Lund maintains the business has always revolved around information, but the increased speed and flow of data in recent years has allowed companies that invested heavily in technology to do more, in a faster, much more efficient manner.
But technology is a two-edged sword, bringing additional controls and restrictions as well. “In some ways, it’s more difficult to operate,” Lund observes. “Brokerages are now more commoditized, as there is more pricing information in the marketplace.”
And unlike in years past, fixed contracts are becoming more of the norm than the exception. “Most truck brokers didn’t have contracts with their carriers, something that is now essential,” remarks Campano.
Vaché agrees: “When the market’s steady, it’s a benefit to both; when rates fall above or below the contracted price there are no issues as it flows both ways. With the seasonality of the perishables market, it’s wise to have the comfort of knowing you will have wheels under your product for pickup and delivery, and not have to chase after the spot market. This also creates stability with dependable carrier/drivers who can count on keeping their assets moving. When tractor trailers sit idle, there’s no commerce and both time and money are lost.”
Most would still say the pros outweigh the cons. A recent tech breakthrough from Venice Beach, CA-based Cargomatic is modeled on Uber, the popular ride management app, which matches shippers with the drivers best suited to haul loads at a prearranged, fixed price. Cargomatic played a role in clearing the backlog from the protracted West Coast ports dispute.
And sophisticated technology now tracks trucks in real time and monitors trailer temperatures. Shippers can be proactive in dealing with problems and respond to temperature variations affecting the quality and condition of perishables, notes Vaché. In addition, software programs can assign optimal delivery routes and track the on-time performance of drivers. “This leads to better service, rewarding dependable carriers or drivers and eliminating underperformers.”
As for the cons, mandates from the Federal Motor Carrier Safety Admin-istration’s Compliance, Safety, Account-ability (CSA) program have brought about a slew of controversial measures from speed inhibitors and electronic logging devices to hours of service restrictions. Campano confirms today’s trucking world is certainly more complex than in years past. “Questions about assuming vicarious liability or should a truck broker be responsible for CSA scoring rarely, if ever, came up.”
Lund too has an opinion on the troubled CSA program and its effects on the transportation sector: “I think business will change dramatically in the next five years as overregulation continues to restrict capacity.”
