In response to a recent story on freight booking app Convoy raising $60 million in funding, reader and Managing Director of WA-based UC Logistics Australia Urszula Kelly wrote in to highlight the issue of regulation.
Urszula’s take on ‘Freight Exchange Platforms’ like Convoy…
Correct – there are ‘many similarly-focused’ apps. In recent times, a number of industries have experienced significant disruption from new technology. In the transport and logistics industry, there is an emerging trend of unregulated, opened to public ‘freight exchange platforms’ that promote and accommodate to users and transport providers, with little or no consideration of who may or may not be compliant with Australian Law. I cannot speak for Convoy, though, as they don’t operate in Australia and I know nothing about them or their process.
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Aguero Haulage – one of UC Logistics’ strictly pre-qualified suppliers
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The huge problem with some of the similar platforms already operating in Australia is that the online freight exchange platforms are not regulated and are not required to ensure the competency of their Transport providers – they pass the onus of compliance onto the transport provider. Why? Because compliance with all relevant legislative requirements, specifically Chain of Responsibility, takes time, effort and often money, with little to no ability to charge more to the end user.
How do they do this? By clearly stating in their terms and conditions that they are not ‘agencies’ or ‘brokers’, but ‘neutral facilitators’ or ‘an interactive forum’ instead. They seem to be getting away with not being part of the Chain of Responsibility and not complying with law – successfully hiding behind legal speak and terminology.
The current situation exposes workers, drivers and other road users to danger. Fatigue, load restraint, vehicle maintenance and transport documentation aren’t sexy topics, so it’s easy for them to be brushed over and not given the attention they deserve – which significantly increases the risk of someone being hurt or killed on our roads.
It is also highly unfair on businesses that put time, effort and money into promoting safety on Australian roads. Chain of Responsibility is everyone’s obligation to ensure the requirements are met.
According to Worksafe, the transport industry has the most fatalities in all years since the statistics began. There were 42 deaths in transport, postal & warehousing between 1 January 2017 and 20 July 2017 alone.
According to the Department of Infrastructure and Regional Development fatal crashes involving articulated trucks increased by 7.2 per cent compared with the corresponding period one year earlier and increased by an average of 0.9 per cent per year over the three years to March 2017.
On top of that, fatal crashes involving heavy rigid trucks increased by 4.1 per cent compared with the corresponding period one year earlier and increased by an average of 2.5 per cent per year over the three years to March 2017.
WE MUST CONCENTRATE ON FIXING THE CULTURE FIRST, AND NOT JUST MAKING QUICK, EASY AND UNSUSTAINABLE PROFITS.
I love the fact that innovation is finally crawling into the transport industry. We have just gone online ourselves, however we remain a party to the Chain of Responsibility.
All ‘exchange platforms’ should be treated as a physical broker, which means they would be liable for any law breaches. EVERYONE profiting from and/or involved with ANY kind of commercial transport should be treated as part of the Chain of Responsibility and liable for their actions or inactions.
There must be change in law, making everyone equally responsible for their contractors – no matter whether they are a physical broker or an online freight exchange platform. I have already raised that issue with some industry bodies and they also see the need for change. There must be clear guidelines available. Online ‘facilitators’ must change their recruitment processes, to ensure the quality of their contractors. How do you enforce that? Simple. If a director of a transport business was personally liable for any incidents that happened you would find that business would very quickly be more interested in complying.