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.
About TransFX
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