FOR IMMEDIATE RELEASE
COUNCIL BLUFFS, Iowa– BAT Logistics, one of the fastest growing 3PL providers of transportation services, is using Microsoft Azure Machine Learning and Predictive Analytics to develop a tool that will forecast what freight rates will look like in one to 12 months. The tool will be just one more value-added service BAT provides to all its customers starting in 2018.
“Imagine the ability to lock into a contracted rate just before spot rates soar. Imagine the ability to forecast how long spot rates will outperform contracting rates and vice versa. Imagine the ability to predict how peak seasons will impact freight rates,” said Jarrod Marinello, executive of BAT Logistics.
BAT graded the accuracy of the prediction tool for 15 months because the company wanted the highest accuracy it can get. With each test, the accuracy has improved, and the tool is currently at 60 percent accuracy. BAT believes, based on on the increase in accuracy over the past 15 months, that the accuracy will be at 75 percent some time in 2018. Anything over 75 percent accuracy offers extreme value.
BAT will be launching the prediction tool next year as the company celebrates its 10th anniversary.
About BAT Logistics
Backhaul and Track Logistics d/b/a BAT Logistics provides transportation solutions to the shipping community. Our core strength is full truck load services in dry, refrigerated, and rail commodities. Our services are executed using key national carriers with a focus on small to medium sized carriers. We operate in headhaul and backhaul lanes both regionally and cross-country. We also utilize door-to-door rail services that cover the entire nation. Our industry knowledge and experience using rail transportation gives us a clear and distinct advantage over the competition.
Diesel prices spiked through the month of October, and started the first full week of November 41 cents higher than the average price last year this week. The average price per gallon is $2.88, according to the Energy Information Administration.
The average price dipped slightly the week of Oct. 9 to $2.776 per gallon, but has climbed ever since. The biggest jump in price was this week at six cents.
For more information, visit the EIA’s website.