New “connected cab” technology promises to make truck drivers’ lives easier and the job more appealing, fleet managers say. But first they have to convince the holdouts.
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 dazzling array of technologies installed in commercial trucks—from smart sensors to wireless network connections to collision-avoidance systems and customized smartphones—can help fleet managers improve their oversight of day-to-day operations, whether it’s monitoring equipment location and condition or delivery performance. But the rise of the “connected cab” is proving even more valuable in another area of fleet operations: recruiting and retaining increasingly hard-to-find drivers.
If that sounds improbable, just ask Jeff Jackson. Like fleet operators everywhere, Jackson, who is executive vice president for operations, dedicated contract carriage, at Penske Logistics, says his company faces unprecedented competition for drivers. When his company goes to interview a prospective driver, “they’re really interviewing us, because they’ve got four other road tests they’re going to next,” Jackson says. “So they’re checking ‘Is the truck clean? Is the tech easy to use?’”
“We sell [ourselves by telling them] ‘We’ve got really good technology that is easy to use,’” Jackson adds.
In Penske’s case, that really good technology includes a company-developed Android-model smartphone that comes preloaded with apps that give drivers instant access to data like estimated time of arrival (ETA), including traffic and weather impacts, and that make their lives easier—for example, by providing automated arrival and departure notices, electronic proof of delivery (POD), engine fault codes,accident and breakdown reporting, and electronic driver vehicle inspection reporting. The devices also incorporate ELD (electronic logging device) capability for tracking drivers’ hours of service.
Penske issues drivers one of these smartphones at the start of their route each day and offers “dock to dock” tech support until the driver returns the handheld unit at the end of the trip.
UPPING THE TECH GAME
As for what’s driving the trend among fleets to up their technology game, part of it is the expectation among drivers, particularly younger ones, that employers will provide them with the same kinds of technologies they’re accustomed to using in their daily lives—if not substantially better.
“The driver shortage has created a vacuum that is [pulling] the next generation of drivers into the mix, and there are expectations that what they see in the cab will be [more advanced than] what the previous generation had,” says Mayank Sharma, head of the product management and user experience group at Teletrac Navman, a developer of asset management systems and fleet management software. They expect their trucks to be equipped with technology that’s at least on a par with what they have in their personal cars, Sharma adds, “so there’s ‘consumerization’ happening in fleets.”
But that’s just part of the story. In addition to helping attract members of the digital generation, today’s in-cab technologies offer important safety benefits, fleet experts say. “There’s definitely a lot of new technology in the cabs now, but that tech helps to pick up things a driver might miss,” says Andrew Blundon, a trucker with 30 years of experience and a certified driver trainer at Ryder System Inc. He cites collision-avoidance systems that can alert drivers to vehicles in their blind spot and lane-departure warning systems as two examples. “A driver has more things to do than an airline pilot. He has to make so many quick decisions, and this advanced equipment makes driving a truck easier.”
LEARNING TO LOVE THE CAMERA
Despite the demonstrable benefits, the prospect of working in a “connected cab” isn’t always an easy sell. While younger employees tend to take to the latest digital tools, they can be intimidating for some older drivers who see the technology as impinging on the independent lifestyle of a driver, says Matthew Carr, vice president of operations at CPC Logistics Inc., a company that provides drivers and services for private fleets in North America. “It’s what we need to find the workforce because they’re a connected audience and we need to engage them,” he says of the technology. “But right now it scares some people.”
Drivers tend to be particularly skeptical of the dashboard cameras that record both the traffic outside the vehicle and the actions of the driver inside. “Cameras[that are integrated] with the vehicle can be intrusive or offensive to some drivers,” Carr says. But their suspicion is unfounded, he adds. The cameras aren’t there so that fleet supervisors can micromanage drivers, he says. “In reality, they are there to support a suite of coaching tools and to protect the driver.”
To that last point, Carr notes that drivers often undergo a change in attitude about cameras once they experience those protective effects. In the event of a crash, “there’s a tendency to blame the guy in the big lumbering vehicle,” he says, “when in reality they’re the trained professionals and those around them are more likely to be driving unpredictably.” In such cases, footage from dashboard cameras can be used to demonstrate that a driver was not at fault, exonerating both the driver and the fleet, Sharma says, adding that these capabilities are leading more drivers to accept the technology.
In the never-ending effort to manage their fleets more efficiently, trucking companies are turning to many of the same technologies their drivers use in daily life. Packed into an 18-wheeler, the high-tech tools have created a connected cab that not only supports better freight visibility but also improved vehicle safety and employee satisfaction.
“When it comes down to it, we need to be able to [retain] the drivers we have and attract the ones we don’t in order to position [truck driving] as an attractive career—one [that offers] both connected technology and the independence of being a driver,” CPC’s Carr says.
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."