Rivigo launches National Freight IndexDate: 21 June 2019 Tags: Infrastructure
Technology-enabled logistics firm Rivigo has launched National Freight Index (NFI) with aim to bring transparency and boost efficiency in the market. Rivigo is technology enabled logistics company which owns a fleet of over 3,000 trucks.
NFI seeks to serve as barometer of road freight market in India and is based on Rivigo rate exchange. It gives live spot rate on over 7 million lanes and vehicle type combinations in the country. It seeks to remove existing logistics market structure and inefficiencies due to information asymmetry, which leads to a great loss of value.
National Freight Index (NFI)
- It is aimed at bringing transparency to the road freight market place and transforming the logistics sector. It will enable unrestricted access and sharing of freight rate information.
- It offers aggregated picture of both live rates and historical trends of spot price movements in the road freight industry.
- It is represented in two main forms: (i) in terms of actual freight rates condensed to Rupees per tonne-km and (ii) in terms of relative movement with respect to a base month.
- Both the index and exchange are based on Rivigo's machine learning and economics powered pricing algorithms, which are continuously improving on accuracy.
- The rates on exchange and index are computed using millions of data points from historical transactions, micro market insights, current market dynamics and other factor.
- Significance: Its ultimate purpose of giving fair and precise representation of state of the spot market in the country. It will help to bring transparency in the market and propel the logistics sector towards efficiencies and growth.