The trucking industry continues to battle weak demand amid the oversupply of trucking capacity, but there might be light at the end of the tunnel. Geotab introduces Advanced Collision Detection Technology, enabling the company to aggregate data from 4.3 million connected vehicles to enhance driver safety and significantly improve the throughput of logistics operations. Talking of technology, the Port of Los Angeles seems to have issues with the CrowdStrike debacle, with its computers glitching, leading to an outage.
Continue reading as we explore news and trends across the freight market and the logistics industry.
Truckload providers remain cautious about the second half of 2024 because of too much capacity but not enough demand, which continues to give shippers the edge when negotiating prices.
Major truckload carriers like J.B. Hunt are experiencing revenue declines in their truckload divisions, a significant reflection of the challenging market conditions. As the truckload market continues to wait for a clear catalyst for pricing recovery, several reports suggest that the market is expected to see an "inflection point" in truckload spot pricing. However, the impact may not be felt until early 2025, when annual contracts open for bidding. Despite the current situation, analysts predict a gradual increase in truckload shipments and rates.
According to Sabina Martin, VP of product management at Geotab, the company is not just reacting to incidents but actively working to prevent them. A major part of this proactive approach is the launch of its advanced collision detection technology, which utilizes AI and ADI.
Geotab is training its machine learning models to enhance collision detection and predictive analytics by leveraging AI models and aggregate data from 4.3 million connected vehicles globally. The technology accurately detects and categorizes collisions into minor (1.5-2.5 Gs) and major incidents (2.5 Gs and above), enabling swift responses, expediting the claims process, and identifying the root causes of incidents for preventive measures such as driver training and route adjustments. Geotab anticipates that the innovative advancements in the safety center will enhance driver safety and significantly improve performance outcomes, paving the way for a safer and more efficient transportation industry.
The issues began at 3:30 a.m., forcing the port to switch to manual operations to keep the cargo moving. Although port operators could process all the trucks in the queue, operations at the port are still not back to normal. This made the trucks experience long wait times for cargo, with one employee describing it as a challenging "catch-up" day.
The glitch was traced back to an update by the port's cybersecurity firm CrowdStrike, although the company's CEO, George Kurtz, claims that it was not a security or cyber incident. Port director Gene Seroka noted that the situation was particularly busy, reminding them of the surge that was prevalent during the COVID-19 pandemic. Following the glitch, discussions have been held about enhancing security and resilience in software systems to prevent such widespread impacts in the future.
The Port of Houston has received approval from the U.S. Department of Agriculture (USDA) to handle produce cargoes that have undergone cold treatment to eliminate pests.
The approval came from the USDA’s Animal and Plant Health Inspection Service (APHIS), which can significantly enhance Houston's position in the refrigerated container business. With the approval, cold-treated produce, such as citrus fruits and grapes, can enter the U.S. through Houston without further inspection if maintained at specific temperatures during transit. Following the approval, the Port of Houston is now positioned alongside other major ports, such as New York-New Jersey, Savannah, and Philadelphia, which also have APHIS-approved facilities.
Cargo theft continues to be a major problem in the trucking industry, and reports from the second quarter suggest that it has increased significantly.
Incidents rose nearly 33% year-over-year to 771 incidents across North America, and the cargo was valued at approximately $68.5 million. The average value of targeted shipments was $150,711. And despite enhanced efforts by law enforcement, arrests have not increased due to the prevalence of sophisticated international fraud and strategic theft operations. California, Texas, and Illinois were hot spots for cargo theft activities, accounting for 57% of all incidents. Despite the year-on-year increase, theft activity decreased by 10% from the record 925 incidents in Q1.
The trucking industry seems to be recovering from the freight recession following the COVID-19 boom. Even logistics executives have noted significant rebounds. Motive is reporting a 30% year-over-year increase in trucking visits to major North American retailers in June.
Peak shipping season began early in June, driven by anticipated East Coast and Gulf port strikes and ongoing geopolitical risks. Year-over-year retail orders have increased across various sectors, including department stores, electronics, home improvement, and grocery stores.
However, the trucking sector still faces tighter capacity following numerous bankruptcies during the recession. Logistics executives believe freight rates have bottomed out, with a gradual lift-off expected. Global transportation and manufacturing are also picking up, particularly in Vietnam and India, benefiting from the shift away from China.
Ron Marotta of Yusen Logistics articulated the industry's sentiment of unpredictability in the 35th annual State of Logistics (SOL) report presented by the Council of Supply Chain Management Professionals (CSCMP).
The report was researched by Kearney and sponsored by Penske Logistics. It is titled "Waiting for the Tide to Turn." From the report, it is clear that the logistics landscape is shifting. Companies are beginning to adopt holistic approaches, breaking traditional barriers with 3PLs and integrating advanced technologies like AI and digital freight-matching tools to manage costs and improve efficiency. The report advises shippers to build a strong logistics team even while leveraging analytics for strategic decisions. Retail sales, a major GDP contributor, have stagnated while e-commerce continues to grow, unevenly impacting freight transportation.
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