Definition
Indicates the timeframe that the displayed rates were initiated within.
For example, selecting “Contracted Within – 3 months” will only display contracts that were initiated 3 months ago or sooner. Selecting “Contracted Within – 6 months” will only display contracts that were initiated 6 months ago or sooner.
Similarly, selecting “Contracted Within – All” will display all valid contracts, thus, potentially more data.
Example:
In the diagram below, a search for rates is performed on a trade lane. There are four rates available from the search results.
However, contract #1 (yellow) would not be included in the final price results. The contract is not included because it falls outside the window of time (3 months) that the rates must have been contracted within.
Because of this, you can see the most recent, thus most relevant, prices on the market right now for this trade lane.
If “contracted within 6 months” was selected, all four rates would be included in the results.
Standardization
One of the most important reasons behind the “Contracted Within…” filter is standardization.
By applying a targeted “contracted within” timeframe, there is more ability to control the context in which the displayed rates are most relevant to your interests.
Taking the current market position into account when benchmarking rates is vital in adopting an effective pricing strategy.
Relevant Market Position
Timing is vital for understanding why rates are at their position at any given time. Attempting to align your rates with those at the “market low,” but were contracted one year, ago may prove to be ineffective.
Instead, a more strategic approach would be to align your rates with the lowest rates that have been contracted within the past 3-6 months on a given trade lane.
By benchmarking against the most recent rates, you’ll have the most precise picture of the current market and where it’s moving.