Category: <span>Technology</span>

You may not look at trucking as an industry that breaks technological barriers or pushes the limits of innovation. After all, most trucks run by using the same core mechanisms and fuel types as they have for decades. However, the antiquated image of trucking is only surface deep, and there have been countless impressive ideas behind the scenes that have improved supply chain efficiencies and made it easier for all of us to receive food, clothing, and shelter.

You are probably aware of concepts such as electric and autonomous trucks – machinery that has already been put into action on a small scale. But these big-ticket items aren’t the only innovations that we have seen from the trucking world. There are some major improvements on the horizon, and they could change the future of logistics as we know it.

Software To Assist Drivers: New trucks are already equipped with all sorts of software to enhance driveability and improve safety, but there is much more to come. As road vehicles become more interconnected, we can expect to see new programs such as sign recognition software that will alert the driver of speed limits and changes in road conditions.

IoT Connectivity: The Internet of Things is the theory of interconnected automated processes and it has already infiltrated the trucking industry. Many trucks are currently connected and capable of receiving/transmitting data 24 hours a day. This will continue to increase, as it is predicted that 80 billion IoT devices will be connected by 2025, which will allow innovations with data and new understanding for logistics practices.

Increased Human Focus: While it seems like all of this technology will take the jobs out of the hands of people, humans are still the number one concern and the reason that they work. Technology will continue to be used to increase safety for both the drivers on the road and those around them, and more jobs will become available in the logistics industry as more people will be needed to harness and understand these technologies.

At Zip Xpress, we understand that optimization is a process. Technology is evolving at a rapid rate, but it will never replace the need for great service. Many of the key problems that exist in logistics can’t be solved with a computer, and companies will always want special attention given to their shipment. It is important to remember this even with the groundbreaking innovations coming in the years ahead. When you need a customized carrier solution that works to ensure your shipment will arrive undamaged and on time, start today with Zip Xpress!

The first quarter numbers are out, and the transportation industry has seen major changes since passage of the ELD Mandate. While load-to-truck ratios and shipping rates have reached record highs, productivity has been drastically reduced. The new laws and requirements have had a dramatic effect on carrier behavior. This has consequently made it more difficult for shippers to get their products delivered according to their desired schedule. It is important to understand why certain decisions are being made on the carrier end as a result of these changes.

The electronic log books generally provide little room for error, so drivers are being far more discerning in the loads that they are willing to haul. Because they must meet tighter deadlines or risk being shut down and losing their next load, they are avoiding shipments that are susceptible to detention issues and longer loading times. This is a major problem in the grocery and produce sectors, so shippers in those parts are seeing rates go up and capacity decrease. Some drivers will flat-out refuse grocery shipments from certain shippers based on their reputations for detaining drivers. Increased rates on that shipment may not be enough to offset the potential loss of their next shipment as a result of detention.

There has also been a decrease in capacity for “borderline” lanes, or routes where the mileage is right on the cusp of the one-day or two-day barrier. ELD restrictions mean that drivers can’t make the mileage overnight, and their load may spill over into a second day on a shipment that used to take only one day. Major lanes like Chicago to Nashville, Philadelphia to Atlanta, and New York to Cleveland have all been affected by this. Carriers are asking for rates that are sometime more than double what they used to receive in order to make up for lost revenue while waiting around to finish these shorter lanes.

Another major change is in the market for dedicated runs. With pricing on the rise and capacity decreasing, carriers can pick and choose from the spot market and make more money than they used to with static runs. Market volatility has contributed to this, and it correlates heavily with the passing of the ELD mandate. Shippers should do themselves a favor and brush up on the spot market if they haven’t already, as these trends are likely to continue into the future. It may be a difficult time to adjust to these changes in the market, but as carriers have felt the effects of the mandate, they are more aware of what they need to do in order to remain profitable. If you need guidance on how the ELD mandate can affect your supply chain, start today with Zip Xpress

The US Government enacted its long-awaited Electronic Logging Device mandate on December 18, 2017. Many changes were expected to come of this, including a significant number of drivers and trucks leaving the roads. However, there was actually a 1% increase in active carriers between the time the mandate was enacted and February 18th, 2018. Despite many truckers saying that they would leave the industry due to the new mandate, a decrease in drivers has not come to fruition in the first quarter of the new year. Still, there is much speculation as to what will happen on April 1st, when all trucks not utilizing ELDs will be put out of service.

One major finding from January of 2018 is that capacity has been drastically reduced. In fact, load-to-truck ratios were just under 10 to 1, which is a record high. This is a dramatic year over year change from 2017, when the ratio was approximately 3 to 1 (2016 was 2 to 1, for reference). It may be too early to tell if this is directly related to the ELD mandate, but the correlation is certainly there. With drivers being under stricter rules and on tighter deadlines, they are likely not able to service as many shipments in a short amount of time as they have in previous years.

In addition to record-low capacity, the industry also saw record highs in rates. Again, it can’t be said with certainty that this is linked to the ELD mandate, but the numbers are there to support it. This is especially true when considering that van rates were still 32% higher in February 2018 than in 2017. There was not a major increase in loads year over year, so the significant rate increases are intriguing. If they are linked to this mandate, it is likely due to decreased productivity, especially on borderline trips. 500 to 600-mile trips that used to take one day have now become two-day trips due to legal requirements. This could mean that carriers are charging higher rates to make up for lost time. Confused about how to navigate the ELD terrain? Start Today with Zip Xpress – we’ll help find the best shipping solution for your company’s needs.

In Early February, San Francisco based tech startup Embark successfully completed a cross-country trip using an automated truck. The test run, which hauled an empty trailer from Los Angeles, CA to Jacksonville, FL, is said to be the first coast-to-coast trip involving an autonomous big rig. It still took the standard 5 day transit time, as there was a driver in the unit ready to take over if the vehicle experienced problems at any time. The goal for Embark, however, is to build upon this technology so that human interaction will not be needed for any of the highway driving – only for the final miles of the delivery as well as local and city driving. Too see their truck at work, watch the video below.

Embark is still probably several years away from their goal of completely driverless trucks. Still, there is much to be learned from their current success. The aforementioned truck used was a modified Peterbilt that was outfitted with sensors and guided by self-driving software. This means that for owner-operators and trucking companies with vehicles already on the road, purchasing entire new fleets may not be necessary to get into the autonomous game. With at least several years to go before reliable driverless trucks will be introduced, this would be one way to stay ahead of the competition in a rapidly changing industry.

The development of autonomous trucks does not mean the end of driving jobs as we know them. In fact, it could mean the opposite. As mentioned earlier, self-driving units currently require someone behind the wheel to monitor the truck and watch for disengagements. This could mean we’ll see a boom in tech-forward thinkers who want to be part of this revolution and experience the open road. Even down the line, with autonomous trucks potentially making cross-country trips in 2 days rather than 5, we will need more final mile and local drivers than ever before. With e-commerce driving the demand for just-in-time delivery, we will see an influx of freight which will in turn drive the demand for these jobs.

Here at Zip Xpress we’re always focused on staying ahead in innovation and state of the art technology. With expedited LTL services and inventive Headload solutions to optimize space, Zip Xpress has rapidly become a preferred carrier for high-profile companies across the nation. The team at Zip Xpress are constantly trying to stay ahead of the curve and and continually finding fresh new ideas to achieve higher customer satisfaction ratings. To increase your shipping satisfaction, start today with Zip Xpress!

Tesla recently announced that its electric freight truck, the Tesla Semi, will have an expected base price of $150,000 (300-mile range) or $180,000 (500-mile range). These tentative costs, which are lower than previously anticipated, make the Tesla Semi an attractive option over conventional trucks. For example, an average Class 8 truck costs about $0.54 per mile, compared with Tesla’s $0.26 per mile. Add in the significant cost savings associated with maintaining an electric engine compared with a gas-burning one, and the Tesla starts to look like a no-brainer. As previously reported in this blog, Tesla’s advantages go beyond cost to include speed and safety innovations.

Michigan-based retailer Meijer is looking to Tesla to potentially improve its fleet’s efficiency and reduce costs. The company ordered four trucks, giving it the chance to be among the first to test the electric vehicles.

“This new Tesla truck technology, (sic) has the potential to not only reduce our carbon footprint but also realize cost savings that will allow us to keep prices low for our customers,” the company’s spokesman Frank Guglielmi reported to milve.com.

Meijer, which has 235 stores across the Midwest, currently uses Freightliner Cascadia trucks featuring fuel-efficient, reduced-emissions engines. The company made a $5,000 per vehicle down payment and will decide after testing whether to complete the purchase. Tesla expects to begin Semi production starting in 2019.

Zip Xpress will be following news from both Tesla and Meijer as the electric freight fleet makes its way from test track to highway. Keep up with what’s driving change in trucking at Zip Xpress.