Effects of Rising Technology on Freight Shipping

What's in this article?

Freight transportation plays a major role in modern life. The US alone has over 80 million tons of goods shipped every day. And the number keeps growing. In fact, global trade volume reached $1 trillion in 2017.

This means that freight transport services play a vital part in our county's economic activity.

Technology is also a crucial component in the freight shipping industry. However, much of the technology that freight companies use is outdated, especially when compared to new tech.

With the rapid adoption of new technologies such as autonomous modes of transport, drones, and artificial intelligence, the future of freight shipping looks promising.

As the industry continues to evolve, innovations will likely emerge that will improve energy efficiency and safety and reduce costs.

Let's look into how these innovations could transform freight transport.

The Problems with Current Technology in Freight Shipping

Before getting into the details about the innovations in freight shipping, it's worthwhile first addressing why innovation is needed in the freight industry. Here are some problems with the current freight shipping industry.

Environmental impact

Freight transport accounts for more than half of all road traffic emissions. According to the IMO, maritime transport is responsible for 2% of global carbon dioxide emissions. That's equivalent to 1.5 billion cars.

In addition, cargo ships emit nitrogen oxides which contribute to acid rain. Nitrogen oxide levels have increased by 30% since 1990.

It takes up to 20 years for an oil tanker to decompose after its use. Oil spills can cause serious environmental damage. For example, the Exxon Valdez disaster caused massive damage to Alaska's coastline.

Safety issues

According to the IMO, 593 accidents involving large vessels occurred between January 2015 and December 2016. Of these, nearly one-third resulted in fatalities.

Lack of innovation

Most of the technological improvements in freight shipping come from better management of existing technology.

For instance, containerization was introduced in the sixties. But it wasn't until the 1980s that containerization became widely used.

Similarly, GPS navigation systems emerged in the 1970s but didn't become popular until the 2000s.

This shows how slow the adoption rate of new technologies can be.

Cost-effectiveness

Shipping costs keep rising due to higher fuel prices. Fuel prices have risen by 50% since 2014.

As a result, shipping companies are looking at ways to cut costs. One way they do this is through automation.

Innovations in Freight Shipping Technology

While it takes a long time for freight shipping companies to adopt new technologies, some examples of exciting innovations are already being used.

Navigation systems help ships find their way through seas safely. They're especially useful after dark or in foggy conditions.

They work by using satellites to calculate the location of the ship. These satellites send signals to receivers onboard. Based on the received signal, the receiver calculates the ship's position.

These systems are very accurate. However, they require expensive equipment.

To reduce cost, many manufacturers are developing cheaper alternatives.

Many people think that satellite navigation systems are too costly. This is because they require high-end equipment.

However, affordable navigation systems exist. For example, Google Maps uses low-cost devices such as smartphones.

The system combines data from multiple sources, including cell towers, Wi-Fi networks, and GPS satellites.

While freight carriers don't rely on Google Maps to navigate the pacific just yet, with some improvements, navigation technology will drastically reduce cost.

Autonomous vessels

These are self-driving vehicles that don't need human drivers. Instead, they rely on sensors to detect obstacles and other ships.

Some autonomous vessels are only designed to operate in shallow waters. Others are equipped with radar and sonar sensors for deeper water.

The Future of Sustainable Transport Behaviors in Freight Shipping

As mentioned earlier, the world's economy is increasing its demand for freight transportation services. But this growth comes at a cost.

It requires more fuel to move goods around the country or globally. In turn, this impacts the environment.

Improvements to energy efficiency in freight shipping

We need to look at what's happening right now to address these issues. We need to find solutions that improve sustainability in freight shipping.

One such solution is energy efficiency. There are several ways to increase energy efficiency in freight shipping. Some of them include:

Automation
Using drones instead of trucks
Better management of existing technology
More efficient engines
Reducing the number of trips
Reduced weight of containers
Improved logistics

These are just some ways to reduce the impact of freight shipping. The key is to find ways to make freight shipping more effective while reducing the number of resources required to fuel the transport sector.

Future Impact of IoT Technologies

Internet of Things, or IoT for short, is an AI-based technology that can improve logistics and help to combat staff shortages in freight transportation. See below for the positive impacts IoT could have on freight transport activity.

IoT can help to automate processes and save time. This means less human error and increased productivity.
It can also help to reduce congestion and traffic jams. By using sensors, IoT can detect road conditions and adjust routes accordingly. This prevents traffic jams at ports for trucks loading and unloading goods.
Furthermore, IoT can help to monitor the status of vehicles and equipment. This helps to prevent breakdowns and delays.
Finally, IoT can help to track shipments. This allows us to know where our cargo is at all times as IoT can link up between the ships carrying the goods and the road freight transport companies making the delivery.

In other words, IoT will make freight transportation more affordable, time efficient, and less taxing on resources.

Driverless Trucks May Change Freight Shipping Industry Forever

Freight shipping is heavily reliant on road freight transport. As a result, expected innovations like driverless trucks that will revolutionize road freight transportation will have a significant knock-on effect on freight shipping.

Positive impacts driverless trucks will have on freight shipping

Driverless trucks will be able to travel longer distances without stopping. As a result, they will be able to deliver goods faster than current modes of transport.

They will also be able to carry heavier loads, which allows them to carry more goods per trip.

This will mean fewer stops and less waiting time. It will also mean less fuel consumption.

However, there are still many challenges that road freight transport companies face before driverless trucks can be widely introduced to freight transportation.

Issues with Driverless Trucks

The first issue is safety. If driverless trucks are not properly designed, they may cause accidents.

Second, it takes time to train drivers to operate driverless trucks. In addition, there is no guarantee that drivers will become as good at operating driverless trucks as they are at driving conventional trucks.

Third, if driverless trucks do not meet certain standards, they cannot legally drive on public roads.

Fourth, there are concerns about how autonomous trucks will interact with each other. For example, what happens when two trucks collide? How does this affect the load being transported?

Fifth, there are issues around liability. Who is liable when an accident happens? What happens if a truck breaks down?

Sixth, there are questions about who pays for repairs. The freight company or the vehicle manufacturer?

Finally, there are legal issues surrounding the use of driverless trucks.

These include whether we need permits to operate these vehicles on public roads and who is held responsible in the case of a fatal collision involving a pedestrian.

Positive Impacts of Rising Technology on Freight Shipping

As technology continues to advance, so will the way freight shipping is conducted.

For example, automation can reduce costs and increase efficiency for all active transport modes. It will also improve working conditions for people within the industry.

We’ll see new technologies such as drones used to inspect containers and satellites used to track vessels.

These innovations will help to reduce the number of errors made by humans. This will lead to safer and more reliable shipments.

In addition, we’ll see new ways of transporting cargo. For example, traditional trucks could be replaced by “hyperloops” or other alternative transport measures.

Hyperloop pods will move at over one thousand kilometers per hour.

Electric motors will power Hyperloop pods. The pods will be suspended from cables attached to pylons.

Hyperloop pods would be able to travel between cities much quicker than existing methods of transport and could cost less to maintain.

There will also be new types of cargo. For example, we might see the introduction of “smart dust.”

This is a type of nanotechnology made up of tiny particles which were designed to carry information. Smart dust could be used to monitor weather conditions and deliver medicine.

This will reduce the amount of cargo carried on ships while also allowing ships to avoid rough seas.

Positive economic impacts of rising technology

Rising technology could greatly reduce the expenses of transporting goods from one place to another. This, in turn, would reduce the costs involved for businesses and consumers who regularly get goods delivered.

This would be excellent for economies as the cost of goods would fall for businesses and customers.

However, new technology could negatively impact economies in the form of job losses, and some transport companies could lose money with the falling prices for their services.

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Negative Impacts of New Technology on Freight Shipping

By now, you are very aware of new technology's positive impacts on the transport sectors, especially regarding freight transport activity. However, some people have concerns regarding these innovations by transport companies.

Here are some examples of negative impacts new technology could have on freight transport activity:

Job losses due to automation

New technology could cause job losses if it replaces workers.

For example, truck drivers are likely to be replaced by self-driving vehicles.

This could mean that many jobs will be lost. In fact, according to the International Federation of Robotics (IFR), around 1 million jobs could be lost due to automation, which could have significant economic impacts.

Loss of revenue for shipping companies

Exiting shipping companies could suffer financially if some new technologies are introduced. New technologies could open markets currently dominated by historical big players to new younger companies.

Conclusion

We have discussed how new technology can positively impact freight shipping. We have also looked at how rising technology could negatively impact the world around us.

Whatever happens in the future, freight shipping is an industry expecting some major advances in the years to come.

If you want to learn more about the freight shipping industry and the technology used for the job today, check out A1 Auto Transport.

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