IN THE NEWS: How Shippers Navigate Risk in a Fragmented Freight Market

Transport Topics
January 27, 2025
Mindy Long

FROM THE ARTICLE: Small carriers make up a significant amount of available trucking capacity, but accessing that capacity presents unique challenges for shippers, especially when booking short-term or one-off loads in the spot market.

Shippers and logistics providers are stepping up efforts to vet and verify carriers to ensure safety and reliability amid increasing delivery expectations and ongoing concerns with freight fraud.

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Adam Angle, Senior Vice President for ITS Logistics, said he is seeing more time requirements on both pickup and delivery times.

“You’re definitely seeing that customers can have that expectation on both sides of the linehaul, which really helps their network be more efficient and maximize what’s going on between their four walls,” he said.

Angle told TT that shippers’ demands range from electronic data interchange and Safety Measurement System compliance to more specific requests.

“The biggest pushes are for better technology connections, increased speed, and higher on-time pickup and delivery expectations,” Angle said, adding that shippers are getting almost everything they ask for in today’s market. “We have customers that go above and beyond. They’ll go as far as on-site inspections and specific requirements for drivers — PPE, speaking certain languages.”

ITS Logistics also looks at the length of time and history of a trucking company’s motor carrier number. “That is our first trigger. We find newer carriers contribute to the vast majority of the fraud,” Angle said, adding the approval process for a new spot carrier is rigorous. “It’s very laborious on our team, because that’s where you see the highest risk.”

While technology is integral to the vetting process, Angle said the human touch on every spot load is essential.

Read the full article.