LogisticsNow, a four-year-old start-up, has launched the first contracted truck rate benchmark on its platform “LoRRI”.
According to Raj Saxena, Founder and CEO, LogisticsNow, the manufacturers, who enter into contracts with truckers to move their cargo at pre-fixed rental levels in India, can now figure out an average range of such rentals that other players have – on those routes.
LoRRI Benchmark provides the cost at which one can connect a district or a city, using which truck-type, which transporter can move the cargo, among others.
Usually, contracted truck rental rates are fixed between the customer and transporter for a few months or years with in-built links. Unlike spot rates that are the truck rates for immediate demand between certain routes, contracted rates are not available.
The company issued the benchmark as its customers asked it to devise such a platform, said Saxena. Companies that use the LogisticsNow platform include Saint Gobain, Baskin Robbins.
LoRRI provides data for 20,000 routes, over 80 truck-types, and over 650 transporters.
Saxena said this benchmark was required due to lack of reliable and readily accessible information for contracted freight rates in road transport; absence of national reach, and need for a single neutral platform that provides freight rates and logistics service providers or transporters pan-India.
Saxena said the “neutral” platform democratises the space by all transporters – large and small – to be on the common network, and cargo available for transportation. Also, customers get to rate the transporters. There are certain routes where smaller transporters are top-rated by customers, he added.