Hours-of-service compliance was the original intent of the electronic logging device (ELD) rule but shipment visibility could be the most valuable outcome, at least for shippers and freight brokers.
From the outset of the ELD mandate, freight visibility startups like FourKites and project44 have been working on integrations with vendors that provide ELD and back-office software systems used by carriers. These integrations started at the top end of the market with large and mid-size carriers.
Reaching 100% visibility has always been the goal. To accomplish this, freight visibility providers need to cover visibility gaps in the spot market. Many small carriers and owner operators are resistant to being tracked, but spot market transactions account for approximately 20% of all truckloads. To fill the visibility gap, “we have to tackle the tail end of the trucking industry,” said Matthew Elenjickal, chief executive of FourKites.
The approach FourKites has been using to connect with small carriers and owner-operators is to have drivers download a mobile app to their smartphones – a push that has been challenging. “The last thing [drivers] need is another mobile app,” he said.
[Related: How freight visibility shifted from 'check calls' to predictive ETAs]
To meet shipper visibility requirements, freight brokers have to ask the small carriers and owner-operators they do business with to provide shipment tracking data. Getting them to use a load tracking app or to share ELD data often takes a better reason than not getting manual “check” calls, Elenjickal said.
As FourKites pondered the best approach to get visibility from the tail end of the trucking market, management decided it needed to “find a partner who is adding value,” he said.
