You face a key question every day: “What’s a fair rate for this haul?” DAT provides tools and data to help you make informed decisions and negotiate confidently, not to dictate what you should earn. Chief among them are the rates you see in DAT One. They’re not set by DAT or anyone else — they’re determined by market conditions and actual transactions.
Here’s everything you need to know about how DAT rates work, how they’re calculated, and how you can use them to your advantage.
DAT rates are your negotiation tool, not a fixed price list
Think of DAT rates like the Kelley Blue Book for freight. Kelley Blue Book gives you an idea of the price range cars are being bought and sold for based on real-world sales, not a hard-and-fast rule for what you must pay or accept. DAT operates the same way for freight, offering insights based on actual transactions among brokers, carriers, and shippers.
The data DAT provides is designed to serve as a benchmark, giving you a smart starting point for negotiations. It helps you understand what other carriers are being paid on similar lanes, so you’re not going into a deal blind.
Why are DAT rates based on transactions?
DAT bases rates on real payments sourced from broker, carrier, and shippers. This ensures that the rates reflect what’s actually being paid in the market, not speculative or advertised numbers.
For carriers like you, this means you’re getting a reliable, transparent look at the freight market as it stands today.
What is DAT iQ RateView?
RateView from DAT iQ is powered by over $1 trillion in real freight transactions. It pulls data directly from invoices and payments, offering a level of accuracy that speculative tools can’t match.
For example, if you’re looking at the Chicago-to-Atlanta lane, RateView might show a 7-day spot rate average of $2.12/mile based on 21 reports from 14 contributing companies (only an example). This isn’t a guess, it’s a snapshot of what’s happening in the market right now. These 21 reports represent loads that were picked up in the last 7 days.
How does RateView calculate rates?
Rates in RateView are not arbitrary. They’re built from the following criteria:
- Timeframe: The shortest window of time that meets the data threshold is used (typically 3-7 days). This ensures the rates are as up-to-date as possible.
- Geography: Rates are pulled from the closest available geographic area, starting with specific 3-digit zip codes and expanding to larger zones if needed.
- Sample size: Rates are only displayed if enough data is available. For example, you won’t see a rate unless it’s backed by at least three contributors and seven load reports.
This granular approach means RateView rates are both timely and trustworthy, helping you make smarter decisions when negotiating with brokers. We keep these rules in place so no one company can manipulate the data and outliers don’t skew the numbers.
What does a RateView result tell you?
Every RateView result includes several key pieces of information to guide your decisions:
- Rate quality: Is the data recent and specific? A rate based on zip-to-market with a narrow timeframe is highly reliable.
- Price range: This shows the middle 50% of reported rates. While some loads pay above or below this range due to factors like urgency or specialized equipment, it gives a solid benchmark.
- Average rate: The average reflects what most loads are actually being paid. This is your most important reference point during negotiations.
For example, if you see a 7-day average spot rate for a lane at $2.12/mile with a range of $1.97–$2.27/mile, you know that half of the reported rates fall within that range, and extreme outliers aren’t included. This can inform your strategy based on your specific circumstances.
Using rates in negotiations
- Ask the right questions: Before negotiating with a broker, find out:
- What timeframe and geography they are referencing (3-day or 7-day averages? Zip-to-market or broader region?).
- Do their rates include fuel, or is it linehaul only?
- Compare apples to apples: Ensure the data you’re using matches the timeframe, geography, and rate inclusions (e.g., linehaul vs. linehaul) the broker is referencing. Spot-check the reported range to see how competitive the broker’s offer is.
- Leverage rate quality: If RateView shows a strong sample size and a narrow price range for the lane, use this as leverage to back your negotiation. A narrow range signals that the market agrees on a fair rate.
- Consider market variability: A wide price range suggests variability in rates, which may offer room for negotiation. Review the load’s characteristics (e.g., lead time, equipment requirements) to determine if a premium is warranted.
- Use spot and contract rates wisely: Spot rates are ideal benchmarks for short-term negotiations, while contract rates can help you understand broader, longer-term trends.
- Be realistic: The rates are a benchmark, not a guarantee. If a broker offers below the average, explore why. It might reflect less favorable market conditions, which can still inform how you counteroffer.
Rates aren’t set in stone, they’re a tool to empower you with market insights. By understanding how RateView works and using its benchmarks strategically, you can approach negotiations with confidence and clarity. Take the time to review rate quality, compare price ranges, and understand what’s driving the numbers. These steps can make a world of difference in ensuring you get paid what you deserve on every haul.
When you’re informed, you control the conversation. And with tools like RateView, you’ll always have the data to back up your decisions.
