SEATTLE--(BUSINESS WIRE)--Convoy, the nation’s most efficient digital freight network, has launched a new power-only service as part of its Convoy Go program, providing private fleets with nationwide capacity to haul their preloaded and empty dry van trailers. With a network of more than 300,000 tractors, Convoy now offers the largest on-demand fleet of power units on the market. Through the use of machine learning across Convoy’s vast shipper network, backhauls and loadouts1 for trailer moves can be automatically identified, significantly reducing shipping costs while eliminating carbon emissions from empty miles. Convoy estimates that shippers spend billions of dollars each year on empty trailer moves. Convoy’s power-only freight service can save up to 30% of the cost for these trailer moves, while also helping carriers maximize asset utilization and earn more money.
The Inefficiencies of Moving Empty and Loaded Trailers
Private fleets currently comprise more than half a million trailers in the United States. There is a constant need to haul them from one location to another—either loaded with freight that needs to be delivered, or empty in cases where the trailer is being repositioned for its next load. In the last decade, the need to haul these trailers has only increased, as online commerce and supply chains require more short-haul, rapid-response fulfillment.
However, the process of moving trailers is highly inefficient and costly. With a 4:1 trailer-to-tractor ratio among private fleets, many shippers operate with a shortfall of power units and drivers. When demand surges, these shippers often have to rely on the spot market where they face higher rates, increased risk from working with unfamiliar carriers, and the possibility of service failure as the pool of for-hire carrier power units continues to decline in 2021. And with empty miles among private fleets estimated at 40%, shippers waste fuel and money while needlessly increasing CO2 emissions.
New, Unique Approach to Providing Power-Only Capacity
Convoy is uniquely positioned to address these longstanding issues with its new power-only freight service. Over the last three years, the company has developed its own drop-and-hook service called Convoy Go, providing shippers with power-only tractors and a fleet of several thousand trailers. This service is built on machine learning models that predict trailer demand weeks in advance and intelligently reroute trailers to facilities where they’re needed. This eliminates the costs of spillover to the live spot market when drop-and-hook demand increases, and minimizes trailer underutilization when demand recedes.
Today’s announcement expands the capabilities of Convoy Go, providing power-only capacity to haul private fleet trailers. Convoy supplements the private fleet’s existing tractor capacity to more efficiently rebalance trailer pools and deliver preloaded trailers.
Powering this new service are four innovations that save customers time and money while improving service quality and shipment visibility:
- Flexible tractor capacity - With a fleet of more than 300,000 power units and unique machine learning models that automatically match trailers to carriers, Convoy can quickly flex capacity, providing reliable coverage as demand fluctuates. In many cases, Convoy can provide next-day or even same-day service for trailer moves.
- Automated loadouts and backhauls - With thousands of loads moving through Convoy’s network every day, the company’s machine learning models can often find backhauls or live loads to haul in empty trailers. Both result in cost savings to the company moving the trailer, while also reducing carbon emissions from empty miles.
- Industry-leading GPS tracking - With more than 95% of the loads in Convoy's network tracked end-to-end and in real-time with the company's mobile app,2 shippers can see the precise location of their trailers on a map.
- Automated carrier safety and compliance - Convoy’s unique carrier safety standards use machine learning models to ensure that every load is hauled by an extensively vetted, high-quality carrier. The result is a crash rate 16% lower than the industry and 99.95% of loads delivered without a cargo claim.
“Today’s announcement is the next natural step in reinventing the drop-and-hook market,” said Ziad Ismail, Chief Product Officer at Convoy. “After building a nationwide network of power-only carriers, we’re now opening up our network to private fleets with a much-needed service and a level of efficiency and flexibility that previously was not possible.”
Starting today, Convoy Go’s power-only freight service is available for private fleets nationwide. More information is available at convoy.com/power.
About Convoy
Convoy is the nation’s most efficient digital freight network. We move thousands of truckloads around the country each day through our optimized, connected network of carriers, saving money for shippers, increasing earnings for drivers, and eliminating carbon waste for our planet. We use technology and data to solve problems of waste and inefficiency in the $800B trucking industry, which generates over 87 million metric tons of wasted CO2 emissions from empty trucks. Fortune 500 shippers like Anheuser-Busch, P&G, Niagara, and Unilever trust Convoy to lower costs, increase logistics efficiency, and achieve environmental sustainability targets.
1 Loadouts occur when an empty trailer is filled with a live load, improving asset utilization and reducing costs to shippers.
2 More than 95% of all loads in Convoy’s network are GPS trackable from pickup to delivery using the Convoy carrier app. With Convoy Go’s drop-and-hook service, 100% of shipments are GPS trackable using sensors in the Convoy Go smart trailers.
