What is rate benchmarking?
Rate benchmarking is the comparison of your paid freight rates against market references per lane, modality and volume segment. It delivers a factual picture of your position in the market: where you structurally pay market or even below-market rates, and where you pay significantly above the market average.
A good benchmark goes beyond a simple comparison of price per kilometer. It accounts for volume effects (small volumes simply pay premium), service level (express versus standard), fuel and currency situation at the time of the agreement, and contract duration. That makes the difference between a report you can actually decide on and a report that is only interesting to file away.
When is a benchmark relevant?
A rate benchmark is valuable at three typical moments. Just before a new budget year, to set realistic targets for freight costs. Just before renegotiations or a tender, to enter the market with a factual basis. And periodically (typically annually) as a quiet check on whether existing contracts still match what the market currently offers.
For shippers with freight spend above one million euros a benchmark is also a cheap insurance. The cost of the benchmark is typically a small fraction of what even a tenth of a percent shift in your rates structurally yields.
Our approach
We determine which lanes and modalities are in scope for the benchmark, based on volume and strategic importance. Typically we focus on the ten to twenty lanes that together cover 80 percent of your freight spend.
We collect twelve months of shipment data, normalize to comparable units, and isolate pure transport rates from total invoices (excluding accessorials, fuel and one-off surcharges).
Per lane and modality we match your rates with our market reference base (public indices, sector benchmarks and anonymized insights). The result is the position of your rate within the market range.
We analyze where the largest deviations sit and what the cause is. Some deviations are justified (service premium, specific lane complexity), others are structurally improvable.
We deliver a document with benchmark results, prioritized improvement opportunities, and advice on whether a targeted renegotiation or a full tender is the right next step.
What you get
- Benchmark report per lane with market range and your position
- Spreadsheet with all underlying data and calculations, open and repeatable
- Prioritized list of renegotiation opportunities, ranked by impact
- Decision document on the right next path (renegotiation versus tender)
- Presentation for your management or board, ready for decision-making
Frequently asked questions
How do you work with benchmark data?
We use a combination of public index data, anonymous sector benchmarks via industry associations, and anonymized insights from our own client base. No client data is shared with other clients. The benchmark provides a reliable range per lane and modality.
How often should I benchmark my rates?
An annual benchmark is the right rhythm for most shippers. In strongly fluctuating markets (such as sea freight in 2021 and 2022) a semi-annual review can be valuable. Intermediate benchmarks are especially useful just before contract renegotiations or a tender.
Do I get concrete amounts or just ranges?
Per lane and modality you get a market range (low, median, high) and we position your rate within. Concrete amounts for specific carriers are not part of the benchmark; that belongs to a tender. The benchmark is informational and strategic, not contractual.
What do I do if I appear to be paying too much?
A benchmark is typically the trigger for a targeted renegotiation or a carrier tender. We support both paths and the benchmark serves as factual basis for the conversation with your carriers. Often it leads to better terms without a full tender being needed.
Is this a one-off assignment or ongoing?
A rate benchmarking assignment is by default a project with fixed budget and fixed result. For clients who want to recalibrate annually we also offer a light ongoing variant within our Operations & Procurement retainer.
A benchmark of your freight rates?
Schedule a call where we walk through what a benchmark would deliver for your company.