The rise of dynamic truckload pricing

For decades, the North American truckload market has relied on long-term, fixed-price contracts as its backbone—a one-size-fits-all solution in a landscape defined by volatility and complexity.

Yet, as our research at MIT’s Center for Transportation & Logistics reveals, this traditional approach is increasingly misaligned with the realities of today’s freight environment. Shippers and carriers grapple with unpredictable demand swings, infrequent or inconsistent shipment volumes, and the persistent challenge of “ghost lanes” that never materialize. The COVID-19 pandemic further accelerated a shift toward spot market transactions, exposing the limitations of rigid contracting.

The rise of dynamic truckload pricing

For decades, the North American truckload market has relied on long-term, fixed-price contracts as its backbone—a one-size-fits-all solution in a landscape defined by volatility and complexity.

Yet, as our research at MIT’s Center for Transportation & Logistics reveals, this traditional approach is increasingly misaligned with the realities of today’s freight environment. Shippers and carriers grapple with unpredictable demand swings, infrequent or inconsistent shipment volumes, and the persistent challenge of “ghost lanes” that never materialize. The COVID-19 pandemic further accelerated a shift toward spot market transactions, exposing the limitations of rigid contracting.

Is there a better way?

Index-based contracts

API-driven pricing

Enter dynamic pricing models—index-based contracts and API-driven pricing—which aim to blend the stability of contracts with the flexibility of the spot market.

Is there a better way?

Index-based contracts

API-driven pricing

Enter dynamic pricing models—index-based contracts and API-driven pricing—which aim to blend the stability of contracts with the flexibility of the spot market.

By harnessing real-time data and adaptive pricing mechanisms, these approaches offer the potential for a true win-win for both shippers and carriers. This white paper summarizes our research from FreightLab, part of MIT’s Center for Transportation & Logistics that explores how dynamic pricing can create a new paradigm in truckload procurement, delivering tangible benefits to both sides of the market while addressing the persistent pain points of legacy contracting.

This FreightLab research consists of analysis of transactional, tendering and procurement data from many transportation buyers and providers as well as input from experts at industry conferences, roundtables, surveys and interviews.