Rate percentiles (P25 / P50 / P75)
Rate percentiles describe where a price sits in a lane's spread of prices: P25 means a quarter of prices fall at or below it, P50 is the median, P75 means three quarters fall at or below it. In Cargado, those prices are carrier bids. They are position markers on the market, not quality grades.
Rate percentiles express a lane's pricing as a distribution rather than a single number. P50 is the median: half of observed prices sit below it, half above. P25 sits in the cheaper quarter of the market; P75 in the more expensive quarter. They are not scores or 25-day averages (a common misreading); they are positions along the actual spread of prices on that lane, direction, and equipment. In Cargado, that spread is what carriers bid over the past 12 weeks.
What this means when you move freight
Percentiles turn 'what should this cost' into 'where should I price, given my constraints.' The working logic:
- Price near P25 when you hold the leverage of time: freight planned three or more weeks out and flexible pickup windows. Carriers accept the lower rate for predictability.
- Price near P50 for normal spot coverage under normal conditions: the market-clearing zone.
- Price near P75 or above when you are buying urgency, scarce equipment, a tough region, or a same-day cover; you are paying for the option value of immediate capacity.
Cross-border, remember the distribution itself moves: direction (northbound vs southbound), season (produce months), and crossing choice each shift the curve, so anchor on the percentile for the specific lane configuration you are actually buying. A P25 quote with a two-hour pickup window is not a smart buy; it is an uncovered load waiting to happen.
How Cargado builds these from real carrier bids, and how the confidence score reads a thin lane: Market Rates.
Put the vocabulary to work
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