The freight industry is growing qualitatively and quantitatively. Supply chain logistics in the freight sector is causing significant growth in the number of freight industries. This is also due to increased internet penetration and e-commerce activities across the globe. New and improved technological innovations are shaping significant trends in the freight industry. Companies are transforming the sources of their procurement procedures and the means to deliver them to the end-user market.
Most Prominent Trends Shaping the Freight Industry
Shipping companies in the past few years have strategized their operations to ensure that the transportation costs are minimized by budgeting inputs and by keeping a tab on the demand/supply price dynamics. All these factors integrate to create a comprehensive plan (which though often overlooked) is one of the dominant characteristics that govern the freight industry.
- Growing Number Of Freight Industry Startups
The number of venture capitalists funding in the supply chain technology and operations is one of the major freight industry trends. Early stage startups are being funded by investors and corporate enterprises. The freight industry is seeing a boom in start-up businesses with new freight industry companies being registered every day in both developed as well as developing countries.
The newly functional freight businesses are striving for increased agility in the ever-changing and dynamic business landscape. Businesses face insecurity due to volatile markets. Freight industries strategize their operations and vendor-contracts with the aim of maximizing their efficiency. Market players are utilizing real-time and on-demand tracking systems to better manage and measure the efficiency of transportation facilities. The trend of developing “tracking” technology is making progress by employing big data prediction features.
- On-Demand Services Of Trucking
The facility of “on-demand services” of trucking is growing due to vigorous and easily accessible technology. End-user industry sectors with tight capacities are making the freight industry players experience challenges in procuring cost-effective and secure carriers for freight services. Many start-ups are providing on-demand trucking services by operating with “easy-loading booking” and “book-with-one-click” features in their freight business. Rather than investing time and money in re-engaging with carriers for negotiation purposes, fright industry players are aiming to digitalize their processes. This negates human interaction, human errors and thereby prevents delays.
- Development of Technology To Prevent Risk Management
Due to low truck capacity and a blatant shortage of truck drivers, the trucking companies are finding ways to make the freight industry safer and more efficient. The trucks drove by humans ofter go through on-road accidents which cost the company skilled drivers as well as fiscal damage. Technology that ensures safer transportation and driving is increasingly being developed and tested. Technology such as onboard video and driver monitoring is proven to improve driver performance in a monitored and controlled environment. Heavy breaking and fast accelerations are prevented and transportation is performed irrespective of bad weather or traffic.
Apart from these trends, futuristic technology such as the Internet of Things, Artificial Intelligence and Machine Learning is making its presence felt in the freight industry. Vehicles with precise road predictions are generating larger profit margins and more efficiency.