Self-Driving Trucks - A New Age for Ground Shipping

Self-driving commercial trucks have been a hot topic for the past few years as several companies have joined this sector in an innovative movement to become the first to establish a fully disengaged trucking network. A fully disengaged trucking network would negate the need for the driver to interact with the vehicle, but still be available in case of emergencies. The development of this technology could lead to possible reduced labor costs and reduced transit times.

What are self-driving trucks?

Self-driving trucks or “robo-trucks” focuses on autonomous technology that does not require a human driver. The idea is like that of self-driving cars, but with constraints and considerations such as load weight and distance traveled. Though self-driving trucks and electric vehicles are commonly associated with one another, electric vehicles primarily focus on the renewable and sustainable energy mainly for the retail use. Though they are different, the two sectors have been developing almost in parallel.

Who are the major players and Where are we now?

A few major players in this area are Waymo, formally known as the Google self-driving car project, TuSimple, Gatik, and Embark. These companies have already began mapping out their trucking network and chances are you may have already seen them on the road. Waymo and GM Cruise have completed 11,017 and 5,205 miles respectively of disengaged travel.  TuSimple’s longest mapped route is 1,000 miles between Phoenix and Dallas. In fact, they have begun a four-year plan to go nationwide by 2021, traveling cross-country from Los Angeles to Jacksonville. They also intend to completely remove a person behind the wheel is 2021.

Various partnerships have been established such as Waymo with UPS and AutoNation and the start-up Gatik will begin delivering for Walmart in 2021. Embark, in collaboration with Amazon, has begun transportation of Frigidaire refrigerators from El Paso to Palms Spring. Though we are far from implementing self-driving trucks on a nationwide scale, these partnerships represent the commitment to this sector.

Impacts and Looking Ahead

As self-driving trucks start to become more common, there are areas in supply-chain and logistics that will be affected and need to be considered.

1.       Quality and Safety of goods

Who becomes responsible for the quality and safety of the goods? It could be placed upon the company to reformat their packaging strategy to be more secure or the freight forwarder to ensure that the transportation of goods is secured. The safety of the goods is a priority to consider which may impact the relationships and responsibilities between these entities.

2.       Adaption of transportation management systems

As self-driving trucks become integrated in the industry, managers need to consider what new types of data need to be collected to ensure that the transportation of goods is optimal. When trucks arrive at their destination, how is communication going to be accurately logged and confirmed that the goods were not only obtained, but that the trucks are also meeting regulations? Transportation management systems will need to adapt to this new mode of transit and be able to consider new elements that may arise.

3.       The career of truck drivers

A major discussion on the impact of self-driving is the career of truck drivers. With the male workforce dominating the trucking profession at over 90%, people wonder if it would make the career obsolete. Are these drivers expected to learn the new technology to keep up with the innovation? TuSimple has tried to proactively combat this possible problem by offering a program at Pima Community College to help truck drivers adapt to the new technology. On the other hand, self-driving trucks can be implemented as a driver assist technology (rather than driver replace) on long routes to reduce breaks required and travel time. For example, the 11-hour driving limit could be prolonged if the driver can rest while on route, reducing fatigue.

Blockchain in Logistics: How it Started and How It's Going

Blockchain’s origin is rooted in the release of the whitepaper written under the name Satoshi Nakamoto explaining the foundation of what we know as today, Bitcoin. Bitcoin offered an avenue to worry-free digital transactions due to transparency and decentralization of the data. This ensured that information could not be altered and prompted the crypto-currency boom. The core-principles of blockchain and success of Bitcoin started a wave of curiosity into other possible applications, thus the development of the technology began to arise.

One of these applications was supply chain. Blockchain emerged and appeared to be the solution to everyone’s problems. In 2019, The Port of Rotterdam and The Port of Busan pilot tested blockchain into their maritime logistics and found success in automation and reducing operation cost.

What is Blockchain? As Explained from Blocklab:

• A “digital ledger” or spreadsheet that is duplicated and stored in a distributed network in multiple locations which can be updated instantly at any location.

• Data is decentralized since it is in multiple places at once. Thus, becomes a secure network as data cannot be modified without all approval of all the members and makes it difficult to hack.

• Information is constantly monitored which makes it difficult to change data and ensures that the information is distributed but not copied.

• Agreements become mutual and documented which enhances security and traceability as transactions are logged into the ledgers which reduces the worry of parties keeping their end of the deal.

• This results in lower costs, improved efficiency, increased transparency and increased trust.

Blockchain enables users to record and store data more easily and in a decentralized way which allows for transparency from all parties, accurate/real-time data, and improved traceability from production to delivery. Currently most companies manage their data individually on independent software support systems. The information is not shared across platforms which can cause confusion and miscommunication when the information does not align. Now, imagine the ability to track end-to-end performance of your goods and trust in the data being viewed. Blockchain provides exactly that solution. Participants in the network will provide information that would be difficult to change. The transparency allows anyone to audit any point in the supply-chain and reduce errors. Goods come as expected and as a result, increase trust amongst parties and reduce operation costs.

So Why isn’t Blockchain Used More?

 A study published in 2020 in the Journal of International Trade and Commerce, delved into the blockchain adoption focusing on Port of Busan and Port of Incheon. Despite all the possible applications of blockchain, the finding suggest it may be more difficult to sell than people think.

1. Logisticians have difficulties getting a clear idea on the benefits and successful blockchain adoptions.

2. Consultants and academics worry about the technological maturity of blockchain.

3. Competitive edge of the industry is highly influenced by economic factors related to financial and time-related aspects.

Blockchain Takes a Huge Shift in Infrastructure to Implement

Blockchain performs its best with more participants because there is more information. Without participants, the use case of blockchain no longer becomes applicable. Therefore, a decent size number of entities must agree on implementing blockchain which is harder than it sounds. Blockchain requires a huge shift in infrastructure.  Instead of storing information on their own subscription platform, the information will instead be widely available to anyone in the network which may be intimidating. Not only that, but the technology is new, and companies are hesitant on uplifting their entire structure. The pilot program by The Port of Rotterdam and Busan has shown that blockchain does perform up to expectation, but only provides a single example of the tangible benefits of adoption. A few ports have started pilot testing since, but until we see more entities willing to integrate this technology, it will be a long time till we see any major shifts in supply chain management.

Blockchain is the Future of Logistics

As supply chains become increasingly complex to meet the needs of consumers, the benefits of blockchain are far too good to not be considered as a solution. Not only does it provide relief to cumbersome problems in logistics, but transparency is becoming an important factor to consumers. Ethical sourcing and detailed package tracking are just a few factors that consumers are starting to consider. Blockchain allows for trusted end-to-end product visibility, which will become more vital to companies and consumers alike.