Freight brokers need to work in challenging environment. Right from winning the confidence of the shippers to providing carriers profitable deal every time, they need to prove their utility for the system. Since there are often voices from disgruntled shippers who really want to eliminate the middleman role of the freight brokers and work directly with the carriers. This may seem easy as you read it but works in a far more complicated way in the real scenario. Scheduling, fixing the spot rates and understanding the right carrier to transfer a shipment are the most basic traits that the freight broker needs to master. To achieve this, getting some help from technology never hurts which comes in the form of freight broker software. These freight broker software also evolve with the changing needs of the industry and also have to incorporate the new regulations proposed by the authorities to ensure safe transportation. We are discussing the major regulations of 2017 which are going to have an impact on freight broker software in the future.
These consequential regulations in freight industry are not triggered only by the changing scenario of the logistics industry. There are many other precursors which are forcing the freight broker software to evolve with the changing times. These precursors mainly involve the regulatory policies introduced by the government, higher competitiveness observed nowadays in many geographies and stepping up the technology savvy resources for real-time outputs. Let’s check out these driving forces in brief.
There are total 5 regulations which are implementing 2017 with a view to making the transportation and logistics more vigilant on safety issues. For this, higher accountability is transferred on the parties who operate the carriers or transportation cycle. The new Food safety rule states that the freight broker will also be counted as shipper and will be charged responsible for the safety of the shipment. This makes freight brokers equally accountable for the safety of the shipments which is definitely going to make freight brokers seeking higher precisions for selecting the carrier for the said shipment. To implement these regulations properly, the government has also identified the companies as large and small. The large companies need to comply with this new rules immediately from 6th April whereas the small companies have been given one more year to prepare their freight broker software for the change.
[bctt tweet=”large companies need to comply immediately from 6th April 2017 whereas the small companies have been given 1 more year” username=”Dreamorbit”]
Elimination of the previous unproductive rules
In 2013, the government introduced some stringent work hour rules for the drivers. The rules stated that the driver gets a maximum of 1 restart in a week. It also stated that the restart can be done only if the drivers have taken their mandatory 2 breaks between 1 am and 5 am. As expected the ruling was discontinued in December 2014, and it is going to be nullified permanently. In an industry where the driver shortage is rapidly becoming a calamity for logistics, we can’t afford to waste 3-5% of the productivity by applying rigid rules for dictating the driving style of the drivers. The rule is soon going to be banned forever from the logistics industry making freight broker software free to work on a relaxed policy.
[bctt tweet=”we can’t afford to waste 3-5% of the productivity by applying rigid rules for dictating the driving style of the drivers. ” username=”Dreamorbit”]
Few steps which have left freight brokers confused
FMCSA has taken two decisions which have put the freight brokers in a confused and uncertain state. In march, FMCSA has postponed the revision in Safety Fitness Determination (SFD) for the carriers. The process of determining the safety and fitness caliber of the carriers is supposedly based on flawed data currently which can become a major reason for selecting lesser safety carrier and putting driver and freight at risk. Since the Carrier owners have opposed the amendments seeking them to be flawed again, the whole process of ascertaining the fitness of the carriers are now postponed till a consensus is achieved. The freight brokers are now left in oblivion about the selection of safe carriers for their trips and don’t know how to configure their freight broker software for the same.
The other major decision which has made the freight brokers uncertain in business is the suspension of Unified Registration System (URS) final stage in January. The URS system was proposed to eliminate the docket numbers for carriers and brokers. A single DOT number can then be referred to identify both. Since the new carriers are now going to use the new URS policy and the existing carriers and brokers were suppose to migrate from old to the new system in the final stage of URS (which is now suspended), the brokers are confused about the execution of URS system for old carriers.
Most anticipated regulations to be experienced in the coming months
Logistics and transportation industry have been talking about the ELD mandate for months and now we can see that the carrier owners are speeding up to equip their carriers with electronic logging devices. We are expecting no more delays in the implementation of freight broker software preparing for change which is scheduled for December 2017. Since a capacity drop of 6-10% is expected after the implementation of the mandate, many transporters were not very keen on adapting this change. The large carrier owners are already using ELD for years. Now it is time to pull out the small and medium sized carrier owners from their comfort zones. The awareness about the ELD mandate is making the logistics companies and carrier owners to seek the required freight broker software voluntarily. But the implementation of ELD as a mandate is going to strengthen the real-time visibility in the transportation industry in far bigger ways.
[bctt tweet=”a capacity drop of 6-10% is expected after the implementation of ELD mandate” username=”Dreamorbit”]
Apart from few confusions and inhibitions about the reduced productivity in the future, the new regulations are mostly taken up by the logistics industry in high spirits. It is not daily that the new systems and mandates are introduced and when they do they have the power to impact the future of the industry for decades. Hence it will be interesting to see the freight broker software solutions coming up with more innovative ideas which can eliminate the concerns of shippers regarding the loss of productivity. Dreamorbit is already helping out few of the best freight brokers to adapt to the change by providing best freight broker software solutions. To know more about these solutions, let’s connect and discuss more.
DreamOrbit is a Logistics and Supply Chain Technology Development company. We have been creating meaningful and reliable software products for the industry which is “Always on the go” for the past half decade. We are highly motivated team aimed at innovation. Our philosophy is to “keep challenging the potential within”. With the support of our happy customers and dedicated team, we strive to provide best possible solutions to industry problems. Visit our website to know more about DreamOrbit.