PORTLAND, Ore., March 27, 2017 /PRNewswire/ -- TransFX, formerly known as TransVix, recently announced a strategic partnership with DAT for the development of trucking futures contracts. Citing exhaustive research it did with more than 200 trucking industry CEO's, TransFX deemed DAT's truckload rate information "the de facto industry standard."
The choice underscores the value of the proprietary technology and data integrity processes DAT uses to provide reliable truckload rate data collected in DAT RateView from the $33B in actual transactions between load providers and carriers annually across 66,000 lanes in the United States and Canada.
TransFX intends to develop the first regulated trucking futures contracts, known as TransRisk. Contract settlement will occur using reference price data provided by DAT. The TransRisk futures contracts will provide a new way for brokers, carriers, and shippers to hedge against market volatility and exposure on major U.S. trucking lanes.
Hedging and futures contracts are common in markets as varied as maritime, airline and trucking fuel, grains, and other commodities. See a more complete description of what TransFX intends to create at https://www.TransRisk.com.
Why Use Spot Market Data for a Futures Exchange
Spot market rates in DAT RateView are based on actual rates that brokers have paid to carriers to move freight that is not under contract. Unlike contract rates, which tend to be stable and change slowly, spot rates can be highly volatile throughout a work day, week, and/or month due to sudden shifts in supply and demand. Examples of this are shippers' urgent need to clear end-of-quarter inventory, weather events such as the Polar Vortex of 2014, and the 2016 Hanjin bankruptcy that disrupted freight coming into and going out of Los Angeles.
The spot market also handles "exception freight," which becomes available when a carrier opts not to provide capacity at the contracted price with a shipper. Depending on market conditions, spot market freight can account for 20% to 40% of commercial truckload moves.
DAT currently publishes national and regional supply and demand information, as well as rate trends in its free, weekly online newsletter DAT Trendlines and provides insight on these trends in its Freight Talk Blog and on social media.
About DAT Solutions
DAT operates the largest on-demand freight exchange in North America. Transportation brokers, carriers, news organizations and industry analysts rely on DAT for market trends and data insights derived from 100 million annual freight matches and a database of $33 billion of market transactions. Related services include a comprehensive directory of companies with business history, credit, safety, insurance, and company reviews; broker transportation management software; authority, fuel tax, mileage, vehicle licensing, and registration services; and carrier onboarding.
Founded in 1978, DAT Solutions, LLC is a wholly owned subsidiary of Roper Technologies (NYSE: ROP), a diversified technology company and constituent of the S&P 500, Fortune 1000 and Russell 1000 indices.
TransFX is creating products and solutions that help transportation industry participants efficiently manage price risk in the North American freight transportation market. TransRisk is a TransFX company and is creating the first regulated trucking futures contracts and settlement using reference price data from DAT Solutions. TransRisk trucking futures contracts will provide a transformative method for participants to protect against market volatility and exposure on major U.S. trucking routes.
Founded by trucking industry alum Craig Fuller, the TransFX executive team has collectively managed over $40B in freight contracts and deeply understands the market volatility challenges within the trucking and logistics industry. That experience, coupled with a team of veteran trading exchange and regulatory executives, is creating a solution that solves for an unserved and highly addressable market need. TransFX is based in the center of "Freight Alley" in Chattanooga and is backed by Hunt Technology Ventures, L.P. For more, visit https://www.transrisk.com.
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SOURCE DAT Solutions