The Drive to Deliver Autonomous Vehicles is Fueling Technology

The evolution of trucking goes beyond fueling technology and virtual cards.

Technology is disrupting the trucking industry in almost every aspect of business, from compliance and regulation (ELD), logistics and routing, to financial management and fueling technology. It is an industry that has been forced to evolve along with what its customers and the nation demand.

It all started in 1910 with the advent of gasoline-powered internal combustion engines and the consequential development of the tractor/semi-trailer. These large freight vehicles were initially used by the military during World War I but became important in the 1930s to augment train deliveries where railways could not provide access. Truck delivery became a pivotal aspect of transport in the 50s and 60s as the Interstate Highway System began construction. The practicality of the interstate to connect all of the major cities in the country expedited the business of trucking to a national and dominant level. In the 1970s, the trucking culture became more recognized nationally through media and Hollywood, resulting in its peak of popularity. It was considered an industry of freedom and risk taking with camaraderie and brotherhood. It was a period that gave rise to the perception of truck drivers as a band of cowboys and outlaws.

As the 70s transitioned to the 80s, so did the perception of the trucking industry, to the point where today much has changed. It is no longer romanticized, but recognized as a corporate industry of sophisticated logistics and capability. It is revered by some as the back bone of our nation. The trucking industry is also said to be responsible for the success of big box stores like Walmart and Target. It is also considered to be one of the most rigorous professions in the world with long hours, arduous work for days and sometimes weeks at a time. Because of this isolating and unhealthy lifestyle, the industry is facing one of biggest driver shortages in history. However, as is happening in most of corporate America, innovation and technology is helping to address the issues, in turn, creating change for the future of the industry.

Innovations through automation, the internet and robust fleet payment capabilities

The trucking industry is just one part of a bigger whole called logistics. Trucking along with railroad, airline and shipping is responsible for delivering every aspect of what makes our lives and our world work. So, it is clear that the logistics arena not only embraces technology, it is responsible for initiating and pushing innovation forward. A recent publication of The Business Journal outlined the 7 innovative technologies transforming the logistics industry.

1. Automation: Automation uses data-driven software to improve operation efficiencies in every aspect of business – from advancing packaging labeling and managing inventory to streamlining fleet payments systems.
2. Robotics: The advent of robotics has revolutionized ecommerce operations and manufacturing around the world.
3. Wearable Technology: Wearable technology has been reported to improve efficiencies by 25% while increasing employee satisfaction and enriching company culture.
4. Drones: The most promising application in express consumer delivery.
5. Cloud Computing: Fast and flexible applications with transparency in delivery, financial management, efficiencies in fleet payments as well as fueling technology by providing clear data and purchase visibility.
6. The Internet of Things (IoT): The internet of things allows physical items to be connected to internet enabled devises and systems. This technology can be used for temperature and humidity control sensors, and to determine whether a package has been tampered with.
7. Self-driving Vehicles: Logistics and trucking companies all over the world have embraced this technology early. Many logistics companies currently employ this technology in forklifts and smaller plant trucks but an even bigger change is on the way in self-driving semi-trucks.

It is clear that for the trucking industry that innovative change is driving the industry forward, and in some cases without a driver at all. With the trucking industry responsible for moving billions of tons of freight every year, combined with a driver shortage estimated at over 50,000 for 2018, it is no surprise that the market is embracing autonomous vehicles. However, in an interview by Greg Nichols for ZDNet.com, Brian Fielkow, president of Jetco Delivery and author of the book Leading People Safely says,

“Even though the technology is clearly here for self-driving trucks, I do not see self-driving trucks decreasing the demand for professional drivers any time soon.

He goes on to say, that he sees it as a way to augment the human driver and a way to alleviate the driver shortage by taking the strain off long hauls while making it more comfortable for individual drivers. Driver error has been attributed to around 10,000 injuries and 4,000 deaths each year. The issues can often be the cause of driver distraction or sleep at the wheel. Fielkow and other tucking companies are hopeful that these errors can be mitigated through the use of autonomous vehicles.

Currently, Peterbuilt and Freightliner are both developing self-driving technology for their tractor-trailers, as well as Otto, as part of their Advanced Technology Group’s effort to develop self-driving engineering. So, the change is in progress and some experts are saying that there will be a fleet of autonomous tucks on the road within the next two years.

The most concerning aspect of this change is the negative effect it might have on millions of Americans who work behind the wheel of a truck. Although there is a shortage of drivers, truck driving is still considered one of the most common occupations in 29 states. Carolyn Said of the San Francisco Chronicle indicates that if autonomous vehicles are deployed without a driver behind the wheel, close to 1.68 million drivers could lose their jobs. Another 826,510 light-truck and delivery drivers would lose jobs and the numbers rise as bus drivers, taxi drivers, UBER, Lyft drivers and ambulance drivers give way to self-driving vehicles.

“This will be the biggest disruption in work and jobs that the country has ever experienced,” said Andy Stern, a labor expert and president emeritus of the Service Employees International Union. “It will happen relatively soon, and we are in denial and avoidance.” — San Francisco Chronicle

While the change seems dire, we can’t ignore a historical perspective where the impact of technology, and specifically automation, has had a positive rather than a negative impact on the economy and the workforce over all. The printing industry has adapted by embracing the technology and learning from it. Press men who once managed a printing press through analogue means and by hand have been given opportunities to learn new skills and systems enabling them to evolve along with the technology. Uber’s autonomous driver strategy is to keep a driver behind the wheel in order to navigate off highways or in heavy traffic situations. Uber automation will take place very much like our own vehicle capabilities — on long stretches of roadways. The airlines have had this capacity as long the current generation can remember. The term “auto-pilot” is used in our daily lives, but the airline industry still requires a pilot in the cockpit to handle take off, landings and any hectic situations that might arise during the flight.

“The net impact of automation on employment has always been a positive, rather than a negative, economy-wide,” said John Paul MacDuffie, a management professor and director of the Wharton School’s program on vehicle and mobility innovation. “There’s no reason to expect that this time will be any different.” — San Francisco Chronicle

Besides operational efficiencies and the mitigation of human error, making these trucks safer on the road, there is also a considerable benefit to the environment. In November, Tesla CEO, Elon Musk introduced his electric Tesla semi-truck — battery powered and capable of hauling 80,000 pounds and able to drive it’s self while traveling 500 miles between charges. Musk’s hope is to make a positive impact on climate change by eliminating fossil fuels all together, and by convincing the trucking industry to align with his mission. Wire Magazine suggested that in California alone, the trucking industry (which also includes busses) accounts for 7% of total vehicles but produces 20% of transportation-related greenhouse gas emissions. Musk believes that by shifting to electric in that industry, he can make a bigger impact than he would with passenger vehicles alone.

Musk has designed and delivered on the Tesla brand again with safety, efficiency and aesthetic in mind. Without the need for the engine, the design takes into account the driver more than ever before. The driver uses two 15-inch touch screens to navigate, manage mandatory compliance data and monitor blind spots. The hazard lights are the only thing that utilizes a button — everything else is done via the monitors. The safety capabilities include battery reinforcement to avoid combustion, reinforced glass windshields and onboard sensors to help with navigation in the event of misalignment or jackknifing. And with self-driving capabilities for long distance driving, the trucks have radar built into the front and cameras installed to record every angle.

Recognizing the operational efficiencies, and with a commitment to sustainability, Anheuser-Busch announced just this month that they have ordered 40 of Tesla’s trucks.

“At Anheuser-Busch, we are constantly seeking new ways to make our supply chain more sustainable, efficient, and innovative,” said James Sembrot, Senior Director of Logistics Strategy. “This investment in Tesla semi-trucks helps us achieve these goals while improving road safety and lowering our environmental impact.”

Along with Anheuser-Busch, PepsiCo also revealed this month that they have order 100 of the fully electric Tesla semi-trucks, making it the largest order to date. Walmart and Canadian grocery chain Loblaws have also show interest in the Tesla trucks for their fleet operations. For Tesla and Musk, this is just the beginning. He realizes there is a long road ahead but he is hopeful to make that road easier for others in more than one way.

Clearly the experts are not wrong when they say that self-driving trucks will be in the market in the next couple of years. As the saying goes, “if you build it, they will come,” and Elon Musk, Google and Uber have built it. So, if history has taught us anything, it has taught us that anything is possible and that in this case, it should be no time at all before autonomous trucks become as integrated into fleet management as have virtual cards in the form of a fuel card or electronic funds transfers in the form of fleet payments. With innovation comes change, and if the trucking industry can continue to adapt and embrace it, there is no doubt that change will be for the better.

Resources:

https://en.wikipedia.org/wiki/History_of_the_trucking_industry_in_the_United_StatesSelf-driving trucks

https://techcrunch.com/2017/12/19/ups-reserves-125-tesla-semi-fully-electric-heavy-duty-trucks/

http://www.zdnet.com/article/50000-drivers-needed-can-technology-save-the-trucking-industry/

http://www.anheuser-busch.com/newsroom/2017/12/anheuser-busch-drives-the-future-of-beer-delivery-with-one-of-la.html

https://www.sfchronicle.com/news/article/Robot-cars-may-kill-jobs-but-will-they-create-12410820.php

https://techcrunch.com/2017/12/13/pepsi-one-ups-budweiser-brewer-by-ordering-100-tesla-electric-semi-trucks/?utm_medium=TCnewsletter