Chattanooga, TN, and Portland, OR. (PRWEB) February 14, 2017
TransVix LLC and DAT Solutions are excited to announce the formation of their exclusive strategic alliance. This alliance is a foundational step to create the first and only Trucking Futures Exchange which will list and trade contracts based on trucking line haul rates. The TransVix Exchange will list contracts that are financially settled using DAT’s data for major freight lanes in the U.S.
TransVix is focused on addressing volatility in line haul freight rates, where spot prices can swing as high as 40% in a single week on some major lanes. Volatility of truck capacity can be driven by a host of market conditions such as weather, seasonality, regulations and macroeconomics. Brokers, carriers, and shippers all face the same challenges when it comes to volatile spot rates and are exposed to market conditions without viable hedging options to manage price risk.
TransVix is partnering with DAT to provide participants much needed risk-management tools to hedge their freight lane exposure. TransVix has identified the most travelled lanes in the market and found major intra-week and intra-month volatility. DAT data will be used to help develop TransVix trucking futures, which will allow market participants to normalize these price fluctuations.
“DAT is the truckload pricing index standard for the North American trucking market, and it makes perfect sense for us to partner with them,” said Craig Fuller, TransVix CEO. “We did an exhaustive search into the various Index providers by speaking with over 200 C-Level executives across the trucking marketplace and found DAT to be the most trusted and reliable provider of spot market data. In addition, we have extensively analyzed selected aggregated data sets and validated that the assessments closely mirror the overall direction and volatility of the underlying market,” Fuller added.
Established in 1978, the DAT on-demand freight exchange is the largest and most comprehensive, with 100M loads and trucks posted in 2016 and $33B of spot and contract lane pricing data from actual freight transactions. Brokers, 3PLs, shippers and carriers rely on DAT’s historic and real time price data as an industry benchmark.
"We have observed supply and demand fluctuations and periods of significant truckload capacity constraint over a period of years, and recognize the financial risk that our customers face,” said Don Thornton, senior vice president of sales & marketing at DAT. “We are impressed with the TransVix team, their depth of experience and knowledge of the trucking marketplace and capital markets. Together we are looking forward to building a supplemental capability for transportation professionals to manage rate volatility risk with no interruption to the way they do business today.”
TransVix, based in the center of “Freight Alley” in Chattanooga, would be the first futures exchange to trade U.S. Trucking Freight Futures. The company believes that it can substantially de-risk the more than $700 billion U.S. trucking freight market by providing a tradeable contract to hedge market participant’s exposure to volatility.
TransVix intends to be the first, and only, Trucking Futures Exchange and is working to revolutionize the trucking industry by addressing one of the most significant challenges in trucking today - rate volatility. The TransVix Exchange will provide a new way for participants to hedge their exposure on trucking rate volatility.
Founded by trucking industry alum Craig Fuller, the TransVix executive team has collectively managed over $40B in freight contracts and deeply understands the market volatility challenges within the trucking and logistics industry. That experience, coupled with a team of veteran trading exchange and regulatory executives, is creating a solution that solves for an unserved and highly addressable market need. TransVix is based in the center of “Freight Alley” in Chattanooga and is backed by Hunt Technology Ventures, L.P. For more, visit http://www.transvix.com.
About DAT Solutions
DAT operates the largest spot freight marketplace in North America. Transportation brokers, carriers, news organizations and industry analysts rely on DAT for market trends and data insights derived from 100M annual freight matches and a database of $33B of market transactions. Related services include a comprehensive directory of companies with business history, credit, safety, insurance and company reviews; broker transportation management software; authority, fuel tax, mileage, vehicle licensing, and registration services; and carrier on-boarding.
Founded in 1978, DAT Solutions, LLC is a wholly owned subsidiary of Roper Technologies (NYSE:ROP), a diversified technology company and constituent of the S&P 500, Fortune 1000 and Russell 1000 indices. http://www.DAT.com
VP Marketing, DAT