Freight Versity Questions and Answers

Freight Versity Questions and Answers Freight Goods transported from place to place by truck. Revenue 730B Tons 10.42B Tons Motor Carrier Act of 1935 Regulation of trucking industry; requires minimum limits for truckers MCS-90 form-truckers fulfilling minimum limit Motor Carrier Act of 1980 Deregulation of trucking industry; requires minimum limits for truckers MCS-90 form-truckers fulfilling minimum limit Customers need freight to be shipped/ Drivers are Demand/Supply Customers we work with Niagara water, Anheuser Busch, Kraft Role of dispatcher Assign loads to drivers/ where & when to be 3 types of carriers 1. Private Fleets- dedicated and owned (Walmart) 2. Company owned- haul other's freight (JB Hunt) 3. Independently owned- owner/ operator 3PL third party logistics provider Brokerages in U.S. ~13k Warehouses 1. Central location 2. Longer miles to destination 3. Goods held for longer time Distribution Centers 1. Many locations 2. Shorter miles to destination 3. Goods held for shorter time Outsourced technology Transportation Management System- planning Visibility Platforms- GPS real time updates Customer Has freight to be moved; Tender loads to broker Brokerage Coordinates transportation of customers' goods by a carrier Carrier Contacted by broker to transport load from pickup to destination Tender Details of load (customer to broker) Rate Confirmation Binding contract (broker to carrier) confirms the agreed upon amount for the cost of service Bill of Landing (BOL) What is on the truck when picking up freight Proof of Delivery (POD) Load has been delivered and signed by consignee Consignee (CONS) or Receiver of a shipment (BOL turns into POD) 3 Competition catergories 1. Trucking start ups (Convoy) 2. Legacy brokers (CH Robinson, Coyote) 3. Asset owners (JB Hunt, Swift) 3 Competitive Advantages 1. Brand 2. Tech (app) 3. Operational Excellence 1/6 Industry Hurdles 1. Brokers (automation is difficult/ shippers want fewer service providers) 2/6 Industry Hurdles 2. Payments (drivers- 30 days to get paid) 3/6 Industry Hurdles 3. Freight Access- small companies lack access to large customers 4/6 Industry Hurdles 4. Lack of Tech 5/6 Industry Hurdles Driver Age & Lifestyle 6/6 Industry Hurdles Government regulations Driver 14 hour limit 10 hour break after 14 hours (no drive) Driver 11 hour limit 30 minute rest after 8 hours driving 60/70 hour duty limit Max of 60 hours (7 days a week) Max of 70 hours (8 days a week) Must take 34 hour rest before driving again Dry van weight capacity and length 45k lbs/ 53' Reefer weight capacity and length 43k lbs/ 53' Weight- Gross max Product+Tractor+Trailer/ 80k lbs Weight- Tare max Tractor+Trailer/ 35k lbs Weight- Net Max Product 45k lbs Scaling light Weight of truck and trailer with NO product loaded Scaling heavy Weight of truck and trailer with product loaded Long haul 300 miles Short haul 100-300 miles Lane Pick up to drop-off city Line haul Base rate to transport a load from A to B USDOT# Governing body (in-state) MC# Motor carrier license for intra state Same as Broker number Uber Broker (MC#) 987790 Bobtail Tractor without a trailer Seals Plastics or metal tie that secures the loading doors E-Tracks Metal fixtures attached to inside of trailer Kingpin Couples tractor & trailer together Cabover cab is on top of the motor Rolls Wound in a cylinder tube Bales large bundles compressed together Floor loaded Loaded directly on floor (no packaging) Bundles Compressed and Banded together Bounce Remove carrier/ driver from assigned load; load available to another carrier Bad Bounce Carrier removal from load within 3 hours of pick up Live Bounce Carrier removal from load; may be reassigned Accessorial A charge for additional services. (EX. Stop offs, detention, permits, etc.) Detention & Rates Timing Criteria Drivers should be loaded/ unloaded within 2 hours (free waiting) Call 30 mins prior or within 2 hours of detention Non App- $50 hour (MAX $250 or 5 hours) App- $75 hour (MAX $300 or 4 hours) Driver Assist & Rates Driver load/ unload Non App- $? App- $75 Layover & Rates Unexpected overnight holding Non App- $150 App- $300 TONU Truck Not Used- Canceled or not ready by customer Non App- $150 App- $200 + $2/ deadhead mile up to 125 miles ($450 MAX) Truck capacity Available trucks in the area Customer Market Low load volume + High truck capacity Carrier Market High load volume + Low truck capacity Whose market? Jan- Mar Customer- post holidays Whose market? Apr- Jun Carrier- Produce season (SE to NW) Whose market? Jul- Sep Carrier- Retail season ramping up Whose market? Oct- Dec Slow down for both; rush before Thanksgiving (NW to SW) Lumper 3rd party who assist with load/ unloading TWIC Transportation Worker Identification Credential (access to restricted areas, e.g. ports) Alcohol permits states and price $35 each NJ, MD, KY Out of Route Mileage Additional unexpected ($1.50 per extra mile) Freight's 3/6 Principles WE: 1. Put Drivers first 2. Shipper obsessed 3. Create positive change Freight's 3/6 Principles 4. Audacious 5. Data driven 6. Win as a team Tagline Every load is an opportunity History/ growth 1. Acquire OTTO- Aug 2016 2. MC#- Sept 2016 3. App launch- Late 2016 UF Plus Discounts on fuel, maintenance, tires, phone bills 1 load booked on UF app per month Powerloop lease trailers. launched in TX Load Statuses- AM (2) 1. Created 2. Available