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U.S. Environmental Protection Agency +

Carrier Freight Matching for
Logistics and Shipper Companies

A Glance at Clean Freight Strategies

TRUCKLOAD-AS-A-SERVICE

In the United States, there has been a
recent shift to a "truck-as-a-service"
shipping model. Technology matches
shippers and carriers for individual loads.
The truck-as-a-service market is expected
to reach $79 billion by 2025, with the digital
freight brokerage segment reaching
$54 billion.

size of truck-as-a-service
market by 2025

size of digital freight
brokerage market by 2025

A variety of approaches can help to match shippers with carriers in ways that
reduce empty truck miles. One such approach, digital freight matching (DFM),
involves using mobile computing and smart phone technology to automate the
buying and selling of freight transportation services. Third-party logistics providers
(3PLs) can also use industry knowledge or more traditional outreach to identify
nearby carriers.

WHAT IS THE CHALLENGE?

For shippers, identifying carriers that are nearby, available in the right timeframe,
and meet the necessary specifications can be a challenge. Ninety-seven percent
of US carriers have 20 trucks or fewer, which means that shippers may not be
able to meet all shipping needs with one carrier. Without a strategy for identifying
optimal carriers, shippers may end up paying for deadhead miles (when drivers
travel to pick up new loads or return to a base of operations empty). Deadhead
miles are inefficient, wasting time, labor, fuel, and fleet capacity.

WHAT IS THE SOLUTION?

To reduce deadhead mileage, 3PLS can use their industry knowledge and new
technology to better match freight with nearby carriers. Strategies include:

Targeted email. bLasts. Some firms use geographically targeted email blasts
to identify carriers. When they receive an email soliciting availability and
interest, carriers can bid to notify 3PLS of their available pickup and delivery
windows and vehicle specifications.

Digital freight matching. DFM is a more recent method that uses a software
application or other technology to match shipper loads to carriers. DFM
uses cloud-based software, geolocation technology, inputs from shippers
about load requirements, and inputs from carriers about capacity. Apps
allow shippers to see the status and location of shipments, fuel use, and
routes. Some DFM tools use a model similar to app-based ridesharing,
using algorithms to recommend matches.

Freight brokerage. Traditional freight brokerage means brokers working
with shippers to match freight to carriers. Brokers form relationships that
span many freight modes. These relationships can yield market information
that DFM companies may not have access to and potentially result in
brokers' offering unique services unmatched by DFM. Freight brokers also
offer exception handling, backup when equipment breaks down, relation-
ship management, and access to transportation management systems.
DFM apps can complement freight brokerage offerings.

EPA-420-F-21-043 | December 20211 SmartWay Transport Partnership | epa.gov/smartway

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Carrier Freight Matching (continued)

COSTS

Digital freight matching is paid forwith commissions,
technology fees, flat fees, transaction fees, and/or shipper
and carrier-based fees. Some apps also offer unique pricing
features, such as automatic price quoting and negotiable
price quoting.

can reduce deadhead miles
by more than 20%.

SAVINGS AND BENEFITS

Benefits of these strategies include:

Reduced deadhead miLes. DFM apps and email
blasts can locate nearby carriers, minimizing the
distance that trucks are driving to pick up loads. Algo-
rithmic load bundling, in which carriers can book a
bundle of two loads on a DFM app, can reduce
deadhead miles by more than 20%.

Cost savings. In addition to the savings from reduced
deadhead miles, these tools allow shippers to choose
from a variety of carriers. During the freight-matching
process, companies can compare the prices of differ-
ent carriers and choose the most cost-effective option.

Data and transparency. DFM apps provide valuable
information such as truck specifications and shipment
status.

Time savings. These tools, particularly DFM apps,
allow companies to quickly identify available carriers.
This quick turnaround speed can provide more
flexibility for last-minute shipments.

NEXT STEPS

1

2

3

Assess current shipment patterns. Identify inefficiencies, such as empty space in Loads, deadhead
miles, or delays.

Explore freight matching options, including DFM apps, email blasts, or freight brokerage. Conduct a
cost-benefit analysis and determine which strategy best aligns with the company's shipping needs.

Conduct a pilot and train employees. Consider using this strategy alongside other operational
strategies such as supplier sourcing, inventory management and others.

Please visit the SmartWay website at www.epa.gov/smartway

to access more tech bulletins.	U.S. Environmental protection agency^

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