In its bid to initiate transparency in the road freight marketplace estimated to be a over $150 billion annual business in the country, technology enabled logistics firm, Rivigo, has launched a National Freight Index (NFI). The exchange promises to provide live spot rate on over 7 million lane and vehicle type combinations in the country by aggregating live rates and historical trends of spot price movements in the road freight industry.
The index is represented in two main forms: In terms of actual freight rates condensed to INR per ton-km and in terms of relative movement with respect to a base month. Commenting on the launch, GazalKalra, Co-Founder,Rivigo, said, “In the existing logistics market structure, there are high inefficiencies due to information asymmetry, which leads to a great loss of value. NFI will enable unrestricted access and sharing of freight rate information. This will bring transparency in the market and propel the logistics sector towards efficiencies and growth.”
Both the index and the exchange are based on Rivigo’s machine learning and economics powered pricing algorithms, which are continuously improving on accuracy.