Bid board
What is a bid board?
A bid board, load board or freight board is an online marketplace that connects shippers and brokers with logistics service providers (LSPs) to utilize available transportation capacity.
The bid board for freight allows truck owner-operators to enter a bid on freight shipments posted by shippers and freight brokers. Shippers and freight brokers can accept bids based on a variety of factors, including price, carrier performance history, time-in-transit and other criteria.
Shipper and freight broker bid boards are a centralized digital platform to post shipment specifics, including freight type, weight, pickup and delivery locations and any other transportation service needs. Carriers and owner-operators use freight bid boards to find contracts and profitable volume to fill their unique transportation equipment movements and cover empty miles.
Bid board software and digital applications can provide various services for shippers, freight brokers and carriers. Depending on the board, those services may include:
Credit information and days to pay
Message boards
Ability to make notes and track history for shippers and carriers
Federal Motor Carrier Safety Administration (FMCSA) verification
Finance of pre-approved loads using factoring
Mobile access
Historical and current pricing in specific lanes
How does a bid board auction work?
First, a shipper or freight broker posts a freight shipment to the bid board software, specifying origin and destination, equipment type needed, and other pertinent information. An expiry date can be set to conclude the auction period. When the load is posted to the bid board, an email alert goes out to any qualifying bid board subscribers or participating transportation providers.
Carriers and truck owner-operators can bid, fill in a bid amount and provide date and time information. Users relying on a transportation management system (TMS) to access the bid board can also select a vehicle for the load and place it on reserve. Owner-operators with multiple vehicles can enter multiple bids and vehicle assignments.
The shipper or freight broker reviews all bids and selects a winning bid, which triggers communication to the successful transportation provider. When the load is dispatched, it appears in the carrier’s management platform until the shipment is completed. All other bids on the specific load are canceled, and emails are sent to unsuccessful bidders.
If a bid changes, is superseded or times out, the shipper or freight broker can cancel or repost the load, then communicate again to participating transportation providers.
How carriers and truck owner-operators use a freight bid board
Carriers, fleet owners and truck operators can place their vehicles on the bid board, making their available capacity visible to shippers and freight brokers. Providing specific details (equipment type, availability time, existing routes, etc.) improves alignment between truck and shipper.
Depending on software capabilities, logistics services providers can use freight bid boards to review shipper companies. Before placing a bid, truck operators can access shipper reviews, credit scores, average days to pay and other reference details.
Types of freight bid board
There are many kinds of auction bid boards that are specialized for different audiences. For freight, there are paid and free load boards, private and public bid boards, and derivations based on equipment type and miscellaneous transportation needs.
Traditional bid boards: Load boards are traditional forums that allow freight brokers, shippers and truckers to share information on full truckload shipments, capacities and destinations.
Less than truckload (LTL) bid boards: Used for freight shipments that do not fill a trailer on their own and are consolidated with other shipments. This type often includes hotshot moves—LTL shipments using a smaller truck on a for hire basis.
Miscellaneous bid boards: Used for unconventional loads such as livestock, boats or oversize freight. Carriers and truck operators can find a sustainable through miscellaneous bid boards.
Benefits of bid boards
Control: Bid boards give shippers control over the freight bids they accept and the carriers they select. Carriers control the cost they submit and the loads they pursue. All parties can avoid negotiation and base their transportation decisions on their own business needs, expenses, day-to-day operations and customer service commitments.
Capacity utilization: Shippers and freight brokers can secure capacity on spot loads—whether there is a new origin-destination pairing outside existing contracts, an unexpected increase in freight volume or high tender rejections in a specific lane. Carriers can use bill boards to fill gaps in capacity utilization, such as backhauls.
Convenient and efficient: A bid board for freight is accessible wherever internet is available, from desktop computers or mobile devices, 24 hours a day. The bid board always reflects the most up-to-date information.
Easy to use: Bid boards require little to no technical knowledge—create an account, log in and view available loads.
How Infios supports bid board usage
Infios Transportation Management (TM) customers can bid on a load by posting it to the private bid board within Infios TM. The bidding process occurs between an Infios customer and their invited carriers. Loads in Infios TM can also be posted to public bid boards operated by Infios partners outside the TMS.