For the last half-century, truck drivers and carriers booked their oversize loads through traditional methods such as by phone, fax, or email. However, recent data suggests this is poised to change. While three-quarters of individuals have had positive experiences with traditional brokers, almost as many (73%) would like it if they never had to use one again. What this indicates is the system works, but it doesn’t work as well as drivers and carriers would prefer. Seeing an opening for opportunity, innovators jumped onto the scene.
Understanding the Proliferation of the Online Freight Marketplace
When people began booking their freight online, 77% indicated the experience was superior to traditional brokers. This is unsurprising as booking their trips online netted 61% of them more money. Of those who have not yet tried booking freight online, 81% indicated they would like to try it. When asked why they dislike traditional brokers, carriers gave the following responses:
- 53% of drivers indicated traditional brokers were missing information or provided wrong information about the freight
- 50% of drivers reported poor communication with traditional brokers
- 40% of drivers received their payments late from traditional brokers
- 29% never received payment at all from traditional brokers
- 28% received unfair compensation from traditional brokers for their work
When asked what features they liked and required of the online marketplace, carriers indicated the following:
- 28% of carriers indicated fast pay and no factoring fees was most important
- 25% specified better information about freight
- 20% prefer the online marketplace’s pricing transparency
Another benefit of the online marketplace is carriers don’t have to spend as much time locating their next load. They also often receive a higher rate of pay per mile. One of the biggest examples of the online freight marketplace is Uber Freight. Launched over a year ago, Uber Freight helps match carriers to shippers much like the traditional ride service matches riders with drivers. Uber Freight allows drivers and carriers to apply filters for location, drive distance, and more to identify loads that meet their needs.
With the shifting trucking landscape, it can be difficult for trucking companies to keep up with new technology. If your trucking business is struggling to adapt to new industry changes, Cline Wood can help. Contact us to learn more about running your business as effectively as possible.
This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change.future of freight, future of trucking, transportation technology, trucking blog