Tokenization at the crossroads of the trucking industry to ensure efficient payments

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A group of organizations is combining crypto with decentralized finance models to create better payment systems for trucking companies.

to recent statistics, the global freight trucking market was worth over $2.7 trillion in 2021. In addition, it’s been found that millions of commercial driver’s license holders are employed by trucking companies within the United States, a market that is responsible for delivering 70% of all freight.

“When a truck picks up a full load of potatoes, for instance, a bill of lading is generated. This is essentially proof that the trucker and the trucking company are responsible for the potatoes during the shipment period. Once the potatoes are delivered, the bill of lading becomes account receivable, yet it often takes a net 30 to 180 days for trucking companies to receive payments.”

Schlump believes that tokenization can potentially solve this problem. For example, Schlump explained that TCS replaces factoring companies with a token-based settlement service that allows trucking companies to get paid at face value within a few days. In order to ensure this, Schlump explained that TCS launched its “TCS Token” on the CrossTower crypto exchange in September this year. TCS will then work directly with trucking companies to buy a bill of lading using the tokens.

Like Schlump, Manuirirangi is a former truck driver. Through this experience, Manuirirangi became aware of the fact that there is a shortage of truck drivers across the globe. “I started researching why this was the case and came to the conclusion that there is a shortage of truck drivers due to inadequate compensation.”that a trucker in 1980 earned an average of $38,618. Almost 40 years later, in 2018, they earned around $41,000.

By connecting GDPC with freight shipments, Manuirirangi believes that this will add intrinsic value to Truckonomic’s token. “As more trucking companies use GDPC, the more the price will be impacted.” In turn, truck drivers will be able to receive payments faster at much higher rates — as long as the token is used and becomes implemented on a crypto exchange. At the same time, Manuirirangi thinks that the blockchain component will help advance the trucking industry’s infrastructure.

“It becomes less challenging when there are a million trucking companies and you only need to work with about 500 to be successful. In terms of value, this can add thousands of dollars per year to trucker drivers’ salaries, so this generates positive attention as well.”

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