Blog Trucking: Opportunity in Disarray

Trucking: Opportunity in Disarray

by Omar Hagrass

The supply chain sector in the Middle-East is a USD 200bn* industry, with the trucking industry accounting for USD 50bn. Transport is a key aspect for life in the modern era. The freight sector however is filled with process inefficiencies that affect the quality of service, without having the means to solve them in a simpler way.

According to the World Bank, the cost of shipping goods in emerging markets is 3-5X more expensive than it is in developed countries; a lot of issues in the industry arise in each step of the process from the carrier to the shipper.

World Bank

Most of the effort is lost in the used time needed to arrange a load, the acceptance of dead-legs and the lack of structure and organization of moving goods. 

When creating shipping orders the difficulty stems from the unstructured format among the truck cargo recipient, truck driver, truck owner and cargo owner where everyone is slightly satisfied as only bare minimum service is provided. The separation of the communicating parties is at the forefront of this waste.

After issuing an order, clients have minimal visibility on their goods causing a lot of manual supervision and phone calls on the cargo owner’s end. On the other hand, truck owners find it difficult to find loads on their way back from the drop off location causing a significant increase in dead legs – it is estimated that the average truck utilization in Egypt is 20% vs. 55% in the USA. When completed loads do occur, they happen with a long matching duration and a variable price, accompanied by a lot of manual work and a lack of quality service.

In completion of numerous loads we recognize an opportunity for businesses to capitalize on earnings.  This happens through reducing the additional costs set by middle-men in the industry that connect cargo owners and drivers. Brokerage margins can be avoided through connecting different parties in a transparent way where data is available, and can be used to optimize processes.

Saving time and money by streamlining the completion of loads fulfills the needs of all parties.

Through an assisting platform such as Trella, information flows freely and transparently in a reliable, centralized interface for all users.

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