OAKLAND, Calif.--(BUSINESS WIRE)--FR8 Revolution, creators of the FR8Star marketplace for open deck carriers and shippers, and Comdata Inc., a FLEETCOR company and leader in payment and permit innovation, today announced the results of their co-sponsored 2018 Heavy Haul Freight Carrier Survey, with responses from more than 250 U.S. based open deck truckers.
In 2017, the two companies announced an integration between Comchek Mobile and FR8Star.
There are over 12,000 freight brokers in the U.S. For more than 50 years, oversize/overweight loads have been primarily booked through these brokers via phone, fax and email. But according to this new survey, conducted by independent market research firm Regina Corso Consulting, technology solutions are gaining momentum as a means to address logistical challenges with booking, payments and even permitting.
To illustrate, 42 percent of truckers surveyed have used traditional brokers. Of those, three in four classified their experience as positive, but almost the same number (73 percent) indicated they are interested in different ways of finding and booking loads. According to Matt Kropp, CEO of FR8 Revolution, freight marketplaces – licensed broker exchanges that connect carriers directly with shippers to bid and book loads – represent a huge opportunity to address truckers’ biggest needs, identified in the survey as: higher rates per mile; faster payment; better information about trips and/or loads; and reducing time to find and book the next load (current average: 4.22 hours/day).
“Technology is advancing at an unprecedented rate in the open deck freight industry,” explains Kropp. “This survey found that nine out of ten truckers are tech savvy, suggesting the myth of the anti-tech trucker is just that – a myth. The research findings also detail how heavy haul truckers are shifting their behaviors to ensure operations are conducted in the most efficient and profitable manner possible.”
Increased focus on efficiency and profitability is apparent in survey responses about permitting. More than 35 percent of open deck loads require permits, which cost nearly $285, on average. Nine in ten respondents preferred to have any required permits paid for by the shipper or broker directly. When faced with handling permits themselves, 53 percent indicated they were difficult to obtain, while 47 percent weren’t always certain their permits were going to be correct when starting a trip.
“Nearly half of the survey respondents believe their oversize/overweight trip loads will increase in the next two years, which means they’ll need to alleviate the time and complexity of securing permits to maintain operating efficiencies,” said Laurie Eldridge, senior vice president of regulatory and compliance services at Comdata North American Trucking (NAT). “Comdata provides these open deck truckers the ability to easily secure permits connected to a FR8Star load, as well as a flexible way to send and receive payments through our Comchek Mobile integration in the FR8Star system.”
The survey showed that truckers who recognize the importance of technology are open to an online freight marketplace as a business tool. Among the 78 percent of respondents who have not yet used an online freight marketplace, four in five truckers said they would be likely to try it.
Of the 22 percent of respondents who have worked with online freight marketplaces like FR8Star, over three-quarters recommended the experience and three in five indicated it helped them make more money compared to other methods.
About FR8 Revolution
Founded in 2015, FR8 Revolution develops cloud-based, data-driven tools that improve efficiencies, reduce costs and provide unparalleled transparency in the open deck freight transportation industry. The FR8Star.com marketplace enables shippers to move legal and oversize/overweight loads with reliable pricing estimates, optimal shipping routes and real-time freight tracking. Specialized open deck carriers can easily develop quotes and bid on high-value loads using a free freight rate calculator that factors all third-party expenses including state permit and escort costs. FR8Star eliminates unnecessary factoring fees to carriers by providing fuel advances at pickup and instant pay at drop-off. For more information, visit www.fr8star.com
Comdata Inc., a FLEETCOR company, is a leading provider of innovative payment and operating technology that drives actionable insights from spending data, builds enhanced controls and positively impacts its clients’ bottom lines. The company partners with more than 30,000 businesses to better manage $55B in annual fleet, corporate purchasing, payroll and healthcare spending, making it one of the largest fuel card issuers and the second largest commercial MasterCard provider in the United States and Canada. Founded in 1969 and headquartered in Brentwood, Tennessee, Comdata employs more than 1,300 professionals across North America. To learn more about Comdata Inc., visit www.comdata.com.
FLEETCOR Technologies (NYSE: FLT) is a leading global provider of commercial payment solutions. The company helps businesses of all sizes better control, simplify and secure payment of their fuel, toll, lodging and general payables. With its proprietary payment networks, FLEETCOR provides affiliated merchants with incremental sales and loyalty. FLEETCOR serves businesses, partners and merchants in North America, Latin America, Europe, and Australasia. For more information, please visit www.FLEETCOR.com.