Transforming the future of an industry – any industry – requires a firm understanding of the past as well as total buy-in from its current participants. Such is the case with the current movement to eliminate freight brokers and move to a long overdue shipper-to-carrier direct model.
“Old school” truckers (of a certain age) will remember 1980 as a major turning point for the industry. That was the year President Carter signed the Motor Carrier Act of 1980, a move designed to reduce over-regulation of the trucking industry. The goal, in part, was to give independent trucking companies greater independence and the freedom to set their own rates, all while lowering consumer prices.
The results, however, were mixed at best.
Driver pay plummeted. Truckers in 1980 earned about $110,000 per year; today they earn less than half that – even when adjusted for inflation. Deregulation also birthed the explosion of freight brokerages. While only a few hundred freight brokers existed pre-1980, some estimates suggest up to 100,000 freight brokerages were in business as of 2022.
Freight brokers continue to tear at the fabric of the independent trucking industry, siphoning billions of dollars of revenue from small carriers, all while fighting pricing and process transparency tooth and nail.
This is precisely why LaneAxis launched the first Brokerless Shipper-Direct Freight Network. Our mission is focused on giving power and profits back to hardworking truckers.
But we can’t do it alone.
We need the help of every independent carrier and owner-operator out there to be persistent in their efforts to connect with shippers inside the LaneAxis network, while also recruiting their existing shippers and other carriers to join. The more carriers in the network, the more shippers will follow. Without a MASSIVE coalition of carriers in the network, shippers may hesitate to join. We need to make it as easy as possible for shippers to find direct capacity when and where they need it.
It’s a question we receive time and time again: where is your load board?
The answer is we don’t have one. And that is precisely the point. Load boards are dominated by brokered freight being advertised at a fraction of what the brokers actually received from the shipper.
What we offer is the opportunity to create your own “personalized” shipper-direct load board by connecting and building relationships directly with shippers. This is a fundamental mindset change – one that moves carriers away from a “reactive” mode of obtaining freight to a “proactive” model where you are empowered to go straight to the source of the freight and do business directly.
Remember, it costs just $29.99 per month for a LaneAxis “Premium Tier” carrier membership. That $29.99 earns you plenty of current and soon-to-come benefits. Most importantly, it helps us accelerate the growth of the direct network. LaneAxis currently has over 7,000 shareholders, including former Walmart logistics executives. What we do not have is venture capital money. Why? Because every VC we’ve spoken with wants to change our business model to include brokers, with their primary concern being profits over people. That’s a dealbreaker for LaneAxis.
Banishing brokers who charge 15-60% commissions is our number one mission, and will always remain so.
Consider that on a $1,000 load, a typical broker might take 20%, which means you only earn $800 while the broker pockets $200. With LaneAxis, you get the full $1,000 (minus a 1% transaction fee). So, in such an example, just two shipper-direct loads will cover your monthly membership for an entire year.
While LaneAxis is preaching patience and persistence in building this direct network, we also understand the importance of offering immediate benefits that truckers can take advantage of today.
The LaneAxis Network app and desktop dashboard is an outstanding fleet management and cost-savings tool for carriers of all sizes – and it can be used right now.
More current benefits for Premiere Carriers:
This is a mere snapshot of the current benefits of becoming a Premiere Carrier – all for less than $1 per day.
We realize obtaining shipper-direct freight on a regular basis will take time. Again, it requires the patience and persistence of independent carriers to speed up the time frame. Remember, you are investing in the future success of your company.
And on the topic of the future, here are some of the benefits coming soon to the LaneAxis Network:
(Important: we will reward early adopter Premiere Carriers who sign on now with bonus fuel savings once the program kicks off – but you must be a premiere carrier and you must join before the fuel program launches)
…More Potential Upcoming Benefits in Our Roadmap:
In addition, we will soon be folding in benefits from our partners at the American Association of Owner Operators (AAOO) – one of the fastest-growing trucking associations in the country. AAOO is focused on making truckers’ lives easier by helping them make and save more money.
Among their many benefits:
“Our partnership with LaneAxis is based on our shared mission to improve the lives of owner-operators and small fleets,” says David Huff, Chief Executive Officer of AAOO. “A Brokerless Direct Network is long overdue. Our members want it. Our members need it. We’re proud to partner with LaneAxis because they’ve built it – and together with the trucking and shipping communities we are going to see it grow and grow fast.”
Remember, LaneAxis is built to solidify your business over the long term via ever-expanding benefits and shipper-direct freight. Your patience and persistence will get us there.
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