The advent of 5G wireless networks could pave the way for a supercharged internet of things (IoT), transforming the way logistics operations monitor equipment, track inventory, and even train employees.
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
The IoT (internet of things) is a fairly new item in the logistics toolbox, but technology experts across the industry say it’s about to get a major upgrade, thanks to the national rollout of fifth-generation (5G) wireless networks.
Supply chains have relied on IoT technology for several years, using its collection of distributed sensors to monitor variables like open dock doors at a DC, the speed of conveyor belts in a fulfillment center, and the location of trailers in a yard. Those applications have proved the technology’s business case, demonstrating the IoT’s value in connecting physical supply chain assets to the digital web.
Now, that standard is about to change, thanks to the advent of a new generation of 5G technology that can support an expanded array of sensors and other devices. Taken together, those advances are set to enable a variety of innovative IoT applications, opening the door to the remote monitoring of conveyors and forklifts for maintenance purposes, inventory tracking via door sensors and security cameras, and real-time feedback for coaching employees.
The 5G era is already upon us. Network providers like AT&T and Verizon now support 5G coverage in major U.S. cities, and electronics companies like Apple Inc. are incorporating 5G chips into their latest mobile devices. Providers of machines, assets, vehicles, and sensors can now build on that foundation.
GET READY FOR A NEW GENERATION
Most of the current generation of wireless IoT devices rely on the same fourth-generation (4G) networks that people use for their legacy smartphones. Also referred to as the “long-term evolution (LTE) mobile communications standard,” 4G wireless broadband technology was designed to support consumers’ relentless demands for increased data, more bandwidth, and lower latency (lag times), according to Luke McLeroy, senior vice president for business development with Avanci, a Dallas-based wireless technology licensing firm.
However, when engineers began planning for an improved 5G network, they quickly realized that their vision of expanding IoT capabilities to literally millions of devices—also known as Industry 4.0 or the “industrial internet of things” (IIoT)—carried with it very different demands, McLeroy says. For instance, in order to support the IIoT, 5G would have to offer more than just, say, blazing fast download speeds; it would also have to offer such enhancements as extended range from base stations and low power requirements, according to McLeroy.
Those enhancements will likely lead to an explosion of IoT devices that can soon be attached to a wide array of platforms. The industry goal is to have each IoT device run off its own battery for 10 years and stay connected via a constant barrage of tiny pings of data—such as a check-ins, location updates, and alerts.
“Where maybe you used RFID (radio-frequency identification) before and pallets would pass signal collectors spaced every so far apart, now you’ll use the cellular network,” McLeroy says. “So instead of saying ‘A device has passed this RFID gate but not that one, so it must be somewhere in between,’ now you can say, ‘That pallet or that trailer is exactly here on the map.’”
PINPOINT COVERAGE, COAST TO COAST
That coverage will not stop at the factory door, loading dock, or delivery site, but rather extend to every U.S. interstate highway and distribution center that a truck would typically visit, McLeroy says. In most cases, the signals will travel over the same AT&T or Verizon wireless networks used by consumers, but large companies could choose to build private 5G networks within their own manufacturing or logistics facilities to provide better data security. “Once the logistics industry learns … how this network works, they’ll think of many new ways to use it,” McLeroy predicts.
That vision of broad IoT coverage will be supported by 5G networks using LPWA (low power, wide area) technology, based on the LTE-M and NB-IoT wireless standards, which combine to prioritize battery longevity over sheer speed, according to the French information technology (IT) provider Thales Group. A related standard is the LoRaWAN specification, which is designed to support large IoT networks through requirements like bidirectional communication, end-to-end security, mobility, and localization services, according to Senet, a New Hampshire-based IoT connectivity provider.
In addition to their low cost, long life, and reliable connectivity, the next wave of IoT devices will also be smart, according to Ashish Chona, senior vice president of IoT business for Orbcomm, a New Jersey-based provider of IIoT systems. Instead of simply collecting data and passing it off to a cloud site for processing, “smart” IoT devices can analyze some of their own data—also known as edge computing.
Along with saving the time and energy that would be needed to communicate with a cloud-based “data lake,” edge computing can also help IoT users handle the torrents of data collected by sensors enabled with 5G designs, Chona says. As IoT sensors become ubiquitous, the data generated will expand exponentially. If an IoT network can’t process the data promptly, it will be only part of a full solution, he explains.
“The edge is important because it adds smarts,” Chona says. “That’s what the market is demanding: You need to know where your asset is so you can predict with ease when it will arrive.”
Applied to the commercial transportation sector, smart IoT sensors and edge computing combined with 5G technology can also improve truck drivers’ efficiency, regulatory compliance, and safety, according to Chona. With near real-time processing, those sensors can improve the performance of devices like in-cab cameras, enable “speed by street” monitoring of hyper-local speed limits for driver-training purposes, or monitor variables like tire pressure to enhance vehicle safety, he says. Many of these features can drop out of connectivity with 4G networks but would be far more reliable with 5G.
WARNING: DISRUPTION AHEAD
From warehouse docks to interstate highways to local drop-off points, logistics operations are on the verge of being disrupted by a sudden jump in the capability of the IoT. Supercharged by high-speed, low-energy 5G wireless networks, future IoT sensors could provide unprecedented levels of freight visibility, inventory-tracking precision, and cargo-monitoring capabilities.
With their low cost and long battery life, remote sensors promise to bring life—and smarts—to assets throughout fulfillment and transportation networks, ultimately bringing logistics and supply chain operations closer to the vision of Industry 4.0.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."