Top 7 Transport Industry Trends in 2019



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With increasing competition in the transport sector, companies need to implement new existing technologies and significantly improve the quality of their services in order to stay afloat. What transport industry trends will be successful in the nearest future of the logistics?

Delivery of goods is a significant part of
each country’s economy. According to Statista, freight transportation amounted
to more than 150 billion U.S. dollars for the country’s gross national product
in 2016. FedEx, the leading freight forwarder alone, generated more than $60
million in revenue in the same year. Logistics companies are primarily focused
on serving the e-commerce market. Fred Smith, the founder of FedEx, estimates
that this market will reach nearly $2.4 trillion. In 2018, the company’s growth
rate was 26% higher than in 2016.

The key to success in the transportation business is to ensure the profitability, flexibility, and efficiency of services provided. This is why companies need to implement modern strategies and Transport Industry Trends to compete with other market participants.

Transport Industry Trend 1. Safer roads with electronic devices for drivers

According to mechanicfaq.com, electronic logging devices (ELDs) may have a significant impact on the transport industry in 2019. By limiting drivers’ working hours to 50 hours a week, with 2 days off, these devices can make roads safer by alerting drivers to rest. At the same time, carriers will no longer be able to deliver as much cargo as they could prior to the introduction of ELDs, but the cost of these devices will be included in the cost of transporter services. By December 2019, transport companies in the US that transport goods using trucks are required to implement ELDs.

Transport Industry Trend 2. Unmanned Aerial Vehicles

The technology for UAVs is still in the
improvement stage. Its developers still face certain obstacles. One such
challenge is to improve the software so that it can work effectively on urban
roads with heavy traffic. However, this is one of the future trends in
transport. In the long term, transport companies need to start preparing for
the upcoming technological changes in the industry and start equipping their
trucks with self-propelled navigation systems that can “learn” from
the experience of real drivers.

Thanks to artificial intelligence (AI) and
countless sensors, an AI-supported vehicle can properly assess road conditions
and learn how truck drivers behave in “non-standard” conditions on
the road. In addition, by exchanging data between vehicles, the trucks will be
able to share information and make other similar vehicles smarter. In the long
run, these vehicles have the potential to become even better drivers than
people.

In fact, this future is closer than it seems.
The Tesla electric tractor has autopilot functions that can greatly facilitate
the driving process. Walmart and many other companies, such as Pepsi, Asko, and
Loblaw, have already placed orders for Tesla Semi trucks for their commercial
needs.

Transport Industry Trend 3. Compliance with standards

Compliance with the rules is more an obligation than a trend. Commercial carriers should stay abreast of the latest standards and regulations that have been adopted, amended, or replaced by any local, state, or federal government. Whether it’s the rules for e-journals, overtime or safety regulations, the timely tracking of legislative developments in the industry will always be a trend.

Blockchain is becoming one of the new trends in the transport industry. One of the promising ways of using blockchain technology in the shipping industry is to ensure the accuracy and veracity of records showing performance, maintenance history, and various other vehicle indicators over time.

When a truck is sold as a used vehicle,
potential buyers may have questions about how the vehicle was used. Because
blockchain transactions are unchangeable and transparent, all parties involved
in the transaction can be confident that the truck’s information is true.

Another promising way to use blockchain in the
transport industry is to monitor cargo capacity. One of the factors that affect
the cost of transportation is the volume and weight of cargo. The use of the
Internet of Things (IoT) sensors can help determine the amount of space
occupied by a specific cargo. These data points can be used to calculate
shipping costs. Storing this information in a blockchain system signed by a
smart contract will allow for automatic payment based on the amount of space
occupied by the cargo being shipped.

Transport Industry Trend 5. Targeted delivery

The growth of the e-commerce market leads to
an increase in demand for targeted supplies. Providing better service means
greater competitiveness. Large freight forwarders should consider adding a
fleet of small vehicles in order to gain a greater market share. However,
targeted delivery can lead to tight delivery schedules or even additional risks
in the supply chain. In any case, targeted delivery is one of the trends in the
transport and logistics industry in 2019.

Transport Industry Trend 6. Low-Cost Airlines Extension

Budget airlines have gained a significant
market share and had a major impact on airline prices, particularly in Europe
and North America. They have differentiated levels of service that satisfy the
low-quality customer service to allow such customers to pay only for a minimal
set of services.

Low-costers are expanding quite aggressively,
lowering prices to ensure sufficient passenger or cargo traffic for their
aircraft. Some of them are focused on both national and international flights.
Their low price is mainly due to the low labor costs in the countries where
they operate and the lower amount of fuel needed to travel distances. This is
why transport companies should strive to improve the efficiency of their
services.

Transport Industry Trend 7. Drone delivery

As part of the growing trend of targeted
delivery, some retailers and transport companies are testing the delivery of
small cargo shipments using drones. At the end of 2016, for the first time,
Amazon delivered an order to its customer using an unmanned aerial vehicle.
This delivery took place in England as part of Amazon’s new Prime Air programme
which involved receiving the order within 30 minutes. Following the success of
Amazon, various companies began investing in drone delivery to increase the
profitability of their business. Considering the promising potential of this
technological approach, drone delivery will be among the main trends in the
transport market in 2019.

Given that the development of new technologies
will only accelerate in the nearest future, transport companies should remain
aware of how the industry is changing. As fuel, vehicle parts, etc. costs
increase, transport companies should apply new methods and strategies to
improve their efficiency. For the same purpose, they should look to the future
and be ready to invest in equipping their fleets with smart devices and
applying modern technologies.

The post Top 7 Transport Industry Trends in 2019 appeared first on Nationwide Auto Transportation Blog.

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