the Polish trans.eu exchange is based on the certification of contractors' credibility:

• TCE (Trans Certified Express)
• TCC (Trans Certified Carrier)
• TCF (Trans Certified Forwarder)

The last element of the analysis of the native Polish exchange is the way to use the system; the scheme will be briefly presented in the individual steps. 

After filling in the form with their transport needs, the user of the exchange searches for relations, regardless of whether they are freight forwarders, shippers or carriers. Of course, the number of results that will be presented is dependent on the current supply or demand in a given latitude. The degree of matching, as already mentioned, depends on the quality of filling in one's own needs profile. Once a user has found a satisfactory offer for himself, a dialogue is initiated using the trans.eu internal messenger. After the exchange of order-specific data (upon acceptance by the parties), a transaction is concluded. There are also additional functions which, from the user's point of view, make it easier for him to carry out his tasks, such as a map, a template or an additional tab called "tasks for the driver".  When the user finds an offer that meets his requirements, he starts a conversation about transport. For this purpose, he starts a messenger where the parties negotiate the rate and - if they reach an agreement - conclude the transaction.
 

Additional functions of the trans.eu exchange

In addition to being a platform for the exchange of information and placement of advertisements, the exchange system often has many additional options to make its users' work easier. Particularly noteworthy are the maps. The map allows the route to be mapped out and the option of taking additional load to be verified. Practice shows that this is very often the case. Additionally, the mentioned template also plays an important role in searching for offers in the exchange. In the trans.eu system, there is an option of individual templates dedicated to specific transport needs which can be used repeatedly, thus saving time. 

In summary, the exchange system is a tool for finding transport offers, communication through a tool integrated with the messenger, with the possibility of trading transport documents. An important facility is the tab for the driver, thanks to which new tasks can be assigned to him. The exchange is subject to constant modification and expansion in order to meet the expectations of users on the one hand and, on the other, to make optimal use of the increasing technological possibilities resulting from the progress of the IT industry. 

If it's an exchange, it's an international one

International Freight Exchanges are systems that optimize transport processes by, among other things, facilitating contacts, eliminating costs associated with empty runs, and organizing the entire sequence of events associated with the execution of transport orders on international routes.  Providers of international exchanges overtake each other in creating functions which facilitate the work of forwarders, shippers or carriers.

The most popular transport exchanges in Europe will be presented below.

Timocom - was founded in 1997 in Germany by TimoCom Soft und Hardware GmbH. 

The exchange was established in Germany, but quickly covered the whole of Europe, including Poland.  The Timocom exchange is available in 24 languages. The German exchange can process transport orders, including both standard and customised shipments. The timocom exchange has KEP solutions, i.e. postal and express courier services. Like other exchanges, timocom offers domestic as well as international transport. 

Other solutions adopted by the exchange include:

• TC eBid - tendering function based on contracts based on a longer time horizon
• TC Profile - a reliability index for companies 
• GPS tracking and calculation with TC eMap - route optimisation function which calculates costs and monitors the route 
• TimoCom Assist - a compendium of knowledge in the form of answers to all frequently asked transport-related questions.
• Transport Barometer - Shows the current economic situation, so the company has the information it needs to plan its resources 
• TimoCom Secure - the function protects the company against unauthorised transactions. TimoCom Secure is also tasked with the collection of receivables by the CashCare debt collection department.

Online "Teleroute PRO" - Freight and vehicle exchange Based in Belgium and operating continuously for over 25 years, Teleroute Pro is part of Wolters Kluwer. Its geographical scope covers 27 European countries. The freight and vehicle exchange enables its customers to complete the entire logistics process with a number of solutions that are tailored to the individual transport company profile.

Every day there are several hundred thousand offers with tens of thousands of verified by the online system users. Additional features that distinguish Teleroute PRO include:

• STAR algorithm indicator where we can verify the business credibility among users of the online exchange. Transport company directory where we can find information related to transport companies, whose data is updated on an ongoing basis.
• E-confirmation - is used to share documents between business partners. Users have a unique ID, so it is easy to track the history of orders and on this basis to determine the reliability of the contractor, which is interesting that each offer in the exchange is insured against robbery of goods. The financial rating is used to assess a company's financial health, based on information such as profits, revenues and creditworthiness. As part of the security of transactions, Teleroute provides a mediation service to resolve possible conflicts amicably. Teleroute's in-built system also enables you to plan routes thanks to its detailed Map&Guide solutions.

Exchange platform - System Trans.eu, the company which is the managing entity created the exchange in 2005. It has numerous branches in Europe, thanks to which it has a rich offer of free loads. Up to several tens of millions of freight offers are published per day, making the trans exchange one of the largest places to search for transport orders in Europe and the world.

Both commercial and manufacturing companies use the exchange. The trans.eu platform also has the unquestionable merit of being able to integrate the customer's system individually with the exchange system. Similarly to other stock exchanges, trans.eu places emphasis on the factor of reliability and security of transactions. Companies which also care about their perception among contractors can apply for a quality mark: Trans.eu "Certified Carrier" Certificate Trans.eu "Certified Forwarder" Certificate.

WTranset - vehicle and freight exchange.

The company is a leader on the Spanish and Portuguese market, but it is worth noting that its range also includes South American countries.

Like other freight exchanges, it has functions that allow communication (internal chat), automatic matching (analysis of matching needs in real time. The matching is analysed according to the following criteria: one date and time, type of vehicle, type of body, way of loading the routes.

The exchange offers different solutions:

• belink - allows us to find permanent and long-term orders WFinder 2.0
• company directory, where we can find up-to-date information about companies cooperating with WTraset Meeting Point, up-to-date information about affiliated companies
• WConnecta once a year a meeting of owners of transport companies cooperating within the framework of the exchange WTransnet Simultaneous translation
• White list - a list of companies that pay before the legal deadline each new company has a dedicated business assistant who is responsible for providing them with a list of business contacts according to their individual needs profile
• CARGO Plus - an online application for cooperating forwarders, with an algorithm that matches the best Doc&Data carriers according to a key.

Presented transport exchanges are advanced platforms, which aim to match entrepreneurs in the transport industry. They offer advanced algortims that optimise the logistics process, making the fulfilment of transport orders faster, safer and easier.
 

Read also in polish -  Giełda Transportowa
Read also read in German - Börse oder Transportplattform