Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.uberflip.com/i/815349
38 commercial carrier journal | april 2017 technology True independence Celadon opens a new freight marketplace for leased operators BY AARON HUFF A t this year's CCJ Innovators Summit in Duck Key, Fla., Lauren Howard surprised her fellow fleet executives when she explained what the Celadon Group (CCJ Top 250, No. 32) is doing for owner-operators. Howard is president of the Indianapolis-based company's over-the-road truckload division. Celadon was recognized as the 2015 CCJ Innovator of the Year for the new technology and career path it created for its customer service department. At this year's summit, Howard gave attendees recognized as CCJ innovators in 2016 and years past a reason to believe the owner-operator model is alive and well. Rather than scale back or retreat from the model, Celadon has gone all in, she said. Mobile load board About 60 percent of Celadon's drivers are leased and indepen- dent owner-operators, while employee drivers comprise the rest of the fleet. In the eyes of tax collectors, leased owner-operators are more similar to employees than true independents since the carrier arguably has more control over them. One area where control might be an issue is the dispatch process. Recognizing this risk, Celadon sought a solution that would give its leased contractors the freedom to choose more loads. Management began by outlining an IT project to send its con- tractors three load offerings with every dispatch, Howard said. e offerings would be determined optimally by soware. en the company found a better option. Last year, Celadon partnered with Freight Rover, a company that has developed a cloud-based freight exchange marketplace. Several employees at the Indianapolis-based startup, including Michael Pecchia, president, previously worked for Celadon. Owner-operators can download the Freight Rover app to their smartphone or tablet. Freight Rover is integrated with Ce- ladon's IT systems and gives drivers a large selection of available freight from the company's asset and nonasset divisions. Drivers are free to choose any load they wish. Celadon sets a few parameters to help, such as limiting driver visibility to loads that have a deadhead of less than 500 miles. Creating a freight market Celadon currently uses Freight Rover in a closed environment similar to a private load board. e company plans to use the Select Board feature that will allow contractors to select loads offered directly by shippers and third-party carriers and brokers using Celadon's motor carrier authority. Any of the above entities can sign up with Freight Rover as customers. Celadon can choose the companies that can share load visibility with its independent contractors. e app shows drivers the rate, availability and appointment time for loads from Celadon and other parties, Pecchia said. It also shows drivers the equipment requirements and deadhead miles from their current location. When drivers select a load, the system tenders it upon verify- ing the driver has the right equipment and is not dispatched with another load. Celadon has visibility of the driver's load selection and receives tracking updates. Upon delivery, drivers use the app to scan their delivery paperwork, and once the delivery is verified, Freight Rover releases funds to the carrier to initiate the settlement process. e platform accounts for deductions in the settlement pro- cess. If a driver associated with Celadon pulls a load for a third party using a Celadon trailer, a prenegotiated amount for the trailer rent is withheld automatically, Howard said. e app also captures the number of miles that drivers run for Celadon and other carriers for IFTA accounting. Celadon has seen a significant increase in driver retention from the Freight Rover platform, Howard said. Contractors who use the app have a 33 percent higher retention rate than those who do not, she said. in focus: FREIGHT MATCHING Freight Rover is integrated with Celadon's IT systems and gives owner-operators a large selection of available freight.