Freight Rate Optimization System for Carrier Rule Aggregation
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Solution Overview
Problem
The freight industry faces challenges in determining optimal shipping rates due to complex carrier-specific rules and obscure fees, making it difficult for shippers to choose the cheapest carrier without incurring unknown surcharges and fees.
Innovation Solution
A computer-based system that measures freight unit dimensions and weight, classifies shipments based on density, and applies carrier-specific rules to determine the best shipping rate among multiple carriers, considering various shipping rules and thresholds.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If shippers use generic rating systems that provide pricing for multiple carriers based only on total weight and class, then the pricing process is simplified, but the system fails to account for carrier-specific rules such as density, linear footage, volume, and obscure fees, resulting in expensive surcharges
Solution Approach 1:
The patent merges multiple carrier-specific rating systems into a single comprehensive system that evaluates multiple carriers simultaneously. The system integrates diverse carrier rules (density, linear footage, volume, obscure fees) into a unified evaluation framework, allowing shippers to compare apples-to-apples across carriers while maintaining full rule compliance for each carrier
Solution Approach 2:
The system performs multiple functions within a single platform: it collects carrier rules, measures shipment characteristics, applies carrier-specific algorithms, compares rates across multiple carriers, and identifies the optimal carrier. This multi-functional approach eliminates the need for separate rating systems for each carrier while maintaining comprehensive rule adherence
2Measurement precision
If shippers rate a shipment on each carrier's website or using carrier-specific software, then accurate pricing is obtained, but the process becomes time-consuming and lacks sophisticated decision-making logic beyond standard weight and class calculations
Solution Approach 1:
The system performs preliminary actions by pre-collecting and storing carrier rules, pre-measuring shipment characteristics, and pre-calculating rates for multiple carriers before the shipper needs to make a decision. This advance preparation eliminates the need for time-consuming individual carrier rating processes while maintaining accurate, sophisticated decision-making logic
Solution Approach 2:
The patent introduces an intermediary system that acts as a mediator between shippers and multiple carriers. This intermediary collects, standardizes, and processes carrier rules and shipment data, then presents optimized carrier options to shippers. The intermediary handles the complex multi-carrier evaluation process in the background, returning only the optimal carrier selection and rate
3Reliability
If carriers create obscure rules and fees to maintain competitive pricing, then carriers remain profitable, but shippers cannot choose the cheapest carrier without incurring unknown surcharges and fees
Solution Approach 1:
The system implements feedback mechanisms that continuously collect and update carrier rules, including obscure fees and surcharges. By gathering real-time feedback from carrier systems and shipment outcomes, the platform maintains an accurate, up-to-date database of all carrier requirements and charges, enabling transparent rate comparisons that include all potential fees
Data Source
AI summary
A computer-based system that manages the shipment of one or more freight units includes a measuring system for measuring dimensions and weight of a freight unit, wherein the freight unit includes products, a database for storing rules for shipping freight, and a host computer system. The host computer system is for receiving information about the freight unit to be shipped, determining whether the products of the freight unit should be classified as density-based for a shipping rate determination, determining a density-based class of the freight unit, determining whether the linear feet parameter for the freight unit exceeds a predetermined threshold value, receiving a selection input for a selected carrier from the one or more carriers displayed on the web site, and upon receipt of the selection input for the selected carrier, creating a bill of lading.


