Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Uber Freight said today it has expanded its digital freight brokerage services into the West Coast, Midwest, and Southeast, a sign the broker unit of ride-sharing pioneer Uber Technologies Inc. is undeterred by increasing competition from new and established rivals in the huge but fragmented brokerage space.
To accompany the expansion, Uber Freight said it is adding features to its app that are designed to memorize drivers' preferences and proactively make load recommendations. The app will analyze drivers' personal histories and suggest loads to each driver based on which routes they like to drive, what types of loads they prefer, and where they want to go, the company said. By providing personalized recommendations, Uber Freight said it intends to "level the playing field" for truck drivers, who have traditionally had no leverage in choosing the loads or routes they prefer.
The firm's expansion came after analyzing feedback from drivers and mapping the locations of shippers that visit Uber Freight's site to request trucks, Eric Berdinis, Uber Freight's product lead, said in a phone interview. The unit has not disclosed figures on the number of shippers booking loads through its app, or the number of drivers who have downloaded the app to their phones.
Uber Freight will continue to focus on serving independent drivers and firms with small fleets, Berdinis said. He said the segment is underserved, with a large supply of truckers and inadequate access to loads. "If we were a traditional brokerage, and we had to make a phone call or email to book a load, it wouldn't be worth it to call someone with only two or three trucks, because with that same phone call we could reach a company with a thousand trucks," Berdinis said.
By using the kind of smartphone-based software model pioneered by its parent, Uber Freight can now reach that diverse market of small truckers cheaply enough to profitably match loads with small carriers, he said.
Uber Freight is not the only logistics technology startup to follow this approach. Since the company launched in May, investors have flooded the "Uber for trucking" segment with venture capital in a series of high profile moves, including a $62 million funding round for Seattle-based Convoy, and $42 million for New York-based Transfix. Other players include Dallas-based Haulme LLC, Fort Lauderdale, Fla.-based Xypper Technologies Inc., and Boulder, Colo.-based 10-4 Systems Inc. Uber Freight also competes with the likes of Lowell, Ark.-based J.B. Hunt Transportation Services Inc. and Eden Prairie, Minn.-based C.H. Robinson Worldwide Inc., established firms with sophisticated technologies, huge customer bases and relationships with thousands of truckers.
Berdinis acknowledged that the company could run into stiff competition from the rising number of well-funded startups. In fact, many truckers have downloaded apps from several of these firms, he said, so the fierce competition for market share is taking place right on the small screens in drivers' palms.
Uber Freight said it would rely on the personalized features and ease of use of its software, according to Berdinis. "We've found that drivers are very savvy about choosing the app that gives them a better lifestyle, lets them earn more, and lets them earn quickly," he said. "We know that drivers will find the app that works best for them, and that they are very loyal once they find an app that gives them attractive payment terms and access to easy-to-haul freight."
User-friendly software may help firms like Uber Freight, Convoy, and Transfix enlist more drivers into their networks, but their "sharing economy" model of matching loads and drivers still faces some hurdles before it can truly compete against established brokers, said Tony Wayda, supply chain practice senior director and principal at Boulder, Colo., consulting firm SCApath.
For example, shippers may be reluctant to choose an owner operator (OO) based solely on information displayed in an app, while drivers may not be confident the app will pay them for "accessorial" charges such as detention and delay, Wayda said. Likewise, without having an existing relationship with the carrier, shippers may demand better accountability for drivers' license and insurance paperwork, and a clearer path for customer service and dispute-resolution complaints.
Finally, many shippers and drivers will never have full confidence in these startups until the firms go public and reveal when—or if—they start turning a profit, Wayda said.
Startups will begin to take share from traditional brokers if they can overcome these obstacles, Wayda said. "Once trust is built, I think this business model will quickly get traction. The economics work for both the shipper and owner operator, and in theory could help commercial carriers eliminate empty miles. Some money is better than none when empty."
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”