What Is Freight Quoting Software and How Does It Work?

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What Is Freight Quoting Software and How Does It Work?

In the ever-evolving world of logistics, staying competitive means leveraging advanced technology to optimize operations, reduce costs, and provide fast, reliable service. One such powerful tool that’s transforming the shipping landscape is freight quoting software. As global trade grows in complexity and customer expectations soar, logistics providers and freight forwarders increasingly rely on this technology to streamline the process of rate calculation and shipment management.

But what exactly is freight quoting software? How does it function, and what value does it offer businesses in the freight and shipping industry?

Understanding Freight Quoting Software

 

Definition and Purpose

Freight quoting software is a digital platform or application designed to automate the process of generating freight rates for shipping goods. It provides instant access to pricing information from carriers, freight forwarders, or rate contracts, allowing users to compare options, generate quotes, and make informed decisions—all in real time.

Instead of manually contacting carriers or digging through spreadsheets, logistics professionals can use freight quoting software to:

  • Access a centralized repository of rates
  • Compare multiple shipping options instantly
  • Generate professional, accurate rate quotes for clients
  • Manage carrier contracts and customer markups
  • Automate documentation and track shipments

Ultimately, the software is designed to simplify a traditionally time-consuming and error-prone process, giving businesses the tools to quote faster, with greater accuracy and transparency.

How Does Freight Quoting Software Work?

 

Step-by-Step Overview

While the specific functionalities may vary between platforms, most freight quoting software follows a general workflow that looks like this:

1. Rate Database Integration

The software connects to multiple data sources, including carrier APIs, contract rate sheets, and historical pricing databases. This integration enables the platform to pull current rate information across modes of transportation (ocean, air, road, rail).

For ocean freight, in particular, managing long-term contract rates from carriers is crucial. The software stores these rates and applies complex surcharges, accessorial fees, and routing logic.

2. Quote Request Input

Users enter the shipment details, including:

  • Origin and destination ports or addresses
  • Cargo type and dimensions
  • Container size (e.g., 20ft, 40ft, reefer)
  • Shipping date
  • Preferred mode of transport (FCL, LCL, air, etc.)

The system then uses this information to search for relevant rates.

3. Automated Rate Calculation

The software automatically matches the shipment criteria with available rates and calculates a comprehensive quote. This includes base freight costs, fuel surcharges, terminal handling charges (THCs), documentation fees, and other applicable charges.

For systems like CRMS that specialize in ocean freight, this stage involves highly detailed and tailored rate logic.

4. Rate Comparison & Quote Generation

Once the rates are calculated, users can view side-by-side comparisons of different carriers or routes. The software may display:

  • Carrier name
  • Transit time
  • Total cost
  • Service frequency
  • Validity dates

Users can then select the most suitable quote and generate a branded, professional PDF or digital quote for the client.

5. Quote Management and Follow-Up

Many platforms include CRM functionality to track the status of quotes—whether they’ve been accepted, declined, or need follow-up. This enables better customer relationship management and improved sales forecasting.

Key Features of Modern Freight Quoting Software

To fully understand the capabilities of these systems, here are some of the core features you should expect:

1. Multi-Carrier Integration

Leading software integrates with multiple shipping lines and NVOCCs to provide dynamic rate data, ensuring competitive quoting and market responsiveness.

2. Contract Rate Management

It is essential to upload, manage, and apply contract rates from ocean carriers. This includes managing rate validity, surcharges, and multi-leg routes. CRMS, for example, excels in this area by simplifying the complexities of ocean freight contracts.

3. Custom Markups & Profit Margins

Users can apply customer-specific markups, discounts, or fixed profit margins. This feature ensures profitability while maintaining competitive pricing.

4. User Access Control

Role-based access ensures that different team members (sales, pricing, operations) can access relevant functionalities, improving workflow efficiency.

5. White-Labeled Quoting Tools

Some platforms allow 3PLs and freight forwarders to offer quoting portals directly on their websites. This self-service model is ideal for clients who want quick answers.

6. Analytics and Reporting

Dashboards and reporting tools help users analyze quote success rates, average margins, carrier performance, and customer behavior—fueling data-driven decision-making.

Benefits of Freight Quoting Software

The value of freight quoting software extends beyond just faster quotes. It touches every part of a logistics business:

Speed and Efficiency

Generating quotes in minutes—versus hours or days—can drastically increase win rates and reduce lead times. Automated processes eliminate the need for manual calculations or back-and-forth emails.

Accuracy and Compliance

Manually applying complex surcharges or currency conversions is error-prone. Freight quoting software ensures accuracy by automatically applying the correct rules and charges based on up-to-date contracts.

Scalability

Whether quoting 10 or 1,000 shipments a week, freight quoting systems can handle high volumes without compromising quality or speed.

Professionalism and Branding

Consistent, professional-looking quotes reflect positively on your brand. Clients appreciate quick turnaround times and clear documentation.

Improved Customer Experience

Real-time quoting tools allow sales reps and customers to access pricing data anytime, anywhere. This improves responsiveness and builds trust.

Centralized Data Management

All quotes, contracts, and communications are stored in one platform, creating a “single source of truth” that improves transparency and coordination between departments.

Who Uses Freight Quoting Software?

The use of freight quoting platforms spans across a range of industries and business types, including:

Freight Forwarders

Quoting tools are essential for forwarders who handle shipments across multiple carriers and regions. They rely on software to manage rate contracts, generate quotes, and streamline operations.

NVOCCs (Non-Vessel-Operating Common Carriers)

NVOCCs use quoting tools to compare carrier rates and manage their own consolidated shipments. The ability to store and apply rate contracts is particularly valuable.

3PL Providers

Third-party logistics companies integrate quoting into their broader supply chain and fulfillment services, improving their ability to provide end-to-end visibility and pricing.

Importers and Exporters

Some shippers use quoting portals directly to access real-time pricing, allowing them to budget and plan more effectively.

Challenges of Manual Quoting (and Why It’s Time to Automate)

Still relying on email, spreadsheets, or legacy systems? Consider these common pain points that freight quoting software can eliminate:

  • Delays: Waiting for multiple carrier responses wastes time and may cause clients to look elsewhere.
  • Errors: Misapplied surcharges, incorrect rates, or outdated contracts can lead to underquoting and financial losses.
  • Lack of Visibility: Without centralized data, tracking quote history or performance metrics is nearly impossible.
  • Inefficiency: Manual quote generation ties up valuable staff time that could be used for client management or business development.

Modern freight businesses can’t afford to operate in the dark. With real-time rate access and automation, quoting software drives agility and innovation.

Why Ocean Freight Quoting Is Especially Complex

Ocean freight presents unique challenges due to:

  • Multitude of surcharges (BAF, CAF, ISPS, etc.)
  • Long rate validity periods (but frequent GRI/FAK changes)
  • Complex port routing
  • Varying equipment and container types
  • Changing customs and documentation regulations

As a result, specialized software like CRMS—which has over two decades of experience in ocean freight rate management—is essential. CRMS is designed to handle the intricate nature of maritime shipping, allowing users to quote quickly, accurately, and with full compliance.

Choosing the Right Freight Quoting Software

When selecting a platform, consider the following:

  • Mode Focus: Do you need air, ocean, road, or all three?
  • Contract Handling: Can it handle complex carrier contracts?
  • Integration Options: Does it integrate with your TMS or CRM?
  • User Experience: Is the interface intuitive for your team?
  • Customer Support: Does the provider offer industry expertise?

If your primary focus is on ocean freight, your software must be able to handle intricate rate structures and carrier-specific logic. That’s where CRMS shines.

The Future of Freight Quoting

Looking ahead, freight quoting will continue evolving through:

  • AI-powered dynamic pricing
  • Blockchain-enhanced contract verification
  • IoT-based tracking integration
  • Real-time capacity and availability indicators
  • Self-service portals for B2B logistics clients

These trends will further improve accuracy, transparency, and responsiveness, making freight quoting software a central hub in supply chain orchestration.

Final Thoughts

Freight quoting software is no longer a “nice-to-have”—it’s a necessity for logistics companies looking to remain competitive in today’s fast-paced shipping environment. With rising customer expectations, complex rate structures, and growing demand for real-time transparency, the right technology is key to success.

Whether you’re a freight forwarder managing multiple carriers or an importer needing real-time access to shipping costs, the benefits of freight quoting platforms are undeniable. Faster quoting, fewer errors, and better customer experiences are just the beginning.

Ready to Modernize Your Freight Quoting?

At Contract Rate Management System (CRMS), we understand the value of having real-time ocean freight rates at your fingertips. With over 20 years of experience in the Maritime Shipping industry, our platform is purpose-built for logistics professionals who demand accuracy, speed, and reliability.

CRMS offers a robust, user-friendly solution for managing carrier contracts, generating compliant quotes, and tracking quote performance—all in one place.

Don’t leave your quoting process to chance. Contact us today and schedule a demo with our team of ocean freight experts. Let us help you streamline your quoting process and grow your business.