To say it’s happening rapidly would be an understatement. The shipping and logistics business is being swiftly transformed by technology.
Some of the recent developments include how buyers and sellers transact (digital freight brokerages), the method in which goods are monitored during shipment (sensor-enabled real-time monitoring) and the fashion in which risk is negotiated (new approaches to pricing insurance.) Consequently, with all this innovative change, it’s creating an opportunity for disruption.
However, it’s not just technology prodding change in this space. Regulators are also having a say. In fact, they’ve been taking a hard look at gig economy workers. Moreover, they’ve decided these independent contractors should be redefined as employees. Consequently, this new definition is producing an increase in the establishment of small-motor carriers.
While more small-motor carriers are being created, the lack of drivers is making it hard for innovators in shipping and logistics to come up with new ways to draw-in new drivers.
What does it all mean? It means that the dwindling number of drivers and regulation are shaping the future of logistics.
Bascially, the traditional model of shipping is being turned on its head. Some deep-pocketed startups are making this happen. Samsara, Convoy, and Freight Rover are examples. These companies are debuting next-gen hardware and software tools as well as other concepts to maximize shipping at scale.
How Will Everyone Benefit
Each of these companies offers a different approach. However, each one is striving to reduce the tension between the various players in the shipping organism. In the end, they anticipate all major elements of the process will benefit. Consequently, carriers will come out ahead in two ways. They’ll get rapid access to shipping jobs. Finally, they’ll also have a data platform that simplifies and better manages their business.
Shippers, on the other hand, will also score two benefits that increase revenue. They’ll secure a steady supply of reliable carriers. Also, they’ll get a bounty of real-time data about live and historical shipments.
Now, how does regulation exactly fit into the next frontier of the shipping space? The government is getting more involved and is now making sure carriers have an approved logging device so drivers can accurately note how much driving they are doing. There will be limits on the crazy driving schedules of drivers.
Also, more and more regulations are being put in place to define drivers as employees. Basically, this means the driver is fulfilling the needs of the core business for the employer.
What do you all think? With more drivers becoming full time employees and with innovation streamlining the shipping process, is the industry going to be dramatically different?
