fair price

we offer fair prices with no hidden fees for fuel, border crossing or paperwork

free market

If you believe in the free market economy, then you will believe in Copper Run’s Fair Prices and Value-Rich service.

Supply and demand – remember those from Economics 101?
They apply very directly to the freight transportation marketplace.

freight capacity is a commodity

Highway freight transportation capacity is a commodity, no different from precious metals or pork bellies, and it is traded like a commodity. It is bought and sold every minute of every business day on industry-specific, internet-based market exchanges, just the same way that stocks, bonds, hard and soft commodities, and money are bought and sold at the prevailing rates of the moment. To participate in these exchanges, sellers (brokers) must be licensed and bonded, and purchasers (carriers) must be licensed and insured.

freight capacity Is perishable

But the added twist is that transportation is the most perishable product or service produced. Whether it is a seat on an airplane, an empty taxi sitting outside a hotel, or a skid spot in a truck, once the capacity is produced, it vanishes instantly if it is not used:

  • Try boarding an airplane after it is airborne,
  • Or hailing a cab that gave up waiting and went to its next call,
  • Or filling out a truck after it has left town.

So there is a constant tug and pull on rates, as carriers try to ensure that upcoming available capacity gets booked before it sits idle, and shippers and brokers try to ensure that they have access to capacity when they want it, and within expected price ranges.

But the added twist is that transportation is the most perishable product or service produced. Whether it is a seat on an airplane, an empty taxi sitting outside a hotel, or a skid spot in a truck, once the capacity is produced, it vanishes instantly if it is not used:

  • Try boarding an airplane after it is airborne,
  • Or hailing a cab that gave up waiting and went to its next call,
  • Or filling out a truck after it has left town.

So there is a constant tug and pull on rates, as carriers try to ensure that upcoming available capacity gets booked before it sits idle, and shippers and brokers try to ensure that they have access to capacity when they want it, and within expected price ranges.

spot prices

The result is that the day-to-day rates charged by carriers to freight brokers are equivalent of spot market rates. They are just like stock prices on a never-ending-ticker. They are almost always lower than the carrier’s quoted prices to its customers (but they can be higher), and they are good only for a specific truck in a specific location at a specific time in a specific market environment. They do rise and fall daily, sometimes hourly or minute-by-minute, based on the supply of and demand for available capacity.

That is how the free market operates – economics 101.

And it is Copper Run’s experience in this dynamic, ever-changing market that enables us to obtain price / service combinations that work for our customers.

stable prices

So the exchange-based free market determines shipment-by-shipment truck rates, which are approximately 85% of a broker’s total costs. Given the dominance of truck costs in that ratio, what is it that is so special about Copper Run’s prices?

Copper Run strives for pricing for our customers that will stand the test of time, pricing that is low enough to fend off competition, yet compensatory enough to enable us to provide reliable service.

Equally importantly, we want pricing that is medium- and long- term stable, that smooths the day-to-day peaks and troughs of the spot market, and that allows our customers to realistically plan their freight transportation budgets.

So we base our prices on the medium-term supply and demand for truck capacity, using three very simple steps:

  1. In each lane and for each type of service, we continuously monitor how much we expect will have to pay for trucking service.
  2. We calculate a margin to add to the truck rate that is sufficient to cover our internal costs and earn a modest profit to ensure stability and sustainability.
  3. We then cap that margin to ensure that our final price is approximately 5 points below current industry benchmarks.

Have you experienced our market-based Fair Prices lately?

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