The U.S. trucking industry is one of the largest and most critical industries in the U.S. It is also one of the most technologically backward. Much of the industry is run with brokers and lots of people using phones, faxes, spreadsheets, and home grown “systems” to conduct business. Today’s logistics process is universally recognized by everyone involved as highly inefficient, frustrating and therefore unnecessarily costly. There’s got to be a better way.
LoadExpress exists to provide that better way.
We’re using proven web-based technologies that transformed many other industries such as travel, e-commerce, real estate and countless other services. We’re taking that technology and applying it to the logistics industry. Through automation and eliminating the middlemen and all the inefficiencies that come with them, carriers will make more money, shippers will lower their costs, and both will enjoy higher productivity and customer satisfaction.
Just look at the travel industry, for example. In 1996, when Expedia was founded, practically all airline and hotel bookings were handled by travel agents. In 2016, less than 10% were booked through agents. While logistics is more complicated than travel, and the usual industry inertia will take place initially, there is no stopping technology that has proven to be a potent disintermediating force across industries globally.
LoadExpress has built an auction marketplace because an auction is the most efficient pricing mechanism between a buyer and seller, eliminating the need for a middleman. In LoadExpress, all pricing, terms and conditions of a shipment, and communications between the parties are totally automated and transparent to all involved. No more broker “black hole” where no light comes out. There are a handful of online broker and load matching sites, but they are all acting as a broker in some fashion. The details differ, but they all are determining the price with the shipper and then trying to maximize their margin by setting the lowest carrier rate as possible. We cut to the chase immediately by providing a marketplace for shippers and carriers to deal directly without brokers. While we focus on full truckload and partial shipments, we accept LTL shipments, as well.
The LoadExpress platform is designed as an end-to-end system that can serve as the freight management system for a small shipper and carrier. Yet it is flexible to expand to accommodate custom features for large customers and integration with their load tender, TMS and ERP systems through APIs and web standards.
Our target customers today are small shippers with sales under $100 million, and owner-operators and small fleets under 20 trucks which dominate the trucking industry. Today it is designed for the spot, backhaul and small-volume shipments. For those customers, most don’t have any dedicated TMS or a transport/shipper manager. Most have one person doing multiple jobs—shipping (in/outbound), warehousing, overall operations, even accounting. For them, LoadExpress would be the perfect system to manage their freight transport operations. Therefore we do not allow brokers or other 3rd parties to join our marketplace as a rule. We may accept them on a case-by-case basis after talking to them and understanding their business case and intended use of LoadExpress.