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2021 Summer Insights for Owners

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Archives, Global Trade Daily, Trucking

2021 Summer Insights for Owners

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Summer is a “hot” season in more ways than one; high demand for certain vehicle specs presents an opportunity for fleet owners. Use this Summer Guide to analyze the seasonal trends based on historical rental demand and get insight into our predictions for this season. With these learnings, your business can decide which vehicles to keep a close eye on to make the maximum impact on your bottom line.

In this guide, we explore the year-to-year trends of our major markets nationwide. Plus, we’ll walk you through how your business can improve its vehicle utilization with the COOP platform this summer.

Summer Commercial Vehicle Rental Demand in 2021 

We project how the summer of 2021 will go based on rental metrics over the past 4 years. To meet the anticipated demand of seasonal commercial vehicle spec popularity, our COOP team recommends its Owners to consider the following:

Trailers to see steady long-term rentals. Both refrigerated and dry trailers see high demand this season for over-the-road rentals. In fact, in 2021 trailers are in very high demand and our business Owners that purchased trailers to list them full-time had up to 98% utilization on the COOP platform in May. ‍

Final-Mile vehicle rental demand will increase. We predict an increased need to rent vehicles for final-mile deliveries, which include Box Trucks as well as Sprinter Vans. Also, these vehicles will see an increase in rentals as Live Event and Restaurant, and Hospitality industries ramp up their activity and will be in need of extra capacity.

Expect Summer Business’ Rental Demand

We expect this summer season to have a strong tractor and trailer rental demand in June and July. Across our 9 active markets, companies have historically demanded medium- or heavy-duty rental vehicles for long hauls.

Industries that Need Rental Vehicles in the Summer

Over the summer, the Food & Beverage as well as Construction industries drive the bulk of rental demand. And many other businesses require additional fleet capacity this season. Even to the very end of the summer in August and September, we see vehicles picked up early for reservations that last through the holidays.

This season’s rental demand should keep the wheels moving on any Owner’s vehicle that can handle large cargo capacity. Flatbeds, 53’ trailers, and sleeper tractors are all predicted to see rentals from businesses that will require additional freight capacity for the long-term such as moving services, retail industry freight, and construction freight.

Increase in Refrigerated Vehicle Rentals

June through August is a great time for refrigerated vehicles. Compared to the rest of the year, refrigerated vehicles like refrigerated box trucks and reefer trailers typically see peak demand this season. During this time of year, we typically see an impressive 54% increase in demand for reefer vehicles. This demand is driven by events, entertainment, restaurants, and general hospitality companies that are sponsoring outdoor events and accommodating vacationers. Summer’s recreation creates rental demand for increased cold storage freight for food, beauty products, tobacco products, and even ice cream vending.

Long-Term Trailer Rentals

We anticipate that trailer vehicles will start to be rented long-term in June. Right now, the trailer market is seeing extremely high demand with companies urgently looking for availability — so COOP Owners can get them out earning money right away. The data shows that dry vehicles like trailers will continue to see the largest volume of rental days, which makes them a great asset to invest in the platform at any time. In the case of  Champion Trailer Solutions, the trailers they purchased to add to their fleet were rented out within 24 hours on COOP. And on average, trailers are rented for 23 days each rental during the summer on COOP. So for our Owners, this means reservations made in June right at the beginning of the summer season can last throughout the entire summer.

Final-Mile Rental Demand in the Summer

E-commerce continues to drive a need for final-mile deliveries. Dry trucks and day cabs are easily filled with delivery packages through the business and personal services industry. Approximately 75% of summer rental demand comes from day cab, dry truck, reefer truck, and van final-mile vehicles. It is a trend that saw a large bump during 2020. The microchip shortage that has stalled production for new vehicles has driven more renters to use the platform to fit their capacity needs. Owners should never let final-mile commercial vehicles sit idle when they could easily be rented out with COOP.

COOP Owner Tips to Generate Maximum Summer Revenue

Summer is a very competitive rental market that Owners can take advantage of by adapting their listings. Some ways Owners can do that are:

Keep vehicles available. Stay up-to-date as your business needs change. Popular summer picks like final-mile, reefers, and trailer vehicles are more likely to be rented if they are listed available at the beginning of the workweek.

Set a competitive daily rate. Make sure your rental rates are comparable to the rest of the market. Also, consider offering long-term rental discounts to make your listing more attractive to Renters and generate consistent revenue.

Promote your businesses. Use COOP’s tools to advertise your vehicles to companies in your network. They could be the ones who need to rent the vehicles that you have sitting.

With our platform, our technology, and our team’s expertise, your business has the tools to rent out your vehicles and generate revenue.

telematics
Archives, Global Logistics, Global Trade Daily, International Trade

How Will Telematics Transform the Modern Supply Chain

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Today’s consumers expect goods to be delivered faster and on shorter notice than ever before. For the logistics industry, meeting these demands for greater flexibility and agility has required change, where it’s the adoption of lean logistics principles or the use of Industry 4.0 technology.

Novel telematics technology, powered by recent developments like Internet of Things (IoT) devices and artificial intelligence, are already helping the supply chain satisfy the needs of a growing and accelerating global economy.

This technology could revolutionize logistics in the near future, and here’s how.

Key Benefits and the Impact of Vehicle Telematics

One of the most significant obstacles logistics companies have faced has been the difficulty of tracking vehicle location, health and performance. New telematics technology can help businesses overcome this obstacle by vastly expanding the amount of accessible information on trucks and driver behaviors.. New telematics technology can help businesses overcome this obstacle by vastly expanding the amount of accessible information on trucks and driver behaviors.

GPS trackers can continuously track a vehicle’s location. Other telematics devices can communicate directly with internal car modules, like an engine or battery control unit. This provides a company with direct access to information on the engine health and performance of fleets.

With the speeds offered by 5G, these devices can transmit information in near real-time to the cloud, providing telematics data to the fleet owner and their business partners. The technology has a wide range of applications for logistics companies. Better knowledge of a driver’s current location and behavior can provide more accurate estimates of when a shipment will arrive.

GPS and engine data can also help businesses conform to new regulations like anti-idling laws. If a vehicle remains parked in the same place for long enough while the engine is active, the system can automatically alert the driver and log an idling event. Having a direct line to car data can also be extraordinarily helpful for technicians wanting to maximize the lifespan of fleet vehicles.

On the road, telematics systems can provide a great deal of information to drivers. Some can continuously monitor and report diagnostic trouble codes. Vehicle operators and the technician they work with can instantly know if an illuminated check engine light is caused by something like a loose gas cap or a much more serious problem.

Typically, this information is only accessible via an OBDII reader or code scanner, which may provide codes without explaining what they mean. The telematics solution makes this data more accessible and useful to non-technicians.

Early notification on potential vehicle issues can help fleet managers avoid or mitigate some of the most common maintenance issues in semitrucks and similar vehicles.

Transparency, Traceability and Data-Sharing

Telematics makes it possible to create a log of all information relevant to an order while it was in transit — where it was, what conditions it was exposed to and even the speed it was traveling while in the care of a particular driver.

As a business grows, this information can help managers coordinate an increasingly complex network of drivers, fleet headquarters and vehicles. It can also help companies improve the transparency and traceability of their logistics network.

Data gathered on drivers and shipment location can be provided to business partners, allowing them a real-time view of where critical items are while in transit. This information can also be stored for later use — like providing someone with a fuller picture of how a shipment moved from point A to point B after the fact.

In other cases, IoT can also help provide businesses with more information about how goods are shipped. IoT temperature sensors can supplement an existing telematics solution to provide real-time updates on the temp inside a vehicle.

This information can enable drivers to take quick action if storage temperatures move out of a safe range during transportation. Stored data from a particular shipment can also resolve conflicts if a product spoils while in transit. Temperature information can determine exactly when an item spoiled and more accurately pinpoint who may have been at fault. This technology can reduce the scale of recalls and prevent them from happening in the first place.

Similar devices measuring in-vehicle conditions like humidity and vibration can provide additional information to drivers and managers. This data can help them optimize storage and transportation conditions — reducing the risk that packages are damaged while in transit or sent at suboptimal conditions.

Optimizing Processes With Telematics Data

The data gathered by telematics devices can have value long after the moment in which it was generated. The rise of artificial intelligence and big data analytics means the massive amount of information produced by telematics systems can be analyzed to uncover insights that may have been impossible to find with conventional analytic approaches. This includes moment-to-moment information on driver behavior, location and engine performance.

For example, real-time information on driver routes and vehicle health can be used to create route optimization algorithms that use traffic data and driver behavior information to plan the fastest way to a destination. It could also be used to determine roadways that minimize gas consumption.

Data from deliveries can also be aggregated and used to create new planning algorithms in the long run. They can help companies develop more accurate estimates of how long a particular delivery will take based on available information like drivers available, driving behavior, traffic and weather conditions.

These improved estimates can ensure on-time deliveries and reduce the risk that a company commits to orders they cannot fill in a timely fashion.

Telematics Paves the Way for a More Efficient Supply Chain

Novel telematics technology, assisted by innovations in IoT and AI, greatly increases the amount of data that logistics companies have access to. A business can plug directly into their fleet vehicles with the right solution, allowing them access to truck health and sensor data.

Other telematics devices, like GPS trackers and temperature sensors, can provide additional information on the location of a shipment or the environmental conditions it may be in.

This information will allow businesses across the sector uncover new insights and develop algorithms that can optimize route planning and fleet management.

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Archives, Global Logistics, Global Trade Daily, Special Reports

5 Practical Ways to Increase E-commerce Profitability

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E-commerce businesses continue to be an indispensable part of the retail industry. As more and more people continue to shop online, setting up an e-commerce store is relatively easy, especially when you have platforms like Amazon or Shopify. However, growing your e-commerce business, expanding your operations, and generating more revenue proves to be a challenge in a cutthroat industry.

It becomes harder to foster customer loyalty when there are hundreds of thousands of e-commerce stores, and it doesn’t help that customers are pickier than ever.

According to the US Census Bureau, e-commerce sales will continue to grow in the United States by a whopping 20% between 2018 and 2022 and it’s expected to reach 380 million by 2022. This is exciting news for e-commerce businesses but knowing which e-commerce stores will generate the maximum revenue during this period is unpredictable.

We’ve listed five practical ways to increase e-commerce profitability to increase your chances of generating maximum income and revenue.

1. Design a Great Website

It only takes less than a second for visitors to decide if they want to continue browsing your website or not. So, if your website does not have a clear value proposition that can hold your visitor’s attention longer, your bounce rate will be sky-high.

Effective visual communication is crucial to the performance of your e-commerce store. 80% of your visitors remember what they see on your website, while 10% never forget what they read. Pay attention to how your visitors navigate your website and use this information to improve your site navigation.

Another important factor you want to remember is the presentation of your products and services. You want to present them in a way that catches their attention and piques their interest. This could be in the form of images, videos, and website design.

Your About Us page should also catch your audience’s attention. According to Marketing Sherpa, around 7% of visitors on the Home Page click on the About Us next. And among those who click on the About Us, 33% are more likely to convert into potential customers.

2. Establish Customer Loyalty

Did you know that your existing customers are more receptive to your marketing efforts? Aside from that, they are likely to spend more money, order more frequently, and recommend your store to friends and family.

Customer churn – or losing your old customers to competitors – is a major problem among e-commerce businesses, so it’s crucial to prioritize customer loyalty when creating strategies for your marketing plan.

Focus on keeping your existing customers happy by offering discounts, loyalty cards, provide exceptional customer service, ask for feedback, and strive to continually improve. Before you may significant changes to your e-commerce website, be sure to consider your existing customers first. These strategies can help establish customer loyalty and ultimately improve your bottom line.

3. Consider Offering Subscription Products

The subscription business model has gained a lot of traction over the years. We’ve seen companies like Dollar Shave Club (razors), Blue Apron (meal kits), and Birchbox (beauty) connect with influencers to market their products.

If you’re not familiar with subscription products, here’s how it works: You offer a product or a curated set of products each month and encourage people to subscribe for a fee and receive the items.

Many people love subscription products because they love being surprised by deliveries, curating “random” or “assorted” boxes allows you to offload unsold items in your inventory, and the monthly revenue stream makes it easier for you to improve your e-commerce business.

4. Stay on Top of Your Finances

Regardless of the size of your e-commerce store, it’s important to adopt proper bookkeeping strategies. Keep records of all financial transactions and receipts and keep them organized. You can also use the best debt payoff app and bookkeeping software like QuickBooks to keep your finances in order.

5. Enhance Your Website Security Measures

Keeping your website secure should be one of your priorities. A complicated checkout process can likely expose your customers’ financial information. As a business owner, it’s your responsibility to keep your customers’ information safe. Plus, a security breach scandal is something a small business cannot afford.

Invest in professional security for your website and servers. This might cost you a significant amount upfront, but consider this purchase as a long-term investment that can help you and your customers in the long run.

Professional security services are effective in preventing data losses and hacks. A security company can also help your site in case of a malfunction.

What’s Next?

The key to running a profitable e-commerce store is to keep your customers top of mind. Structure your website in a way that’s easy to navigate. If your customers need to click 300 times to purchase something, they will likely shop with your competitor.

logistics
3pls, Archives, Global Logistics, Global Trade Daily, Trucking

Things To Consider Before Starting a Logistics Business

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Are you thinking of starting your own business? Then a transport and logistics business can be a good option because it’s booming at this moment and its growth is not going to come to a halt as people are now more inclined towards things being brought to them at their doorsteps without having to venture out and spend time in doing so. But there are certain things to consider before you finally get ready to start.

Build a customer base

It is seen that people start their business with little capital and solely rely on the revenue to be generated to cover all the incurring costs. In this way, they taste failure at a very early stage of their endeavor. The first and foremost thing to do would be to build a strong customer base by portraying the business plan as transport contacts don’t happen just from anywhere or at any time.

Consider the capital and the cost

Decide on the source of the capital you are thinking of to start the business. It may be from an investor. A bank loan can also be a good option. Considering investing money from your savings should be the last resort. Once the initial capital arrives, chalk out a budget that will cover expenses like maintenance cost, license cost, staff salaries, toll expenses, operating costs, etc. Marketing your business may be too early to think of but that will also involve a lot of money later. Besides, you will have to arrange for the security deposits for the vehicles (if you intend to take lease) you would be using. Insurance cost is another yearly expense to be kept in mind.

So, accurately managing the capital is the most crucial thing to do at the onset of your business. If you succeed in doing so, then you are sure to gain recognition as a reputed transport and logistics association in no time.

Buy the right vehicles

If you are thinking of buying a fleet of vehicles for the business, you should minutely go through the service plans and the warranty the vehicle company is willing to offer. Purchasing the right vehicles depends on two major factors –

a) The type of goods you would be transferring

b) The volume of the supplies the vehicles would be carrying

c) The area (or the distance) you want to cover initially while transporting the goods

d) The terrains your vehicles would be covering

There are other factors to look for before buying the vehicles, but summed up above are the most important ones. Once you have these things sorted out you can easily figure out how to run the business efficiently.

Get a proper training

As a newcomer in this business, you might lack confidence. So, you can get proper professional training carried out by various transport agencies. They will provide you with a certificate after the training process which will give you the much-needed qualification for the business.

Conclusion

Whether you are intending to start with a small van or a huge fleet of trucks, you might face tough competition from your fellow businessmen. Always look for ways to improve your business status. Keeping your customers satisfied should be your priority, not only in this business but in every business.

3D Scanning
Archives, Global Trade Daily, News

Top 3 Trends Influencing 3D Scanning Market Share Between 2021-2027

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The 3D scanning market is estimated to grow at a substantial rate on the back of robust demand for 3D scanning solutions in the aerospace & defense sector for the correct measurement of components and parts. Since the sector complies with strict regulations related to the measurement of parts, authorities use 3D scanning solutions to scan assembled aircraft and its components.

3D scanning software allows for the accurate formation of a 4D image based on the data collected by scanners. The software can be utilized for the scan to BIM and scan to CAD models in the architecture industry.

Long-range scanners are being widely used in the construction sector as they allow scanning of large outdoor environments. Civil engineers use these scanners to measure large areas before starting the construction process. Additionally, there is a rising demand for structured light scanners owing to their ability to scan large objects at high speeds. These scanners provide highly accurate readings that can be analyzed using software to enable the restructuring or recreation of archaeological products.

Given several applications, companies in the 3D scanning market are developing new products. For instance, in 2020, Hexagon announced the launch of its new software plugin which allows full operation of structured light scanners from within a dedicated PolyWorks interface. With such innovations, Global Market Insights, Inc., reports that the 3D scanning market may register around USD 7.5 billion by 2027.

Mentioned below are some of the vital trends driving 3D scanning market expansion:

High demand for optical scanners

Optical scanners are witnessing rising demand as they are able to perform repeatable and highly precise 3D geometrical surface inspections and metrology-grade measurements. These scanners are widely used in reverse engineering applications, especially in the automobile industry. With 3D optical scanners, a highly accurate representation of the 3D printed part is obtained, which makes it an important tool in the manufacturing sector.

Multiple applications in the entertainment & media sector

In the entertainment & media industry, 3D scanning technology can be used to scan people for creating images for an animated movie. It can be used to virtually create an environment by scanning the actual geographic location. Entertainment design firms can make costumes, sets, and props. This technology decreases the cost of 3D movie production and game development, effectively transforming the innovative imagination into reality. Media & entertainment companies are likely to increasingly adopt 3D scanning software to reproduce real-world characters and objects and to construct virtual scenes.

Infrastructure development projects in MEA

The Middle East & Africa is witnessing an expanding construction sector. The growing tourism industry has led to the construction of new commercial complexes and shopping centers. Government organizations in countries like the UAE and Saudi Arabia are emphasizing modernizing and strengthening the infrastructure to ensure economic development. They are also undertaking large-scale transportation infrastructure development projects to maintain global economic competition. Moreover, new airport development projects could propel the regional 3D scanning business.

Source: https://www.gminsights.com/industry-analysis/3d-scanning-market

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Archives, Global Trade Daily, Special Reports

State Economies Most Dependent on Outdoor Recreation

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Over the past year, pandemic-related shutdowns inspired Americans to head outdoors to find open, safe places to relax and exercise in record numbers.

In 2020, 7.1 million more people headed outdoors, and overall participation in outdoor recreation surpassed 52% for the first time on record, according to the Outdoor Industry Association (OIA). Among the most popular activities was fishing, which drew higher numbers of participants across multiple age, race, and gender groups.

The surge in outdoor participation undoubtedly provided a boost to the outdoor recreation industry that was already booming before the pandemic hit. In 2012, the industry contributed about $350 billion to the U.S. economy. Heading into 2020, that contribution jumped to more than $450 billion. And with consumers heading outside in record numbers over the past year, the industry’s contribution to the economy is likely to grow.

The U.S. Bureau of Economic Analysis categorizes “outdoor activities” into a broad spectrum of hobbies and exercises, including: boating and fishing; sports like golf and tennis; RVing; festivals, sporting events, and concerts; amusement and water parks; and snow activities like skiing and snowboarding.

Among these activities, boating and fishing add the most value to the economy, accounting for a nearly $25 billion impact in 2019. That number is likely to go up, as boat sales increased by 13% in 2020. Those who fared well financially during the pandemic likely had the extra resources to purchase a boat, either fulfilling a lifelong dream or providing their family a new way to enjoy the outdoors.

For those on tighter budgets, fishing presented an economical option to enjoy the outdoors and time spent with friends and relatives. The number of first-time fishing participants jumped 42% in 2020, leading U.S. Fish and Wildlife Service Principal Deputy Director Martha Williams to tell OIA, “We are thrilled to see so many new and returning anglers enjoying our nation’s waters.”

Sports-based recreation and RVing were the second and third most impactful activities, according to Bureau of Economic Analysis data.

The boost in outdoor participation seen across the country in 2020 was particularly beneficial to states dependent on outdoor recreation economically. To identify the states most dependent on outdoor recreation, researchers at Outdoorsy analyzed data from the Bureau of Economic Analysis and created a composite index based on the outdoor recreation industry’s share of GDP, employment, and compensation in each state.

Based on these factors, Outdoorsy identified a diverse set of states—both coastal and mountainous—that topped the list. Notably, Hawaii was the only state in which outdoor recreation made up at least 5% of its GDP, employment, and compensation. In the Mountain Region, Montana and Wyoming stood out as the two states most economically dependent on outdoor recreation.

State Rank Outdoor recreation dependency index Outdoor recreation share of GDP Outdoor recreation share of employment Outdoor recreation share of total compensation  Largest economic impact activity
Hawaii     1      100.0     5.8% 5.9% 5.3% Game Areas (including Golf & Tennis)
Montana     2      94.8     4.7% 4.5% 4.1% Boating & Fishing
Wyoming     3      94.2     4.2% 5.2% 4.1% Snow Activities
Vermont     4      93.2     5.2% 4.4% 3.6% Snow Activities
Florida     5      91.6     4.4% 4.0% 3.9% Amusement & Water Parks
Maine     6      91.2     4.2% 4.7% 3.4% Boating & Fishing
Alaska     7      89.8     3.9% 4.5% 3.6% Boating & Fishing
Utah     8      85.4     3.3% 3.9% 3.1% Snow Activities
New Hampshire     9      82.8     3.2% 4.1% 2.7% Snow Activities
Colorado     10      81.2     3.1% 3.8% 2.9% Snow Activities
Idaho     11      78.6     3.0% 3.4% 2.9% RVing
Nevada     12      75.8     3.1% 3.1% 2.8% Boating & Fishing
Oregon     13      75.8     2.9% 3.4% 2.8% RVing
South Carolina     14      74.6     2.9% 3.5% 2.5% Boating & Fishing
South Dakota     15      69.6     2.5% 3.3% 2.5% RVing
United States     –      N/A     2.1% 2.5% 2.0% Boating & Fishing

 

For more information, a detailed methodology, and complete results, you can find the original report on Outdoorsy’s website: https://www.outdoorsy.com/blog/state-economies-dependent-outdoor-recreation

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Archives, Global Logistics, Global Trade Daily, Trucking

Artificial Intelligence: The Trucking Industry’s Biggest Asset

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About 3.6 million professional truck drivers and another 7.95 million people work in the U.S. trucking industry. It’s an industry well-positioned to benefit from artificial intelligence (AI) technology.

Research firm MarketsandMarkets estimates the AI market within the transportation industry will grow at a compound annual growth rate of almost 18% between 2017 and 2030, and its size increase from $1.2 billion in 2017 to $10.3 billion in 2030.

Truck manufacturers including Daimler, Volvo, Navistar, Paccar and others, have already begun developing autonomous truck technology, for example. Waymo, an American autonomous driving technology development company has also installed self-driving technology in semi-trucks and plans to test on haulage routes in New Mexico and Texas. Tesla plans to deliver its first trucks in 2021. Pittsburgh-based Locomotion, an autonomous trucking technology company, expects to equip at least 1,120 Wilson Logistics tractors with its Autonomous Relay Convoy (ARC) technology starting in 2022.

In addition to autonomous driving, the trucking industry has the potential to reap many benefits from AI technology in accident prevention and safety, fuel efficiency, route optimization and workflow management.

Accident prevention and safety

One hundred percent autonomous driving may be a ways off, but already we’re seeing safety controls incorporated into trucks. For example, a Tesla computer will control its trucks’ semi-autonomous system for accelerating, brakes and steering — though drivers will still need to keep a hand on the wheel.

The Federal Motor Carrier Safety Administration (FMCSA) revised its HOS to provide more flexibility for drivers. However, many drivers still log 11 hours on the road each day — the potential for mistakes increases during the later period of a driving shift. AI-guided semi-autonomous trucks will help reduce safety hazards created from tired or distracted driving.

Fuel efficiency

One commercial truck can use over $70,000 of fuel each year. Multiply this amount by the number of trucks in a fleet, and you can see why trucking companies constantly search for strategies to improve fuel efficiency. AI-guided, self-driven trucks could cut fuel costs up to 15%, according to Plus (formerly Plus.ai). A U.C. Berkeley Labor Center report estimated the industry could save $35 billion in fuel efficiency gains. Additionally, fuel monitoring and idle reporting features within AI-powered fleet management software platforms can help managers monitor fuel usage to reduce waste and costs.

Fleet management and route optimization

AI offers the perfect partner for fleet managers, increasing their effectiveness and helping to streamline and make processes more efficient. For example, these technologies can detect patterns humans might miss, increasing productivity by more accurately pinpointing which drivers to assign certain loads.

Route optimization benefits from AI, too. The technology streamlines route optimization, minimizing drive time and mileage by enabling fleet managers and drivers to find the most efficient, quickest order to schedule stops. AI can process traffic patterns and use algorithms to predict delays, even alerting dispatchers and managers earlier to facilitate load rescheduling or driver rerouting.

Drivers, fleet managers and customers benefit from AI-driven software capable of using real-time data about traffic, weather, and historical data on transit times to provide more accurate ETAs. Because AI constantly evolves, route optimization will become even more streamlined.

Workflow technology

The trucking industry has already benefited from many technology solutions designed to increase productivity and efficiency.

Drivers and fleets can use AI — together with cloud computing, machine learning (ML) and IoT — to move from paper management to digital management processes. Other technology has enabled fleets to identify customers affected by import tariffs, for example, and connect with those customers to develop mitigation strategies.

AI doesn’t just observe data or patterns. It’s capable of predicting potential scenarios based on past patterns. Workflow and fleet management software incorporating AI technology can help drivers and fleet managers with real-time navigation, data monitoring and predictive maintenance alerts. The future of AI within the trucking industry could include other businesses like capacity-as-a-service, predictive on-demand maintenance and shared insurance optimization.

AI’s future in the trucking industry

CB Insights reported that investors dedicated $2 billion to trucking tech startups in spring 2019. The transport and logistics sector represents $26 billion of total startup funding in the logistics industry.

Artificial intelligence has already begun to deliver on its promise to increase productivity, reliability, safety and sustainability within the trucking sector. While not a turnkey solution, AI technology relies on human knowledge to understand what to do. AI won’t replace people — it will reshape their roles and improve their work processes. AI is revolutionizing the trucking industry and promising to not just drive efficiency, but also better experiences for fleet management, drivers, customers and other critical stakeholders.

____________________________________________________________

Avi Geller is the founder and CEO of Maven Machines. Since 2014, Avi has led Maven’s growth as an IoT platform that serves the transportation industry through real-time, mobile cloud enterprise software. Avi originally hails from Palo Alto, California, but started Maven in Pittsburgh, Pennsylvania due to the city’s impressive innovation and technology resources. Prior to founding Maven, he held international positions with SAP and contributed to the growth of several successful software companies and startups. Avi also has an engineering degree from MIT and an MBA from Northwestern University.

electric truck
Archives, Global Logistics, Global Trade Daily, Trucking

Challenges Facing the Adoption of Electric Truck Fleets

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Innovations in electric truck technology present a major opportunity for business fleets. However, these electric trucks have yet to make much headway in the commercial vehicle market.

Despite several notable milestones and significant corporate investment, consumers and businesses have been slow to adopt these new EVs. A handful of challenges will likely need to be addressed before electric trucks become widely adopted.

Maintenance and High Prices May Be Discouraging EV Adoption

One of the most significant barriers to EV adoption remains cost. The heavy-duty lithium-ion batteries needed to power a truck’s drivetrain can still be extremely expensive. This drives up the cost of new electric trucks compared to similar, gas-powered vehicles.

Reliability and maintenance may also pose a barrier to adoption for some fleet owners. While electric vehicles can sometimes be more reliable than gas cars due to their electric powertrain, they can also be just as or more expensive than conventional vehicles to maintain.

Lithium-ion batteries tend to have a long lifespan, but they don’t last forever. Replacing one can be a major expense. Battery replacement costs for early EVs, like the Nissan Leaf, can be up to $5,000, which is near the resale value of the car. This is due to the price of a new battery and the labor needed to replace the old one.

While most EV maintenance is similar to conventional vehicles, simple failures can cause more serious problems due to the complexity and uniqueness of electric powertrains. Entire components found in a standard, internal combustion engine-powered truck are missing or replaced by other parts, like DC-DC converters, reducers and battery control modules.

If a business wants to keep fleet maintenance in-house, servicing electric trucks will require either hiring new technicians who are knowledgeable about electric trucks or training existing employees in EV upkeep.

The experimental nature of many modern EVs and the use of proprietary firmware may also mean adopting electric trucks would require fleet owners to develop a much closer relationship with dealers and mechanics.

As new EVs age, they may face problems that are hard for businesses to anticipate right now. The reliability of these new electric vehicles may be proven over the next few years — but, for the moment, potential maintenance woes may convince fleet owners to wait on upgrading.

Limited Charging Stations and Range Anxiety May Discourage Adoption

Like most consumer EVs, commercial electric trucks also face the charging problem. Drivers can’t rely on the existing infrastructure of gas stations and truck stops to keep them fueled. There’s a constantly expanding network of EV charging stations being built around the country. Still, outside of a few major cities, available stations may not be common enough to provide a reliable source of power.

Range anxiety — or the fear that EVs don’t store enough power to get a driver from home base to destination to a charging station — is likely a major barrier to the widespread adoption of EVs. Even in areas where charging stations are widely available, the capacity they offer may not be enough to charge EVs in a timely fashion.

For example, the 2021 Tesla Model Y has a range of up to 326 miles and takes eight to 12 hours to get a full charge from a 220-volt power station. Higher-voltage power stations are available commercially, and it’s possible to fully charge a Model Y in just an hour and a half with a Level 3 or 440-volt charger.

However, most existing EV charging stations offer just 220 volts. This means fleet owners will likely have to invest in home charging stations and carefully schedule drivers so they can always make it back to fleet headquarters for a recharge. Businesses that adopt electric trucks would be significantly limited by the density and location of existing charging stations.

While several major infrastructure projects and new subsidies will help increase the number of high-power charging stations, it will be a while before chargers are as common as gas stations.

Investment in the EV Market May Make Electric Trucks More Appealing

Major automakers seem to have committed to the growing EV market. It’s a good sign that, while adoption may be slow, some of the challenges discouraging fleet owners from buying EVs may be solved soon.

Ford has made an $11 billion investment in the EV market and is set to begin delivering the electric counterparts to its flagship truck, the Ford F-150, in early 2022. Other Ford EVs include the brand’s all-electric Mustang Mach-E SUV and the 2021 electric Ford Escape. Notably, the price point for Ford’s new electric F-150 is close to the price of the ICE version of the truck. After tax credits, the base electric model may even be cheaper than the gas-powered F-150.

Ford has also argued that the cost of ownership for the electric truck will be cheaper due to lower maintenance expenses and the price of electricity versus fuel.

General Motors, owner of the Ford brand, has long been an EV pioneer. The company launched one of the first few plug-in electric hybrids on the market, the Chevrolet Volt, in 2011. Affordable, modern EVs like these may convince fleet managers interested in electric trucks but have been cautious about investing in an EV upgrade.

At the very least, the rise of new commercial and consumer electric trucks is a good sign that there will be a robust market for used EVs emerging within the next few years. If these vehicles prove to be reliable, preowned models could provide a stepping stone for fleet owners interested in an electric upgrade but cautious about committing to a fleet of all-new EVs.

What the Future of Vehicle Fleets May Look Like

As investment in the EV market increases, commercial adoption of electric trucks and similar vehicles will also grow.

Current barriers to adoption — the high price of EVs, limited charging infrastructure and concerns around maintenance — are serious but aren’t likely to last forever. Prices are falling, the charging infrastructure is improving and more EVs means more mechanics familiar with repairing these vehicles.

In the near future, fleet owners may begin moving away from conventional vehicles to electric ones, but only once these challenges become easier to manage.

fleet
Archives, Global Logistics, Global Trade Daily, Trucking

Introducing FleetCheck: An Indicator of the Health of Your Fleet

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In an industry currently struggling with finding and hiring drivers, it grows more and more painful seeing your drivers inexplicably leave — especially when you have a gnawing feeling it probably could have been prevented with a simple conversation.

Not knowing what you don’t know is frustrating, but when viewed through the right lens it’s like so many things in life – an opportunity to improve. It’s not a revolutionary idea that you should want to focus on keeping the drivers you have and learn more about the issues they encounter that make their jobs difficult. Fortunately, the time to implement a retention program that listens to drivers’ needs couldn’t be better.

Putting a plan in place to effectively improve driver retention is easier than it sounds, and with the introduction of Insights earlier this year, Tenstreet clients now have a clearer view into what drivers experience at four distinct stages in their lifecycles. But what about getting a good read on your fleet as a whole, and on a more frequent basis?

Checking the oil in your fleet

Your fleet is the engine that keeps your company moving. If you neglect to regularly check the oil in your car, you run the risk of damaging vital engine parts, which could lead to expensive repairs or even a total replacement. Just like using a dipstick to check oil levels in your car gives you a good indicator of your engine’s health, you need a way to regularly check the overall health of your fleet.

Today, we’re introducing a new retention survey to our Insights platform that gives you a look into all the moving parts of your company. Our new FleetCheck survey module works similarly to an NPS tool in that it sends an anonymous two-question survey to your drivers once a week (or twice, depending on your preference). It gives you visibility into the current condition of your fleet at a regular frequency to show you immediately whether your fleet is running smoothly or if it needs something more to keep it going strong.

How surveys help you retain drivers

When drivers take your FleetCheck surveys, dashboard reporting automatically compiles the results, showing you an overall ranking, how many drivers responded, which drivers have not responded, and which drivers are detractors (or gave a below average score) – which may indicate an at-risk driver who could be saved with an intervention. Detractors are given the option of foregoing their anonymity should they wish to discuss their issue 1-on-1 with their manager.

You’ll also be able to see the satisfaction levels of your fleet week-over-week and month-over-month, connecting carrier and industry events to general driver sentiment–helping with that bigger picture objective–and ensuring your fleet is well-lubricated with everything it needs to give it power to drive.

As drivers start to see their feedback put into action, they’re more likely to feel like a valuable contributor in the organization and will grow more empowered to share things they otherwise might keep to themselves. Strengthening the driver-carrier connection cultivates a more dependable and loyal driver base, and ensures you get the most miles out of your fleet.

Finding and hiring drivers requires time, resources, and capital – all of which are wasted when drivers leave because nobody’s listening. Find out what you don’t know by checking in with your fleet. When drivers and carriers are communicating regularly, retention rates improve, trucks stay full, and your company runs more smoothly.

Need help building a retention solution?

Complement FleetCheck with additional Insights surveys to get a more holistic view of a driver’s sentiment both across his tenure and at specific stages therein.

Not sure what you need or how to get started? Reach out to us today! Our industry-experienced team will help you create a plan to help you listen to your drivers so they stay with you for the long haul.

Talk to Tenstreet

intermodal
Archives, Executive Education, Global Trade Daily, News

UPCOMING: Intermodal Association of North America

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Intermodal Association of North America EXPO is the intermodal industry’s platform for products, services, and solutions; a classroom for new skills and know-how; and an exchange for ideas and business.

Join us in Long Beach, California, September 12– 14, 2021 for three days of breakthrough thinking and real connections with intermodal executives from across the world.

From quality exhibitors to more than 700 companies including 3PLs,  global carriers and shippers, and more, the annual event is known as the connecting force behind intermodal freight.

Leaders in the industry can attest to the event, such as South Carolina Ports Authority’s president and CEO, Jim Newsome:

“It’s to have the exposure to the movers and shakers in the intermodal industry,  to learn about trends that are occurring and how one can leverage that to make their business better.”

Visit https://www.IntermodalExpo.com to learn more about the conference, advanced discount pricing and discounted registrations for new IANA members and first-time attendees.