The Freight Transportation Game: Operational Challenges for Carriers in Online Spot Market Platforms

In the freight transport spot market, carriers face several challenges, including handling small-sized loads, managing short lead times, and dealing with uncertainties that can disrupt their existing networks and capacity. In this context, auction platforms assist carriers in developing strategies to maintain productivity and service levels. This paper introduces the freight transportation game, an online auction-based platform specifically designed for the freight spot market. The game equips players, acting as carriers, with tools to develop transportation strategies, optimize routes, and propose competitive rates to maximize profits. Players engage in decision making and competition, with key performance indicators evaluating their decisions. The game includes two scenarios; the first helps students understand the operational challenges that carriers face in spot market auctions, whereas the second encourages cooperation to enhance performance and overcome obstacles. Designed for a three-hour session, the game can be integrated into courses on supply chain management or transportation systems. The practical learnings for students from the game include understanding the complexity of constructing transport plans, recognizing the challenges of using online auction-based platforms, and experiencing the difficulties of managing spot market requests despite their benefits.