Cargomatic Overview Flashcards
What are the four lines of business?
Drayage, off-dock container yard, shorthaul, intermodal
What is the largest Cargomatic service in terms of revenue?
Drayage
Which line of business is our second largest?
Shorthaul
If our revenue was publicly reported, where would we fall in the list of top intermodal drayage carriers
11th
What is the difference between a tech-based broker and a logistics-based broker?
Tech-based: more cost-oriented, use tech to reduce people and cost of business
Logistics-based: more transactional, relationship-driven, focused on customer service, specialized knowledge in specific areas of business
What are our company owned letter carriers?
Atlas Marine, West End, Three Rivers, XLR8/BP
Why do we have company owned letter carriers?
- Reduce dependency on third parties
- Rate flexibility
- Increase capacity
- Vertical integration
What is Cargomatic’s volume market share of intermodal drayage?
.5-.6% of the market OR 480k of 88M annually
Explain the competitive structure of the trucking industry as it relates to carriers and how does it relate to the Cargomatic model?
Structure of the trucking industry, as it relates to carriers, is a pyramid structure – top 10 carriers is < 10% of the revenue
97% of trucking fleets are 6 trucks or less
Bundle up all the services and offer that to other companies (B2B)
Structure relates to Cargomatic model - creates a lot of carriers that we can contract with, lots of points of entry to the market in terms of shipment lifecycle; can’t compete 1:1 with the largest individual carriers
How do you counter the argument of the shipper’s hesitancy to use a broker?
We’re not a typical broker. Some of Cargomatic’s subsidiaries own motor carriers. Markets where we don’t own motor carriers, we have a vast network of contracted carriers that we vet through IMIS and B-route and we take responsibility for the freight and equipment charges.
Cargomatic offers an additional layer of insurance
Customers have access to Command without an additional licensing fee
Think of the 4 revenue streams that we have: We manage the entire shipment lifecycle, end-to-end, including yard and container management. Can also handle storage needs
How is Cargomatic compliant with AB-5?
Cargomatic does NOT hire drivers. Its asset-based subsidiaries employ their drivers directly. In markets where Cargomatic does not have asset-based subsidiaries, it contracts with independent motor carriers ONLY (B2B relationships).
Within CA, no independent contractors (aka 1099) are hired.
Cargomatic employs a broker-carrier business model. Per the State of California, the broker-carrier business model is AB-5 compliant.
How does a customer file a claim with Cargomatic?
If external party, file a claim on cargomatic.com. If internal party, email claims@cargomatic.com
What does a bridge law refer to and why is it important?
Bridge law is a formula or weight limit for bridges. It regulates weight distribution and overall weight of cargo vehicles on roads and highways. They are important because they ensure the public safety of roads and bridges and other infrastructure, prevents overloading of vehicles that would damage or pose a risk to public safety.
What is the difference between a compliant and exempt vehicle (in California)?
Compliant - meets CA regulatory standards for emissions
Exempt - zero or near zero vehicle emissions that is exempt from clean truck fee
What are our EV and ZE strategies?
EV - electric vehicle
ZE - zero emissions vehicle
Understand our customer goals and we’ll develop a custom solution for you
As a Cargomatic employee, you would rather win business from a ___ since we are a ____
BCO/shipper
broker
What class of hazmat do we NOT serve?
1 (explosive), 2 (gases), 6 (poison and poison inhalation hazard)
