FreightMath 2.0 expands network-profitability analysis by comparing expected and actual freight performance, calculating margin for each loaded and empty segment, and connecting operational detail with general-ledger cost.
The Evolution of FreightMath
FreightMath 2.0 was rebuilt using years of client experience and feedback. It evaluates both financial and operational performance and identifies underperforming lanes, customers, and geographic areas.
The model quantifies the profitability of each part of the network by analyzing financial, geographic, and chronological data for every load and stop.
FreightMath Potential and FreightMath Actual
Two measures form the core of FreightMath 2.0.
FreightMath Potential
FreightMath Potential, or FMP, evaluates how freight should have performed under ideal conditions. It uses standardized assumptions for time, mileage, and other operating factors to estimate performance in an optimized network.
FreightMath Actual
FreightMath Actual, or FMA, measures what occurred using actual transit time, loaded and empty mileage, and related operating results.
The difference between FMP and FMA shows where execution reduced value. A carrier can use the gap to target route design, transit time, loading and unloading delays, or driver performance.
The Margin Core Algorithm
The enhanced Margin Core, or MCore, algorithm calculates one-way profitability for every network segment. It includes revenue and cost for both loaded and empty moves and considers the time associated with each segment.
Including empty mileage provides a more complete view of how each leg contributes to—or reduces—overall network profitability.
Tracking Operational Deterioration
FreightMath 2.0 compares FMP and FMA across multiple periods to show whether performance is deteriorating. A lane or customer may become less profitable because of longer transit times, higher fuel cost, or additional empty miles.
Identifying the trend early allows the carrier to improve the account or lane before the deterioration creates a larger loss, or to redirect resources to a stronger part of the network.
FreightMath Data Integration
The platform was designed to work with multiple transportation management systems. KSMTA developed custom extraction packages for:
- McLeod LoadMaster.
- TMW Suite.
- TMW TruckMate.
FreightMath 2.0 also incorporates general-ledger data, linking financial and operational results through activity-based costing so fixed and variable expenses are reflected in the analysis.
Strategic Profit Levers
Density as a Driver of Efficiency
The model emphasizes power lanes and concentrated freight. Greater density improves efficiency and velocity, while low-density spider lanes tend to create loss.
Surgical Pricing
One-way rates are evaluated from a network perspective, considering transit time, operating cost, and market conditions. The pricing tools support both contract and transactional decisions.
Targeted Sales Strategies
The analysis identifies undersold and oversold areas and the lanes that could connect profitable markets. Sales teams can target outbound shippers in undersold areas and inbound shippers in oversold areas.
Operational Alignment
Decision-support tools help daily operating choices remain consistent with broader profitability goals, reducing reactive dispatch and planning.
FreightMath 2.0 Service Levels
- FreightMath Lite: Dashboard access and advisory support during an eight-week onboarding period.
- FreightMath Analytics: Dashboard and pricing tools, eight weekly advisory meetings, and FreightMath pricing certification.
- FreightMath Analytics + Advisory: Full platform, pricing, benchmarking, continuing advisory support, and custom projects.
FreightMath 2.0 was introduced to help OTR carriers see where potential value is lost in execution and to direct pricing, sales, and operational changes toward the specific network elements that can improve margin.