Calculate Freight Costs Market Price

The Market Price Indicator, or freight costs calculator, feature within IMPARGO serves as an advanced tool tailored for professionals in the transport industry, facilitating precise cost estimation and pricing insights. Seamlessly integrated into the IMPARGO Truck Route Planner, this freight costs calculator addresses the complexities associated with market price uncertainties.

Importance of using a freight costs calculator:

• Optimize Financial Planning: Adjust your prices based on what's happening right now in the market. Be competitive and offer the best rates to your customers.
• Your Cost, Your Way: Customize details to fit your transport. This ensures that price estimates are just right for your specific needs.
• Compare Prices at a Glance: Visual representations make it easy to compare prices quickly. No complex numbers, just a clear picture.
• See the Profit Picture: Understand how much profit you might make. The freight costs calculator calculates potential profit margins, helping you make smart financial decisions.

Realistic freight market prices for transports:

The hundreds of thousands of price data in IMPARGO's Market Price Indicator are derived directly from bills. This means that the prices essentially mirror real paid prices, offering an authentic representation of actual transactions within the transport industry.

How the Freight Costs Calculator Works:

• Market Price Data Learning: Algorithms improve with more data, impacting the precision of price estimates.
• Reality Check Through Transactions: The algorithm is validated by comparing estimates with real-world transactions, ensuring accuracy against observed market prices.
• Characteristics Considered by the Algorithm:
  • Geographical Data: Origin and destination cities are leveraged, with continuous geographical modeling eliminating border effects.
  • Temporal Data: Prices are estimated per week or month based on data frequency.
  • Loading Characteristics: Type of goods, load weight, quantity transported (pallets, floor meters, cubic meters), and fuel inclusion/exclusion.
• Estimating Market Price Distribution: Algorithms reconstruct price distributions based on observed patterns for specific origin/destination pairs.
• Adaptive Learning: The algorithms continuously evolve, learning from new data and adapting to market changes for precise estimates.

The Confidence Index and the use of real-paid prices create a strong foundation for the freight costs calculator within the Market Price Indicator. Users can have confidence in the estimates, knowing they are based on hundreds of thousands of data points from real bills, and the Confidence Index guides them in assessing the reliability of the data.

Components of Confidence (Reliability) Index:

1. Number of Data Items: More data means a higher confidence level.
2. Diversity of Data Sources: Various data sources boost confidence.
3. Frequency of Data Sources: Regular data updates increase confidence.

Confidence Index Rank:

• Highest Confidence (Rank A): Indicates a high level of confidence in the estimated prices. The data is abundant, diverse, and regularly updated.
• Moderate to Low Confidence (Ranks B to D): Represents varying levels of confidence. Users should exercise caution, and additional validation may be beneficial.
• Lowest Confidence (Rank E): Suggests the lowest level of confidence. Users should approach estimates with caution, and verification is strongly recommended.

Users can use the confidence index to decide how much trust to place in the estimated prices from the freight costs calculator. Higher confidence levels offer assurance, while lower confidence levels indicate the need for careful consideration and verification.

Step 1: Create a truck route in IMPARGO truck route planner. 
Initiate the process by planning a truck route with two stops using the IMPARGO Truck Route Planner.

Step 2: Find and click on “Get Market Price”. 
Open the Market Price Indicator window by clicking on "Get market price" in the planner, allowing you to access the freight costs calculator.

Step 3: Add details and get freight market price.

1. Add loading meters and weight to refine cost estimations.
2. Customize details like vehicle type, goods type, benchmark type (Spot or Contract), and hazardous goods indication.
3. Click on “Get market price”.

You will then get a visual representation of costs compared to minimum, median, and maximum market prices provided by the freight costs calculator.

Step 4: Adjust pricing.

A. Automatically: Click on the desired price under Min, Median, or Max to reflect that market price in the result bar below. 

Alternatively, manually input your price based on data from the freight costs calculator.

B. Manually: Adjust the "Price in €/km" or "Final price" fields, affecting each other manually.

Step 5: Calculate profit margin. 
View the profit for the calculated cost and price instantly under the "Final price" field.

Market price indicator is an exclusive feature for our Professional Plan and Business Plan users. By having a Professional Plan or Business Plan account, the user can get access to this feature with the following details: 

5 times FREE Market Price Indicator calculation, then 25 € per 100 additional calculations.

- Get market prices directly in the Planner 
- Gather market insights to evaluate your transportation profits 
- Use the freight costs calculator in order and offer creation

*Notice: Pricing might change in the future

Please visit our pricing page for more information about our current available plans, comparisons, payment methods and etc.

Choose the plan that fits your daily transport operations!

1. What is the freight market price indicator feature in IMPARGO TMS platform?

The Market Price Indicator is a tool integrated into IMPARGO's Truck Route Planner, providing real-time cost estimates and market prices for transport routes.

2. How does the freight market price indicator work?

Users create a truck route, input details like loading meters, weight, and goods type, and click "Get market price." The tool then calculates and visually represents costs compared to market benchmarks.

3. Can I customize the cost estimates for my specific transport details?

Yes, the freight costs calculator within the Market Price Indicator allows customization of parameters like loading meters, weight, vehicle type, goods type, and benchmark type for tailored cost estimates.

4. How does the freight market price calculator consider hazardous goods in cost estimation?

Users can indicate if their cargo contains hazardous goods, ensuring that the tool factors in these considerations for accurate cost calculations.

5. What benefits does a freight costs calculator offer for financial planning?

The feature eliminates guesswork, provides transparent cost breakdowns, and empowers users to make informed decisions, optimizing financial planning and budgeting.

6. How does the freight costs calculator enhance operational efficiency?

By integrating cost estimation into route planning, the tool streamlines operations, saves time, and increases overall operational efficiency.

7. How can I use the freight costs calculator to stay competitive?

The tool enables users to adjust pricing strategies based on real-time market prices, ensuring competitiveness by offering the best rates to customers.

8. Can I see a visual comparison of freight pricing scenarios?

Visual representations within the tool aid swift assessment and comparison of pricing scenarios, simplifying decision-making.

9. How does transport profit calculation work?

The freight costs calculator includes a profit calculation component, offering insights into potential profit margins, helping users make smart financial decisions.

10. What factors contribute to realistic freight market prices provided by IMPARGO?

The algorithms consider real-time data from diverse sources, route details, goods type, and hazardous materials, ensuring a realistic representation of market prices.

11. How can I adjust pricing in the freight market price indicator?

Users can adjust pricing automatically by clicking on reasonable prices or manually inputting their own based on the freight costs calculator.

12. Is the freight costs calculator user-friendly?

Yes, the Market Price Indicator is seamlessly integrated into the IMPARGO Truck Route Planner, offering a user-friendly interface for easy navigation and use.

13. Can I trust the accuracy of the cost estimates provided by the freight costs calculator?

The tool's accuracy is ensured through customizable parameters, regular algorithm evaluations, and comparisons with observed market transactions, providing reliable estimates.

14. How does the confidence index work, and why is it important?

The confidence index reflects the reliability of the estimated prices, considering the amount of data, diversity of data sources, and the frequency of data receipt. A higher confidence index indicates more dependable estimates.