The trucking and logistics industry may have found the next “big thing” and that is Cargomatic. This new company is transforming the traditional industry, using the latest technological innovations. Cargomatic will allow for shippers to “book” one of the companies’ truckers who is nearby, heading in the right direction, and has room in the truck to ship products, as opposed to using a traditional carrier. Cargomatic has been running in Los Angeles since 2014, and has officially started services in the greater New York City Area, 150 mile radius, earlier this week.

Some key points made in this article are as follows:

1. How will the growth of these types of businesses affect the operations and finances of the incumbents, such as UPS, FedEx, USPS and other local delivery companies? Probably not much at the outset but what about the future?

2. While Cargomatic verifies the fact that the truckers have the requisite authority and insurance, shippers using these services must also fully understand how freight claims will be handled in case products are lost, damaged or stolen.

3. Carriers not only need liability insurance coverage, but they should also have Cargo Liability Insurance as well.

4. In addition, if the shipper pays Cargomatic and for some reason Cargomatic does not pay the carrier, could the shipper be required to pay the freight invoice again?

Cargomatic has potential to reshape the way shippers and carriers operate their business, but will the company be able to succeed?

Read the original article here: http://www.crainsnewyork.com/article/20150812/TECHNOLOGY/150819612