Author: Vitaliy Dadalyan

The Rocky Road to Automating Freight Matching

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Photo: Loadsmart

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Photo: Loadsmart

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Two contrasting bits of news about the so-called “Uber for trucking” marketplace hit my desk this week.

Loadsmart, which specializes in truckload shipping, announced that it has moved its first fully automated shipment from booking to delivery. No human contact occurred between Loadsmart, the shipper, the carrier or the driver.

The shipper requested a quote, and the system's algorithm generated a price instantly, which the customer booked in just a few seconds. The platform automatically identified the best carrier to move the load and sent an electronic request to the carrier's dispatcher.
With one click, the dispatcher accepted the job electronically and received an online rate confirmation instantly. The dispatcher then invited his driver to download the Loadsmart app. The app provided the driver with all the shipment details as well as GPS tracking for the dispatcher and customer. Upon delivery, the driver submitted the proof of delivery via the Loadsmart mobile app.

This “demonstrates that technology can and will have a big impact on the industry," said Felipe Capella, Co-Founder and Chief of Product at Loadsmart. "We are not your usual 'tech broker'. We are a technology firm: an engineering and design-driven team that is researching, prototyping and building transformative technology for logistics. We are not focused on incremental changes; we have created a tech lab to reimagine the whole truckload shipping flow – from booking to delivery.”

Meanwhile, DC Velocity reports that the segment may soon have its first casualty.

Citing confidential sources, the publication reports that Cargomatic Inc., a privately held company based in Venice Beach, Fla., has less than 60 days left of operating capital, and that its interim CFO, Seth Klein, resigned after less than a year at the job.

Cargomatic's core product is a digital platform connecting shippers directly with local truckers through a mobile app for drivers, targeted at local delivery markets.

However, DC Velocity notes that the company has resorted to traditional brokerage services to keep bringing in revenue while it waits for its app to catch on. But the brokerage segment is crowded and competitive, especially with recent sluggish freight demand.

“It has also alienated some brokers that had expected to be partners with Cargomatic rather than rivals, according to one of the sources. Cargomatic's model anticipated that brokers would account for about one-quarter of its business.”

Cargomatic was launched in June 2014 and currently serves Los Angeles, San Francisco, and New York.

It's not really "Uber for trucking"

Which brings us to the term "Uber for trucking." The phrase gets used a lot, referencing the pioneering ride-sharing app Uber. But is it really the same thing?

A few weeks ago, Armstrong & Associates, a research firm that tracks the third-party logistics market, published a report saying it's not.

A&A profiled 27 companies providing these type of services and concluded that “digital freight matching" is a much more apt description.

This companies, the report said, use digital platforms to match a shipper's freight with available carrier capacity. The goal is to better utilize motor carrier capacity by offering a convenient, digital app to connect shippers and carriers.

This sector has attracted more than $180 million in venture capital investment since 2011, including $67 million in 2016 alone.

The appeal is easy to see. Empty miles estimates range from 10-23% while e-commerce fulfillment costs are increasing. The natural response is to improve inefficiencies in the trucking industry with an Uber-like solution. After all, Uber addresses a similar problem (underutilized capacity in taxis) with a similar solution (a mobile app matching demand and supply).

But as A&A points out, freight transportation is not as simple as hailing a cab.

One of the key components of Uber's model is the commodity-like nature of the ride-hailing service, it points out. Domestic transportation is not a simple commodity. There are specialized equipment types, shipments transported via multiple modes, and handling service issues such as equipment breakdowns. Shipments are high-value and time sensitive. Placing an Uber-like app atop a complex industry doesn't truly address the problem.

In fact, A&A found most digital freight matching companies aren't simply mimicking the Uber model. Many even adamantly reject the term "Uber for Trucking." Instead, DFM apps include some of the functionality popularized by Uber – algorithmic pricing, API map integration, track-and-trace, and mobile transactions – along with features specific to trucking, such as trip planning, digital document storage, and TMS integration.

There's no doubt technology is changing how we connect shippers, carriers and drivers. But it's not as easy as catching a ride to the airport. Those companies that succeed in the digital freight matching space will most likely be the ones that truly understand the complexities of our industry.

Related: Uber, Amazon, and What the Sharing Economy Means for Freight Hauling

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Motor vehicle deaths up 9% through first half of 2016

NSC says this “upward trend” in fatalities started in late 2014 and is driven in part by a stronger economy, lower unemployment rates, and low fuel prices.

Preliminary estimates from the National Safety Council (NSC) indicate motor vehicle deaths are up 9% through the first six months of 2016 compared to the same period in 2015 and are 18% higher com[pared to the same stretch in 2014.

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Driving Volvo’s I-Shift with Crawler Gears

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A mixer chassis sometimes needs to creep over uneven surfaces or while pouring concrete sidewalks or curbs. Depending on axle gearing, I-Shift crawler gears allow speeds as low as 0.6 mph. 

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A mixer chassis sometimes needs to creep over uneven surfaces or while pouring concrete sidewalks or curbs. Depending on axle gearing, I-Shift crawler gears allow speeds as low as 0.6 mph. 

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Low-low gear ratios have been part of vocational truck equipment for many years, and now customers of Volvo Trucks' VHD can get them with the builder's own automated manual transmission. I-Shift with Crawler Gears is the name, and greater performance and productivity comprise the product's claim.

One or two extra ratios added to the builder's 12-speed I-Shift HD allows easy starting under heavy loads and on steep grades, said Wade Long, director of product marketing, during a recent demonstration at the North American headquarters of Volvo Construction Equipment in Shippensburg, Pa.

The low-low ratios also allow very slow movement for special jobs like concrete and asphalt paving for mixer and dump trucks. With the C-1 gear, a Volvo VHD with the 14-speed version of I-Shift crawled at 0.6 mph, compared to about 2 mph for a 12-speed gearbox in normal 1st gear, he said.

This is especially useful for curb pouring. A local contractor brought in a forming machine whose hopper was fed by a VHD-mounted mixer as the machine and vehicle crept along. Meanwhile, press reporters drove VHD dump trucks on an off-road course that included short but steep grades, where upgrade starts were easy when using C-1 or C-2.

A driver engages the crawler gears by thumbing a switch on the T-handle of an I-Shift's selector. With a 13-speed in the transmission's 1st gear, one click puts it into Crawler. With a 14-speed, the first click gets C-2 and another gets C-1, the lowest (highest numerical) ratio.

pstrongThe gearbox added onto the front of an I-Shift adds one or two crawler gears./strong/p

The ratio of the lowest gear in a regular 12-speed I-Shift with direct-drive top gear is 15:1. In a 13-speed with one crawler gear, the ratio is 19:1 in a direct-drive transmission or 17:1 in an overdrive model. In direct-drive or overdrive gearboxes with two crawler gears, the lowest ratio is 32:1. The ratio of the lowest reverse gear is 37:1 in a direct-drive I-Shift.

Extreme startability also allows use in tractors pulling extra-heavy combination vehicles, Long said. The transmission will be approved for gross combination weights of up to 220,000 pounds, with prior application approval by Volvo engineers.

With overdrive top gears, a Volvo truck “can go down the highway at 1,330 rpm at 70 mph” depending on axle ratio and tire and wheel size, said Magnus Koeck, vice president, marketing and brand management. This saves fuel, speeds trip times and boosts productivity.

The I-Shift with Crawler Gears goes into production in October and can be ordered now. As with standard I-Shifts, they can only be had with Volvo D-11 or D-13 diesels.

Heavy-duty versions of the I-Shift, whether in 14-, 13- or 12-speed configurations, feature hardened gears and other hardware. The transmission received additional updates to improve shift performance and durability, including improved split synchronizer components, an updated engaging sleeve and main box parts made from reinforced material.

Although I-Shift penetration in highway applications reached 83% in May, only about 25% of construction-truck customers chose automated transmissions, Koeck said. The crawler-gear options are expected to increase that percentage.

Related: [Video] Using Crawler Gears on Volvo's I-Shift Transmission

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Diesel Prices Increase For the First Time in Over 2 Months

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Source: EIA

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Source: EIA

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The price of diesel fuel increased for the first time in over 2 months after slowly falling from a high of 2.43 in mid-June, according to the latest numbers from the Energy Department.

The average price of on-highway diesel fuel increased by 6 cents last week, rising to $3.37 per gallon. With steadily rising prices, diesel fuel is still 19.1 cents cheaper than it was in the same week in 2015.

The largest increase in prices was in the Gulf Coast region with a 7-cent increase for the week. The New England region was the least affected by rising prices with a 2.3-cent increase last week.

Gasoline prices were also up for the week, increasing 4.4 cents to $2.183 per gallon. The price is still 44.4 cents cheaper than it was in the same week of 2015. The largest increase in prices by region was in the New England region at 6.2 cents while the smallest increase was in the Rocky Mountain region at 1.5 cents.

Global crude oil prices fell on Monday as a potential decrease in production by OPEC seems unlikely once again, according to a MarketWatch report. Demand for crude oil has been weak for the past year with economic problems in countries like China causing an oil supply glut.

When combined with an increase in oil production by the U.S. and OPEC, oil prices fell significantly over that period. The prospect of a production freeze had been bolstering the market in the past few weeks, causing prices to rise steadily. However it appears that a deal to reduce output is unlikely in the short term.

Related: It's Time to Look at Lower-Viscosity Oils for Fuel Savings

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