September 2020 | Sponsored | Thought Leaders

Shared Truckload Creates Efficiencies, Reducing Shipment Costs

Tags: Trucking, Finance, Transportation Management

Justin Turner, Senior Vice President of Sales, Flock Freight, 855-744-7585

COVID-19 upended supply chains, increased costs, and tightened capacity, leaving shippers struggling to deliver high-quality service. Shared truckload could be the answer.

Q: How has shared truckload alleviated shippers' issues during the pandemic?

A: Capacity challenges and increased costs across supply chains have driven shippers to become more creative and innovative. When faced with substantially higher costs and service expectations, our platform has been widely adopted as a means to generate cost savings—all while protecting service expectations.

The domestic transportation industry as a whole is disaggregate and filled with inefficiencies and opportunities to leverage data to generate savings. Shippers across the globe all share similarities with regard to shipment patterns; however, today they have zero access to other shipper data that can serve as a lifeline.

Shared truckload allows customers to leverage demand data from other shippers and share the cost of an asset with other shippers transporting similar commodities on similar lanes.

Compared to LTL, shared truckload is generally more expensive but has significantly higher quality—an experience removed of the risks of the terminal network. Compared to truckload, shared truckload is a less expensive alternative—a means to the speed and quality of TL but at a fraction of the alternative cost.

Q: What advice would you give to shippers who work on RFPs for shipments taking up 10 to 44 linear feet?

A: RFPs for 10 to 44 linear feet are uncommon, which is widely why we exist. The cubic capacity and linear rules driven by the LTL community can force shippers to send the surplus directly to the truckload routing guide which is predominately rate per mile driven.

We ask shippers to start with the data. Reviewing trailing 30-90 day shipment data will quickly reveal if there's an opportunity to lower costs for freight between 10 to 44 linear feet.

The truth is they are paying for air. We believe the future, most economical state would be when standard RFPs are a hybrid of pallet or linear based prices that also dynamically factor linehaul and fuel.

Q: What other benefits does shared truckload provide for LTL and TL shippers?

A: Shared truckload promotes sustainability—a mode where every trailer is full, empty deadhead miles are reduced, shippers pay less, and drivers are paid more. Shared truckload shipments save up to 40% of greenhouse gas emissions primarily driven by inefficient asset utilization.

Flock Freight is committed to the highest level of corporate responsibility with its B Corporation status.

We are currently the only logistics provider with B Corporation status which truly shows our dedication to sustainability and being a change agent in our industry.

Although we offer varying solutions to our customers, we are most passionate about creating technology that promotes a more sustainable environment.






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