11 minute read
Technology will solve the freight industry’s biggest issues
Geoffroy Henry
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By GEOFFROY HENRY CEO AND FOUNDER AT OFLOAD
The transport and logistics industries have become increasingly exposed throughout the COVID-19 pandemic, in turn bringing focus to the necessity of freight tech solutions.
Even before the pandemic, Australia was suffering from a truck driver shortage. The average age of truck drivers nationally is increasing, and there simply are not enough new drivers entering the industry. The average Australian truck driver is 47, only 20.6% of drivers are under 30 years old, and only 3% are female.
On top of this, constant compliance and regulatory changes, the requirement for drivers to own and maintain their own trucks, plus low pay and long hours, means drivers are leaving the industry in droves for new horizons.
All this was before COVID-19. Now, a lack of interstate and overseas migration means staff shortages in the freight industry have reached critical levels.
The industry also sees significant wastage via empty and idle trucks, in a segment which already contributes to almost 3% of Australia’s overall carbon emissions.
The transport and logistics industries as they stand are not future-proofed, and absolutely require an overhaul. But the good news is, the driver shortage, wastage and emissions issues can be solved by applying simple and effective technology— all without adding cost.
Sustainability into the future
There is significant waste in the road freight industry—millions of empty kilometres are being driven, and trucks are often underutilised.
The volume of trucks and drivers sitting idle across Australia is staggering. Through conversations with industry leaders, we’ve heard some companies’ trucks and drivers can spend up to almost three days per week sitting idle without work, while 30% of trucks are running with empty loads, and even when a truck has a load, it’s rarely entirely full.
At the same time, emissions are increasing at a time when Australia is trying to reduce its carbon footprint, which means sustainability is becoming a priority in the freight contract process.
According to the Climate Change Authority, trucking makes up 18% of the nation’s transport emissions, which is more than aviation, rail, ships, buses and motorcycles combined at 16%. In fact, about 2.88% of Australia’s total emissions— that is 15.5 metric tonnes of carbon dioxide—are from road freight alone.
At the same time, Accenture reports 48% of CEOs are implementing sustainability into their operations. This means the wastage within road freight has been identified as a real threat to the industry’s longevity.
This adversely affects small operators far more significantly than large operators. Small operators cannot afford to upgrade trucks or change operations fast enough to compete on the newly required sustainability level.
There are 50,000 or so trucking companies in Australia, with the largest companies controlling only 15% of the market, leaving the smaller players
controlling much of the market and yet voiceless when it comes to industry change and competitiveness.
So what can the industry do as a whole to reduce waste, improve sustainability and give the smaller players a competitive edge in a shrinking industry?
Technology is the answer to these and many other problems, and will enable the industry to decrease its carbon footprint, maximise capacity, while reducing other risks such as driver fatigue, all while reducing costs.
Technological revolution is an inevitability
There is no industry in Australia or the world that is untouched by technology, and road freight will be no exception. While many in the industry are naturally averse to change, the fact is, technology will overhaul road freight for the better of all involved— customers, providers and drivers.
Technology will be the hero we need to tackle waste, foster a sustainable, futureproofed industry, and equal the playing field for the long tail of owner/operators and smaller players.
The automation of logistics planning and execution is already underway globally. Automation and artificial intelligence (AI) are currently transforming large industries, and they represent an amazing opportunity for road freight as well, starting with enabling a better synchronisation between shippers and carriers.
Until recently, tracking of shipments and drivers have been analogue—meaning it was not easily accessed or used for planning because it was written in paper log books. The fact is, there is a lot of activity that can be predicted in the industry by examining this kind of data.
Connecting this data to a broader market of drivers and planning truck movements to ensure that trucks are not running empty is essential to reducing waste and enabling emission reductions.
Centralising and matching shipments and freight resources in one platform across Australia based on location, capacity and availability would create new efficiencies where trucks would not run empty or stay idle as often, small and big players would compete on a level playing field, and the overall industry would reduce its carbon footprint
Some trucks have already moved away from analogue ways of operating by using telematics. However, there is only a small percentage of trucks equipped with telematics so far.
The benefits of this technology, such as real-time updates on staff and vehicle availability, data-driven analysis of staff and vehicle effectiveness, and full visibility of where multiple shipments are at any one time, are clear.
This is where technology provides assistance. It helps to increase route efficiency, manage fatigue and reduce distractions and keep drivers safe on the road.
Automation can play the role of bringing certainty and predictability to truckies. Owner operators in the long tail of Australia’s logistics industry historically run loads based on connections they have with distributors. By automating the connection process, technology can ensure that return trips are not running empty.
And while the investment is steeper in the short term, the long term benefits of telematics means the technology pays for itself over time in both time and cost savings, plus better customer experience through visibility and transparency.
Autonomous vehicles are also touted as a way the road freight industry will change.
The reality is, Australia is nowhere near ready on an infrastructure level to support driverless vehicles of any kind, so this solution is a decade off, at least.
For long-haul electric trucking to become a feasible alternative, significant size to coordinate and optimise fleets and shipments, and expose inefficiencies at an industry level, ultimately getting rid of waste in the form of empty kilometres and idle time. Where custom-built solutions require a significant financial investment, small to medium carriers can look to streamline operations by partnering with a platform or service provider.
For more information visit www.ofload. com.au Ofload is a that digital platform for road freight that connects quality shippers with reliable carriers. We manage end-toend fulfilment through technology. .
developments in battery technology and investments in infrastructure, like road markings and charging points, are necessary and existing assets must be slowly replaced. Given Australia is a vast country with hundreds of thousands of kilometres of road, this is a massive undertaking.
Electrics trucks would also unfairly penalise the smaller operators once again, who simply cannot afford to upgrade their fleets.
This being said, the ability to automate some truck processes would be beneficial in the short term. Driver fatigue has always been a significant industry challenge. By automating processes, even if it is not for a full trip, drivers will be better rested and able to manage the demands of long haul trips, reducing the risk of legal liability and potential injury.
The simple plot line is this: The road freight industry is ready for innovation. More than this, it needs innovation if it is to survive into the future.
And it has to survive. Australia’s economy depends on road freight and this is unlikely to ever change.
Big data, AI and automation might be intimidating concepts, however, these technologies can help companies of any
WA
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VOLUME 28 | NUMBER 1
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FROM THE PUBLISHER
Happy New Year to you all. I hope you got a chance to have a ‘real’ break for yourselves over Christmas and spend time with your loved ones.
Many of us still had to work, to keep the wheels rolling but when it is doing something that you love and are appreciated for it makes it all worth it.
I love our front cover story and such a nice way to start the year off on a positive. These two lovely ladies are recruits of WA’s Heavy Vehicle Driving Operations Skills Set. This is a wonderful initiative to increase the amount of qualified drivers in WA and thank you to Western Roads Federation and everyone else involved for getting it funding and getting it going – Page 14.
How we treat each is touched upon in this edition by our Bird’s Eye columnist Carol Messenger, and namely the pandemic of not telling the truth. At even the highest levels we are hearing lies, and it is becoming a sadly excepted norm. Carol talks about how it affects the ‘customer’ service part of the transport industry – because without the customers…
In the magazine’s technology search (last month we brought you the Logmaster App for your phone which satisfies WA requirements) and this month (Page 2) we look at how the transport industry can utilise technology as a whole to reduce waste, improve sustainability and give the smaller players a competitive edge in a shrinking industry.
Here’s to 2022…
Best, Karen
CONTENTS
1 ..............................................TWUWA – Major industrial action for secure jobs 2 ...........................................Technology will solve the freight industry’s biggest issues
6..............................................Changes to WAHVA Certification Process 10 .........................................Does WA not want any fresh produce? 11..............................................Great Eastern Highway Bypass interchange underway 12 ...........................................Major Motors – Celebrations and release of the new updated N Series 14...........................................Western Roads Federation – Addressing the skills shortage 16...........................................New Director General of the Department of Transport 18...........................................Truck Law Review – a complete waste of time and money
19...........................................Long vehicle warning sign changes 19...........................................More money for roads and bridges 20.........................................WA resources sectors biggest year ever 21 ...........................................Hall of Fame – George Savage
Every Month
8..............................................Fair Go for Owner Drivers 16...........................................Bird’s Eye View 22.........................................HCVC 24.........................................WA Transport History Endorsed by
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