John Schaffner has a commercial web site. So what, you say?
Seems like everyone has a commercial web site nowadays. On Schaffner's site, for a relatively modest fee, a tower and/or shipper can log in with a password and check for new cargo to fill out a tow or attempt to move product at backhaul rates.
The interesting element that Schaffner and partner Linda Smith bring to the table is that they both run towing companies. Schaffner's Lockwood Marine operates out of Norfolk, VA., and his search for good backhaul prices helped provide the impetus for CargoNet.com. "I usually spend 40 percent of my time on the phone networking, determining where equipment is and building a database. If I can find any cargo going back, it can help pay for my expenses."
In an industry that, in Schaffner's words, "is not regulated, not large and not terribly complex," there is the issue of paying for empty equipment going back. "I can be moving a tug and barge from Norfolk to Houston, costing me $100 to $120,000. Maybe I can charge $60,000 for cargo going back." Schaffner has actually used the site for himself. "I had to move two deck barges back to Norfolk from New York City. I posted my need on the site and the prices varied. One person came in at $18,000 and I ended up finding someone for $14,500." |