A load board (which is sometimes referred to as a freight board) is an online marketplace where truck owners/operators, shippers, and freight brokers can post and search for loads to keep freight moving.
How does it work?
Usually hosted online, the users of the specific load board pay a subscription to log into the load board to post loads or post empty trucks in order to either cover their freight or get their truck loaded. The load board facilitates communication between shipper, broker and owner-operator or small carrier.
A real-life load board example
Shipping is the foundation of most countries. Almost every sector of the economy depends on the movement of the goods from Point A to Point B. A load board is an essential tool for business owners who are working together to move freight across the country. Here is an example of how people using load board in their daily operations to increase revenue.
Bob owns a truck and he is a business owner/entrepreneur, and family man. His goal is to keep his truck full during the week so that he can optimize his time on the road and maximize his truck’s profits. Bob lives in Albuquerque and today he wants to drive to Illinois. What is the reason? Because Bob knows that this route pays well, and that he can quickly find a returning load to travel home to his family. He needs to earn a fair wage for hauling the load and wants to work with trusted third parties to find freight for his truck.
Bob posts his truck’s information such as can haul refrigerated loads, maximum weight allowance, etc. and the desired destination on the load board, an online marketplace where subscribers of that board can search for empty trucks and available loads.
How does Bob, the Owner/Operator use the load board to fill his truck?
Emily, a transportation broker who is also a business owner, uses a load board. Her clients are shippers like Walmart or Amazon who work with third parties or brokers like Emily to get their items from Point A to Point B. Emily usually works with refrigerated loads and she has a list of loads every morning that she needs to move for her customers.
Emily has to find a truck with a reliable driver so that she meets her customer’s needs. She needs a driver with an empty, refrigerated truck who is currently near Albuquerque who wants to drive to Illinois to carry frozen products. Emily needs to find a driver for the load, so she posts her load on a load board, where she will begin to receive calls from interested drivers. She also calls on available trucks in the Albuquerque area and finds Bob. After negotiating a fair rate and checking credentials, Bob and Emily agree to work together.
How does a load board help a business?
For Bob and Emily, less downtime means more money. If Bob’s truck remains empty, money is lost and he may need to work on weekends to make up the difference. Late shipments for Emily means money is lost and potentially losing a customer. Customers are her lifeline so it is essential that she keeps her customers happy.
Thousands of hours of efficiency were gained by facilitating the real-time connections such as the one between Bob and Emily when load boards were introduced.
What other things can a load board help with?
Load Boards are usually more than just a freight marketplace. Shiply load board, for example, offers users with an accurate data within the load board to better their experience when freight matching and comparing quotes. Accurate data means more money. Now, just what does it means?
For Emily and Bob, accurate data means more money because when Bob sees the paid rates on his account, while he is talking to Emily, he knows exactly the average rate paid for the Albuquerque to Illinois. If he is offered a lower rate, he can use the data to easily negotiate a fair rate. The same goes for Emily. If Bob wants a rate that is too high, she can easily point to the paid rates to negotiate.
Thousands of hours of efficiency were gained by facilitating the real-time connections such as the one between Bob and Emily when load boards were introduced.
Load boards acts as a data-informed matchmaker for the three main freight parties such as the broker, shipper and carrier.
- Owner-operators will inform the brokers where they are and where they want to go.
- Brokers would post the loads they have available from shippers and find owner-operators.
- It helps the shippers to save time and earn more money when their goods are transported efficiently.
It is definitely a win-win-win situation for everyone involved.
How does a business benefit from a load board?
Using an online load board can be a good idea in many occasions. Whether you are just starting your business or you are expanding and in need for new clients, using a load board can help organize your business, make it more efficient and bring an extra revenue.