Freight exchanges – a transport marketplace constrained by the digital transformation

The availability of loading space, punctual delivery and networked supply are key objectives for transport service providers. The challenge lies in finding the balance between cost-effectiveness and customer satisfaction. Digital e-commerce means that individual product and delivery requirements are constantly increasing. Dispatchers are lost in the growing volume of transport orders that have to be delivered on time and to the right recipient. In the face of a dynamic market, increasing political pressure due to rising fuel prices and the noticeable shortage of drivers, hauliers are faced with the challenge of finding a balance between efficient capacity utilisation and reliability. Freight exchanges as a process-optimising link between shippers and hauliers are obvious, but they too have lost influence in the course of digital transformation. The first part of this two-part blog post deals with the question of how the so-called VUCA world (Volatility, Uncertainty, Complexity, Ambiguity) is influencing the freight exchange market and what new developments and trends are emerging in competition and user behaviour as a result.

From simple marketplace to specialised network

In the 1970s, freight exchanges emerged that brought together shippers without their own fleet and transport service providers with free capacities on a digital platform. The aim is to exchange information such as destination, volume of goods and prices in order to optimally coordinate requirements. Shippers benefit from transparent pricing and a wide range of offers, while freight forwarders reduce the number of empty runs, lower fixed costs and operate more sustainably.

Over time, the way partners are found has changed dramatically: in the beginning, simple information about relations, goods and prices was sufficient. Today, industry-specific requirements such as health and hygiene regulations in food transport or safety standards determine the suitability of a platform. While established freight exchanges offer extensive services such as price negotiations or payment processing, they often place less emphasis on such specialised requirements. Niche exchanges, on the other hand, guarantee suitable partners for specific needs, but usually have a smaller user base, which reduces the probability of finding the optimal partner.

Another factor is the type of interaction: some platforms focus on the carrier-to-carrier market, while others operate B2C or industry-agnostic. Security measures and additional functions such as trust ratings or payment processing are valued differently by users. At the same time, there is growing pressure to offer sustainable solutions and digital value-added services directly via the platforms.

Innovative approaches for transport logistics

Although the non-transparent freight exchange market requires a consolidated solution with a stronger will for interaction between all parties involved, freight forwarders and transport service providers are developing their own approaches to overcome the challenges described. Communication barriers with external drivers or third-party providers often lead to misunderstandings and errors when goods are handed over at the depot. This results in long waiting times and inefficient processes in the warehouse, on the shunting yard and at the registration desk.

adesso's yard management software offers a solution here: it overcomes language barriers when registering foreign-language drivers and enables the digital submission of goods documents in the desired language via an app. Vehicle data, quantities and volumes of goods, as well as other information, are transmitted quickly and systematically. Thanks to interface compatibility, this data can be automatically transferred to the system of the consignee. Furthermore, the integration of additional services is easily possible.

At the same time, many freight forwarders are relying on route optimisation tools to minimise the challenges of fragmented road freight transport within their network. It is crucial to take into account the dynamic and multi-layered nature of route planning in order to react flexibly to expanding requirements. Intelligent resource allocation requires not only technological solutions but also strategic advice that integrates current market conditions and future prospects into system development.

With the help of data and analytics, causalities in route planning can be identified and optimised route structures developed. On our website, you can find our route optimisation solutions for the logistics industry. In the long term, the integration of route planning systems into freight exchanges could open up new potential for efficiency gains. However, this requires a freight exchange market that promotes transparency and overcomes the diversity between different platforms.

Nevertheless, the large number of factors to be considered when choosing a freight exchange highlights the highly fragmented nature of the market. The diversity of platforms and requirements means that users often do not negotiate with each other via freight exchanges, but past each other. As a result, empty runs continue, and users are unsure on which platform they can find the best partners. There is no certainty that the ideal partner will be found on one exchange, as a better provider could be available on another platform. Regional hauliers therefore often choose not to search for partners via freight exchanges and instead rely on tried and tested partner companies. This means that empty runs, increased price conditions or non-compliance with safety standards are accepted because trust and reputation are paramount, without knowing that an optimal transport partner could have been found on a freight exchange. This potential opens up new business models for competitors.

Traditional marketplaces and their challengers

It can be seen that the freight exchange market can be described as complex. Small, specialised exchanges therefore serve clear niches and target groups, while established platforms maintain their market position through regional customer groups or mergers. The large providers strive for dominance and want to secure their unique selling points. Freight forwarders and transport companies remain undiscovered due to a lack of transparency, which means that in the digital age, characterised by platform and share economies, new competitors are entering the market. Their strength lies not in longevity and experience, but in digital diversification and business model expansion.

While the freight exchange model primarily aims to provide a customised service between shippers and carriers, new providers are integrating the freight exchange function as part of a broader digital logistics offering. These new players include digital freight forwarders, comparison and booking portals, start-ups and 4PL providers.

Digital forwarding companies

They combine transport orders with comprehensive digital services and act as contractual partners to manage the entire delivery process. Examples such as Saloodo!, Frachtraum and Cargonexx show how these companies combine traditional logistics with modern technologies. Internationally known digital freight forwarders such as Flexport and Coyote also offer additional services such as warehousing and customs clearance.

Comparison and booking portals

These enable customers to compare and book various freight services in real time. Platforms such as Pamyra GmbH offer guidance in a complex market and stand out through customer reviews and automation.

4PL Provider

They digitally coordinate cross-company logistics processes and combine services from different logistics providers. Companies such as Kühne+Nagel, DHL and DB Schenker use these platform economies to offer comprehensive supply chain solutions, with the freight exchange function being just one of many fractional services.

Outlook and AI-based solution model

To survive in this VUCA environment, the freight exchange idea needs to be rethought or an open freight exchange community needs to be created to avoid being gradually pushed out of the market by competitors and to continue to have an effective influence on the efficiency of road freight transport. A complete market consolidation of all players may sound utopian, but that is the goal: only through the full participation of all economic players in freight exchanges can empty runs be significantly reduced and comprehensive synergies created.

To tackle this overarching area of potential, the second part of the blog post presents an AI-based innovation that, based on the freight exchange model, achieves cross-market networking of the shipping and transport industry. Both the positive effects on road freight transport and the development of empty runs, as well as the influences on competition and the business models of freight exchanges, offer a forward-looking glimpse into the future.