Internet bacIdoads set to depress rates
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• by Liarn O'Brien Confectionery giant Mars is poised to launch an Internet freighting auction that will give shippers access to backload capacity—but is likely to drive backload rates even lower.
The site, wwwfreighttraders.com, is due to go live on 25 May, giving cargo owners the
opportunity to post their transport requirements on the Web. Hauliers will then be able to bid for the contract as part of a `reverse auction process.
There will be no registration fees and the site will be open to all carriers and freight customers, but a commission will be charged of 3-4% of the job's value.
Freight Traders admits that the prime motivation for cargo buyers using the site will be the prospect of lower rates.
Mars has already commit ted transport jobs worth Euro250m a year to the site, which will initially concentrate on road haulage but will eventually cover all modes including deep sea voyages.
Mars says it is backing the web site because of the potential cost savings for it and other shippers. Garry Mansell, general manager of Freight Traders, says: "This is more than just a simple dotcom site; it is the consolidation of our expertise. In future we won't think twice about using the Internet for commercial trading between companies."
Mars predicts that by accurately locating backload cargoes the site will significantly reduce the number of empty trucks running on Europe's roads.
The site has been designed in partnership with the Freight Transport Association and computer company IBM, • Two weeks ago Road Haulage Association computer expert Derek Beevor warned operators to beware of backload auctions on the Internet, claiming the commission that some services charge can wipe out any profit from a job.