The trucking industry moves more than 70% of America’s freight, and gross freight revenues from trucking exceeded $726.4 billion in 2015, reports TechCrunch. Today, shippers are demanding more availability, time and capacity, and truckers are struggling to meet these demands. In response, the value of a blockchain trucking platform will grow, and according to our CEO John Monarch, “all the jobs a driver does, the business, the maintenance, the taxes, and so on, can be done with the push of a few buttons. Blockchain automates that process. Having actionable, irrefutable data has wide implications.” So, let’s take a closer look at how a blockchain trucking platform will enhance efficiency and profitability for truck drivers.
A Blockchain Trucking Platform Will Empower More Owner-Operator Truckers
Use of the blockchain trucking platform can empower more owner-operator truckers. With 90% of truckers working in the fleets of 20 or fewer trucks, a blockchain platform will have a resounding application for increasing the efficiency and productivity of drivers.
Blockchain Tracks the Responsibilities of Drivers
As explained by Trucks.com, the use of a blockchain trucking platform will help truckers maintain more accurate and thorough fleet records. Keeping records is not merely good business; it is a requirement. The Federal Motor Carrier Safety Administration (FMCSA) recently rolled out hours of service regulations and the electronic locking devices mandate, and truckers are struggling to stay in compliance with these measures. It can feel like an overwhelming amount of paperwork and hassle for smaller fleets and truckers to keep a record of everything they handle. The responsibilities of drivers are quite extensive, including payment processing, load scheduling, collecting on past due payments, upgrading existing fleets and trucks, maintaining maintenance and more. With increased driver responsibilities comes a greater need for a blockchain trucking platform.
Blockchain Increases Logistics Accountability
Blockchain will also increase accountability in the trucking industry. Instead of truckers reporting information back to carriers and supply chain partners manually, blockchain can be used in conjunction with the ELD to provide immediate, automated and verifiable status updates. This level of detail and accountability will have national implications for pharmaceutical supply chains, medical supply chains, food service supply chains, and electronics.
Blockchain Can Streamline Payment Management and Build Positive Relationships
Blockchain technology was created to power Bitcoin, but its use is extending well beyond the cryptocurrency market. Blockchain offers a solution for truckers struggling to manage payments and reporting. In other words, blockchain could be used to automate payment processing between carriers and third parties, as well as ensure unexpected costs are paid appropriately. For example, according to Geotab.com, this has an additional implication for tracking detention time and pay.
Moreover, better accountability and payment management will naturally translate into better trust among truckers and carriers and improve carrier-shipper relations. With the capacity crunch, i.e., limited space for freight is available in trucks, still impacting shippers and carriers, freight rates are expected only to continue climbing. Building positive relationships between shippers and carriers will go a long way in securing available capacity, but part of the equation is building positive relationships with truckers as well. Happy truckers amount to having freight picked up or delivered on time, as well as more enthusiastic operations.
The use of blockchain and its data-tracking ability can enhance load planning and load managing, reducing workload for truckers, allowing shippers to gain shipper of choice status among carriers, and while it begins with shipper actions, it continues with making things easier for truckers. Thus, blockchain trucking platforms will be crucial to ensuring truckers can meet the challenges of today and tomorrow.
Empower Truckers in Your Supply Chain With Blockchain
Introducing a blockchain trucking platform into your operation can be an essential way to reduce costs and increase end-to-end transparency. Find out more about how blockchain could be used to benefit your fleet and truckers by submitting a request for a demo from us today!