The Konexial company has joined the Blockchain in Transport Alliance (BiTA), an organization regular readers will recall was formed last year to create a forum for the development of blockchain standards and education for the transportation and freight industry. Konexial CEO Ken Evans also announced in tandem with new membership in the organization that Konexial’s GoLoad dynamic load matching platform will be enabled for blockchain transactions, removing the need to factor loads, in the third quarter of 2018.
GoLoad is provided as an optional service to Konexial’s My20 ELD. GoLoad uses hours and location data, among other data and criteria, from within an operator’s My20 ELD to dynamically match up drivers with extra hours and capacity with available loads from shippers.
GoLoad is also available as an open API to other ELD and telematics providers.
“Using Blockchain for dynamic transactions creates an opportunity to create trust and standardize freight settlement,” said Evans. “The blockchain capability for GoLoad payments will further extend Konexial’s ability to help drivers manage their data, increase efficiency, and make more money.”
Evans believes that blockchain—a digital ledger of economic transactions—can eventually replace the factoring practice entirely.
“Carriers having been losing money through factoring for years,” he said, with factors taking anywhere from 2 to 5 percent or more to serve as owner-ops’ or small fleets’ outside invoice collection service, with quick payment for most invoices to the trucker.
Evans said he believed blockchain could “help carriers, especially the small owner-operators, run stronger, healthier businesses. We see it as another way for Konexial to help solve the most obvious problems for truckers.”
Some of those aspects of GoLoad are in place today. When carriers and shippers sign up for Konexial’s GoLoad platform to book available loads, they agree on three significant terms for all freight movements transacted within the platform:
- Set Fuel Prices: Fuel prices are set by the platform and are based on average fuel price in the load’s lane on the day of the shipment, ultimately tying rates paid to the carrier in part to fuel’s often volatile fluctuations, ensuring appropriate compensation — GoLoad takes a base of 6.5 mpg on which it determines fuel surcharges, then presents figures to both carrier and shipper.
- Fees for Detention/Delays: Detention at loading and unloading facilities is automatically billed through geo-fencing at the rate of $200 per hour for any time the driver is detained beyond 90 minutes combined at pickup and drop-off locations.
- Prompt Payment: Freight payments are sent to the carrier 48 hours after the carrier uploads a proof-of-delivery image.