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

A handful of organizations are combining crypto with decentralized funding models to create better payment systems for trucking companies. Analysis

The trucking industry is one of the most important industries in the world. According to recent statistics, the global freight trucking market was worth more than $2.7 trillion in 2021. Additionally, it has been found that millions of commercial driver's license holders are employed by trucking companies in the States United States, a market that is responsible for delivering 70% of all freight.

Given these statistics, it's no surprise that technology has become a vital part of driving the trucking industry forward. Yet, while GPS tracking, autonomous driving, and other mainstream technologies may be apparent, a few organizations aim to bring decentralized finance (DeFI) to the trucking industry to advance its payment systems.

Philip Schlump, chief business officer and lead developer of TruckCoinSwap (TCS) – a Wyoming-based fintech and freight company – told Cointelegraph that there are over a million trucking companies and third-party logistics companies in the United States that rely on banking entities to get paid. Schlump, who is also a former truck driver, explained that this became the case because of how the truckload industry's payment system works. He explained:

“When a truck picks up a full load of potatoes, for example, a bill of lading is generated. Once the potatoes are delivered, the bill of lading becomes an accounts receivable, but it often takes between 30 and 180 net days for trucking companies to receive payments."

While Schlump pointed out that smaller truckload companies generally have better payment terms, 45 days is the average time it takes for truckers in the United States to get paid. As a result, trucking companies have become dependent on factoring companies to help truckers recoup...