Two of sub-Saharan Africa’s highly experienced forwarders and logistics operators have joined forces to develop an app which introduces shippers of all load sizes to hauliers.
“The app came to fruition from our combined 50 years of experience in the challenges we faced as both transporters, cargo owners and freight forwarders,” says Allison Pinheiro, joint founder of FTM (FreightTrans Match).
Challenges from a shipping perspective include an inability to access the full pool of cargo owners and transporters, and the need to make numerous calls to find and secure a vehicle “which often doesn’t arrive on time anyway meaning increased costs,” says partner Grant Lendrum.
Another challenge is the independent tracking of vehicles and cargo instead of relying on receipt of trucking updates that can be doctored by hauliers.
“When talking with users on the FTM app, what came to light from transporters is that there is a bias in terms of allocation of loads in the form of “cash exchange” and that this app will work towards eliminating that.
The requirement of cash exchange for loads from transporters could contribute negatively to the time line in which cargo owners can move their shipments.” Smaller hauliers find it difficult to get into the market because they are not known or visible.
Forwarders and shippers want to be sure they are entrusting their valuable cargo to a reputable trucker, adds Pinheiro.
Initial selection and verification for hauliers and shippers operating throughout SADC countries is undertaken by FTM.
For transporters to be listed on the app’s database they need to upload their company details, as well as their company registration documents and tax clearance certificates which are verified by FTM’s in country legal representative to ensure they are a legitimate business.
If all company documents are in order the haulier then registers all vehicles, trailers and drivers, licensing permits and applicable insurance – FTM can help their customers with the data capture into the FTM system.
This information is again verified by a legal representative to ensure that the vehicles are legal and properly registered.
And the best part: registration is free. “Cargo owners pay 5% of the agreed rate when agreement is reached, so no deal, no pay,” says Pinheiro.
Once the haulier is accepted onto the FTM platform, they are invited to bid on loads within a 100 km radius of the position of one or more of their trucks.
The 5% paid by the cargo owners when a deal is made will outweigh the costs of cargo sitting waiting to be moved.
The FTM anonymous bidding system will keep rates that reflect real time, marketrelated pricing. If the cargo owner accepts the offer, then the loading instruction with all details is automatically sent to cargo owner and transporter.
The driver also receives a notification on his app and can click on a map to go to the collection point.
“All parties receive notification when the load is collected and delivered. Proof of delivery forms can be uploaded and are viewable to all involved in the deal,” Pinheiro explains.
Shippers also complete a registration and vetting process. They then place their loads for bidding using the app. Ensuring total confidentiality, the FTM app is designed to prevent forwarders and cargo owners or hauliers from using it to gauge the ruling rates.
Confidentiality is assured as no users will be able to see what loads or trucks are on the platform unless they are actively involved. Users will rate each other, and if any fall below a 2.5 star rating they will be taken off the platform, according to Lendrum. FTM is logistics made simpler.
