Imagine your truck speeding down the highway at full capacity—except it's actually half empty, and you're paying to transport nothing but air. This absurd scenario represents a $7 billion annual loss for North American shippers trapped in inefficient freight systems.
The root cause lies in traditional Truckload (TL) bidding models that charge fixed rates regardless of actual cargo volume. When shipments occupy just 50% of trailer space, businesses still pay for 100% capacity—essentially writing checks for empty air.
Instant Prebate: Pay-As-You-Go Truckload Shipping
A new solution called Instant Prebate revolutionizes freight economics by introducing dynamic pricing based on actual space utilization. This system automatically applies discounts when shipments don't fill entire trailers, eliminating wasteful "air freight" payments.
Key advantages over traditional TL models include:
- Cost efficiency: Payments reflect actual space used rather than full trailer capacity
- Operational optimization: Shared truck utilization reduces empty miles and improves efficiency
- Environmental benefits: Lower empty rates decrease carbon emissions per shipment
Shared Truckload: Maximizing Trailer Utilization
The system leverages shared truckload technology that consolidates multiple shippers' freight into single trailers. This collaborative approach creates win-win scenarios:
- Shippers save 30-60% on transportation costs
- Carriers increase revenue through better asset utilization
- Roads see fewer trucks, reducing congestion and emissions
How Traditional TL RFPs Create Hidden Costs
Standard Request for Proposal (RFP) processes lock shippers into unfavorable economics through fixed-cost pricing structures. Consider this example:
- A $1,000 shipment occupies just 25% of trailer capacity
- Traditional TL charges full rate regardless of utilization
- Shippers effectively pay $750 for unused space
Under Instant Prebate, the same shipment would automatically receive a 75% discount, paying only $250 for actual space used.
Implementation and Benefits
The automated process requires minimal shipper involvement:
- Submit shipment details (weight, dimensions, locations)
- Receive optimized routing and dynamic pricing
- Confirm dispatch for pickup and delivery
- Automated discounts appear on final invoice