Another Curious Question: “Can On-Demand Freight Really Work for Trucking?”

Sure it can. With the right network in place.

In our most recent blog, we stood up to the somewhat perplexing question “Are Small Truckload Carriers Worth Saving” – a query posed in an editorial by a broker-based technology company.

Our answer was and will always be: Are you serious? Of course small truckload Carriers are worth saving. Of course! The primary goal of the LaneAxis Direct Network is not only to  “save” small Carriers, but to help them thrive.

In fairness, the editorial did present legitimate challenges facing small Carriers, some potentially existential. But there was hardly enough justification for asking such an over-the-top question as “Are Small Carriers Worth Saving.”

Questioning On-Demand Freight

This week, we’re pushing back against another eyebrow-raising question: “Can On-Demand Freight Really Work for Trucking?”

This provocative query comes courtesy of a different editorial posted in Transport Topics by a different broker-based technology company.

The author argues that “In theory, an on-demand freight marketplace sounds great.” The reality, he suggests, is that neither the Shipper or Driver communities have expressed much interest.

From the editorial:

“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. Even with the on-demand market model, the shipper is not going to know who the carrier is because like the broker, the marketplace does not want the shipper to go around them and solicit the carrier directly.”

Both of these points are simply not true. At least certainly not true enough to apply such blanket assumptions.

Here are the facts:

  • Tens of millions of loads are posted on spot market, “on-demand” load boards every year.
  • The spot market represents a massive percentage of the truckload freight moved today: roughly 20%. That accounts for approximately $160 billion of the overall $800 billion dollars in revenue produced annually by the U.S. freight transportation sector.
  • Research firm Frost & Sullivan estimates trucking-focused apps could become a $35.4 Billion Market by 2025. 
  • A Direct Network that caters to “On-Demand” Freight is EXACTLY what the industry needs.

A Brokerless, Direct Network with Top Tech Solves “On-Demand” Challenges

The LaneAxis Brokerless Direct Network – powered by the FreightVISION Driver App – is reinventing the way an On-Demand Freight Marketplace should work. The biggest key is removing Shippers’ reliance on freight brokers. A lack of true visibility into the available pool of 1.7 million U.S. Carriers has long been the major roadblock preventing Shippers from ditching brokers and engaging in a direct network. Those days are over.

LaneAxis now gives Shippers real-time visibility and access to this sea of Carriers when and where they need them. Drivers simply broadcast their current and future locations to provide that visibility.The irony is that many of these Carriers are ALREADY hauling these Shippers’ freight – but with brokers meddling in the middle and taking a hefty cut in the process.

Within weeks of launching the Direct Network, hundreds of Carriers had already signed up – ready and rarin’ to start making direct connections with Shippers and leave brokers in the dust. And you better believe all those Drivers and Carriers are more than happy to book loads through the LaneAxis Network and FreightVISION mobile app – primarily because they’re coming DIRECTLY from Shippers. That means direct negotiations, full transparency, and guaranteed, direct pay, with no broker margins, usually delivered 24 hours after proof of delivery.

On the Shipper side, the suggestion that Shippers don’t want to know who the Carriers are and don’t want to connect directly with them is also laughable. For decades, Shippers have lacked true visibility over their freight because of clumsy and costly middlemen like freight brokers. As we reported in a widely shared investigation, even Shippers working directly with large Carriers aren’t aware that many of their shipments are being outsourced to other companies at alarming rates, further murking freight visibility.

LaneAxis provides Shippers all the tools needed to overcome the challenges of managing multiple Carrier relationships at once, including automated contract management, monitoring insurance documents, Commercial Driver’s Licences (CDLs),  and providing real-time tracking and documentation throughout the shipment lifecycle. LaneAxis empowers small Carriers and Shippers of all sizes to do business together efficiently and profitably.

Shippers and Carriers are ready, willing – and thanks to the LaneAxis Direct Network – FULLY able to work directly together thanks to the long overdue marriage of patented technology with a Brokerless Direct Network.

To learn more, visit LaneAxis.com.