AI and automation are rapidly changing the way the freight and logistics industry operates, allowing for improved efficiencies and financial outcomes across all operations. 

Read also: Optimizing Warehouse Automation: Understanding Key Considerations

Decision-makers must explore these options to stay ahead in an ever-changing industry, amidst ongoing technological advancements that are here to stay. 

Let’s delve into the ways AI and automation will affect the future of freight and logistics and how industry leaders can prepare, with Rick LaGore, Co-founder and CEO of InTek Freight & Logistics: 

Q: As technology continues to develop rapidly, where will we see AI and automation integrated into freight shipping? 

A: The integration of AI is well underway, with its implementation evident in trucking, freight management, and warehouse automation, already. We’re seeing AI’s integration taking form in a variety of ways, from autonomous trucking to optimization of route planning, forecast demand, and transportation management systems.

Utilizing data, AI can be used in freight management to advance the functions of transportation management systems (TMS) software. This allows clients to improve processes and help with decision-making, providing true operational benefits when using an AI-incorporated TMS. 

Labor shortages are a major concern in the industry, with warehouse and transportation job openings in the U.S. forecasted to hit 1.7 million this year. By automating tedious and repetitive tasks, resources can be reallocated to boost productivity, efficiency, and safety. 

Q: As conversations about autonomous trucking become more prominent, what impact will the implementation of autonomous trucks have on the industry? 

A: A recent McKinsey & Company survey revealed that fully autonomous trucking is expected to be successfully working in four to seven years. We expect to see future vehicles with sensors, actuators, algorithms, and machine learning systems, designed to allow trucks to operate and manage potential challenges on the road safely without human input. 

Our key predicted benefit of autonomous trucks will be improved shipping time, with the removal of necessary human breaks such as sleeping and eating. However, many regulatory hurdles will have to be overcome before autonomous trucks can be fully utilized on our roads. For example, Assembly bill 316, passed in California last year, states that humans must be trained and present while autonomous semi-trucks and big rigs are operated.  

As electric and autonomous trucks undergo necessary development, intermodal transportation offers many similar benefits, already. Intermodal shipping combines multiple modes of transport (trains and trucks) in the most efficient and environmentally friendly manner. Trains, used for the long-haul portion of the transit, are significantly more fuel-efficient than trucks, offer lower fuel costs for large volumes of freight, and are less susceptible to traffic congestion, offering cost-efficiency, reliability, and reduced carbon emissions. 

Q: How is train automation likely to impact the industry? 

A: We are already seeing automation being implemented in global transportation. For example, Japan is set to use fully driverless trains very soon, as JR East plans to launch self-driving bullet trains by 2028.

We are, however, far less likely to see fully autonomous freight trains. High risks are associated with freight trains, meaning a driver is still required on board. This includes the regular carrying of hazardous cargo. Instead, we are likely to see the automation of individual shipping containers. Train automation technology will therefore increase product safety during the unloading process and overall efficiency.

It is likely that we will soon see further advancements and AI enabled infrastructure in intermodal rail yards. The recent automation of truck gates has been proven to increase terminal productivity, improve data quality and safety – moving personnel away from the lanes. 

Q: What impact will robotics and warehouse automation likely have on the industry? 

A: The automation and integration of robotics in warehouses is well underway. We know warehouse automation is increasing by over 10% each year, with robot shipments expected to increase by an enormous 50% each year until 2030.  

In the warehouse environment, technological advancements offer many benefits to operatives and leaders. Robotic arms present physical help in completing picking and packing, which decreases the chance of human error, improves worker safety, and addresses the ongoing labor shortages being faced. On the other hand, AI can provide strategic support in the form of inventory management, using predictive algorithms to manage stock levels effectively. These additional inventory data points are incredibly valuable for logistics professionals to consider, allowing for enhanced transit predictability, and reduced risk of stock damage and theft, through AI-integrated location tracking and alerts.

Q: How can AI help tackle unpredictable disruptions such as the Red Sea attack?

A: Navigating disasters and complex logistics obstacles is not a simple operation for freight and logistics leaders. The recent Red Sea attack significantly impacted the shipping industry, with route times and shipping costs driven up rapidly, as a route regularly used by 15% of global shipping traffic prior to the crisis was severely disrupted long term.

As we approach peak shipping season where shipping charges increase to meet higher freight capacity demands, we are actively reviewing the role AI holds in supporting disruption management and support. Currently, AI demand predictions allow businesses to adjust shipment volume until situations such as the Red Sea attack improve. Further, AI can analyze the market, identifying opportunities to shift modes amidst unprecedented issues, and offer solutions based upon how markets have reacted to similar issues previously. 

We’re proud to be constantly identifying ways AI can be used to tackle unforeseeable disturbances and look forward to future developments enhancing this work, creating a more efficient, and safer environment for businesses across the globe. 

Q: What are your thoughts on the potential impact that AI and automation could have on jobs in the industry? 

A: There are many divisions within logistics experiencing a labor shortage, as we continue to suffer not enough people with the appropriate skills to fill the job roles required. 

While it is natural to feel concerns about the impact AI and automation may have on people’s jobs, we must focus on how these new technologies are helping us to perform jobs better, aiding our work rather than replacing human-filled roles. 

As Bart De Muynck recently explained on our podcast, younger generations entering the workforce have grown up surrounded by technology, so are familiar with the use of and reliance on different modern technologies in different aspects of their lives, including homelife and work.

Companies that are resistant to using the latest technology are likely to fall behind among competitors, especially as advancements continue to develop rapidly. We highly encourage logistics leaders and decision-makers to explore what is available to them, to understand how AI and automation can fit their business needs and therefore improve operations. 

Q: Do you intend to increase investment in AI and automation in the future?  

A: At InTek Freight & Logistics, we’re actively reviewing new opportunities that AI and automation offer to streamline our operations and improve service offerings for our customers. Our current key focus areas for automations are business operations, price quotations, analysis, and reporting. 

By automating repetitive tasks and back-office operations, our front-line Operations Managers can further invest their time in proactive, value-added customer interfacing work. 

Now, we offer immediate spot rate pricing as automated online quoting allows us to instantly pull in costs and evaluate rates against the current market. Similarly, our analysis and reporting services have been advanced, drawing competitive marketplace data and trends against our pricing and business trends, immediately.

Source: https://www.intekfreight-logistics.com/ 

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