“Uber for trucking,” long considered a freight-matching unicorn, has come to a kind of fruition, with the ride-sharing giant today unveiling its brokerage’s Uber Freight matching app aimed at the owner-operator market with a focus on dry van and reefer loads.
The unveiling comes as one of the company’s other initiatives, its autonomous vehicle development subsidiary Otto, is embroiled in a lawsuit with Google, who claims Uber and Otto stole trade secrets related to autonomous truck tech.
Uber Freight Senior Product Manager Eric Berdinis says the company leaned on its expertise in matching supply and demand and building pricing algorithms in the passenger market, transforming that process into matching freight with owner-operators and small fleets.
“We’re technically a brokerage,” Berdinis says, “and we do that so we can take ownership of the freight and pay our drivers and carriers quickly.”
That aspect, Berdinis says, is what Uber Freight believes will differentiate the company from similar services already in the marketplace.
“We value [prompt payment for delivery] as one of our big promises to our app users,” he says. “Regardless of when the shipper pays us, we’ll pay out for any load that is taken out on our app within a couple days, no questions asked.”
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© Transport Topics, American Trucking Associations Inc.
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© Transport Topics, American Trucking Associations Inc.
Reproduction, redistribution, display or rebroadcast by any means without written permission is prohibited.
Some people love vehicles and search all over the country to find the right one. Alternatively, some people need to re-locate for a job or family and driving a car from point A to B is not always possible. There is plenty to worry about when it comes to shipping a vehicle. Sometimes damage happens or scheduling is an issue. Whether the vehicle is a Ferrari or a Ford this video details some of the nuances of shipping a car.
1. Deciding on Whether or Not Ship a Vehicle
If a normal person has never shipped a car it maybe overwhelming at first and just driving it maybe easier. Sometimes if a buyer is planning on getting a new car the experience of doing a road trip with a friend, loved one or even alone can be well worth the memories, something shipping can strip the fun away. However, if time is worth more than the dollar amount than shipping is the way to go.
2. Open or Closer Carrier
Open trailers are far cheaper and quicker to schedule as they are more common. The issue with open trailers is that they leave the vehicle exposed to the elements which means the vehicle will likely be dirty when delivered. Depending on the season dirty can mean different things, salt, snow, ice, sand etc. Enclosed or closed trailers are the alternative which is also more expensive, usually double the cost and can take weeks to schedule. The big pro to closed trailers is that the car arrives pristine, so if a person has a high value vehicle or is concerned about condition this is the right way to do it.
3. Brokers, Trucking and Bidding
There are multiple ways to ship a car. Usually companies are brokers, which means they don’t have their own trucks or drivers and they become a middle man. Other companies are both a broker and have their own trucks and drivers where they may directly transport a vehicle or contract out the job. The other system is a company like uship which winds up being a broker/broker and can add another middle man. Uship is a match maker for a shopper and shipper. One of the best parts of a uship tupe website is that vehicle owners can decide on who they want to use, see different prices and also name their own price. Word of caution, beware of fake reviews.
4. Shipping and Payment
Many brokers will take an initial fee and then it’s the responsibility of the person at the delivery end to pay the driver, usually in cash. Online systems like uship will usually do all of that electronically, however be prepared either way. And lastly inspection before and after delivery is critical, if there is a problem or damage and it is not reported right away filing an insurance claim with the shipper becomes harder.
The federal government has some $51.4 billion in its coffers, primarily set aside for road construction and repair. These funds are raised from a federally imposed 18.4 cent tax on every gallon of gas purchased on American soil. On top of the federal tax, each state collects its own tax on every gallon of gas sold.
Just as the cost of gasoline varies considerably from state to state, so does the effective tax rate. 24/7 Wall St. reviewed the amount each state levies per gallon of fuel to identify the states with the highest and lowest gas tax.
Just like federal taxes on gasoline, state-imposed gas taxes are primarily used for road repair and new road construction. In an interview with 24/7 Wall St., Scott Drenkard, director of state projects at the Tax Foundation, explained that gas taxes are designed to function as a sort of user fee. “It’s similar to a user fee in that it connects the users of roads with the costs of their provision and maintenance,” Drenkard said. Indeed, individuals who drive more will contribute to more wear and tear on road surfaces — but they will also end up funding more road repair through the tax they pay on their fuel consumption.
Despite the tax structure’s logical design, gas taxes are not enough to cover the cost of road construction and maintenance. According to Drenkard, gas taxes are particularly unpopular, and as a result, “they are not really high enough to pay for all state and local spending.” User fees, such as gas taxes and tolls, cover only 52.5% of state and local road spending, according to Drenkard.
With such considerable funding shortfalls, it is likely no coincidence that a large share of the nation’s roads are in mediocre or poor condition. According to a report released by the American Society of Civil Engineers, some 32% of major U.S. roadways are in sub-optimal condition. In some parts of the country, the problem is far more pronounced. In 23 states, over half of all roads are in need of some repair.
Partially because gas taxes can be so politically unpopular, some states have not increased per-gallon taxes in decades. Even the federally imposed 18.4 cent gas tax has remained the same since 1993. This pattern is not universal, however. South Carolina, a state with exceptionally low gas taxes, is one of more than a dozen states that may soon initiate modest increases. In addition, seven states, including Pennsylvania, the state with the highest per gallon gas tax, increased tax rates on January 1, 2017.
The amount a state chooses to tax per gallon of gas is only one factor contributing to prices at the pump. The most significant contributor to the cost of gasoline across the country is the price of crude oil, which is largely dictated by global supply and demand. Refining costs also comprise a considerable share of the final price of fuel.
The differences in gas prices between states are largely determined by both taxes and fuel transportation costs related to the distance from supply sources, such as refineries and pipelines. In general, gas prices tend to be higher in states with higher taxes. Depending on the state, gas taxes, including the 18.4 cent federal tax, account for anywhere between 11.0% and 29.5% of the total per gallon cost. As of mid-January, the average price of gasoline ranged from $2.07 a gallon in South Carolina to over $3.00 a gallon in Hawaii.
To identify the states with the highest and lowest gas taxes, 24/7 Wall St. reviewed state and average local gas taxes from the American Petroleum Institute. Average gas prices as of January 24, 2017 for each state came from AAA’s Daily Fuel Gauge Report. We also reviewed average annual vehicle miles travelled in each state from the Federal Highway Administration. The share of roads in poor or mediocre condition came from the American Society of Civil Engineer’s Report Card For America’s Infrastructure, which used data from the Federal Highway Administration. All data are as of the most recent period available.
These are the states with the highest, and lowest, gas prices.
The value of freight moved between the U.S. and its border neighbors increased in December for the third time in five months following a string of declines, according to new figures released Thursday by the Transportation Department.
U.S.-North American Free Trade Agreement (NAFTA) freight totaled $87.1 billion as three out of five major transportation modes carried more freight by value with partners Canada and Mexico in December 2016 compared to a year earlier.
The 0.4% rise followed a 3.3% November jump while trucking’s share of the overall cross-border freight picture fell in December.
For all of 2016 the value of NAFTA freight flows fell 3.4% from 2015, down substantially from the 7.2% decline in 2015 from 2014.
The value of commodities moving by pipeline in December compared to a year earlier increased 30.9%, vessel by 2%, and rail by 0.9%. Air decreased by 1.4%, and truck by 2%. The large percentage increase in the value of goods moving by pipeline was mainly due to a 40% jump in the year-over-year price of crude oil.
Trucks carried 61.9% of U.S.-NAFTA freight and continued to be the most heavily utilized mode for moving goods to and from both U.S.-NAFTA partners. Trucks accounted for $27.4 billion of the $46.8 billion of imports, or 58.6%, and $26.4 billion of the $40.3 billion of exports, or 65.6%.
Rail remained the second largest mode by value, moving 15.2% of all U.S.-NAFTA freight.
U.S.-Canada Freight Value Drops
The value of U.S.-Canada freight flows in December decreased from a year ago by 1.2% to $44.5 billion as the value of freight on three modes fell. The value of freight carried on truck declined by 2.1%, rail by 5.4%, and vessel by 20.8%. The value of commodities moved by pipeline increased by 28.7%, reflecting the increased value of mineral fuels year-over-year, while air increased by 1.1%.
Trucking imports from Canada declined 1.3% in December from a year ago while exports to the country moved 2.8% lower
During this 12-month period, much of the mineral fuel freight between Texas and Canada shifted from vessel to pipeline as the value of mineral fuel shipments carried by vessel between Texas and Canada decreased while the value of pipeline shipments rose, according to the Transportation Department. Texas-Canada mineral fuel trade made up about 13.9% of all U.S.-Canada mineral fuel shipments in December 2016.
In December 2016, the top commodity category transported between the U.S. and Canada by all modes was vehicles and parts, of which $4.4 billion, or 57.6%, moved by truck and $3 billion, or 39.9%, moved by rail.
Trucks carried 56.7% of the value of the freight to and from Canada. Rail carried 15.2% followed by pipeline, 11%; air, 5%; and vessel, 3.6%. The surface transportation modes of truck, rail and pipeline carried 82.9% of the value of total U.S.-Canada freight flows.
U.S.-Mexico Freight Edges Higher
From December 2015 to December 2016, the value of U.S.-Mexico freight flows increased by 2.1% to $42.6 billion as the value of freight on three out of five major modes increased from a year earlier. The value of commodities moved by pipeline increased by 66.1%, vessel by 14.9%, and rail by 8.4%. Truck decreased by 1.9%, and air by 5.2%.
Trucking imports from Mexico declined 2.8% in December while exports were 0.8% lower.
Trucks carried 67.2% of the value of the freight to and from Mexico. Rail carried 15.2% of the value of freight to and from Mexico followed by vessel, 9.6%; air, 3.4%; and pipeline, 0.9%. The surface transportation modes of truck, rail and pipeline carried 83.3% of the value of total U.S.-Mexico freight flows.
The top commodity category transported between the U.S. and Mexico by all modes in December 2016 was electrical machinery, of which $7.2 billion, or 90.8%, moved by truck.
Good news: the biggest load board in the industry is now even bigger.
Getloaded has been consolidated into DAT to create one gigantic super database.
More carriers to choose from
The consolidation of Getloaded carriers, plus DAT’s own growth, has resulted in a 36 percent increase in the number of carriers accessing DAT load boards compared to a year ago. The consolidation also diversifies DAT’s carrier base, as Getloaded has had a significant number of carriers moving flatbed and specialty freight, as well as hot shot and LTL loads.
Since 2015, DAT has doubled its carrier database to over 18,000 carriers with capacity exceeding 1.3 million trucks, by far the largest available capacity in the industry.
DAT and Getloaded are owned by the same parent company, but until recently the two have operated with independent databases. That meant that loads and trucks posted on one network were not seen on the other one. Getloaded customers have been transferred to the DAT platform, and the Getloaded platform has been retired.
Bigger is Better
“In this case, bigger really is better. On the spot market, brokers want to connect with as many quality trucks that can deliver freight on a lane,” said Don Thornton, Senior Vice President at DAT.
It’s Mobile Too
All customers will benefit from DAT’s new mobile app, DAT Load Board for Truckers. It allows carriers to use their smartphones and tablets to find the same loads that they would using the desktop version of the load board. That’s a plus for brokers too, as they can reach carriers while they’re out on the road and looking for their next load. The Android version is currently available in Google Play, and the iOS version is scheduled for early Spring.
If you have any questions about your load board account or need assistance, please contact our award-winning customer service team at 800-547-5417. They’re available from 4 a.m. to 6 p.m. Pacific Time, Monday through Friday, and from 5 a.m. until noon on Saturday.
With the new ELD mandate going into effect in less than a year, trucking companies will be dealing with a very different regulatory landscape. All interstate motor carriers will be required to have their trucks equipped with electronic logging devices by December, and truck drivers will have to switch over to electronic logbooks for their HOS logs.
While the mandate has the potential to force some small carriers out of business — possibly leading to higher freight rates, if capacity tightens — there are several other proposed rules and regulations could also have major impacts on the trucking industry in 2017.
Here are 5 new regulations that could affect truckers and carriers the most.
Any truck driver who’s required to track Hours of Service must do so with an electronic logging device (ELD) by December 16. Some shippers may require the carriers they work with to make the change earlier than that. (According to the FMCSA site: “Drivers of vehicles manufactured before 2000” are exempt from the mandate, though there’s some confusion as to whether the exemption will be based on manufacture date or model year.)
Hours of Service
Some portions of the HOS rules that were introduced in July 2013 were lifted again in 2014. The 2013 rules required 34-hour restarts to include two stretches between 1:00 AM and 5:00 AM, and the restart could be used only once per seven days. Those provisions were suspended, and a study by the FMCSA and Virginia Tech University on the rules’ safety impact will determine whether or not that suspension is permanent. According to Overdrive Online, the report is “under departmental review.”
The Unified Registration System (URS) was scheduled to be fully implemented by January 14, but the FMCSA announced that it’s been delayed. Again. We should learn the new date sometime soon. Once it’s in place, the URS will replace the FMCSA’s old registration system for operating authority, and going forward, all carriers, brokers, and freight forwarders will be identified solely by a DOT number instead of an MC, FF, or MX number.
The public comment period closed last month on a proposed rule that would require speed limiters on vehicles that weigh more than 26,000 lbs. The FMCSA hasn’t suggested what the top speed on the limiters would be. A large segment of those who participated in the public comment period argued against speed limiters, although some large carriers supported a 65 mph limit.
New overtime rules were set to take effect last month, but a lawsuit filed in October by 21 states put the rules on hold. Current law says that any salaried employee making more than $23,660 per year is exempt from overtime pay. The new rules, if implemented, would push that limit up to $47,476 per year. It also would allow for 10% of commission or bonus pay to be counted toward the employee’s total compensation, but only if paid at least quarterly. Most drivers are paid by the mile, but dispatchers, salespeople, and other salaried employees could be affected.