Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: https://read.dmtmag.com/i/978209
bUSINESS 26 | Overdrive | May 2018 Enforcement of detention pay through blockchain technology is "a huge way it could affect drivers," said Dan Pickett, chief data scientist of FreightWaves, a forum for blockchain tech- nology and other freight analytics tools. Pickett and Tim Leonard, chief technology officer of TMW Systems, gave a blockchain presenta- tion March 26 at the annual meeting of the Truckload Carriers Association in Kissimmee, Florida. A blockchain system is a con- tinuously growing list of electronic records, called blocks, that in the case of trucking can improve rou- tine processes such as bill- ing, payment and logistics to make them more visible to any involved party. A blockchain system called a "smart contract" between a shipper and carrier could use GPS and geofencing technology to document a truck's arrival time and exact position at a shipper or receiver for all parties to see, Pickett said. Using such a system for detention pay would require precise language in the contract to address matters such as how close the truck is to the dock and whether the trailer doors are open, he said. In a broader sense, blockchain promises to protect drivers and carriers concerning responsibil- ity for damaged, late or fraudulent freight. Leonard noted a "huge fraud situ- ation" involving parties in China removing labels from expensive bottles of wine and placing them on cheap- er bottles. Systems are being designed so "the buyer gets the correct wine bottle." The presenters also used the example of shipping tomatoes to show how extensive blockchain doc- umentation could verify freshness and other qual- ities. The data collection could begin with the grow- ing process, noting location, temperature, watering, etc. It then would trace harvest- ing and shipments, includ- ing reefer temperatures and temperatures of the regions shipped through. Pickett predicted three phases for blockchain development in trucking: • 2018-2020: Education, case studies and limited early adoption. • 2021-2025: Lots of growth as businesses see blockchain's capability "to outperform legacy systems on certain tasks." • 2026 and beyond: Blockchain will be "widely adopted and considered an integral part of the supply chain." – Max Heine Blockchain could improve detention pay FreightWaves data scientist Dan Pickett said that in less than a decade, blockchain could be a widely adopted technology in trucking, affecting more than detention pay. Small fleet owner turned owner-op- erator coach Kevin Rutherford presented three seminars at the Mid- America Trucking Show on running a profitable small trucking business. Here are a few of his key themes: Control what you can control. Neither brokers nor owner-operators can dictate rates, which are based almost exclusively on market forces, Rutherford said. "85 percent of a rate is supply and demand," he said. "The other 15 percent is your ability to provide value and to negotiate." In trucking, supply is the number of trucks available, and demand is the number of loads that need moving. Operators should develop a keen understanding of the supply and demand forces for the lanes they run and the geographical areas of their base and where they want to go. "If you gross $178,000 a year, and you're able to take advantage of the 15 percent that's out there, that's another $28,000 a year," mostly going to your bottom line, he said. Know your customers. Owner- operators need to develop strong rela- tionships with their broker customers, said Rutherford, who recommends targeting a few brokers and market- ing yourself to them. "My goal when I had trucks was to work with five brokers a year — that's it. I can focus on those relationships, and I can get to the freight that I want." If truckers make their value known to brokers – become a "problem solv- er" for them – those brokers will be more likely to throw them their best loads. Operators should take their Tips for landing better rates