18 May 2023
In the ever-evolving landscape of commerce, the way we access and consume goods has undergone significant changes over the past century.
However, one crucial aspect of the process has remained largely stagnant: the transportation of goods.
With millions of loads of freight traversing the United States annually, it seems abundantly clear that the freight industry is overdue for innovation. The current methods not only contribute to excessive greenhouse gas emissions but also suffer from solvable inefficiencies — such as trucks operating at less than half capacity.
It is in this context that Flock Freight’s logistics technology emerges as a transformative force.
Understanding the history of freight industry inefficiencies
To comprehend the urgency for innovation in the freight industry, we must first acknowledge its historical inefficiencies. For decades, the industry has been plagued by unsustainable practices, resulting in loss, damage, delays, and increased costs.
Traditional shipping options offered businesses limited choices: shipping less than truckload forced goods through the hub and spoke network of warehouses — increasing the likelihood of delays, damage, and loss — while shipping a full truckload often meant paying to ship air due to underutilized capacity.
Flock’s 2023 freight inefficiencies report with Drive Research found that despite fluctuating year-over-year market conditions, shippers are still experiencing the same inefficiencies in a deflationary market as they were in an inflationary one. In fact, 10x the number of shippers reported experiencing negative effects of OTIF regulations in 2022 than they did in 2021.
This outdated model not only harms businesses but also has detrimental effects on the planet.
In 2022, 45% of shippers reported shipping partially empty truckloads with an average of 25 linear feet of unused deck space. This is the equivalent to 1 in 5 truckloads moving completely empty aka 1 in 5 shippers paying to ship air, and in turn, adding carbon to the atmosphere.
Choosing a more sustainable and profitable option
The prevailing belief has long been that sustainability and profitability are mutually exclusive.
However, Flock Freight challenges this notion by offering a better alternative: shared truckload shipping.
Unlike any other freight provider in the world, Flock leverages patented freight technology to pool shipments from multiple shippers — maximizing truck capacity and ensuring the most efficient routes. This shared truckload model, akin to a carpool for freight, allows shippers to pay only for the space they need while carriers earn more.
The result? A reduction in carbon emissions by up to 40% without compromising service quality.
In this era where sustainability is a growing concern, consumers are increasingly demanding that brands take responsibility for their environmental impact. The conventional wisdom that businesses must choose between sustainability and profitability is disproved by the 288,651,267 lbs of pooled freight Flock’s partner carriers hauled last year, which saved customers over $56 million and reduced CO2e by 34 thousand metric tons of CO2e (about the same carbon output of over 7,000 gasoline-powered vehicles in one year).
How Flock’s freight tech is changing the industry
At the heart of Flock’s revolutionary approach is cutting-edge freight technology.
Using sophisticated combinatorial optimization algorithms alongside machine learning powered probabilistic pricing models to ensure the most efficient use of trucks’ excess capacity, Flock connects shippers whose shipments are moving along similar routes to carriers already traveling in those directions. This results in maximized truck utilization while providing the service level of full truckload shipping at a lower cost.
This shift from outdated shipping modes to a modern, digital platform puts customers AND carriers first by streamlining operations and eliminating unnecessary constraints.
Join the new frontier of freight
The impact of our freight technology is undeniable, and we’re not slowing down. To further scale this freight industry innovation, we will scale our network of shippers and carriers utilizing shared truckloads. As our network grows, our freight pooling flywheel spins faster, driving increased savings for shippers, increased earnings for carriers and professional truck drivers, and reduced carbon emissions for our planet.
Shared truckload is a win-win-win outcome for all stakeholders!
To join us in revolutionizing supply chains, book a demo or get started hauling with Flock today.