Short Course on Compliance – What You Should Know
June 1, 2018
Benefits of Technology ion the Shipping Sector
Freight matching is defined as the process in which consignees are paired to the flight carriers by the use of truckload boards. Shipping companies do the freight matching to be able to minimize losses that may arise when a consignments travels for a long distance without having been filled to capacity. Load boards are highly suited for freight matching and can either be operated by companies or even independent owners. Space available in any given truck is announced to potential customers including the destination of the consignment so that they can decide on whether to bid for it or not. The potential customers will then use the load boards to match the needed requirements for shipping which will then afterwards be matched to the trucks available and their destination. There is a given level of expertise needed so as to operate the load boards effectively and it maybe productive.
Innovation has lead to major improvements in the sector of shipping where freight matching can depend on the web. The innovation have been culminated with the development of digital freight matching which uses platforms in the web to connect individuals and companies who are shipping to the trucking capacity that is available. When working with the traditional freight brokers, it was not easy since freight matching would take a lot of time but this has become a narrative with the development of digital freight matching. Instant proof of delivery of the consignment, GPS tracking in the real time as well as automated invoicing and payment are some of the advancements that have been achieved through digital freight matching. Traffic and pollution has been greatly reduced through the digital freight matching. With reduced number of backhauls and consolidation of various shipments, traffic and pollution has been greatly reducing.
Freight factoring is also important in providing finances. This is where the owners and operators of the trucking companies are able to receive payments for shipping commodities to the respective owner. The owner or the operator of the trucks needs to submit a freight invoice to the freight factoring company together with a proof that the consignment has been delivered. Once a factor in the freight factoring company verifies the freight bill submitted, one is able to receive the amount indicated. Freight factoring companies also need to pay themselves hence they charge a service fee from the total freight invoice before making payments to the truck owners or operators. It will then be the duty of the company to wait for the clients to make payment as indicated on the invoice. Invoice factoring is a solution for truckers to enable them get finances soonest possible after delivery other than waiting till when the clients will pay.