The current freight recession has created a market characterized by an overabundance of capacity and a stubborn lack of demand. While the market remains depressed, industry experts have noticed signs of an impending rebound in the mid-term future.
“The national Outbound Tender Reject Index (OTRI) topped 4% [in August] for the first time since early January, when it was recovering from the holiday period,” FreightWaves market expert Zach Strickland reported in late August. “While 4% is still indicative of a very loose market, the timing and direction of the OTRI are signaling that the softest conditions may be in the rearview mirror.”
This high-frequency data — housed in FreightWaves SONAR — aligns with what logistics leaders are seeing in real time.
“Freight news is abuzz with the forecasted bounceback of the market in mid-2024, but shippers still have the upper hand in the market,” Trucker Tools CEO Kary Jablonski said. “Carrier authority revocations are finally slowing down, though, so we expect to see spot and contract rates climb in the future.”
While these indications of a freight market shift are heartening for carriers, their strongest impacts will not be seen until well after the conclusion of the next bid season.
In order to win bids this season, brokers and carriers will need to prove their technological prowess. Shippers have high expectations for carriers and meeting those expectations without an ample suite of modern solutions is no longer possible.
“You need to be able to demonstrate that you are using the most up-to-date tech possible to help you comply with their scorecard,” Jablonski said. “Shipper scorecards are stringent and visibility is paramount to providing great service.”
Trucker Tools offers a suite of solutions designed to ramp up compliance percentages and provide next-level visibility. One of the company’s most recent innovations — Text to Track — ties into the company’s innovative waterfall tracking approach in order to better achieve that goal.
“Waterfall tracking” means that a visibility provider, like Trucker Tools, automatically assigns the best available tracking method to each individual load based on information provided when the track was created and what the company already knows about the carrier.
“We want to meet them where they are. This benefits the broker because they don’t have to figure out how to best track a given driver,” Trucker Tools product manager Jarret Stowe said. “We will automatically try ELD tracking, app tracking and then our new Text to Track method without any broker interaction required.”
The method works. In the first two weeks, Text to Track customers have seen a 4% increase in their compliance ratings, according to Stowe.
This cutting-edge approach to tracking can be combined with Trucker Tools’ other tech-driven solutions — including real-time digital freight matching — to help companies stand out.
With the company’s digital freight matching tools, brokers can take on more freight during peak season without increasing head count with features like smart negotiations or Book It Now.
Beyond excellent visibility, brokers will also need to have rock solid carrier management solutions in their arsenal this year.
“Carrier relationship management is paramount in driving successful RFPs and bids,” Jablonski said. “With fraud on the rise, the best way to keep your network and freight secure is to continue investing in your core, trusted carrier base. Working with the best tracking and visibility partners can help you provide best-in-class service levels to shippers.”
Trucker Tools offers a comprehensive carrier relationship management platform, allowing brokers to engage with a whole new network of carriers while building stronger relationships with their existing partners.
Overall, Trucker Tools can help brokers achieve 75% more offers on their loads while growing their carrier network up to 20x and achieving 90% compliance. That is the power of modern technology.
“This is a competitive industry and staying up to date with new technology can help you stand out in a crowded field,” Jablonski said. “Technology is not about replacing people, it’s about empowering them to work smarter and more efficiently, freeing up their time to build business.”