Can On-Demand Freight Really Work for Trucking?

[Mike]

In theory, the idea of an on-demand freight marketplace sounds great. In fact, there has been a big push and a great deal of investment made into automating freight brokerage or non-asset logistics. In reality, companies that have tried it have not been successful. It’s just not getting adopted from the shipper community nor from the drivers’ side.

What we are seeing is that the automated solutions are basically mobile apps, and drivers don’t necessarily want to be using an app to book loads. The shippers don’t see a benefit in these on-demand marketplaces either because there is still a middleman involved. To them, this is the same old brokerage model just aided by technology.

Typically, shippers don’t like to work with brokers. The reason is because of the liability. Shippers prefer to work directly with the asset provider, but that is not often possible because of the nature of the trucking industry with so many small carriers.

Can On-Demand Freight Really Work for Trucking? - TT

In theory, the idea of an on-demand freight marketplace sounds great. In fact, there has been a big push and a great deal of investment made into automating freight brokerage or non-asset logistics.

www.ttnews.com

 

[Mike]

Not sure where this will ultimately go, but the fact is, these digital brokers have changed the industry permanently. That is, for a few niche markets. I think it will slowly move into the flatbed world also, but that will be a slower process.

Digital brokers have forced the large brokers to change their system to where they are app based, where we can bid on and book loads directly through an app. XPO, JB Hunt, and Coyote are all in on this. TQL is slowly converting, but they are way behind the curve. There are a few others who's names escape me at the moment.

That said, my load search goes through the names I mentioned, as well as Convoy and Uber Freight. Only a small percentage of the loads I book go through actual loadboards, and it has been that way for a while.

I book all my own loads, no dispatch service, and I rarely ever speak to a broker on the phone. Booking takes place online, updates are handled through the apps, and I like it that way.

 

[Electric Chicken]

I hate talking on the phone. It's an inefficient process prone to errors.

Put it in writing and give me a button to click to accept it. That's what I like. Copy and paste the address into my GPS if there's no hot button and we're off and rolling. I'll be halfway down the road before you even think I left.

 

[Mike]

I hate talking on the phone. It's an inefficient process prone to errors.

Many brokers hate technology. I think it is mostly because they are sketchy and don't want a paper trail to hold them accountable to anything.

I post my email on DAT when I post my truck. Many brokers will email me and say they have a load and to call them if interested. No pickup or delivery city or anything, just to call them if I am interested in the load they have.

Or, the email will simply be: "Still available"? Nothing else, just those two words.

Then there are those that will post the cities in the subject line, and simply ask if my driver would be interested in that lane. No other information about the load.

Obviously, they all get ignored. I don't have time for stupid people.

 

[Electric Chicken]

Many brokers hate technology. I think it is mostly because they are sketchy and don't want a paper trail to hold them accountable to anything.

I post my email on DAT when I post my truck. Many brokers will email me and say they have a load and to call them if interested. No pickup or delivery city or anything, just to call them if I am interested in the load they have.

Or, the email will simply be: "Still available"? Nothing else, just those two words.

Then there are those that will post the cities in the subject line, and simply ask if my driver would be interested in that lane. No other information about the load.

Obviously, they all get ignored. I don't have time for stupid people.

I'd agree with that.

Schneider didn't even want to put certain things on paper. Like accessorials. Unless someone told you about it and you put their feet to the fire, they didn't necessarily pay it.