34 DC VELOCITY MARCH 2015 www.dcvelocity.com
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to between $550 billion and $650 billion
annually. But Stanzione insisted the total
figure undercounts the large number of
locally sourced loads—which can fetch as
much as $6 per mile—that are either wait-
ing for a truck or can’t find one
at all because local networks are
too scrambled and inefficient to
respond to the need. Based on
her research, for every one load
that moves, there are between
11 and 16 loads that don’t; virtually all of the non-moves are
in short-hauls, which Stanzione
defines as trips of less than 500
miles.
Those unmoved loads inflate the total
truckload market to more than $2 trillion a
year, according to her estimates. Stanzione
said her company arrived at the estimate
by crunching 2 million data points a day
(she said her methodology is proprietary)
and running her numbers past two providers of transportation management systems
(TMS)—whom she wouldn’t identify—
that agreed with her.
Stanzione said her model strips away
the veneer of present-day third-party pricing, an opaque process that results in rate
distortions as brokers manipulate local
and regional markets in their quest for the
biggest markups. “Brokers misrepresent
supply and demand,” she said. Using her
IT platform to present a clear picture of
the supply-demand landscape will lead to
improved service levels and asset utilization, she said. As of the end of January,
Stanzione said BoxSmart was in pilots
with two large unidentified customers and
expects to expand the pilots during the next
two months with three more customers.
The company plans to be operational in
April, she said.
SHARE THE ROAD AND RIDE
Three companies do not a cottage industry
make. However, they provide a glimpse
into how the so-called sharing model pop-
ularized by ride-sharing provider Uber
Technologies and home-sharing com-
pany Airbnb Inc. could apply to freight
transport. Another example surfaced on
Jan. 27, when an Atlanta-based company
named Roadie Inc., which matches avail-
able cargo with individual drivers and cars
Cargomatic launched last June in
Southern California, with a focus
on Los Angeles. As of the end of
January, it was pilot-testing opera-
tions in the New York area. It plans
to roll out its service in select U.S.
cities during 2015, and is eyeing
Canada and Mexico as well, Parker
said.
Across the country in
New York City, Roseanne
Stanzione runs a company called “BoxSmart” (her
branded name is “Lane
Honey”). Compared
Stanzione has limited
transportation experience. Instead, she is a professional disintermedia-tor, scouring industry after industry
looking for traditional models to
disrupt. Stanzione said she chose
to hang her hat in trucking because
she found it fascinating in its lack
of pricing dynamism. She also
found it potentially super-lucra-tive. According to several estimates,
the U.S. truckload market amounts
