Carriers expressing overwhelming support for broker-free freight.
COSTA MESA, CA, USA, December 1, 2020 /EINPresswire.com/ — Riding a strong tailwind of demand and discontent, LaneAxis, Inc., a supply chain-focused SaaS company, is seeing rapid and enthusiastic expansion of the LaneAxis Direct Network following its recent launch. This much anticipated broker-free network is not just disrupting, but reinventing the way goods are moved from A to B. The Network’s primary mission: connecting shippers directly to carriers, and in the process eliminating the freight industry’s most problematic player: freight brokers. This direct model will cut massive costs while adding massive efficiencies to an industry in need of a major overhaul.
“We understand cutting brokers out of the transportation equation will make us very unpopular in some corners,” says LaneAxis CEO & Founder Rick Burnett. “3PLs, brokers and purchased transportation have long filled in gaps in the supply chain. But LaneAxis’ patented technology and direct network solution is now available to fill that void, particularly for the 97% of trucking companies that are small and independent, owning just a handful of trucks. These are the very truckers who already hauling the freight today – but are simply unable to contractually go direct.”
Burnett says brokers have held a near stranglehold on the freight industry for decades, particularly on the omnipresent “load boards” that are often labeled “shipper-carrier direct” – but in reality are broker posted loads.
“The 20 to 50% margins and unregulated level of broker profits chokes off revenue for owner-operators and small trucking companies to the point of failure,” continues Burnettt. “The LaneAxis Network fixes that by delivering true transparency and true network visibility for the shipping companies they service, while empowering carriers to negotiate rates and receive payments directly.”
LaneAxis has reported extensively on the backlash of anger levied by U.S. truckers against the freight brokerage industry in 2020. A lack of pricing transparency, low rates, and bad-faith tactics lead the list of complaints.
“LaneAxis is already changing perceptions and processes in the trucking industry,” says Himanshu Yadav, LaneAxis CTO. “The Covid crisis, which led to empty store shelves last Spring and is now threatening to do so again, highlights the need for a TRUE direct network that enables shippers to find available capacity when and where they need it. The Covid supply chain issues were, and remain, avoidable. The products are there. What isn’t there – at least not until now – is a direct network that connects manufacturers/shippers directly to available drivers without the unnecessary detour of going through brokers.”
Carriers are flocking to sign up onto the LaneAxis Network, with several hundred already on board. Carriers and Shippers can send and receive unlimited connection requests to and from each other. LaneAxis has all 1.6 million+ U.S. trucking companies listed in its database, as well as tens of thousands of shipping companies, with more being added every day. The LaneAxis sales team follows up on all connection requests to complete the match. Both sides can query for potential shipping partners based on specific criteria, most importantly common freight lanes and freight types.
LaneAxis has powerful backing in its mission to revolutionize the trucking industry. The company has partnered with the American Association of Owner Operators (AAOO), the fastest growing association for owner operators and small fleets in America. Members can have direct access to AAOO benefits inside the FreightVISION Driver app, which is directly connected to the shipper and carrier Command Portals. AAOO offers an impressive array of benefits, most notably a free fuel card that provides an average savings of $.42 cents per gallon.
“Our partnership with LaneAxis is based on our shared mission to improve the lives of owner-operators and small fleets,” says David Huff, Chief Executive Officer of AAOO. “A Brokerless Direct Network is long overdue. Our members want it. Our members need it. We’re proud to partner with LaneAxis because they’ve built it – and together with the trucking and shipping communities we are going to see it grow, and grow fast.”
The LaneAxis Network is designed to establish a “ready to move” contractual relationship between shippers and carriers. Once connected in the Network, the shipper’s standard contract is uploaded and accepted by the carrier. The carriers upload their insurance documents, Driver CDLs, and all required forms. Now the two sides are ready to move loads at a moment’s notice.
The LaneAxis FreightVISION mobile app is a central feature of the LaneAxis Network, providing load-level direct communication with the driver for the shipper and carrier, real-time tracking, electronic documentation with signature, real-time data reporting and truck specific navigation on all loads.
LaneAxis recently raised $1.07 million in a regulation Crowdfunding (Reg CF) equity raise on StartEngine. LaneAxis reached that amount – the maximum allowed under then-Reg CF rules at the time – two weeks before the scheduled close of the campaign. More than 200 people were left on our investor waitlist. Since that time, the Securities and Exchange Commission (SEC) has increased the fundraising cap amount from $1.07 million to $5 million. Those rules are expected to take effect in Q1 of 2021.
“With the network that LaneAxis has set up I think it can make a tremendous difference, especially for your independent, small carriers,” says independent truck driver and AAOO member Jay Brock. “It's better than sitting there fighting over a load board. It's groundbreaking what you guys are doing.”
Visit LaneAxis.com to learn more.
Source: EIN Presswire