The Freight Exchange - A Perfect Example Of a Free-Market Economy

As anyone who has briefly dabbled with economics will know, present-day Western society is founded on the principle of a free market. Within any given industry, every service provider is meant to have the exact same chance at succeeding (at least at the onset) than all of its competitors, with the idea being to create an even playing field where companies live and die not through politics or unfair tactics, but their own ability.

Of course, this model is somewhat Utopian, and very rarely (if ever) carried out in its purest and most desirable form. It is still relatively easy for any given field of activity to find itself in a situation of monopoly or with otherwise uneven stakes. Still, society keeps on trying, and sometimes does manage to come relatively close to achieving this objective. Among the best examples of this is the haulage industry support structure known as the freight exchange.

Equal Opportunities

A relatively new concept, powered by the rapid advances the field of technology has been undergoing for the past three decades, the freight exchange seeks to offer hauliers and delivery drivers an equal shot at profiting from extra business opportunities. Making use of the latest technological advances – such as the Internet, tablet and smartphone apps, and GPS – this type of service aims to point lorry drivers and other haulage and courier service professionals towards opportunities for extra loads and return loads in the area where they are operating, thus contributing to help them pocket extra income for their services.

Simply put, one might compare a freight exchange to a human-operated GPS for loads and goods to move. Using the power of the technologies behind the entire process, operators of this type of service are able to relay real-time information to hauliers about loads they may be interested in picking up. The process works in the reverse way, as well, with logistics companies and other providers being able to advertise their loads to an audience of eager drivers. This, in turn, creates a market based around fair and equal opportunities, the ideals Western economy tries to base itself upon.

An Upgrade

Ironically, the modern-day freight exchange is an upgrade of the ‘classic’ system, which was often used by countries not at all on board with the socialist ideal. First appearing in France in the mid-80s, the original version of this type of system was, much to the contrary, adopted in countries such as the now-defunct Czechoslovakia, and used as a way to ensure the state controlled the economy in a centralised manner!

Regardless of its past, however, it is hard to deny that this system is as close as Western society gets to the ‘perfect’ business model. The transport industry is, indeed, to be congratulated.

Norman Dulwich is a correspondent for Haulage Exchange, the world's largest neutral trading hub for haulage work in the express freight exchange industry. Over 2,500 transport exchange businesses are networked together through their website, trading jobs and capacity in a safe 'wholesale' environment.

Writer and Online Marketing Manager in London.