The freight shipping industry is right now on the cusp of a massive transformation as advances in technology has begin to accelerate efficiency and the way logistics are carried out. Shippers are realizing that even though the changes can be tough, they will need to adapt to compete. Right before our eyes, the freight shipping industry is evolving quickly. Many freight companies are expanding to be the best of the global freight shipping providers.
With an emphasis on customer management, client satisfaction, financial repercussions that reflect on the profit margins, etc., a business needs to plan and organize itself well, especially if it’s processes include the import and export of goods. Over the course of many years, these freight shipping industries looked into how technology can help streamline their processes easier and make them more profit.
Here’s a look at the top five emerging digital tech trends that are reshaping the freight industry.
Internet of Things (IoT)
Ultimately the Internet of Things (IoT) for freight shipping industry is evolving as the industry has adopted the needed devices. However, the underlying technology is very fragmented. The IoT make use of technology which contains a composed of a chip, a reader, and database, along with cloud-based GPS systems. This technology is known as radio frequency identification, which allows the freight industry to keep track of a shipment and their condition. You don’t have to scan any barcodes or confirmation receipts. Shipment will be received automatically with the help of this technology. This advance in technology has made it much more efficient for companies to check on their products/goods at any time.
The Federal Motor Carrier Safety Administration (FMCSA) sent forth a proposal requiring all interstate commercial truck and bus companies to utilize Electronic Logging Devices (ELDs). This is to help streamline the government and increase safety. The ELD mandate is considered by many to be one of the biggest changes in the freight shipping industry.
Through the use of the ELDs, projections of $1.6Billion is expected to be saved annually. This extends to paperwork savings, reduced truck downtime, decreased fuel cost, and lowered crash rates. The ELD mandate will also prevent injuries and fatalities.
Transportation Management Systems (TMS)
A Transportation Management System (TMS) was developed to help freight shipment agency to manage all of their supply chains effectively. Back then, this technology was too expensive for any freight shipping company to invest in. Luckily, times have changed now, and the recent advancements has made technology much more offordable and easier to obtain. The TMS also helps freight shipment company to track and organize their movement of it the products and materials. The Transportation Management System used to manage outbound and inbound shipment scheduling, shipping units, transportation mode selection, payment, freight bill auditing, etc.
Check out our other article about the Major Benefits of Using a Transport Management System for your company.
We all witnessed a promo run by Uber with Budweiser which highlight how they made their first driverless truck delivery. With this development, many companies will join the trend and begin to test more broadly. This development is said to aid faster and safer deliveries, but not all freight shipping companies in the industry is ready for this new technology.
Autonomous trucking has been getting coverage and traction, but many are stating that they will not have a place in the community for high impact yet. However, according to other survey finds, the freight shipping industry as a whole is slowly transitioning to autonomous trucks.
Read more about other digital trends that are impacting the expedited shipping game in supply chain and logistics.
Last Mile Delivery
With the widespread usage of technologies like drones, we can expect to see last mile delivery expand and then consolidate. With the likes of FedEx, UPS, Amazon, and others looking forward to beating competitions, the last mile delivery trend is growing more than ever. The industry has seen new products being created to deliver goods to the consumer much quicker in the “last miles of delivery”, including droids/bike couriers, autonomous ground vehicles with lockers, and as mentioned before, drones.
Now more than ever it is important for companies in the freight shipping industry to stay up to date with these advances and trends. The focus of a good business must be on the quality of its products as well as on its commitment to its customers and business associates, and if times change, companies should be ready to change with it.
Check in with Mach 1 Global to assure that your company has the best options for freight shipping and logistics. Feel free to ask us anything today!
The content written in the blog provides general information and discussion about freight forwarding, transport management, and logistic services. The words and other content provided in this blog, and in any linked materials, are not intended and should not be viewed as facts, but rather what we believe about the topic. If the reader or any other person has a concern related to the contents of this piece, please be sure to contact us here.
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