Trucking is one of the most common methods of transporting goods in the entire world. Over 70 percent of all goods are transported on the road in the United States and Europe. In China, that number rises to about 75 percent. Today everyone who works in the transportation industry is under a great deal of pressure. Because of digitalization, electrification and automation, international freight shipping companies have to work harder than ever to keep up.
Better Efficiency With Lower Operating Costs
Because of new advances in technology, freight trucking companies now have more opportunities than ever to lower operating costs while improving efficiency. Other companies are already testing the use of automated or autonomous trucks. Through automated technology, automated trucks could take over the long-haul parts of the journey. Traditional vehicles would handle only the first and the last mile or so of the journey. Some estimates put the cost savings at as much as 40 percent. This includes the salaries of the drivers for the long-haul portion.
International freight forwarders and startup companies are both working on creating electric trucks. This can improve efficiency while minimizing the industry’s impact on the environment. This can also save trucking companies money because operating the trucks will be less expensive than traditional fueling options. This is true for trucks that operate within about a 400- kilometer range of the company’s headquarters. Another reason that electric vehicles can be cost-effective is that they can better meet stricter standards for emissions.
Another trend that is affecting international freight shipping companies is digitalization. This advancement can help offer more efficient logistics to these companies. Customers, warehouses, suppliers, and trucks can all benefit from being connected through digital technology. Artificial intelligence can help to avoid inefficient planning and logistics. This can offer these companies an advantage over the competition.
Benefits for the Trucking Industry
Technological innovations can help reduce truck operating costs by as much as 25 percent to 40 percent. This can help to create a new business model and bring in new competitors to the market. Freight trucking companies and logistics companies alike should prepare for new competition in the market and come up with new strategies for the business.
Choose the Right Logistics Company
Here at MGA International Logistics, you can count on us to keep up with all of the newest advances in technology. These advancements will change the industry day by day, and we take pride in knowing about each change and its importance. When you need to choose from the many international freight forwarders out there, turn to MGA International Logistics. Contact us today to learn more about how our services can benefit your business.