The formation of the road freight price which the buyer, i.e., the trader or exporter is willing to
pay was described by ANONYMOUS 4 (2012). On the basis of historical data the buyer estimates the
freight costs for the planning period, which usually corresponds to the calendar year. The historical
freight rates at peak harvest time are evaluated and the market analyzed. It is common to
exchange ideas with other market participants in order to optimize the estimates. Based on this
information the freight rate, which the buyer is willing to pay, is calculated. As the transport market
is a volatile market (see figure 4.9), buyers and suppliers both have to steadily adjust their
positions to the market. They have to stay current on changes in every shipping cost variable and
in market behavior to negotiate efficiently with the counterpart. ANONYMOUS 4 (2012) asserted
that the few big trading companies (see chapter 4.1.1) have as large buyers the negotiation power
to exert pressure on transport haulers to obtain freight transport discounts. Thus, freight rates
are influenced by the customers' willingness to pay as well as by the demand and supply relation.