Imagine you can predict the future. How would you answer the following:

Where is the transportation industry headed?

What will drive the change?

What opportunities will benefit the trucking and logistics industries most?

Answering these questions created thoughtful conversations among fleet executives at the 2019 Truckload Carriers Association annual conference in March. The consensus among those discussions – the industry is evolving quickly with technology paving the way.

According to the Commercial Carrier Journal, four major themes predicting the next directions for the industry emerged at the conference: enhancing transportation apps, growing logistics, embracing technology, and meeting customer needs.

FreightRover started considering industry shifts two years ago at its 2017 launch. The challenge in starting a transportation technology company wasn’t just to predict the future of the industry, but to help create it. While we didn’t have a crystal ball, our instincts were correct with our CarrierHQ platform aligning to each of the four key areas fleet executives predict the industry is heading next.

Enhancing Transportation Apps

Driver apps aren’t new. Many large fleets have created home-grown driver apps or purchased out-of-the-box options for years. However, many apps available to small fleets remain limited in scope. CarrierHQ’s app takes a more comprehensive approach:

  • Mobile marketplace – drivers can access fuel, medical, and equipment savings within the same place.
  • Driver settlements – CarrierHQ offers full pay visibility including establishing deductions, electing pay frequency, and viewing net earnings.
  • Factoring portal – fleets factoring with FreightRover’s affiliate partner Rover180 can access receivables information and upload invoice paperwork using their camera phone.
  • Private load board – asset-based carriers and 3PLs can post freight to drivers through CarrierHQ’s load board. Drivers can self-select freight and provide load updates through the app.

Growing Logistics

With more than $700M awarded in independent contractor misclassification lawsuits in the past 10 years, asset-based fleets are understandably concerned about leveraging the capacity of owner-operators. However, in a catch22, they also don’t want to introduce a third-party into their customer relationship to access additional capacity. CarrierHQ serves as an important tool for any fleet’s employment classification risk mitigation strategy. FreightRover partnered with Legalinc to offer business formation services inside CarrierHQ. Independent contractors follow a step-by-step process to obtain their DOT authority and establish a Limited Liability Corporation (LLC). In doing this, asset-based fleets can expand their brokerage operations to leverage independent contractor capacity and maintain the direct relationship with their customer, without assuming driver misclassification risks.

Embracing Technology

In the trucking industry, 97% of for-hire fleets comprise 20 trucks or less. With such fragmentation, widespread use of new transportation technologies historically has a long adoption curve. No shortage exists of new company entrants working to solve transportation’s biggest challenges. At the Transportation Carriers Association conference, Greg Hirsch, senior vice president of Daseke, described these companies as providing new voices to help the industry evolve and attract the next generation of drivers.

Many of the new technologies in transportation specialize in creating efficiencies and controlling costs. FreightRover developed CarrierHQ with the same goals in mind. Fleets can purchase four insurance policy types through the platform. FreightRover has reduced the antiquated multi-week process of obtaining insurance quotes and binding to less than 48 hours through a mobile device. Fleet owners or individual drivers answer a series of questions to generate a real-time quote among multiple insurance companies. A policy is chosen and the insurance certificate delivered digitally. With CarrierHQ’s insurance offering, fleets and independent contractors don’t owe any money up front, instead paying through weekly or monthly settlement deductions. The no up-front investment in insurance and pay-as-you-go model also removes a barrier historically preventing many independent contractors from obtaining their own authorities.

Meeting Customer Needs

As customers demand faster deliveries, shipper service requirements keep increasing. Carrier on-time pick-up and delivery is more important than ever. CarrierHQ’s private load board feature meets these increasing demands by connecting to truck telematic devices and driver cell phones to capture freight tracking data. Fleets grant shippers data access to create streamlined cargo visibility.

CarrierHQ also allows the technology to be custom branded. Fleets and 3PLs benefit by white labeling the platform to create and attract capacity using the service offerings of the mobile marketplace. White labeling existing technology expedites deployment, preserves IT resources, and provides a marketing boost.

Capacity remains one of the biggest challenges facing the industry. Trucking currently sits short 50,000 drivers, a number projected to triple by 2025. Sign-on bonuses and increased marketing spend typically only create turnover among fleets and the existing driver pool. These tactics generally fail to attract new drivers to the industry. Outside of significant legislation changes or economic factors like work conditions and compensation, technology provides one of the best opportunities to stem the driver shortage. CarrierHQ tackles this issue three ways: 1) low-cost business formation services; 2) reducing the need for up-front insurance capital, which averages $3,000-plus per truck for small fleets; and 3) providing mobile access to fleet service discounts for the top cost areas of fuel, equipment, and medical. By reducing these barriers to entry and growth, CarrierHQ opens the doors for more new drivers to join the industry.

To learn more about FreightRover’s CarrierHQ and how it could benefit your business, request a quick demo at https://www.freightrover.com/demo-request/

FreightRover Launches $500 Million Supply Chain Financing Facility

Crayhill Capital and other private investors add billions of dollars a year of funding capacity

(INDIANAPOLIS, IN, September 26, 2018) – FreightRover LLC (“FreightRover”), a provider of supply chain management and payment solution technology for the transportation industry, today announced it has closed on a new financing facility of up to $500 million with Crayhill Capital Management LP (“Crayhill”) and other investors. The new facility will support the supply chain and factoring operations conducted by FreightRover’s affiliate, Rover180 LLC (“Rover180”). Rover180 recently launched as a trade finance company focused on facilitating quick pay financing options for suppliers, with a special emphasis on transportation providers.

Rover180’s supply chain financing and factoring solutions allow buyers to benefit from extended pay terms while providing suppliers with accelerated receivables. “The capital resources provided by Crayhill and other investors, combined with our advanced technology platform, will enable FreightRover to fund the myriad of supply chain micro-payments across a highly fragmented supplier group,” said Eric Meek, CEO of FreightRover. “Traditional supply chain finance offers limited flexibility and often lacks automated efficiencies. Our capital and technology structure uniquely address both challenges for prospective clients.”

“Crayhill is excited to partner with FreightRover’s experienced management team to scale its innovative Rover180 platform for transportation supply chain finance,” said Josh Eaton, Managing Partner of Crayhill Capital. “We are impressed by FreightRover’s ability to offer value-added technological and management solutions in the transportation industry and are well-positioned to help Rover180 leverage this expertise to bring efficiencies and scale to the supply chain finance markets. Crayhill’s expertise in providing asset-based capital solutions to trade finance and specialty finance companies, combined with our collaborative approach to assisting our partners in optimizing and executing their business plans, is well suited to help Rover180 capture this attractive market opportunity.”

According to The Hackett Group, top buyer timetables in the US have extended to an average of nearly 57 days to pay suppliers. Managing delayed cash payments is increasingly difficult for small businesses, specifically in transportation where the average fleet size is less than 20 trucks. FreightRover’s leading software platform directly integrates with existing shipper systems to automate and streamline invoicing and straight-through payment processing.
Transportation One, an Inc. 5000 Chicago-based logistics firm, recently adopted FreightRover’s technology to bring efficiencies to the freight management process, including pay. “Leveraging the technology helps us compete with any logistics provider in the industry,” said Jamie Teets, CEO of Transportation One. “Now adding Rover180’s supply chain financing, we have a competitive edge with our carrier and customer partners.”

Customers such as Berry Global (NYSE: BERY) are working with Rover180 to provide vendors with immediate payment options, while maintaining historical financial funding practices.

About FreightRover
FreightRover offers a technology suite designed to streamline supply chain management. Launched in 2017 by transportation executives, FreightRover leverages system connections, cross-sector partnerships, and process automation in its platform design. The company specializes in fintech by
intersecting new financial strategies with technology development to push innovation. FreightRover is a Mira Best New Tech Startup winner and includes a growing list of industry-leading integrations within its robust platform. To learn more about FreightRover, visit www.freightrover.com.

About Rover180
Rover180 provides alternative supply chain finance and factoring programs that represent a “180 on traditional finance.” Headquartered in Indianapolis, Indiana, Rover180 leverages private capital and advanced technology to create flexible funding models that keep cash moving across today’s evolving supply chain. Learn more at www.rover180.com.

About Crayhill Capital Management
Crayhill Capital Management LP is a New York-based alternative asset management firm that specializes in asset-based private credit opportunities. The firm was launched in August 2015 and is registered with the U.S. SEC as an investment adviser. Crayhill strives to deliver capital solutions through tailored financing structures, focusing on developed markets. Its asset-based investment strategies draw on deep sector expertise and relationships throughout the structured finance and specialty finance markets. Crayhill’s investment process focuses on fundamental analysis of collateral combined with active structuring, with an emphasis on asset coverage and capital preservation. For more information please visit www.crayhill.com or email info@crayhill.com.

You drive 700 miles across multiple state lines to deliver a truckload of salad greens to a local grocer. You arrive in the wee hours of the morning to begin unloading the trailer, only to notice that a few bags of lettuce are squished, and the leaves of the product are a little bent. The lettuce certainly isn’t damaged beyond use, but the grocer rejects the load anyway. Now what?

A rejected load can be a hopeless feeling for an independent contractor. As both a driver and a business owner, your time really is money. You don’t have the time to keep all this lettuce in your truck, but you’re not sure what to do with it, either.
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Take Care of the Paperwork

The first step when you’re notified a load has been rejected is to take care of the paperwork. Send in the claim to your insurance provider, along with a few images of the product, and make sure to specify why it was rejected. In most cases, insurance will cover the cost of the rejected load, so you won’t end up losing money on it.

After notifying insurance, reach out to your dispatcher (or the shipper directly, if you have their contact info) and let them know what’s going on with the load. Your dispatcher will be able to get into touch with the shipper to find out their unique procedure for rejected goods. Some freight, such as certain spoiled meat or beer, must be destroyed upon rejection. Many shippers, though, don’t have a specific procedure for the freight – instead, the decision is left up to the driver. The best kept load-rejection secret is that most goods can be donated.
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Donate Rejected Items

It’s a well-known fact of trucking that perfectly-fit-to-eat duplicate loads of produce are sometimes rejected by grocers or distributors. Many food banks across the country will gladly take those perishable, or nonperishable items. Some food banks even have their own warehousing, and are capable of accepting in an entire truckload’s worth of freight. When you first call the food bank to notify them of your delivery, they will probably ask you a series of questions about the product in question, to determine whether they can indeed accept it. If they are able to take the freight, most food banks will even help you unload the trailer.

So, why is donation not the standard procedure for rejected freight? Ultimately, it comes down to accessibility. The idea of calling up a food bank, that very same food bank accepting the freight immediately, and you going on your merry way sounds easy enough. But the reality is that sometimes, drivers who decide to donate their freight end up spending days calling different food banks to get everything sorted.
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Indy Food Drop Program

As we’ve mentioned in other posts, here at FreightRover we are very proud to be headquartered in Indianapolis, the cross-roads of America. Indy is transportation-focused, and innovation-centered. And to prove that point, the Midwest Food Bank in Indianapolis recently launched Indy Food Drop to solve the rejected freight problem altogether. The Midwest Food Bank created Indyfooddrop.org for drivers to visit upon freight rejection. A driver can go to the site, view the four participating food banks across Indianapolis, get their direct contact info, and even learn the limit of freight that each bank can accept. Indy Food Drop worked with multi-temp facilities, such as Sysco and Merchandise Warehouse, to dedicate space to the project.


“We feel confident we can handle all of the incoming loads that will come through this system,” says John Whitaker, Executive Director of the Midwest Food Bank.

The site outlines what products can typically be donated, and what drivers can expect upon dropping the food off at the food bank.

The idea is a simple one, but surprisingly, there are no other similar programs in Indiana, or many other states. The Midwest Food Bank is currently running the site for a 6-12-month pilot period, and then plans to start offering their services to state food banks and “Super Pantries.”

“Ultimately, we would like to see this as a national project incorporating all aspects of the trucking industry and using tools developed to enhance its effectiveness,” says Whitaker.
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Compost Freight to be Destroyed

Sometimes, there is no way around it – the freight has to be destroyed. For now, freight requested to be destroyed just ends up in a landfill. In the future, though, the Wayne County Food Cooperative in Indiana will solve that problem, too. Whitaker is currently working with the Food Cooperative to put together a program for rejected freight. They plan to take the waste and compost it, rather than tossing it in a landfill.

“Composting allows us to take a load without the expense of disposal, and turn it back into a resource for the community,” says Whitaker. “That means that if half the load is bad, we will still be able to take it, and just compost the rest.”

The Indy Food Drop program has received both local and national attention for its innovative solution to a double-headed problem. Now, drivers no longer have to worry about what to do with a rejected load, and can instead feel confident in the fact that the freight is helping out an entire community. For more information on other Indianapolis technological innovations for the trucking industry, or to learn how FreightRover fits into the equation of load solutions, contact us today!