Rate Confirmation on Blockchain Technology

Why do brokers need to be a responsible third party?
What is the value add for the shipping company?

What about when you work direct from a shipping customer? What is different?

 

What about a PayPal type centralized payment system
Where shippers can pay direct to trucking companies and guarantee a payment within a short period of time. Not factoring but a small transaction fee to verify both shippers and trucking companies accounts and payment and performance history.and a standardized bill of lading procedure to document the delivery and release payment.
Total rate transparency between shipper and trucking company ,but encrypted to the payment company as far as the details of the rate and work performed to keep the work details private,and only knowing the total amount to be paid and the party's involved. ..Just a thought.

 

Sounds like another form of leveling the playing field to me ... no thanks I’d prefer the cheap guys go broke instead of adding trucks

 

In fairness most successful brokers have large amounts of AR out to shippers... AR that will never be seen again if the shipper decides that something wasn't to their satisfaction. I'd argue that trucking companies ability to avoid paying for things that are their responsibility is at least as big of a problem as brokers filing BS claims.

A huge part of the service I'm selling shippers is protection from trucking companies doing awful things. I think most of the people who run trucking companies properly underestimate just how terrible the terrible trucking companies are. Just like I probably overestimate how good the average broker is. The Dunning Kreuger effect is one of those things that once you see it you see it everywhere.

 

the problem is brokers are still needed to be a responsible party in the logistics chain. Having an unqualified third party acting as a conduit for loads opens us up for more abuse in the long run and payments can be held for hidden reasons.

This is why.

Read the bold part of what he says.

Bored, I agree with you, I see it too all the time, some of the companies I deal with on distress loads are just amazingly mismanaged and their internal and external issues are too obvious to everyone except to them.

Brokers have a legitimate part in the logistics chain between the shipper and the carrier. they are just as regulated to prevent liability problems as the carriers are regulated to prevent logistic problems.

Having a third party involved seems to take away the protections to the shipper and carrier at the same level, without a regulatory involvement to cover the responsible party for that load, it would be a legal nightmare.

What I think you two miss (road tech and Espresso Lane) is that we are dealing with legal documents as part of the service, and as a broker of those legal documents, there is a liability created.

Having a conduit it for payment is one aspect of the issue, but then it comes to if this is setup as an escrow service of sorts, then the regulations are vague at best and fees and hidden costs don't have to be transparent.

 

That last sentence is it: 100% accurate.

 

Ok, now I am curious. What is,
“ Trucking companies doing awful things”

 

Being late on either end, damaged freight, not even delivering it.

Another thing is padding the bill outside the confirmed agreed price.

 

Or how about having a shortage or claim but turning in doctored up clean bills for payment.

 

I am on a brokered load now. The broker said that he was taking a loss at the rate we agreed to...True or not? I don't know....but even if he was just lying about it and making 50% profit, would it help me to know what the shipper paid to the broker? No. Because a broker from a shipper's perspective has more reliability and leverage than I do, thus more value to the shipper. I am a man with only one dry van trailer, I cannot give the shipper any guarantees about their product going out the door on the same level that TQL does, for the lack of better example. If I were a fleet of 100 trucks than I could present myself in a better light and give TQL a little bit of competition perhaps at least on a certain lane. Therefore, as it was said before many times, it is none of my business to know what shippers pay to brokers. However, it does not mean that I would not want to know, as I am a curios guy. Why blockchain technology? Is it not an overkill for a double brokered or even triple brokered loads (I yet to see them) which are far less complex than a cryptocurrency. I am asking because I don't know much about this staff.