The freight technology sector, also known as FreightTech, refers to software companies and technologies which assist in supply chain management and the movement of freight.[1] In the five years following 2014, investment in FreightTech companies grew from $118 million to $3 billion per year.[1][2][3]
Disruption of traditional logistics and supply chain management
editThe shipping and logistics industry has long been viewed as conservative and slow-to-change,[4] in part due to complex relationships within global shipping and transportation networks,[5][6] difficult documentation and customs requirements,[4][6][7] lack of transparency among involved parties,[7][6] and obstacles to adapting quickly to sudden economic changes.[4][5][8][6][7]
Recent developments in freight technology are working to modernize and simplify freight transport. According to a report from the U.S. Department of Transportation, intelligent freight technologies have multifaceted benefits in shipping and logistics.[9] These include increased operational flexibility and efficiency due to better planning and schedule adherence, better utilization of people and equipment, reduction of non-productive waiting times, shorter processing times, and increased shipper confidence.[9]
Transactional application programming interfaces (API)[10] and distributed ledger technology are expanding in the shipping and logistics sector to reduce extensive paperwork,[11][12][13] monitor conditions and location of freight and goods in transport and make this information available to involved parties,[11][14][12][13] and increase transparency across the supply chain.[11][12][13]
Truck freight
editThe first steps to digitization in trucking came in the form of digital freight exchanges such as Teleroute[15][16] and TIMOCOM.[17][18][15] Greater efficiency in trucking is being achieved through intelligent freight technology such as automated interfaces that can help truckers and regulatory bodies reduce stops at weigh stations and time spent at border checkpoints.[9] This improves schedule adherence, reduces administrative burdens, and increases fuel efficiency by minimizing time spent idling.[9] Mobile tracking programs can also reduce theft and loss of cargo by recording instances where trailer doors are opened outside of approved areas (geo-fences) and alerting authorities.[9] Growing automation of quoting and booking of truckload shipments and increased automation of matching trucks with appropriate loads in a timely manner is also working to maximize efficiency for shippers and consumers.[19] Vehicle tracking has been used by shipping agents and freight forwarders to monitor the location of vehicles. They can also monitor traffic information, vehicle and driver data, and other real-time freight information.[20]
Due to the relatively short life cycle of three to four years for commercial trucks,[21] implementation of new interfaces and freight technologies has progressed more quickly in trucking than in other sectors.[21] Compared with other modes of transport such as aviation and rail, however, driverless technologies for road transport have lagged behind due to road environments being more complex than separated spaces for rail and air transport.[22]
Air freight
editFreight technology in air cargo is already critically important in cold chain management for sensitive goods such as agricultural products, vaccines, and medications.[23] Monitoring in the form of data loggers can record temperature, light, humidity, and GPS location to show whether goods have been improperly cooled, handled, or tampered with.[24][25] It is estimated that billions of dollars in revenue are lost by cargo companies annually due to dispute resolution for shipment delays and lost and damaged goods.[25]
The world’s first blockchain-based system for streamlining air cargo costing, billing, and reconciliation was announced at the 2019 IATA World Cargo Symposium.[24][26]
Rail freight
editThe Freight Technology Group, responsible for identifying relevant technologies for the freight sector in the UK, has identified three key technical innovations already in use in rail freight.[27] These include timetable advisory systems which allow drivers to track train progress against timetables via software hosted on tablets, freight collaborative decision-making systems which offer real-time information on arrivals of freight services, and mobile consisting applications which reduce the amount of information sent manually to relevant parties and authorities by collecting information and transmitting it directly.[27]
However, advancements in rail freight technology have progressed more slowly than in other sectors due to the decades-long life cycles of locomotives and railcars[21] and the lack of power supply in freight cars.[28]
A $10 billion upgrade to the North American rail system was mandated by Congress to include automated safety overrides after a 2008 commuter train accident, laying the groundwork for autonomous rails in the United States.[29]
In 2019, mining group Rio Tinto launched the world’s first autonomous heavy-haul freight railway trains in Western Australia to deliver ore from mines to ports.[30]
Sea freight
editThe growing number of smart ports around the world are increasing capacity and efficiency for shippers, ports, and freight forwarding partners, such as trucking carriers.[18] Reductions in labour and machinery costs can be seen at ports thanks to improvements in automated and semi-automated cranes, which reduce the need for yard transfer vehicles.[22]
In 2018, shipping conglomerate Maersk partnered with IBM to create TradeLens, a platform for sharing and streamlining shipping information across shipping partners, businesses, and different authorities.[11][7] By 2019, the platform covered nearly half of the world’s shipments of cargo containers.[7][31][32]
Intermodal freight
editFreight that is shipped using multiple modes of transport is called intermodal freight.[33] Freight technology plays a pivotal role in intermodal freight transport by streamlining communication, documentation, and dispute resolution across various industry players as cargo changes hands.[33] Freight technology offers a way to increase transparency across industry players at each step of the supply chain. Smart contracts, for example, can use information collected by data loggers, such as temperature data on cold chain shipments, to resolve or dispute a contract depending on whether the agreed upon terms of shipping have been followed.[33]
See also
editTraditional areas of FreightTech
editAreas of growth in the FreightTech sector
editReferences
edit- ^ a b "FreightTech investment surges in 2019". FreightWaves. 2019-04-16. Retrieved 2019-12-10.
- ^ "The Rise of FreightTech" (PDF). MercerCapital.com. Archived from the original (PDF) on 2019-12-10. Retrieved 2019-10-01.
- ^ "Freight Tech VC on Track to Top 2018's Record $3.6 billion". Trucks.com. 2019-04-29. Retrieved 2019-12-10.
- ^ a b c "Maersk, IBM say 94 organizations have joined blockchain trade platform". Reuters. 2018-08-09. Retrieved 2019-12-10.
- ^ a b "White Paper - The New Economics of Freight Brokerage". FreightWaves. 2019-08-20. Retrieved 2019-12-10.
- ^ a b c d "Modernizing the Shipping Industry". Stanford eCorner. Retrieved 2019-12-10.
- ^ a b c d e "IBM-Maersk blockchain shipping consortium expands to include other major shipping companies". TechCrunch. 28 May 2019. Retrieved 2019-12-10.
- ^ "The hidden opportunity in container shipping | McKinsey". mckinsey.com. Retrieved 2019-12-10.
- ^ a b c d e "The Freight Technology Story - III. Intelligent Freight Technology Benefits - FHWA Freight Management and Operations". Federal Highway Administration (FHWA). Retrieved 2019-12-10.
- ^ Charland, Anthony. "What Is an API and How Do They Streamline Freight and Logistics?". re-transfreight.com. Retrieved 2019-12-10.
- ^ a b c d "Blockchain in Logistics" (PDF). www.logistics.dhl. Retrieved 2019-10-01.
- ^ a b c "IoT powered by Blockchain: How Blockchains facilitate the application of digital twins in IoT" (PDF). Deloitte.com. Retrieved 2019-10-01.
- ^ a b c "Resolving the Blockchain Paradox in Transportation and Logistics". www.bcg.com. Retrieved 2019-12-10.
- ^ Castellanos, Sara (29 April 2019). "FedEx CIO Looks to Industry Collaboration to Scale Blockchain". Wall Street Journal. Retrieved 2019-12-10.
- ^ a b "Uber is trying to disrupt the road-freight business". The Economist. 2019-05-16. ISSN 0013-0613. Retrieved 2019-12-10.
- ^ "Digital platforms in freight transportation". Arthur D Little. 2017-10-08. Retrieved 2019-12-10.
- ^ Munoz, Jan Claudio (2019-05-21). "Freight Exchanges, Digital Freight Forwarders, Forwarding SaaS". Medium. Retrieved 2019-12-10.
- ^ a b "To Get Smart, Ports Go Digital". www.bcg.com. Retrieved 2019-12-10.
- ^ "Technology and the Future of Freight Brokerage" (PDF). Freightwaves.com. Retrieved 2019-09-29.
- ^ "Key Technologies for Efficient Logistic Operations | SIPMM Publications". publication.sipmm.edu.sg. 18 December 2021. Retrieved 2022-03-20.
- ^ a b c Wyman, Oliver. "Disruption: The Future Of Rail Freight". oliverwyman.com. Retrieved 2019-12-10.
- ^ a b "New Technology and Automation in Freight Transport and Handling Systems" (PDF). gov.uk. Retrieved 2019-10-16.
- ^ Baxter, Glenn; Kourousis, Kyriakos (2015-04-22). "Temperature Controlled Aircraft Unit Load Devices: The Technological Response to Growing Global Air Cargo Cool Chain Requirements". Journal of Technology Management & Innovation. 10 (1): 157–172. doi:10.4067/S0718-27242015000100012. ISSN 0718-2724.
- ^ a b "CCN and Microsoft launch air cargo blockchain first". Air Cargo News. 2019-03-15. Retrieved 2019-12-10.
- ^ a b "Blockchain in air cargo: digital disruption in the supply chain". IBM.com. Retrieved 2019-09-29.
- ^ Muir, James (2019-03-13). "IATA WCS 2019: Blockchain comes to air cargo billing". AIR CARGO WEEK. Retrieved 2019-12-10.
- ^ a b "Rail Freight Strategy" (PDF). gov.uk.dft. Retrieved 2019-10-16.
- ^ "Connected freight trains are better freight trains". Bosch Media Service. Archived from the original on 2019-12-10. Retrieved 2019-12-10.
- ^ "Autonomous Trains Are Ready to Roll, but May Face Challenges Gaining Acceptance". Fortune. Retrieved 2019-12-10.
- ^ "Rise of the machines: Rio Tinto breaks new ground with AutoHaul". International Railway Journal. Retrieved 2019-12-10.
- ^ Paris, Costas (28 May 2019). "Big Ocean Cargo Carriers Join Blockchain Initiative". Wall Street Journal. Retrieved 2019-12-10.
- ^ "IBM Tech Trends To Watch In 2020 … And Beyond". Forbes. 2019-12-09. Retrieved 2019-12-10.
- ^ a b c Rodrigue, Jean-Paul (2018-10-17). "Efficiency and Sustainability in Multimodal Supply Chains" (PDF). International Transport Forum. Retrieved 2019-10-11.