It is not easy to get rid of old problems in logistics and transportation. Driver shortage and safety adherence remain a problem for most trucking companies. Despite these struggles, the transportation industry is more resilient than ever. We will discuss the transportation industry trends to look for in 2022.
Due to COVID-19 and its succeeding problems to the entire supply chain industry, trucking companies had no option but to rethink their business model. The transportation industry still struggles to get new drivers onboard and maintain strict adherence to safety.
Undoubtedly, trucking companies have countless business opportunities, but they may lack the staff workers to benefit from them. However, truckers and fleet managers are trying their best to get their arms around the constant labor shortage by providing better working conditions, increasing wages, recruiting drivers aggressively, and offering lucrative benefits.
To expand business operations safely, fleet managers are seeking the help of transportation management software (TMS) and telematics to monitor driver and vehicle status, provide better training to drivers, implement retention programs, and regularly engage in audits.
Logistics and Transportation Industry Trends 2022
Here is what trucking companies can expect from the transportation industry trends in 2022.
Labor Shortage
Surprisingly, the ongoing labor shortage will remain one of the vital transportation industry trends in 2022. Every other trucking company is facing a shortage of truck drivers. Much to your surprise, the shortage is not only limited to drivers but experts.
Hiring and retaining employees that bring extra value to the company by developing the digitalization of the trucking industry needs is quite a task. The good news is that fleet managers and truckers have several options to alleviate this problem.
Proposed legislative and regulatory changes could lower the Commercial Driver’s License (CDL) eligibility from 21 to 18. In 2022, more driver training programs are expected to be held at the community college level.
Trucking companies have also increased retention efforts for their existing drivers by offering better wages, working conditions, enhanced benefits, and safety and security for female truck drivers. Safety bonus programs will also be provided to drivers to encourage safe driving behavior. Best drivers will be rewarded with bonuses.
Increased Last-Mile Delivery
Increased last-mile delivery efficiency is one of the key transportation industry trends to look for in 2022. Last-mile delivery is expected to increase in 2022. In the last-mile model, the goods are delivered to the customers’ doors directly from the warehouse.
Recently, the last-mile model has become every transportation company’s favorite. In fact, it has become the standard for the entire industry. It’s not seen as a recommended model but an expected one. In the current times, customers demand fast, timely, accurate, and affordable delivery, and failing to provide them can cause a significant problem.
Large-sized shipping companies like Amazon have already adopted the last-mile model in their business to meet the customers’ needs. On the other hand, small-scale businesses have to depend on third-party logistics to do the same. However, 2022 is when even the smaller businesses consider shifting to the last-mile as a business model.
The last-mile delivery provides an easier and more convenient shopping experience. However, it is more like a growing expense for logistics and transportation companies.
Companies need to utilize technology such as Al, autonomous vehicles, and crowdsourcing to implement the expense of last-mile delivery in their business model. Companies such as Uber Eats and Cornershop use crowdsourcing technology for last-mile deliveries.
Rising ELD Technology
ELD technology is rising in the transportation industry and has become one of the key transportation industry trends to expect in 2022.
It has become mandatory for truckers to use electronic logging device (ELD) technology, or in-cab telematics, for long-haul commercial drivers. ELD technology helps trucking companies enforce laws preventing drivers from working more than 11 hours in a 14-hour window.
The expectation regarding this transportation industry trend is that as ELD technology thrives, the insurers will increase the use of mobile driver data and dashboard cameras to get immediate notifications about the crash, collect data about the crash, and underwrite risk. Underwriters would need in-cab telematics reports before quoting coverage.
Trucking companies must invest in ELD as telematics can help them reduce risks and insurance rates. It is also recommended that trucking companies work with an expert partner on implementation to get the most out of the ELD technology.
Automation of Vehicles
Another transportation industry trend trucking companies anticipate in 2022 is having fully autonomous vehicles driving on the highways. However, it seems like that may not come closer to fruition any time soon. What they can expect sooner is the rise of technology that helps and enhances truck drivers’ ability to perform their jobs.
Nauto is one such technology available in the market right now. Nauto helps companies to predict, prevent, and put an end to distracted driving. Having such a system deployed in the vehicles that notify when a driver is falling asleep or detects as soon as a reckless motorbike rider comes up from behind is a real game-changer for drivers, especially those with less experience on the road.
This technology allows trucking companies to hire a team of trained but less experienced drivers to drive the vehicles that would not have been possible previously, given their lack of experience in the field.
On the other hand, we are also likely to see the proliferation of autonomous convoy technology in 2022. Locomotion convoy technology is one such fine example. This technology requires a driver to be present in each truck. As soon as the driver is on the highway, the system ties the trucks together wirelessly, and each truck goes into the autonomous mode.
When this happens, one driver in the convoy takes some rest, and the system then occasionally shifts control, allowing for longer service hours.
Conclusion
As the supply chain industry continues to thrive in the coming years, trucking companies will likely experience new business challenges. The only way to overcome these challenges is to use the right trucking operations strategy, i.e., modern technology to automate manual operations.
With the right transportation management software (TMS), such as LoadStop, truckers and fleet operators can simplify complex trucking operations, enhance fleet efficiency, and improve productivity.
Let us not forget that the supply chain industry is already witnessing plenty of ongoing trends and is expected to see several futuristic innovations in the near future. And, astonishingly, they all revolve around the same theme—technology.
More Al, cloud, and IoT solutions are making their way in the transportation industry. In fact, Al and machine learning are already transforming the logistics industry. It would be safe to say that 2022 will be another year to look forward to many mind-boggling innovations and transportation industry trends. Let us keep our fingers crossed!