Loadsmart completes first-ever automated dispatch and delivery with Starsky Robotics’ autonomous truck

The announcement marks the first time an autonomous company and a digital broker have collaborated to price, book and deliver a shipment without any human involvement.

Together with Starsky Robotics were able to automatically dispatch an autonomous truck to haul freight; having successfully priced, tendered and booked via Loadsmart and then picked up and delivered the shipment using Starsky’s self-driving technology. The integration of Loadsmart’s AI-powered pricing and load matching technology with Starsky’s API meant no human intervention was required. The historic initiative is part of a larger strategic partnership which paves the way for the future of trucking: digital brokerages dispatching freight to autonomous trucks without human involvement.

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NEWS: Loadsmart and One Network Partner to Create a Seamless and Automated Freight Brokering Experience

To help organizations optimize their freight booking processes, we entered into a strategic partnership with One Network Enterprises, a leader in supply chain network technology. Our joint solution connects Loadsmart’s instant pricing and transportation capacity from the Loadsmart carrier network with One Network’s market-leading SaaS platform, a disruptive artificial intelligence-based technology which enables autonomous supply chain management solutions. As a result of our partnership, shippers can leverage technology in order to reduce friction and create value in the freight market. 

According to Silpa Paul, team lead of Commercial Vehicle Research and Consulting at Frost & Sullivan, “While the trucking industry is in a phase of digital transformation with connected devices bringing greater visibility and transparency across the supply chain the brokerage process, until recently, has struggled to digitalize.”

Recognizing this challenge, and the potential of leveraging artificial intelligence, we forged this collaboration in order to automate the pricing and booking of freight for more than 75,000 participating organizations who rely on One Network to optimize and operate their supply chain. 

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News: Loadsmart and Oracle Collaborate to Digitize Logistics

Relationship offering shippers real-time truckload rates within their Oracle Transportation Management Cloud routing guide

Loadsmart and Oracle partner to digitize logistics

As a Gold level member of Oracle PartnerNetwork we now announce our collaboration to provide Oracle Logistics Cloud customers instantly bookable truckload rates and guaranteed capacity from the Loadsmart network of qualified carriers directly in Oracle Transportation Management (OTM) Cloud.

Fortune 500 customers such as Kraft-Heinz and The Coca-Cola Company now leverage Loadsmart’s Dynamic Routing Guide technology within Oracle Transportation Management Cloud, which helps transportation teams take advantage of market conditions by inserting instantly bookable real-time rates alongside static prices in their routing guide.

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Loadsmart Mentioned in the Gartner Report ‘Digitization of Transportation Networks Provides an Option for Companies to Tackle Transportation Capacity’

“As digital business models continue to grow, digital models in transportation are providing a complementary method to serve shippers’ freight capacity and deeper freight insights,” Gartner states in its May 2019 research report. Gartner goes on to say, “this research will help supply chain leaders get a better understanding of the digitized transportation networks.”

The report refers to Loadsmart as one of a number of Vendors for Digitized Transportation Networks. According to the report, “Digitized transportation networks provide an alternative to traditional brokers, load boards and the spot market, which remain time-consuming and collect information from carriers and shippers, but don’t support true collaboration.”

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Loadsmart CEO on untapped power of sourcing algorithms

Loadsmart CEO Ricardo Salgado attended the Trans-Pacific Maritime Conference hosted by JOC. Check out the interview from the event and hear the origins of Loadsmart and the fundamentals of the algorithms that power the automated pricing, booking, and shipment of freight.

Here’s the transcript:

(00:20) AB: I’m Alessandra Barrett, Senior Content Editor for JOC and I’m in our 2019 TPM Conference with Ricardo Salgado, CEO of Loadsmart. Great to have you here.

(00:30) RS: Thank you for having me.

(00:31) AB: With the recent spot market fluctuations, everyone is probably looking for something a little more predictable. What inspired you to create Loadsmart?

(00:43) RS: I actually started very young. My parents owned a paper company and during my internships there I would go out there and realize that in this industry, how we moved goods was highly inefficient. We were in the middle of this technology revolution and as an engineer, I looked mathematically from an engineering perspective and a process perspective with the latest technology, I realized there has to be a better, more efficient and socially responsible way to move goods from point A to point B.

(01:17) RS: As I started going to college and work, I realized there are massive investments in data infrastructure, for example 5G, but the truck drivers today, instead of 25% having a smartphone, now 95% of them have a smartphone. So as you started seeing more connectivity and you can hold them accountable and part of this sharing economy and dual rating systems, I realized there’s definitely an opportunity where you can put it all together and all of a sudden it’s an industry that’s huge, fragmented, lacked technology… and it all just came together at the right time.

(01:55) AB: Loadsmart uses AI for truck brokerage. Can you walk me through how the AI is applied?

(02:03) RS: Absolutely. Our core technology does two things. Number one is we provide instant pricing and booking capabilities nationwide. So at any point in time, just like you book a flight on Expedia, you can say, “I need a truckload from New York to Los Angeles,” click a button and get a price immediately. Now, New York to Los Angeles is a highly trafficked route because they are metropolitan areas. But if I go South Dakota to Maine, there’s not a lot of volume there. To generate that rate, we estimate it programmatically based on roughly 385 different factors. Our AI and data science learns every single time we render a price and iterates through it. Think about each one of these features as a different knob. If we render a price and it’s accepted or not, then it gives us feedback and our learner models kick in and start adjusting. It asks, “what if we had shifted this one or the other one? Would it be more accurate versus where we actually sourced that truckload from our partner network.” So, that’s one element.

(03:09) AB: Oh, I see.

(03:09) RS: The other element is identifying — it’s our sourcing algorithms. Our sourcing algorithms, which is on our supply side, is identifying the ideal carrier or trucking partner within our network or outside of our network. It’s asking itself which is the best carrier at that point in time. Which one is moving in the right direction with the right driver for the right rate in that same time, etc. So those sourcing algorithms also start learning from that carrier base, powered by AI and data science, asking “Did this one work? Did it render correctly? Was it accepted?” It starts learning, and ultimately it starts optimizing both sides of where we sit in the middle.

(03:50) AB: Well, thanks for taking time to sit down with me today.

(03:52) RS: Thank you, Alessandra.

(03:54) AB: I’ve been speaking with Ricardo Salgado, CEO of Loadsmart.

SlideShare: How AI is revolutionizing the contracted model

At last week’s Gartner Supply Chain conference, we had the opportunity to present our thoughts on how technologies like artificial intelligence are revolutionizing how truckload freight is priced, booked and shipped.

Interested in diving deeper? Check out our presentation via the SlideShare below.

Abstract
While the contracted carrier model has long been relied on by shippers looking to secure access to capacity, that security comes at a price. Routing guides are rarely updated and can move slowly, resulting in excessive costs and poor service. At the same time, they are critical for effective procurement.

With AI, can we make the contracted model smarter?

Read on to learn:

  • How AI can guarantee access to capacity
  • Lessons we can learn from the airline industry
  • Ways AI can accelerate the sourcing process

AI & The Contracted Model— Lessons from the Airline Industry

AI & Th Contracted Model

The trucking industry is in a phase of digital transformation, with connected devices bringing greater visibility and transparency across the supply chain. Yet, according to Silpa Paul, a Frost & Sullivan commercial vehicles industry analyst, the brokerage process has struggled to digitalize.

In the United States a large trucking company can accumulate 93 billion miles per year. That’s like driving around the globe 3.7 million times. Commercial long-haul trucks in the region typically operate with 25 percent empty miles which result from the inherent opacity and slowness of traditional road-freight brokerage processes. With more than 70 percent of all freight moved via road, road freight capacity utilization levels are therefore highly inefficient at present.

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Loadsmart’s Q1 2019 State of Truckload

Loadsmart’s “State of Truckload” report combines Loadsmart’s proprietary rate and capacity data with third party information to help explain what happened in the market during the previous quarter.

Here’s what we’ve observed.

Contents:

DOWNLOAD THE FULL REPORT

Summary

The first quarter of 2019 saw increasing concern about the possibility of an economic slowdown and how it might impact transportation markets. Cass Information’s Freight Shipment Index, an index based on $28b in freight volume, has remained negative on a year-over-year basis since December 2018, meaning monthly freight volumes have been consistently lower than 2018 levels.

Further, while truckload linehaul rates continued to improve month over month since January, their rate of growth has been in decline since December. This is not altogether unexpected, as January and February are typically slow months for truckload freight.

CASS INFO FREIGHT SHIPMENT INDEX

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The US economy offered its own set of mixed signals. After the 10-year Treasury Yield moved into correction territory in December of 2018 (2.52% in December) and initially recovered in February (2.73% on 2/4/19), it fell back again into correction levels at the end of March (2.41% on 3/31/2019). Adding more fuel to the fire, the New York Federal Reserve estimated that the probability of a 2020 recession had risen to 27.07% in April, its highest level since 2008-2009.

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Meanwhile consumer sentiment, after showing signs of decline in February, grew to 98.4 in March, its highest level since October 2018. The jobs report, after giving an initial scare in February, posted 196,000 new jobs in March, in hovering near its 102-month average.

CONSUMER SENTIMENT INDEX

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It’s important to note — these trends have not happened in a vacuum. The month-long government shutdown, combined with tariffs and the threat of a trade war with China have taken their toll on the markets and added an extra headwind for Q1.

The net-net? Q1 indicators showed a slowdown compared to last year, but it’s not time to turn completely negative in our outlook. 2019 will show continued growth, albeit slower than the breakout levels of 2018.

In an abundance of caution, we’d advise paying closer attention to freight volumes and other economic indicators as we move into Q2 2019.

GLASS HALF FULL:

While we won’t see the meteoric volume and rates of 2018, we’ll see steady, more measured, growth in 2019.

  • Freight volume, while lower than the blockbuster levels of 2018, has shown month over month growth since January
  • Consumer Sentiment for March reached 98.4, -3.3% over the same time last year, but +4.4% over February 2019
  • Non-farm payrolls grew by 196,000 jobs in March 2019, exceeding the 170,000 target and eliminating fears generated from the 33,000 jobs in February’s report
  • Construction spending for January and February remains above 2018 levels (+1%)
  • The impact of the government shutdown is temporary, with the economy expected to further stabilize in Q2

GLASS HALF EMPTY:

Economic contraction is on the horizon, we just don’t know when.

  • Freight volume has been down on a YoY basis for four consecutive months
  • YoY growth for truckload linehaul rates has been slowing since mid-2018
  • 10-year treasury yield has fallen back into correction territory (2.41% on 3/31/2019)
  • Probability of a recession in 2020 has risen to its highest level since 2008-2009

Capacity

TRUCKLOAD CAPACITY SURGES IN Q1 2019

Outside of reduced shipment volume, rates in the first quarter remained low in large part due to excess capacity. Available trucks were able to cover most surges in demand, resulting in rates staying relatively flat or declining.

There are a couple of interesting takeaways here. First, a strong 2018 freight market coupled with savings from the 2018 federal tax cut led fleets to order more trucks than needed to replace older trucks — those new trucks are hitting the road now . Second, the initial capacity shortage tied to ELD implementation last April has passed, with previously sidelined equipment now making it back onto the road.

Quite simply, we haven’t seen this much capacity in years.

DRY VAN

DAT’s Van Load to Truck ratio hovered between 1.5 and 2.0 loads per truck from January to March, a sharp difference from just a year ago when the ratio was between 4 and 6 loads per truck. For two out of the three months, the 2019 ratio even remained below 2017 levels.

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According to Loadsmart’s own proprietary capacity index, which is essentially an aggregated view of available trucks from dozens of sources, capacity has only continued to strengthen in Q1. March available truck postings grew 36% over February and April is already on pace to exceed March.

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REEFER

In the first quarter, excess capacity was not limited to just van. The DAT reported that reefer load to truck ratios remained below 2018 and 2017 levels, hovering between 3.0 – 4.0 loads per truck between January and March. That’s nearly a 50% increase in capacity compared to 2018, when the load to truck ratio was between 7.0 and 12.

And while everyone expected the market to be soft in Q1, the ‘spring produce surge’ that typically starts to drive higher freight volumes had not yet arrived by March, delayed by flooding in the midwest and continued bad weather. It will be an important signal to watch as we move into Q2.

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Rates

EXCESS CAPACITY AND REDUCED SHIPMENT VOLUME CREATE A PERFECT STORM FOR LINEHAUL RATES

According to Cass Information Systems, truckload linehaul rates (without fuel) continued to contract throughout Q1, while remaining 6% above the previous years levels. This should come as no surprise, as demand remains soft and capacity has begun to rebound from the near crisis levels experienced during 2018.

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DRY VAN

Van spot rates (including fuel), have been in steady decline since reaching $2.83 per mile in June of 2018 according to the DAT. In the first quarter of 2019, spot rates fell 5.1%, sliding from $1.95 / mile to an average of $1.85. And while rising diesel prices helped spot rates reach their peak in 2018, they have had a decidedly neutral impact in the first quarter.

Contracted rates remained relatively stable through December of 2018, but decreased roughly 2.5% in Q1, moving from $2.32 in January to $2.26 in March.

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REEFER

Reefer rates followed a similar trend to dry van. Spot prices declined 6% in Q1, moving from $2.31 per mile to an average of $2.17. Contracted rates held their own, staying relatively stable at $2.54 per mile.

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Fuel

DIESEL PRICES RELATIVELY CONSISTENT IN FIRST QUARTER, REMAIN BELOW 2018 PEAK

While the price of diesel had a decidedly positive bias on overall freight expenditures in
2018, it was relatively neutral in the first quarter of 2019, with prices staying flat in January and February, while increasing 2.5% in March ($3.076 / gallon). The United States Energy Information Administration has forecasted the cost of diesel at $3.08 per gallon in 2019, so we’ll likely see rates creep up as we make our way through the rest of the year.

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Wrapping Up

With year over year freight volume declining for the fourth consecutive month, in addition to other economic indicators like the falling 10-year Treasury Yield, there’s now good reason for elevated concern. However, that concern should be weighted by the fact that month over month volume is growing, and demand still outstrips available capacity.

Our take? While elevated concern around economic contraction in 2020 is appropriate, it’s not yet time for doom and gloom. Shippers have an opportunity to save in 2019 while capacity is high and spot rates are in decline.

How Loadsmart Can Help

Loadsmart can help you take advantage of favorable market conditions by inserting real time rates alongside the static prices in your routing guide. This is made possible via direct integration with your TMS. In today’s market, there’s nearly a 20% gap between spot and contracted rates — savings which can be captured with Dynamic Routing.

Ready to Learn More?

Contact us at sales@loadsmart.com or (646) 887 6278. We look forward to working with you.

Disclaimer:

Materials in this presentation may contain information about Loadsmart Inc.’s future plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995.  Included in forward looking statements are statements such as:

  • Statements regarding market trends in the U.S. freight industry, including freight volume and pricing, market size and the state of transportation management systems;

Some forward-looking statements can also be identified by terminology such as “may,” “will,” “could,” “should,” “anticipate,” “believe,” “contemplate,” “estimate,” “expect,” “intend,” “plan,” “predict,” “project,” or similar words.

Such forward-looking statements are based on our current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change such statements, and could cause actual outcomes and results to differ materially from our current expectations. No forward-looking statement can be guaranteed.  In evaluating forward-looking statements or forward-looking information, we caution readers not to place undue reliance on any forward-looking statement, and readers should specifically consider the various factors which could cause actual events or results to differ materially from those indicated by such forward-looking statements.

In addition, any information contained in this presentation was current as of the date presented and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change, whether as a result of new information, future events or otherwise. Consequently, readers should not rely upon the information as current or accurate after the presentation date.

The Shipper/Carrier dynamic at #TPM2019

Navigating challenges between shippers and carriers is (finally) becoming less arduous

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The Trans-Pacific Maritime Conference in Long Beach, CA, hosted by JOC, is a must-attend event for supply chain leaders from every corner of the market. 

This conference, more than any other, is the time of year where shippers and carriers take a hard look at the most important short-term challenges and discuss longer-term macro trends. Hot topics of 2019 included the IMO 2020 Sulfur Cap, the North American capacity crunch, the US-China trade war, technology innovation, and how market conditions are impacting rates. Here, we’ll discuss the last two – and the promising outlook on integrating both technologies and stakeholders.

Historically, there’s always been tension between shippers and carriers, as they naturally view the same macro challenges through different lenses. And while market conditions will only continue to add pressure, the reality is that shippers and carriers share the same unique set of problems. And that, according to Port of Long Beach Executive Director Mario Cordero, means both sides of the supply chain need to collaborate better. SupplyChainDive quoted;

“It’s a historic issue, the shipper and carrier dynamics.” – Port of Long Beach Executive Director, Mario Cordero

At TPM, we found that shippers and carriers alike are increasingly willing to embrace technology in order to better collaborate and improve service – a marked change from even five years ago. 

For shippers, Ai powered pricing algorithms and TMS integrations now enable them to quote and book truckload shipments in seconds without ever having to leave their native system, eliminating the time consuming back and forth over phone and email. For carriers, these same technologies have made it dramatically easier to find relevant loads and minimize empty miles, all while reducing paperwork.

These technologies are quickly headed in the direction of intermodal automation, as companies like Maersk look to offer their customers end-to-end solutions across modes. And according to Maersk CEO Søren Skou, the timing could not be better. 

JOC reported notable comments from Skou’s talk and pointed out that while 40-45% of Maersk’s business is coming from freight forwarders, Skou warned forwarders ignoring the wave of automation;

“If the only thing they provide is a booking service with a carrier, then it is going to be a hard place to be.” – Maersk CEO, Søren Skou

Did you attend TPM 2019? If so, what stood out to you?

Our freight brokerage predictions for 2019

While the challenges facing the trucking industry may vary from year to year, the one consistency is that companies managing private and/or dedicated transportation fleets are being forced to do more with less. Following the ever-increasing need to improve efficiencies, the digitization of the supply chain proved to have a substantial impact on the efficiency and flow of freight operations in 2018.

Felipe Capella Quote 1
Felipe Capella, chief product officer, Loadsmart

As we review our predictions from last year, it’s safe to say most of them held true. Data sharing and open access, the onset of APIs, instant pricing + booking, and technologies such as machine learning have made all the difference in getting the most out of finite transportation resources.

For 2019 we expect even more pervasive digitization than last year, ultimately driving towards a more unified experience for shippers and carriers alike.

Read More »

Developing Digitally: Deloitte interviews Hunter Yaw, our VP of Product Management

Hunter Yaw, our VP of Product Management at Loadsmart, recently spoke with Amy Hutchinson of Deloitte Canada on her podcast: “Developing Digitally: Episode 20 with Loadsmart”. In this podcast, the two discussed how Loadsmart is using innovative technology to bring greater efficiency to the over the road market in the United States and, more recently, in Canada as well.

Between artificial intelligence and machine learning, Loadsmart is bringing the latest technologies to the freight market and we’re always happy to share our insights into how these tools are shaping this market.

To listen to the full podcast, click here.

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Loadsmart Awarded “Company of the Year” by Frost & Sullivan

For its strong overall performance, Loadsmart earned Frost & Sullivan’s 2018 Company of the Year Award – Automated On-demand Freight Brokerage. What better way to start off the year?

To be recognized as an industry leader Loadsmart had to demonstrate excellence in growth, innovation, and leadership. Based on Frost & Sullivan’s key business performance categories such as visionary innovation, and performance and customer impact, we earned a solid nine, putting us well above the other evaluated companies.  

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Sipla Paul, Industry Analyst at Frost & Sullivan, said, “Apart from a lack of load and carrier visibility, pricing opacity has been one of the key deterrents to the adoption of digital brokerage solutions. Loadsmart has made possible instant pricing across all lanes in the United States (over 900,000) using machine learning, which is a tremendous step forward in automating the freight brokerage process. Loadsmart’s ability to offer an all-in instant price for shippers before hiring the carrier is a unique value proposition that strikes at the heart of the freight brokerage process.”

“For large private fleets, the integration of Loadsmart with their TMS for semi-automated route guide or fully-automated dynamic route guide provides the ease and agility that translates into better asset utilization, whether human or truck, and, thereby, more cost savings,” said Silpa “The efficacy of Loadsmart’s solution is evidenced by its revenue growth in recent years (350% year-on-year in 2018) achieved by on-boarding fortune 500 companies such as Daimler Trucks North America, Anheuser-Busch, and Albertsons/Safeway.”

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Ricardo Salgado and Felipe Capella, co-founders, Loadsmart

Ricardo Salgado, CEO, Loadsmart, said, “We’re pleased to see all of our hard work come to fruition and are incredibly proud of the entire Loadsmart team. Since inception, our mission has been to help shippers more with less, by leading with technology and complement it with strategic partnerships. Frost & Sullivan’s “Company of the Year” award is strong validation of our approach as we look to dramatically accelerate growth in 2019.”

Here’s what some of customers and investors have to say:

“To manufacture trucks, we need carriers to deliver components and parts to our plants. Offering a customized app to our contracted carriers gives them first access to our spot business and improves critical points in our supply chain.” – Lori Heino-Royer, director of business innovation at Daimler Trucks North America

“We see huge potential with Loadsmart. Forward integrations between ocean shipping and over-the-road services can create incredible synergies and eventually provide a full service to shippers.” – Sune Stilling, Head of Maersk Growth

“Loadsmart has a solid company strategy and exciting distribution plan. They have built an outstanding team with advanced technology that can be deployed alongside our investment portfolio to digitize and accelerate supply chain and transportation logistics execution.” – Emmett McCann, Managing Director and Co-portfolio Manager, Oaktree

“Chromo focuses on investing in companies leveraging AI in different industries. We have been very impressed with how Loadsmart leverages huge data sets to predict future outcomes and automate tasks. We’re looking forward to scaling the technology and driving this forward.” – Marcelo Ferreira, Managing Director, Chromo Invest

No doubt 2019 will be an interesting year and we can’t wait to see what it has in store.

Interview: Betty Liu, Operating Partner @ Maersk Growth

Hot on the heels of our recent funding announcement (more on that here), we sat down with Betty Liu, Operating Partner @ Maersk Growth, to discuss the story behind the financing and…

  • What Maersk hopes to achieve in starting a venture fund,
  • The challenges facing the freight brokerage industry (… and how today’s technologies hold the potential to make it radically more efficient),
  • What made Maersk move from meeting Loadsmart to leading our latest financing just four months later, and
  • How Maersk can now leverage Loadsmart for FTL services.

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About Betty:

Betty is an Opeating Partner at Maersk Growth and is helping our invested portfolio companies to grow. She has spent over two decades in the shipping and logistics industry, with much of her career spent at A.P. Moller – Maersk, the world’s largest shipping line.

Betty holds an Executive MBA from the Copenhagen Business School and graduated from Maersk’s International Shipping Education program in 2002. In 2012 she was nominated as Denmark’s Top 100 talent by Berlingske business. You can learn more about Betty here.

The Logistics of Logistics Podcast: Using Artificial Intelligence to Improve the Shipper / Carrier Experience with Erik Malin

Recently, our vice president of operations, Erik Malin, spoke with the “Logistics of Logistics” podcast host, Joe Lynch. Joe interviews senior level 3PL providers and business professionals in the logistics and transportation industry. In this episode, Erik and Joe discussed how innovative technologies such as artificial intelligence (AI) are changing the freight brokerage space. The two also talked about Loadsmart’s dedication to its customers, and how the company’s use of strategic partnerships has made it a leader in the industry.

To listen to the full podcast, click here.

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Loadsmart Crowned as Technology Innovator as part of Inaugural Freight.Tech25 Awards

Loadsmart was recently named to the inaugural FreightWaves Freight.Tech25 awards at MarketWaves18. The award recognizes the most innovative and disruptive companies in freight. The original list of 100 companies was paired down to 25 after being evaluated and ranked on a 1-25 point basis. The panel of judges  – 60 in total – included industry executives, academics and investors.

Felipe Capella, co-founder and chief product officer of Loadsmart, said: “This accolade is a further testament to Loadsmart leading the way in technology for this industry.” Between the award nominations, analyst recognitions, and our most recent funding announcement, it’s fair to say that it’s been an exciting time here at Loadsmart.

Freight.Tech25

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This isn’t the first time Loadsmart has been recognized for innovation in the supply chain industry either. Loadsmart was recognized by CB Insights for supply chain disruption, and by Gartner as a Gartner Cool Vendor.

2018 has been a big year for us, and we’re excited to see what 2019 will bring for us.