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The present-day conditions of Brazil's logistics market raise major concerns due to the complexity and inefficiency of its current state. Federico Vega, founder of frete.com, recognized the need for advancement in Latin America's freight market, with immediate attention pulling towards safety, distribution effectiveness, and extreme bureaucracy. The improvements introduced by frete.com impact more than just the immediate population; the agricultural industry is no stranger to Brazil's contribution, as the world's top coffee and grain producers, contributing to over 1 billion people across the globe. Furthermore, Brazil lands as one of the world's top 10 contributors in steel and mining production, enough reason for immediate attention towards the Brazilian freight and cargo industry. Brazil's contributions alone give enough reason for the importance of developing a systematic and effective logistics market. By combining modernized operations and software development, frete.com determined solutions for the market's current state of ineffectiveness.

While freight robberies declined by 23% in 2021, financial impacts are still seen at almost 200 million USD for both cargo shippers and carriers, in Latin America's largest country. With these considerable statistics, a team of entrusted software engineers from frete.com helped to materialize a revolutionary technology, pioneering advancements within the industry. These systems were developed by studying the patterns and whereabouts of security violations, investigating the aftereffects, and concluded efforts by establishing innovative strategies to streamline the process from transpiration to destination. By studying theft patterns and report history, frete.com's technology determines which routes, travel times, areas, and cargo types represent the highest risk. By screening new drivers and new clients alike through thorough filtering systems, faulty registrations are limited, establishing a safety index of 99.58%, with less than 0.5% of advertised freights used on the platform as fraudulent. Truck owners are registered contingent upon passing a comprehensive background check and profiling. Extensive consideration includes personal, financial, and professional history along with trucking experience. New technologies also include a freight risk bot, a system which further evaluates cargo entries published on the platform, considering the type of cargo, origin, destination, and value, noting all registered cargo stops and categorizing the freight as very low risk, low risk, high risk, and very high risk. Those flagged as high risk and very high risk are pulled for further review, investigating the cargo owner, registrations, history, and more. Frete.com's developmental technologies already ensured low breach probabilities, and since the development of the risk bot, fraudulent freight threats have been reduced further by 43%.

The unstructured systems previously seen in Brazil's cargo transport sector gave way to bureaucracy, which continues to increase costs within the industry. Additional to those costs, inefficiencies are presented through high inactivity with truck capacities; in previous market history, Brazilian truckers ran at 40-60% idle capacity. Frete.com developed a freight matching system that allows for carriers to find truckers within minutes, increasing overall efficiency and limiting the impact of bureaucracy. This process was developed by observing the driver's interaction with the platform, using the collected data to determine compatibility, improving freight matching. Machine learning ensures freight matching services are possible by determining specific loads to the most compatible trucks, guaranteeing optimal filtering features. For more generalized cargos, digital locations and routing are used to offer the best options available. With the previous systems in play, the unstructured documentation process caused delays in shipping, causing a domino effect within the chain of production within the industry. By applying technology, updates are digitally sent in real-time, optimizing routes and accelerating fulfillment times between deliveries.

Funding gaps are a major problem in the road freight transportation industry due to limited capital access, where shippers pay 120 notice (D+120) while transport costs are immediate (D+1), causing shipping delays, operational hindrances, and gaps in working capital from lack of monetary support. With frete.com, their technology innovates the funding process by screening risk factors for users looking to run operations, offering affordable loans to clients to subsidize costs of production. In addition to the accredited investors, frete.com uses credit systems that update through the number of freights completed via platform use, related to type and value of merchandise, usage frequency, etc. These supports provide proper fluidity for shippers and carriers, resulting in movement and result towards the mismanagement of the current freight crisis in South America. 

Frete.com recognizes the fundamental systems necessary for smooth operations. Their research attempts to better understand safety requirements for shippers and carriers provide streamlined delivery rounds and effective freight matching, limiting bureaucratic leadership. With the use of technology, frete.com offers accessible fundings to clients, closing the pay gap previously seen in South America's outdated systems. We can expect to see continued development in South America's road freight industry as companies recognize these innovations implemented through the use of these technologies developed by frete.com.

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