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Air Export/Import Coordinator MC Trinter
Digital Air Cargo Freight Insights

The Freight Forwarder’s Toolbox: Static and Dynamic Rates

The quotes below are taken from WebCargo’s Digital Air Cargo Monthly report, delivering analyses of recent trends in air cargo penetration, market intelligence, in-depth interviews with industry leaders, and more.

Jenno Leenstra
Jenno Leenstra, Deputy General Manager Airfreight Forwarding
Yusen Logistics (Europe)
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In the world of freight forwarding, being able to combine both negotiated, static rates and real-time market rates can help forwarders deliver quicker, more accurate quotes to customers. As technology evolves and logistics take on new forms, the freight industry is shifting from the traditional realms of rate spreadsheets and PDFs to digital solutions that promise efficiency, accuracy, and competitiveness. During this hybrid period it’s important that both static rates and dynamic rates live side-by-side.

In this month’s Digital Air Cargo Newsletter, we meet Jenno Leenstra, the Deputy General Manager of Airfreight Forwarding at Yusen Logistics (Europe). With nearly four decades of experience in the airfreight forwarding industry, Jenno shares his insights on the factors that influence the choice between static and dynamic rates and highlights the benefits combining access to both types of rates.

Static Rates: Stability in a Shifting World

Static rates have traditionally been the bedrock of stability in the freight forwarding industry. They offer the reliability of long-term agreements and open doors to tenders. As Jenno Leenstra puts it, “Static rates are necessary to meet extended rate requirements. This enables us to establish lasting agreements with customers and also take part in tenders that specifically demand long-term rate agreements.” 



Dynamic Rates: Agile Responses in Real-Time

On the flip side, dynamic rates are all about agility. Instant and urgent requests are a common occurrence. When responsiveness is paramount, dynamic rates come into play. Jenno explains, “Dynamic rates are highly beneficial for addressing instant and urgent requests, where the need for responsiveness and offering on-the-spot solutions is key.” They provide the flexibility to respond swiftly to market fluctuations and cater to clients’ unique and pressing requirements.


Optimizing Freight Quoting

The decision to use static or dynamic rates often hinges on the urgency of the inquiry. If a quick, market-competitive short-term rate is required, dynamic rates step into the spotlight. While static rates still have their place, it’s important to note that dynamic rates are linked to actual capacity. 

As the industry is still transitioning towards complete digitization of rates, we find ourselves in a hybrid phase where static and dynamic rates coexist. Therefore, forwarders must be equipped to handle both static and dynamic rate requirements, along with ensuring the availability of short-term capacity. Access to both types of rates gives freight forwarders greater visibility, speed and efficiency in freight quoting.


An Integrated Approach to Rate Management

Five years ago, Yusen Logistics selected WebCargo as their preferred global rate management system after evaluating various similar options in the market. 


WebCargo has an active approach towards us in order to understand our need for reliable information, develop new features to improve the system and adjust to the changing world of air logistics.” – Jenno Leenstra, Yusen Logistics 


This means that forwarders like Yusen Logistics have instant access to all their rates, be it static or dynamic, at any given time. This ability empowers them to respond to any air forwarding request, setting them apart in an industry where efficiency and adaptability are key.


The Freight Forwarder’s Toolbox

In the freight forwarding industry, it’s not about choosing between static and dynamic rates; it’s about having the right tools to manage both. WebCargo’s industry-leading freight quoting tool offers a single source of truth that enables faster, more accurate, and more competitive operations, allowing forwarders to navigate the intricate web of rates with confidence and ease. Jenno Leenstra’s experience with WebCargo serves as a testament to the power of integrated rate management in the transitioning world of logistics.

A comprehensive freight quoting tool equips forwarders with essential insights necessary for securing business. It offers a wealth of pricing and routing details crucial for constructing precise and efficient quotes, going beyond mere rate information.