The Freight Order Reverse Auction (FORAM) is a marketplace where shippers and beneficial cargo owners (BCOs) can buy and procure a freight contract for carriage directly from the Transport Carrier Network at current or future per-mile freight rates or at spot market rates at the TCN SPOT MARKET LOAD BOARD without incurring spot market rate volatility and the pitfalls of using a dual agent freight broker markup fees reaching .25 to .50 cents per mile nationally.
All FREIGHT ORDER auction transactions are cleared by the TCN financial clearing house with fully disclosed auction and clearing fees paid by the network transport carrier SELLER or SELLERS.
FORAM auctions are conducted at TCN Shippernet Freight Centers at the Transport Carrier Network website. Centers are geographically located, at or nearby, over 1850 USA towns, cities, ports, and airports.
Current and future transport costs per-mile are compiled weekly by a staff of CPAs and Transport Cost Specialist. The cost per mile data is provided as a guide to assist shippers, BCOs, and transport carriers in negotiating fair and reasonable per-mile freight rates in the auction process.
A FREIGHT ORDER REVERSE AUCTION is a procurement auction for a contract for carriage where the auction parties are reversed. With a FREIGHT ORDER a single BUYER or BUYER GROUP can solicit transport services directly from transport carrier network SELLERS or SELLER GROUPS with auction transactions billed, collected, and settled by the independent TCN financial clearing house with all fully disclosed auction and clearing fees paid by the SELLER or SELLERS.
The FREIGHT ORDER must be issued by the BUYER owner or BUYER GROUP owners of the freight. A Freight Order identifies the load or shipment solicited for transport service procurement. After the procurement auction, a CONFIRMATION serves as the basis for the final CONTRACT for CARRIAGE documents issued by either the BUYER or SELLER subsequently.
FINAL PER-MILE PRICES, STOPS, DROPS, ANY ACCESSORIAL CHARGES or other terms and conditions of transport must be specified in the CONFIRMATION and are negotiated directly between the BUYER and SELLER. Once a Contract for Carriage is prepared and signed the auction is complete.
In a FREIGHT ORDER REVERSE AUCTION generally, but not always, the BUYER wants to procure a contract for carriage at current or future cost per mile rates. Current and Future Transport Costs per mile are provided as a guide in the procurement auction process.
BUYERS may want to solicit a contract for carriage at potentially lower spot market per mile rates. TCN provides a SPOT MARKET LOAD BOARD to solicit transport services from both In and Out-of-Network SELLERS or SELLER Groups.
A TCN freight agent auctioneer will be assigned to conduct the Spot Market Load Board auction for the BUYER or BUYER GROUP and arrange for transport service at spot market rates. The same as a FORAM auction, a Spot Market Load Board auction transaction is billed, collected, and settled by the independent TCN financial clearing house financial clearing house with all auction and clearing fees fully disclosed and paid for by the SELLER or SELLERS.