Technology is on continuous advancement and the shipping industry is transforming with it. Modern-day freight shipping companies are now relying on new and more advanced digital technologies to heighten their efficiency. In such a large industry, there are many challenges, which are difficult to overcome. Change is the solution for the future and for shippers to stay ahead of their competitors.
Freight shipping companies have been implementing new applications and strategies to their business with overwhelming success. What have they been using? Below, you will find the most successful trends that have improved the freight shipping industry.
Most individuals in the industry are now well aware of the ELD mandate that launched December 2017. The initial proposal by the Federal Motor Carrier Safety Administration (FMCSA) back in 2015 was to require all commercial motor vehicle to be equipped with electronic logging devices (ELDs). The mandate was one of the largest changes anyone has seen in the freight shipping industry in recent years. The goal with the mandate is to save money, lower truck downtime, lower fuel cost, and less paperwork. The mandate also proposed safer roads due to less driver fatigue which causes many accidents each year.
Transportation Management Systems (TMS)
In order to help the freight shipper manage all of their shipments, companies developed transportation management systems (TMS). These systems are much more efficient and cost less. The TMS allows the freight shipper to track and organize the movement of all of their shipments each step of the way from an easily accessible online portal. In addition, the TMS also can be used for scheduling shipments and monitoring performance that can be used for future shipping decisions.
Internet of Things (IoT)
The largest advancement in technology has been the Internet of Things (IoT). It has opened many doors and accelerated the freight shipping industry, and many individuals overlook it. The IoT works from the use of technology that consists of a chip, reader, and a database that all connects to a cloud-based GPS system. Implemented into a truck, shippers can sit back while the sensors on the truck relay that information into the cloud-based system. This has improved shipment tracking, route optimization, warehouse management, and predictive maintenance. Shipments can even be received automatically with the help of this technology.
The largest announcement this year was from Tesla where they introduced the Tesla Truck, their entry into the +$600 billion industry. Tesla is one of the many companies working towards the goal of the autonomous vehicle. This technology will create an efficient solution for freight shipping. The industry has been on a slow transition with the idea of implementing such a vehicle. But now, the excitement is there. The US DOT even announced they are in approval of the technology.
Technology will only continue to advance as the years continue, which is why it’s important to stay up to date as a freight shipping company. Just over the past few years, the industry has seen a dramatic change. Be sure to stay in the loop with changes in technology so you can stay on top of your competition.
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