The logistics industry continues to experience significant shifts as technology, a shifting customer demand landscape, and new players reshape the market.
Companies must continually explore how to remain competitive in their specific industry niche in this new environment.
That's why we've compiled a brief list of freight trucking trends that will shape the entire industry in 2022.
Increased Awareness of the Environmental Impact
As the demand for sustainable transportation is growing, the logistics industry will be under increased pressure to reduce its environmental impact.
Many trucking companies are already taking steps to reduce their carbon footprint, such as investing in electric vehicles or switching to low-carbon shipping methods such as rail.
To address this issue, companies in the logistics industry are expected to adopt new technologies and business models that will enable them to reduce emissions, cut energy costs, and improve the sustainability of their operations.
Growing Demand for Delivery Services
As the e-commerce industry continues to grow, the demand for delivery services is also increasing. And this set up higher expectations for delivery service providers.
Consumers will want to receive their products faster and more reliably and be able to track their shipments in real-time. Businesses that rely on shipping goods must respond by investing in new technologies to improve efficiency.
To remain competitive and meet customer expectations, delivery companies must streamline operations to reduce costs and increase profits.
Adapting to a Driver Shortage
Another important trend is the growing driver shortage in the freight trucking industry.
The shortage of drivers has been attributed to the aging demographics of the trucking workforce, long hours, insufficient pay, training issues, and the inability of the industry to provide attractive career options.
As a result, trucking companies have to spend more on signing bonuses and other incentives to attract and retain drivers.
To mitigate the effects of the shortage, trucking companies might have to modify their operations to use smaller trucks or fewer trips per day by increasing the use of technologies such as automated trucks and platooning.
Higher Fuel Costs
In the last decade, the price of fuel has fluctuated greatly, and there is no guarantee that it will not see significant spikes in the future. Trucking companies will have to factor in this increase in operating costs.
Higher fuel costs could significantly impact the cost of hauling goods by truck, which could, in turn, lead to an increase in transportation expenses that, in turn, could negatively affect the demand for freight transportation.
Given how fuel prices fluctuate, trucking companies can use real-time data to track fuel consumption. This helps them reduce fuel costs by optimizing fuel consumption in real-time.
Along with real-time tracking, companies can improve fuel efficiency by optimizing truck routing and scheduling, adopting best maintenance practices, and using fuel-saving technologies.
Supply Chain Transparency Through Blockchain Technology
Blockchain has been making headlines as one of the most promising technologies of the future. Blockchain technology is currently being used in many industries and will be especially important in freight transportation.
A blockchain-based tracking system allows suppliers to track the movement of goods from manufacturer to consumer to create a transparent supply chain.
As a result, anyone can view the progress of goods, making it easier for shippers to prove their authenticity and for customers to verify that their products are ethically sourced.
With more companies using blockchain technology, the public will have access to more information about where their products come from and what goes into making them.
Autonomous Trucks
The advent of autonomous vehicles is one of the most disruptive changes we'll see in the industry over the coming years.
Automakers and tech firms are racing to develop autonomous vehicle technology and bring it to market, with many expecting autonomous vehicles to be commercially available by 2022.
Automated vehicles will bring many benefits to the sector, including lower fuel consumption, reduced emissions, and significant fuel cost savings.
Autonomous vehicles could save as much as $150 billion annually in the U.S. alone.
With such significant benefits, logistics firms will likely accelerate their efforts to prepare for autonomous vehicles, with shippers and consumers also likely to push for early adoption.
Remote Monitoring and Management
As e-commerce continues to grow at a breakneck pace, logistics companies are looking for new ways to manage the flow of goods through their networks. One way that firms are exploring is remote monitoring and management (REMM) tools.
The basic concept behind REMM is that every link in the supply chain is connected to a central platform that enables remote monitoring and management.
REMM also enables companies to collect data during each shipment and use it to make adjustments or recommendations for future shipments.
RMM uses sensors placed on the vehicle to capture data transmitted to the company's management system and used to make real-time adjustments to the fleet.
They allow companies to stay on top of maintenance schedules and driver habits and track everything from fuel usage to road conditions to driver performance.
These systems automatically record information such as location and speed and then upload the data to a server for auditing, reducing the possibility of errors while increasing efficiency.
We can also expect to see RMM be used to help reduce fatigue, improve road safety, and reduce emissions by allowing trucks to use the most efficient driving speed.
Trucking companies can also use RMM technology to track cargo. This is helpful for shippers who may be transporting high-value, time-sensitive goods.
Big Data and Real-Time Analytics
As more logistics companies embrace the RTM trend, they'll also be turning to big data and real-time analytics to gain insights from their data. This includes everything from data visualization tools to machine learning models.
Data is crucial in successful transportation and supply chain operations, but there are many challenges to collecting and analyzing data.
However, adopting cloud technology and the Internet of Things (IoT) will enable logistics companies to overcome many of these challenges and unlock the full potential of data analytics.
With real-time data analysis, companies can remotely monitor their operations and receive insights into delivery times, fuel consumption, and vehicle maintenance issues.
With real-time analytics and advanced visualization tools, insights can be shared across an organization to enable more informed decision-making and optimize operations.
This allows companies to take a more holistic view of their operations. Logistics companies can reduce costs and improve their service by using data to optimize and streamline their supply chains.
That real-time analysis, combined with REMM, can give logistics companies a significant edge in the marketplace by enabling them to adjust shipments as soon as possible.
Robotics In Logistics
Robotics technologies have been used for decades in manufacturing settings. However, robotics technologies are now making their way into logistics as well.
Robotics is being used across many areas of logistics, from inventory management to picking and packing. This will likely continue as automation becomes increasingly common across the logistics sector.
Logistics providers are investing in robotics that can help improve the sustainability of logistics operations. The growing use of automation to handle logistics operations is likely to have a positive impact on carbon emissions and positive implications for safety and operational efficiency.
One trend to watch is the increasing use of robotics and drones for last-mile delivery. This refers to using robotics for final deliveries to the customer's doorstep.
Drones have been used for long-distance delivery for some time, but they've only recently become a viable option for last-mile delivery.
Last mile delivery robotics is particularly helpful in dense urban environments where customers may have to walk a significant distance to reach a physical storefront.
These robots are also helpful in areas where it's difficult to access customers due to weather conditions like ice or rain.
Robotics is especially helpful in situations where deliveries could be unsafe for humans. This includes situations like remote areas or extreme weather.
Final Thoughts
Freight trucking is one of the most important industries in the world, with trillions of dollars of goods transported every year. The logistics industry as a whole is responsible for the majority of all goods transported globally.
This makes the industry crucial for businesses seeking to reach customers, but it is also incredibly sensitive to change.
In particular, the advent of new technologies like autonomous vehicles and big data analytics could transform the logistics landscape dramatically.
With these trends in mind, logistics firms must adapt by embracing new technologies and investing in infrastructure to support them. Doing so will allow these companies to survive and thrive in the coming years.
If you're still unclear about these trends or unsure how to adapt, you can reach out to A1 Auto Transport anytime.
With 33 years of experience in freight transportation, we are confident that we can help you with any changes in this industry. Don't hesitate to contact usnow or leave your free quote. Our team will call you in no time!