Freight futures market to ease spot rate volatility, company says

DC Velocity | November 28, 2018

Freight futures market to ease spot rate volatility, company says
Logistics data and analytics provider FreightWaves will partner with price reporting agency DAT and derivatives exchange and clearing house Nodal Exchange to create a futures market for trucking, a tool that will allow buyers and sellers to trade financial contracts for freight pricing, helping them hedge their exposure to spot rate volatility, the firms said recently.
Set to launch in late March, the trucking industry's Freight Futures Exchange is "all about risk mitigation," according to Craig Fuller, CEO and managing director of Chattanooga, Tenn.-based FreightWaves, who announced the launch during the company's MarketWaves18 conference in Dallas earlier this month. The exchange was three years in the making, a product of Fuller's deep industry experience and research into developing a trucking futures market, which led to the launch of FreightWaves in 2016. The market combines DAT's benchmark freight pricing data with FreightWaves' market data to trade on Nodal Exchange, which runs a futures exchange for electricity production and other commodities.

Spotlight

Since the world began to globalize after the initial industrial revolution, we have seen the rise of ever more complex supply chains to manage the subsequent flow of raw materials and goods around the planet[1]. These supply chains have been extremely successful, enabling the explosion of manufacturing, trade and innovation around the world that has been at the heart of globalization in the past few decades. The technologies and methods used to run these supply chains have not however kept pace with the growing interconnectedness and complexity of our world. Supply chains in many industries and sectors are creaking under the strain

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Spotlight

Since the world began to globalize after the initial industrial revolution, we have seen the rise of ever more complex supply chains to manage the subsequent flow of raw materials and goods around the planet[1]. These supply chains have been extremely successful, enabling the explosion of manufacturing, trade and innovation around the world that has been at the heart of globalization in the past few decades. The technologies and methods used to run these supply chains have not however kept pace with the growing interconnectedness and complexity of our world. Supply chains in many industries and sectors are creaking under the strain