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

image1.png

Source

linehaulrates.png

Source

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.

image5.png

Source

image3.png

Source

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

image2.png

Source

image4.png

Source

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.

image7.png

Source

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.

image3.png

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.

reefer2.png

Source

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.

linehaulrates.png

Source

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.

image2.png

Source

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.

image7.png

Source

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.

image1.png

Source

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

JOC-TPM

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 »

How We Help Our Clients Reduce Spot Market Exposure by 50%

On May 15, 2018, we wrote about the first fully automated intelligent routing guide with dynamic rates in the US. That powerful tool enables shippers to automatically book a truck before the shipment turns into a spot load and has reduced spot volume for Fortune500 Shippers by as much as 50 percent. Loadsmart accepts 100 percent of tenders received from the dynamic routing guide, guaranteeing capacity. This feature helps shippers avoid the same-day/next-day markets, which are known for steep prices and service failures. Given the huge interest and questions we got from the logistics community, we decided to expand and explain the reasoning behind it and how it actually works in a granular way.

At Loadsmart, our mission is to do more with less. That’s why we innovated with a major customer to help them drive down their spot market exposure by 50 percent. We worked with our customer to help them do more with less by pushing market-based truckload rates into their TMS for every load that goes through their routing guide. Simply put, we do three things:

  • Provide real-time pricing on every load in the routing guide via API;
  • Auto-accept every tender we receive;
  • Guarantee capacity for all of those auto-accepted tenders.

This explains how we went from participating in a daily spot auction via email to a full-fledged integration with our customer to reduce spot volume.

Read More »

Loadsmart CEO addresses transport capacity shortages at Automotive Logistics Supply Chain Conference

Technology is transforming the automotive and logistics industries. But for many supply chain managers the biggest headaches are still the most familiar ones, such as driver and transport capacity shortages, lost containers, poor forecasting and incomplete visibility. Just this morning, The Wall Street Journal featured how Deere & Co. is raising equipment prices to make up for rising freight transport costs. The equipment maker is a host of U.S. manufacturers reporting rising expenses as a growing U.S. economy drives up prices for materials and shipping.

Read More »

Intelligent optimization is the future of effective transportation management

As we’re approaching the Retail Supply Chain Summit: New York and I’m preparing for my panel conversation with supply chain managers from large retailers/manufacturers, a recent Deloitte study – Embracing a Digital Future – caught my eye.

According to the study, 79 percent of companies with high-performing supply chains achieve above average revenue growth. Yet, very few companies include supply chain managers in their boardrooms. Businesses that have applied big data analytics to their supply chain functions have seen a reduction in costs, improved risk management, shorter cycle times, more accurate forecasting, and an overall improvement when it comes to making informed decisions.

Read More »

The Changing Role of Logistics Service Providers

Loadsmart’s co-founder and CEO Ricardo Salgado recently joined a group of industry experts to discuss the evolving landscape for logistic service providers with the editors at SupplyChainBrain.

View excerpts from their conversation below or watch the talk in its entirety here.

 

 

The role of the freight broker is evolving and will continue to evolve. It’s about adopting technology and using it to make [services] much more powerful and easier [to access]. Consumers are requesting better pricing and more visibility. In order to do that, we need that underlying technology.

 

 

 

When you’re asking a shipper to trust you with its $75,000 worth of cargo, and it’s going to cost you $1,300 to get on your platform, that’s a different sell than an Uber giving you a $25 promo code to try its [service]. The adoption curve is a bit different. But you’re seeing also a generational shift. This is the first year that we’ll have more Millennials than Baby Boomers. You’re starting to see people who are more comfortable in sharing their car, or their information online. They’re more comfortable with the underlying technology and taking a more of a calculated risk.

 

The Future of Truckload Shipping

Things are changing a lot in the trucking industry. Technology startups have flocked to tackle big and small problems in the supply chain. Venture capital funds are backing different solutions excited about the size of the market and historical inefficiencies. Meanwhile, traditional players are pledging hundreds of millions of dollars to improve existing processes to avoid being dethroned.

Surprisingly, very little has changed in the actual movement of freight, at least in outward appearance. There are a number of reasons for this, but chief among them is the industry’s complexity, which together with historical distrust of technology has lengthened the adoption cycle of new features among more traditional players. And where technology has in fact been adopted, it’s impact has been undercut by the sheer size and fragmentation of the industry; technology is only materially felt once a substantial number of players adopts it.

But timid technology penetration and slow adoption should not discredit or downplay the impact that technology and automation will have, playing a fundamental role in shaping the future of the trucking and freight brokerage industry. And what’s coming is really exciting.

Joe Tsai & Felipe
Alibaba’s co-founder Joe Tsai discusses logistics challenges with Loadsmart’s co-founder Felipe Capella at a recent Sullivan & Cromwell alumni reception in New York

There is a clear downturn tendency in freight brokerage margins. As they continue to shrink, the historical value proposition of freight brokersselling and pricing each load and finding its truckwill decline heavily. Soon, brokers won’t need thousands of employees to power their operations; instead, new technologies like machine learning and artificial intelligence, ubiquitous data sharing, more secure and available chain of ownership (ie via blockchain technology) and real-time, over-the-air telematics will serve as potent force multipliers. All of this will dramatically reduce the actual cost of brokering freight and increase consolidation of small- and medium-sized brokers.

In the long run, things will change more dramatically. Several states will clear autonomous trucks for specific lanes (hub-to-hub). Carrier operational costs will drop significantly and drivers may move from carrier-based to warehouse-based. Huge consolidation on the carrier side will probably follow. Small companies will likely struggle to compete in this new environment, displaced, swallowed up, or put out of business by large enterprises with massive fleets of autonomous vehicles, where few carriers will be moving a very large portion of the total FTL shipments. The exact role original equipment manufacturers (OEMs) will play in creating this new trucking reality is, for the moment, less clear, but it will likely be important as they too want to become software and service providers. Some big enterprises shippers will end up running their own autonomous trucks fleet, but most companies will rely on third party autonomous truck providers.

 

oTMS
oTMS’s co-founder Mirek Dabrowski (far right) and VP of Services Adam Davis (far left) during a recent visit to Loadsmart from Shanghai

 

Of course, down the road, brokers as we currently know them will all but disappear, crippled by the continued advance of technology and growing use of automation across the industry, which only debase a broker’s value as they become more popular, lowering or removing thresholds that were once gatekeepers.  Once this happens, the age of logistics technology platforms will truly begin.

Loadsmart is positioning itself for this upcoming future: a future based on data, artificial intelligence, and automation of load movements. We have nurtured good relationships with logistics players across Asia, Europe, Latin and North America, and are sharing knowledge with these trusted partners to transform the logistics business.

Felipe Capella is co-founder and Chief of Product at Loadsmart

Logistics technology eliminates deadhead miles to make the trucking industry more environmentally friendly

How Logistics Technology Can Save the Environment

We’ve talked about how logistics technology can save the industry, but did you know it could help save the environment, too? As a highly fragmented industry that’s severely lacking in technology, many trucks are running with little efficiency. If the trucking industry could eliminate its deadhead miles, trucks would spend less time on the roads, using less fuel and cutting down on emissions.

The Facts of the Matter: Deadhead Miles and the Trucking Industry

In a 700 billion dollar industry that moves 70% of all goods in the United States, there is little room for inefficiency. Class 8 trucks log over 130 billion miles a year, with nearly 20 billion of those considered deadhead miles. The trucking industry accounts for 12.8% of all fuel purchased in the U.S., which translates to 17.5 billion gallons in 2014 alone. By eliminating deadhead miles, the industry would save over 2.5 billion gallons of fuel every year. A decrease in fuel use and emissions will in turn reduce air, water and land pollution, acid rain and ozone destruction.

Real-Time Shipment Tracking and Notifications Eliminate Deadhead Miles

Real-time shipment tracking sounds pretty “Big Brother,” right? Well it’s not, in fact, real-time shipment tracking is one of the most powerful tools available to the industry, for shippers, carriers and the environment. Using GPS technology, logistics platforms are able to send carriers local jobs instantly, eliminating time usually spent at loadboards. When carriers are able to find loads via location instead of traveling back with an empty trailer, shippers receive better rates, drivers don’t have to waste time, extra trips are eliminated and the entire process is streamlined.

Fleet Management Makes For Better Business Decisions

Knowledge is power. It’s an age-old adage for a reason. When dispatchers and owners know exactly what’s going on with their drivers, via tracking, open communication platforms, instant e-document transfers and load organization tools, they are able to make better and more informed business decisions.

So What Does Logistics Technology Mean For the Environment?

With a growing number people in the industry transitioning to technology based platforms, the overall efficiency of the industry is poised to skyrocket in the coming years.Our goal is to bring the excess capacity to market and eliminate the billions of deadhead miles traveled every year. With an increase in efficiency, there will be a decrease in traffic, emission, safety and economic concerns. 

 

The driver shortage, autonomous trucks and other things that could mean big changes in the trucking industry.

5 Things That Could Mean Big Changes for the Trucking Industry

There are dozens of impending changes in the trucking industry. With new legislation passing monthly, upgrades in technology happening weekly and concerns being addressed daily, it seems that the only constant in this industry is change. So what are some of the biggest things on the horizon?

Driver Shortages

This is by no means a new problem, but it is a problem that’s creating huge changes in the trucking industry. With an estimated 890,000 drivers needed in the next decade and high turnover rates across the board, the industry is struggling to find a solution. When paired with the fact that freight volume is forecasted to increase 29% in the next 11 years, these statistics get downright scary. People are calling for collaboration among fleets, offering more benefits to drivers, mass recruiting and even working on passing legislation that allows drivers as young as 18 to carry freight across state lines. While there may not be any one solution, the one thing we do know is that change is coming.

Long-Term Highway Bill

The Surface Transportation Reauthorization and Reform Act of 2015 (STRRA). Have you heard of it? Maybe you don’t know it by title, but you have definitely heard about how it’s causing changes in the trucking industry. The most noted reform in this bill is a measure that allows states to create “compacts” that lower the minimum age to cross state lines from 21 to either 18 or 19 (depending on the version) to help alleviate driver shortages. While the Internet is abuzz with the potential minimum age reduction, the STRRA is first and foremost a 6-year plan to spend $325 billion on improving national infrastructure, and hopefully combatting congestion problems. At the same time, this bill has language that would allow for the nationwide operation of twin 33-foot trailers and for states to be able to change the maximum weight limit to 91,000 pounds, both of which have raised safety concerns with the Trucking Safety Coalition.

Autonomous Trucks

As technology revolutionizes the trucking industry, many look to autonomous trucks to combat the impending driver shortages. Will these self-driving trucks soon cause major changes in the trucking industry? Sort of. Most “autonomous trucks” are actually only level 3 autonomous, meaning that drivers can cede safety-critical functions under certain conditions, but are able to take back full control at anytime. While companies such as Freightliner say they have no intention of creating a level 4, fully autonomous truck, research from Frost & Sullivan predicts that as many as 182,000 level 3 trucks could be on the roads by 2035. The report goes on to say that the factors that affect the popularity of autonomous trucks include cost, social acceptance, legislation and the maturity of the technology.

Capacity Problems

This problem is the offspring of driver shortages and the recovering economy. On one hand, fleet owners have been seeing an increase in demand over the past couple of years that have many companies operating around  95% capacity. While this seems like a great change in pace for the industry, the reality is that it limits growth. For the companies that are operating at a high-capacity, the ongoing driver shortages and the inevitable worsening the shortage discourage fleet growth. The Wall Street Journal reports that others, such as Aaron Tennant, president of an Illinois-based company,  Tennant Truck Lines Inc., have percentages of their fleet sitting vacant, costing tens of thousands of dollars a month.

What would happen in the event of a trucking industry collapse?

What Would Happen If The Trucking Industry Were to Collapse?

The trucking industry accounts for over $700 billion in revenue every year in the United States alone. Over 80% of all goods that are consumed every day by Americans are transported by trucks. While truckers and the trucking industry are under constant scrutiny, the fact is that without freight the country would stop. With the impending trucker shortage, there has been an increase in speculation on the country’s dependence on trucks. But what exactly would happen if one day the trucking industry collapsed?

Food: Thank the Trucking Industry for Eating 

In the event of a trucking industry collapse, food supplies would be affected almost immediately. While larger stores would see the most immediate impact from a depletion of perishable goods, smaller stores would run out of all supply very quickly. The American Trucking Association (ATA) estimates that significant shortages would occur in as little as three days and that the shortages would be expedited by consumer panic.

Healthcare: Trucks Bring Medical Supplies

Perhaps the most disastrous impact would be on the healthcare industry. Many hospitals and care providers only order supplies, such as syringes and bandages, on an as-needed basis, so in the event of a trucking industry collapse, critical supplies would be depleted in a matter of hours. Equally as catastrophic, pharmacies would soon run out of life-saving medications.

Way of Life

The little things that we take for granted would soon be considered long-gone luxuries if the trucks disappeared. There would be no one to deliver fuel to gas stations, and automobile transportation would become impossible within a week. With no means for transportation, people would be unable to access work, run errands or attend school. At the same time, garbage would start to pile on the sides of streets and would quickly reach an overwhelming level, especially in heavily populated areas. While gross, more concerning is the fact that this would provide an ideal breeding ground for disease. Even banks would suffer, as they run out of cash and are unable to process transactions.

The Takeaway: The Trucking Industry is America’s Backbone

It’s important to be reminded every now and then of how crucial the trucking industry is. Although a trucking collapse overnight is highly unlikely, the industry faces incremental problems like driver shortages and limited capacity. To avoid disruption we need to make the entire process more efficient. And to treat truck drivers as important as they are: the backbone of American logistics.

3 Reasons There Will Always be a Human Behind Logistics Technology

In a world where technology permeates nearly every major industry, the trucking industry is no different. With a steady rise in the number of truck drivers who use smartphones for both entertainment and job management, companies are racing to provide the technology they need to revolutionize the trade. The trucking industry accounts for over $700 billion in yearly revenue and employs nearly 9 million people in the United States alone, so it’s only natural that there is hesitation in transitioning such a massive industry into technology. While logistics technology makes everything easier, there will always be a need for the human touch in the trucking industry.

Shipments Get Rerouted, Trucks Break Down

Life happens, daily. And in life, sometimes things go wrong. Pallets can be rejected by the receiver and put back on the trailer. Appointment times that are missed will need rescheduling. Trucks can break down on the road. Warehouses can be closed when a driver arrives. The list goes on and on. There are hold-ups and obstacles that can’t be solved without a human on the other end. While it’s easy to imagine that using an app to manage your fleet results in a disconnect between dispatchers and drivers, in reality the right platform can make communication easier than ever. Loadsmart, for instance, provides a chat platform for dispatchers, drivers, shippers and warehouse operators to keep one another updated.

Your Livelihood is at Stake

In an industry that transports more than 70 percent of all freight, there is always a lot at stake. It’s crucial that every detail is perfect.  While logistics technology provides tools such as real-time GPS tracking and instant booking of shipments to streamline the process, such a complex industry cannot be reduced to just a few computer clicks. So although Loadsmart automatically vets its carriers with high FMCSA safety and performance standards there is always a human touch on the other end making sure that all of the details fall into place,  assuring you that your goods are being transported by qualified carriers.

Human Assurance

When it comes to your money, sometimes it’s hard to trust that a software can instantly give you the best shipping price. Though our advanced algorithms are constantly crunching data to deliver a fast and accurate estimate, there is always a professional double-checking to make sure we deliver fair prices to both our shippers and partner carriers.