This summary is a chat by the fireplace from the second day of the live event FreightWaves The Future of Supply Chain, which takes place in Rogers, Arkansas. For more information and event content, Click here.
FIRESIDE CHAT TOPIC: How to use the latest innovations in real-time pricing to increase network resilience.
DETAILS: The freight market fluctuated sharply during the pandemic era. Real-time access to pricing allows market participants to better manage these fluctuations.
ROLLS OUT: Bill Drigert, co-founder and head of operations at Uber Freight, and Kevin Hill, head of communities and research at FreightWaves.
BIO: Drigert runs Uber’s logistics business. Prior to joining Uber, he worked as Chief Operating Officer at Pillow Homes. He has also worked at Amazon as Director of Planning and Innovation, overseeing new initiatives in the field of last mile delivery and trucks. He was a member of the founding team of Coyote Logistics (acquired by UPS) and the company’s chief innovation officer.
KEY QUOTES BY DRIGERT
“We are all familiar with what we have observed through COVID, and with the increase in speed that we have observed through COVID. What we’ve seen since January is a bit of an amendment. We have seen spot rates fall by 30% since January. ”
“Over the last two years, we have seen an incredible increase in registrations of new operators, but for the most part it has been just a shift. These were drivers from fleets who started small carriers. So we haven’t really seen a net increase in power. ”
“What we’ve been seeing since the beginning of this year [is different]. … In February alone we saw 9,000 new drivers. So now we are witnessing a situation where we have excess capacity. Another reason for this is that this year you had carriers who asked shippers to raise rates by 30%, 50%, 100%, and in some cases could fix these very generous contract rates. When things start to soften, and when we have this excess capacity, much of that excess capacity is also new capacity – small operators – and it’s putting incredible pressure on spot rates that just keep rates to a minimum. “