News at a glance
- Convoy launches Convoy Go, enabling any US trucking company or owner-operator to haul pre-loaded trailers. This application allows the handling of drop-and-hook shipments.
- Drop-and-hook shipments are totally different from live shipments in terms of efficiency and time. These shipments offer shippers more flexibility to work and at the end of the day, they become more productive, said Tito Hubert, product lead for Convoy Go.
- Adding to this, Hubert said, Convoy will build a trailer pool for shippers who are interested in being a part of the Convoy Go network. Currently, Convoy is leasing the trailers but in future, they could look into other ownership models also.
- According to Convoy, drop-and-hook shipments have opened up the market and are currently dominated by large carriers to small asset-based carriers.
- “In order to be drop-and-hook, you have to have at least two trailers: one on your truck and one someplace else,” said Michael Zimmerman, a partner at A.T. Kearney. “Or you have to be able to drop the one trailer that you have and hope and expect the shipper is going to provide you with the load in a timely manner. So the larger the trucking company you are the more you can afford to buy extra trailers and drop them someplace.”
- According to Hubert, with drop-and-hook carriers, shippers can move shipments in only 30 minutes to 1 hour, while a live shipment could take up to 3 hours.
- The drop-and-hook shipments are more functional in the manufacturing unit where factories can quickly change the production schedules.
- Convoy is using its own app Convoy Go to transport empty trailers from the leasing company to the shippers who are involved in the network. Whenever a new shipper joins the Convoy network, a certain number of spots will be kept reserved for Convoy Go containers, said Zimmerman.
- He said, “I would say this is further evidence of the trend where new disrupters are using software and probably AI and machine learning algorithms to find new opportunities and pursue them offering greater services to carriers and shippers and disrupting traditional brokers.”