Load Board vs Freight Marketplace
When a business or individual decides to ship a full truckload shipment, they must figure out how it will be shipped. Some, like small businesses or one-time shippers, don’t automatically have a shipping department or a fleet to make deliveries. They must rely on outside carriers and drivers to deliver their freight to retailers or customers. But for a first-time shipper or carrier, where do you go to find and advertise these loads?
There are two primary methods for hiring carriers or independent owner-operators for full truckload shipments: load boards and freight marketplaces. Both digital platforms are designed as online auction houses, but for freight. Although they serve the same purpose, load boards and freight marketplaces are distinct from one another. What are the differences, and what should you choose as a first-time shipper or carrier?
To determine whether load boards vs freight marketplaces are the best platforms for full truckload postings, let’s examine each option and compare them to find the one that best suits your logistics needs.
What is a Load Board?
A load board is a virtual marketplace for shippers, brokers, carriers, and drivers to post and view available freight loads. Some have compared load boards to an online dating service; they are great places for brokers and carriers to find one another and connect.
Shippers and brokers post loads on a load board, and carriers and individual drivers can search for and bid on those loads. Once the poster chooses a bidder, they can connect to complete documentation, paperwork, and final payment before the carrier transports the load.
When searching for a load, carriers can filter through the search results using the following criteria:
- Cargo Types
- What the route is
- Location radius
- What equipment is needed for the delivery
- How far you’re willing to travel
- Rates
Most load boards are primarily for posting and bidding on loads, but some offer additional features, such as load tracking and credit reports, which brokers and carriers can utilize when establishing connections for the first time. These types of features are typically found on boards that charge a subscription fee. However, there are free load boards that first-time carriers can use to test the waters.
What is a Freight Marketplace?
Freight marketplaces are digital platforms containing online marketplaces. Shippers, brokers, and manufacturers can connect with vetted and certified shippers and carriers while finding the best load rates.
Just like with a load board, shippers provide detailed information about the cargo, which carriers can then use to filter and search through loads. However, carriers are vetted by a freight marketplace, so shippers can be assured that the ones bidding on a load are professionals with stellar load records. Carriers can also compare different offers in real-time, making it easy to alter bids.
Freight marketplaces also offer additional services, such as:
- Shipment tracking
- Fleet management systems
- Document management systems
- Automated reporting tools for e-commerce metrics
- Customs clearances for international shipping
Once a bid is made, the shipper and carrier complete the transaction on the platform, including documenting, paperwork, payments, and tracking. This is what makes a freight marketplace special: a shipper can complete the entire freight shipping process on the platform, without needing additional tools and resources. Everything you need is on one platform, including important documentation, so you don’t have to search across multiple platforms.
While the features on the marketplace can be extensive and confusing the first time you use them, they can ultimately become a vital piece of your logistics operations. However, these extensive features often come with high subscription costs. Many platforms allow users to explore certain features for free before committing to a subscription, but this varies by platform.
Comparison Time!
Both types of load posting platforms can seem very similar to one another. Both are digital places where people shipping a heavy or full truckload can post their loads for carriers to view and bid on. They are also designed to be user-friendly and adaptable. However, there are vital differences in how platform users connect and conduct business.
Manual vs Automated
Loads must be manually imputed onto a load board. Users must continuously search for loads and negotiate rates; some boards, especially free ones, won’t remember your preferences. They also won’t do any additional paperwork or documentation for you, meaning you must contact the other party via phone or email to continue the transaction.
Freight marketplaces are more automated. Shippers and carriers can save their load preferences to their accounts, so they will always find the loads they are looking for each time they shop. Marketplaces also handle paperwork, billing, and documentation on the platform without requiring external connections.
Load Availability and Quality
Carriers and brokers highly favor load boards for their ease of use. They offer a larger volume and variety of loads available for bidding, which leads to more carriers competing for the same loads. However, this fierce competition can make it difficult for drivers to bid on a load successfully. Additionally, some boards lack mechanisms for controlling the quality of a load, which means that bidders may not realize the low quality of a load until it’s too late.
Freight marketplaces are newer platforms, so fewer, less versatile loads are posted. However, that means less competition for the same loads. Marketplaces also evaluate a load before it is posted, as they want relevant, high-value loads represented on their platform rather than the sloppy messes some load boards present.
Relationship Between Carriers and Shippers/Brokers
Load boards are popular with small carriers and independent owner-operators. These carriers aren’t as influential as the larger carriers, so they struggle to attract new clients. Load boards enable smaller carriers and drivers to connect with shippers, which could eventually blossom into long-term relationships if the load deliveries are successful.
Marketplaces place less emphasis on personal relationships between carriers and shippers and more on performance metrics. All the paperwork and payments are completed on the platform, so there’s minimal need for direct contact unless an issue arises. While this does mean there’s a lower chance for carriers to make a shipper’s load a priority, it does ensure that it will be delivered professionally.
Platform Affordability and Accessibility
Load boards usually charge a subscription fee for their services. They may also have multiple tiers that offer more options and features. However, there are free versions out there—all you need to do is create an account, and you can use the board’s main features immediately.
Freight marketplaces, for the most part, are not free. They may offer some features for testing or a short free trial of their services, but most marketplaces are paid software that you must purchase to use. This makes them less accessible to first-time shippers or carriers than a load board and more exclusive to seasoned veterans.
Which Platform is Right For You?
The debate between load boards vs freight marketplaces comes down to a simple question: which one is right for you? Both load boards and freight marketplaces provide valid platforms for shippers and brokers to post their loads and for carriers and drivers to find and bid on them. Freight marketplaces typically offer a wider range of features and higher-quality loads. In contrast, load boards remain popular among carriers and brokers due to their user-friendly interface and abundance of available loads.
What a shipper or carrier decides to use to post their loads depends on several factors:
1. A carrier or shipper’s experience level with freight shipping: Load boards are more accessible for first-time shippers to post and for amateur carriers to find and bid on loads. Freight marketplaces are geared more toward veterans who are familiar with the system and seek enhanced functionality.
2. The type of load quality: All carriers want a high-quality, high-paying load, but freight marketplaces tend to have better-quality loads than load boards.
3. The platform’s affordability: Load boards, even paid ones, are generally cheaper than freight marketplaces because they lack additional features.
4. What a broker uses: Brokers may have their preferred platform where they post their loads. You should ask your broker what they prefer when receiving quotes from them for the first time, or they may inform you when you book with them.
Ultimately, we recommend using a load board if you’re a first-time shipper or a beginner driver. They may be more old-fashioned than freight marketplaces, but their lower cost, user-friendly layouts, and popularity are beneficial if you’re posting or bidding on a full truckload for the first time. However, if you are a seasoned veteran of the logistics industry, have a larger operation, or require more comprehensive services to manage your supply chain more effectively, then a freight marketplace platform is the better choice.
Regardless of your choice, both load boards and freight marketplaces are valuable tools for shippers and carriers seeking to find and post full truckload shipments. Whether you’re a first-time shipper or have years of experience, using these platforms can simplify your shipping process and make it more efficient. We hope you’ve gained sufficient knowledge about load boards and freight marketplaces to make an informed decision regarding your logistics needs. Happy posting!
