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DG&A's Transportation Consulting Blog


Investopedia defines Blockchain as a distributed database that holds records of digital data or events in a way that makes them tamper-resistant. While many users may access, inspect, or add to the data, they can’t change or delete them. With Blockchain, transactions agreed by consensus are added to a block, a unique cryptographic code is calculated of the block, and that code is added to the following block creating a unique chain of blocks containing all the transactions.

The so-called distributed ledger is a technological system that is an asset database that can be shared across a network on multiple sites, geographies, or institutions. The original information stays put, leaving a permanent and public information trail, or chain, of transactions. The decentralized and distributed digital ledger contains transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the collusion of the network. In short, Blockchain is a record-keeping mechanism that makes it easier and safer for businesses to work together over the internet.

The most popular application of Blockchain technology is Bitcoin, the currency system. The good news is that the Blockchain protocol can be used for non-currency purposes as well.

Though it was initially intended for financial transactions, businesses of all kinds are getting creative with the so-called Blockchain ledger, as it can be used to record, track, and verify trades of virtually anything that holds value. From ride-sharing to cloud storage to voting, companies in all industries are beginning to see blockchain’s potential. Earlier this year, consulting firm Deloitte predicted that by 2025, 10% of global GDP (approximately $12 trillion) would be built on top of Blockchain applications.

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We have been hearing about the possibility of a trucking capacity shortage for several years. While there have been sporadic shortages in specific geographic areas, for particular modes, the predicted massive shortage never materialized. This year may be different.

Two major hurricanes caused major damage to homes and infrastructure in Texas, Florida and adjoining areas. Drivers and trucks are required in these areas to transport building materials, appliances, electric grids, and other needed supplies. Some drivers will likely take construction jobs to aid with the rebuilding effort and increase their earnings.

The economies of Canada and the United States are in good shape with historically low unemployment and solid GDP growth. Then there is the Electronic Logging (ELD) Device mandate that will restrict the utilization of some trucks and push some drivers out of the industry. This unique confluence of variables is likely to make an already tight capacity situation even tighter.

What can shippers do to secure the capacity they need to keep their supply chains flowing and serve their customers? Here are two suggestions.

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Economic conditions are solid as we approach the first quarter of 2018. Unemployment is low and companies are hiring. Demand for freight transportation services should be strong during the first half of the New Year.  Shippers need to contend with a range of variables that are shaping the supply and demand for freight transportation services.

Hurricanes Harvey and Irma

Two natural disasters have had a dramatic effect on Texas, Florida, and the surrounding states. Hurricanes Harvey and Irma, two of the most powerful hurricanes in years, have created significant destruction to power grids, infrastructure, homes, and their contents. Repairing, replacing, and rebuilding will consume significant transportation resources, lumber, roofing materials, electrical equipment, appliances, paint, and other materials. These activities will continue during 2018.

The ELD mandate

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Driving a transport truck is one of the most prevalent jobs in North America and throughout the world. There are about 3.5 million truck drivers in the United States; the comparable number for Canada would be in the range of 350,000 people. Truck drivers are mostly men who like a life on the open road, crisscrossing the freeways and city streets of America. These are folks who are away from home for long stretches of time, as they go from state to state, province to province, sleeping in cheap motels or in their sleeper cabs, eating unhealthy meals in Truck Stops and spending long, lonely hours driving their rigs.

Young people seeking to enter the profession need to take a set of courses so they learn safe driving techniques and how to manage their rigs. For those individuals who wish to run their own businesses, they can become owner-operators. They can work for themselves or for one of the thousands of trucking companies throughout North America. This can include working for a for-hire fleet or for the private fleet of a manufacturer or retailer.

Despite the relative ease of entry into the profession, there is a shortage of truck drivers in North America. Driving a truck is a tough job. Bad weather, traffic, and road conditions create difficulties on a daily basis. A lack of investment in infrastructure throughout North America creates congestion and impedes productivity. Driving a tractor-trailer unit with a 45,000-pound payload requires full concentration throughout the period they are on the road.

For many people, being away from home for blocks of time is not glamorous or fun. For someone with a young family, missing family occasions and their kids’ baseball or soccer games does not help maintain positive personal relationships.  While much has been done to raise the quality of the profession, truck driving does not command the respect it deserves; it remains a relatively poorly paid job.

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Freight matching services or “freight exchanges” have become one of the hottest topics in Freight Transportation over the past few years. Venture capital funds, private investors and others have poured at least $200 million — and potentially substantially more — into dozens of on-demand freight start-ups, including Flexport, Transfix, Loadsmart, Convoy, Doft, Cargo Chief, TugForce, HaulHound, Parade, Ship Lync, Load Surfer, FreightCenter, Freight Finder, Freightera, Freightcom, Pickmyload and others. There are new companies entering this space on a nearly daily basis.

Uber, the controversial but successful online taxi app, has recently announced that it is entering the freight matching arena. What is the attraction?

A brief history of freight matching services

DAT (which is an abbreviation for Dial-A-Truck) was the original load board in North America that was created in 1978. TruckersEdge was founded after DAT and was acquired by TransCore in 1992, another internet pioneer in load board services. and were launched in the early 2000s. In 2001, DAT was purchased by TransCore. In 2004, TransCore was acquired by Roper Technologies. In 2014, TransCore DAT became DAT Solutions. For four decades, this group of companies has been offering, for a fee, a process for shippers and brokers to post loads that need to be moved and for carriers to highlight available capacity.

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