How Digital Technology is Affecting Freight Shipping

Modernizing your traditional logistics management patterns with emerging technologies is sometimes challenging. However, matching shipping technologies with your business needs can appear very beneficial.

Why do we need technology in logistics?

In the fast-moving logistics world, many challenges are difficult to overcome. Change is the key for shippers to stay ahead of competitors and boost their supply chain strategy. Modern-day freight shipping companies rely on new and advanced digital technologies to enhance efficiency. Freight shipping companies have been implementing new applications and methods for their business. For example, the latest digital inventions can optimize logistics management and route planning, facilitate shipment tracking, and improve customer experience.

What are leading freight shipping technologies?

When looking for the best digital solutions, it’s crucial to consider your business specifics and its readiness to embrace modifications brought by technology. Below, you will find the most successful trends that have considerably improved the freight shipping industry.

ELD mandate

Most individuals in the industry are now well aware of the ELD mandate launched in December 2017. The initial proposal by the Federal Motor Carrier Safety Administration (FMCSA) back in 2015 was to require all transportation companies to equip their commercial motor vehicles with electronic logging devices (ELDs). ELD works as a system that tracks the transport unit’s motion and shows the drivers’ duty status. They record the data gathered throughout the supply chain cycle to keep it under legal control.

The mandate was one of the most extensive recent changes in the freight shipping industry. Its goal is to save money, lower truck downtime, reduce fuel costs, and lessen the paperwork procedures. The ELD mandate also contributes to safer roads due to less driver fatigue which causes many accidents every year. Finally, it’s a comfortable way to supervise the shipping process without interrupting it.

Internet of Things (IoT)

The Internet of Things (IoT) has the most significant technological advancement. It has opened many doors and accelerated the freight shipping industry. The IoT works by using technology that consists of a chip, reader, and a database that all connects to a cloud-based GPS. Implemented into a truck, shippers can sit back while the sensors on the vehicle transfer the information to the cloud-based system.

Besides improved shipment tracking, the IoT is beneficial for route optimization. Having all the necessary data and counting your transport units’ specifics, the GPS works on creating new, more optimal routes so you can reach the destination faster and easier. It can help avoid shipping delays due to heavy traffic or logistics limitations.

The Internet of Things provides an excellent opportunity to upgrade warehouse management by implementing digitalized control systems. Thanks to inventory software, the logistics industry representatives can access their stocks anytime from any device and check their inventory status in a few clicks. It eliminates the need for numerous manual operations and provides accurate reports on your items’ state and quantities.

Automated equipment

Shipping automation has been considered costly in the previous years, but today it’s rapidly gaining popularity and getting more affordable even for small business owners. You can implement automated equipment on basic supply chain levels to streamline operations like recordkeeping or temperature regulation in reefer trucks. It will significantly reduce the time spent on numerous manual processes that don’t require much human oversight.

Applying automated equipment can also facilitate mechanical operations like freight loading/unloading. Whether you need to move the cargo onto the truck or change its place in a warehouse, you can regulate these actions remotely, thus saving time and effort. Besides, work automation is highly effective in data analytics, enhancing your logistics planning and budgeting chores.

Transportation Management Systems (TMS)

To help the freight shippers manage all of their shipments, companies developed transportation management systems (TMS). These systems are much more efficient and cost less than traditional shipment arrangement procedures. With TMS, shippers can track and organize the movement of all of their deliveries each step of the way from an easily accessible online portal. Thus, you will constantly keep an eye on the shipment flow.

If any transportation shifts emerge, you will receive instant notifications and be able to cope with them. Besides, you can connect your buyers to the TMS to facilitate shipment tracking and update the customers on any changes.

In addition, the TMS also can be applied for scheduling shipments and monitoring performance that you can use for future logistics decisions. It is handy for your early planning and vital for a successful supply chain. Many shipping providers build their services based on the TMS to facilitate booking and carrier search.

At GoShip, you can experience all the advantages of the digitalized transportation system with our simple shipment planning tool. Knowing the transit dates, locations, and preferred shipping mode, you can get a free quote and connect with a vast network of professional carriers.


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