While the trucking industry is the backbone of the global economy, reports from 2023 have had a less-than-positive outlook. The year was marked by a freight recession that left trucking in a volatile state. As the industry gets back on its feet, the focus is firmly on improving efficiency, reducing costs, and meeting sustainability goals.
Fortunately, an abundance of new technologies and innovations are enabling this comeback — helping organizations monitor cargo and manage fleets, all the while enhancing overall customer satisfaction. Here’s an overview of six technologies that are currently changing the landscape of freight management.
Autonomous Vehicles
The technology might be in its nascent stage, but in 2022, Fortune magazine declared that 90% of long-haul trucking may soon be self-driving.
In fact, two major companies, Aurora Innovation and Kodiak Robotics, are already planning to roll out fully autonomous trucks between Dallas and Houston this year. While Aurora has said it plans to commercially launch 20 trucks by the end of 2024, Kodiak has revealed a self-driving truck equipped with an upgraded suite of sensors.
Equipped with IoT sensors and AI technology, the latest generation self-driving vehicles are not only able to move containers between distribution centers without human intervention but will also enable carriers to make more informed decisions.
Going forward, autonomous trucks will be able to counter potential labor shortages, be more fuel-efficient, and help adhere to stringent regulations. It’s no wonder then that the autonomous truck market, which was valued at $301.2 billion in 2022, is expected to grow at a compound annual growth rate of 15% until 2032.
Blockchain
Fresh on the heels of conquering several other sectors, blockchain has taken trucking by storm. The technology is capable of dealing with many challenges associated with freight management, including delayed payments, fraud, and a lack of communication.
Take the example of Walmart Canada, which, as Harvard Business Review reports, partnered with DLT Labs to resolve invoice and payment discrepancies with its several third-party freight carriers in 2019.
The challenge was immense: Walmart Canada moves a tremendous amount of goods across long distances. This volume required the company to factor over 200 data points into its invoices and left carriers waiting long periods for payments.
To resolve the issue, the company deployed a blockchain network among 70 of its carriers in 2021. Once the network began capturing and synchronizing information in real-time, the results were immediate. Previously, about 70% of invoices were disputed. Following the deployment of “DL Freight,” the figure dropped down to 1%.
Similarly, in the last few years, several other major players have embraced blockchain, with major logistics companies, including UPS and FedEx, joining the Blockchain in Transportation Alliance (BiTA).
Fleet Telematics and IoT
Fleet telematics has been around since the 1990s, but recent systems, integrated with IoT sensors, are pushing the boundaries of what’s possible. Not only are they enabling the real-time monitoring and tracking of assets, but they’re also offering valuable insights on the condition of goods, as well as outlining potential risks and disruptions.
As of 2022, a report suggested that 54% of large fleets, 51% of medium fleets, and 37% of small fleets were using telematics to improve efficiency, save costs, and enhance safety.
In 2024, major companies like Samsara and Verizon Connect are already offering groundbreaking telematics solutions, with advanced real-time location tracking, geofencing, and instant driver communication helping improve productivity and safety.
Big Data and AI
For trucking companies looking to ensure efficient deliveries, the importance of data cannot be understated. However, proper analysis is crucial to make the most of information collected from sensors, Electronic Logging Devices, or GPS trackers. This is where the Artificial Intelligence and Machine Learning capabilities of big data come in.
Big data is enabling companies to monitor vehicle locations, optimize routes, and ensure regulatory compliance. It also enables predictive analysis, allowing trucking companies to manage inventory and loads, and better meet customer expectations.
A prominent example of big data’s dynamic routing capabilities is UPS’s On-Road Integration Optimization and Navigation (ORION) system, which uses predictive models to chart routes for its freight. Since its launch in 2017, the technology was estimated to save the logistics company $300 million to $400 million a year.
Augmented and Virtual Reality
Over the years, AR and VR technology has infiltrated the trucking industry — gaining traction for its benefits in reducing downtime and improving productivity.
VR technology has notably proven to be a game-changer in training truck drivers to deal with varying road conditions and formulate emergency response programs. AR technology, on the other hand, offers companies the ability to carry out digital diagnostics — a crucial step in extending the lifespan of their valuable assets.
When combined with telematics, AR can also be used to create routes for drivers while offering fleet operators the ability to live reroute in case of unforeseen circumstances.
In the U.S., major organizations, such as truck manufacturer Daimler and transport provider XPO Inc., have begun experimenting with the technologies for training and operations. Manufacturers like Mercedes and Volkswagen are also leveraging AR to develop maintenance tools specifically for the trucking industry.
Digital Twins
Another crucial component of Industry 4.0, automotive digital twins have a solid role in helping the trucking industry operate more efficiently.
The technology brings together the best of IoT, cloud computing, big data, AI, AR, and VR to create replicas of various aspects of the supply chain, including containers, warehouses, and distribution centers.
By allowing trucking companies to recreate specific operations, digital twins can help lower disruptions and plan out more efficient routes. It essentially helps transport freight from one point to another with minimal delays — and minimal error.
Already by 2022, the digital twin market was valued at a staggering $11.12 billion. It is now expected to grow with a CAGR of 37.5% between 2023 and 2030. We expect a large chunk of this growth to come from logistics and freight forwarding.
The Bottom Line
At the end of the day, it’s crucial to point out that implementing these technologies will not be without its share of challenges. As the industry irons out cybersecurity concerns, deals with high initial costs, and counters resistance to change, it’s impossible to say how long it will be before the benefits of these advancements take shape. But what’s clear is that the future of trucking is bright — and worth keeping an eye on.
Graham Perry is a writer at Business Tech Innovations specializing in logistics supply chain optimization. With expertise in fleet management and transportation technology, his articles empower businesses to navigate the dynamic world of logistics with peace of mind.
