The trucking industry, as well as telecom, utilities, and fleet service fleets  have experienced a lot of headwinds over the past couple of years, ranging from the COVID-19 pandemic to labor shortages to supply chain disruptions. According to a new ATRI report, all of these companies can add rising insurance premiums to the list, despite their efforts to adopt new safety technologies.

Let’s take a look at what’s behind rising insurance costs and strategies that carriers and fleet managers can take to mitigate these costs.

What’s Behind Rising Insurance Costs?

Truck crash frequency and severity increased between 2009 and 2018, but insurance costs rose faster.

The FMCSA’s Large Truck Crash Causation Study found that mechanical defects, new tour routes, and fatigue were the most common causes of truck crashes. Contrary to popular belief, drug and alcohol abuse accounted for less than 1% of large truck crashes, while aggressive driving only directly affected 5% of cases.

Litigation is a significant factor influencing the rise in premiums. With the increase in both nuclear and small verdicts, incurred losses for insurers rose by about 50% between 2015 and 2019. As a result, insurers have passed on costs to customers, reduced coverage limits, or left the market altogether, putting upward pressure on premiums.

Many fleets reduced their coverage levels or increased their deductibles in response to higher premiums. While these cutbacks reduce premium costs, they increase exposure to nuclear verdicts and entail higher out-of-pocket costs. In addition, a third of fleets also cut wages or bonuses, while a fifth cut back on equipment and technology.

Mitigating Cost & Risk with Technology

The good news is that new safety technologies could address the underlying causes of crashes and reduce insurance premiums.

Road-facing cameras are the most popular solution. Source: ATRI

Road-facing cameras have been the most prevalent risk mitigation technology. In the event of an accident, they provide irrefutable documentation, lowering claims and defense costs. As a result, some insurance companies offer discounts to fleets that leverage these technologies to aid in the defense of legal claims.

Speed governors, forward collision warning systems, adaptive cruise control, lane departure warning systems, and other safety technologies can help prevent crashes. However, they don’t necessarily address the underlying causes of large truck crashes. Tire pressure monitoring systems and preventive maintenance may be better options.

It’s also essential to note that aside from camera systems, most safety technologies don’t directly impact insurance premiums. Instead, they reduce the risk that vehicles will experience an accident. The entire industry will have to adopt safety technologies to reduce the number of incidents before there is a widespread reduction in premiums.

For operations and fleet managers, integrated asset tracking can eliminate asset theft and improve utilization. Insurance premiums can be lowered by addressing emergency work orders quicker and more efficiently thanks to knowing where the nearest worker or asset is.

Adding built-in EV support creates the ability to instantly integrate new EVs into fleets. By capturing key data, fleets become safer with positive coaching techniques.

Harnessing the Power of Telematics

Telematics solutions address rising fleet insurance premiums in several ways, from actively reducing premiums via camera systems to lowering the risk of a crash to reducing costs to maintain profit margins. And the same solutions can help increase profitability, open the door to new revenue opportunities, and even improve driver morale.

Powerfleet is a global leader of internet of things (IoT) software-as-a-service (SaaS) solutions that optimize the performance of mobile assets and resources to unify business operations. For more than 20 years, our data science insights and advanced modular software solutions have helped drive digital transformation through our customers’ and partners’ ecosystems to help save lives, time, and money. Powerfleet’s tenured and talented team is at the heart of our approach to partnership and tangible success. In addition to a top-tier suite of technologies, we provide expert advice  and help you maximize the benefits of these technologies—including minimizing the risk of an accident.

Powerfleet’s solution can help in several ways:

• Two-way communication and complex workflows avoid problems with new routes and ensure drivers have everything they need.
• Engine performance data identifies maintenance issues before they become problems and lead to costly accidents or breakdowns.
• HOS compliance solutions monitor driver activities to the minute, reducing errors and ensuring proper rest to avoid fatigue.
• Driver performance monitoring analyzes speeds, harsh braking, and sudden acceleration to spot unsafe driving habits in real-time.
• Connect key powered and non-powered assets to make sure the right assets are being used for a job.
• Integrated asset tracking eliminates asset theft and improves utilization.
• Tracking also allows for reacting and addressing emergency work orders quicker and more efficiently.

Powerfleet Vista makes it easy to keep an eye on your fleet. Source: Powerfleet

Meanwhile, Powerfleet Vista provides road and driver-facing cameras to bolster safety programs, help exonerate drivers, prevent accidents, increase security, and lower insurance costs. Leveraging the latest in AI technology, Vista can also analyze and proactively manage risky driving situations across your fleet before they become a problem.

When it comes to lowering insurance premiums, Powerfleet Vista helps address the low-hanging fruit by providing effective video solutions that may immediately lower insurance costs. Once video is in place, fleets can add telematics that prevent accidents and lower long-term risk, such as monitoring engine data for maintenance.

The Bottom Line

Insurance premiums have been rising over the past few years, thanks to an increase in both crashes and litigation. While safety technologies could help mitigate some of these costs, insurance premiums are likely to continue rising in the future. Camera and telematics systems will be vital to manage these costs over time.

Powerfleet provides a wide range of technologies and services to help minimize risk, lower premiums, and better manage your fleet. In addition, we offer cutting-edge, cloud-based software to aggregate, manage, and analyze telematics data so you can make data-driven decisions. You can access customer support any time you need it.

If you’re looking for ways to protect your fleet, contact us today to discuss how our telematics solutions could help.

I’m a big fan of Ted Lasso, mostly for obvious reasons – it’s funny, charming and deals with the ups and downs we all face in a heartfelt, relatable way. One of the things that makes it so compelling is the relationship between team dynamics and performance.

I love teams – building them, leading them, and simply being a part of them. Great teams are like magic, they enhance everything around them. They make everyone better. We have accomplished a lot in our first year at Powerfleet but what I’m most proud of is the team we are building. This global team is the heart of the new Powerfleet.

“You say impossible, but all I hear is I’m Possible.”
– Ted Lasso

If you had a chance to see our Investor Day presentation back in June, you know we titled our transformation project “Powerfleet Reimagined”. We challenged the team to embrace new ways of thinking about our business. The team responded and we have seen tremendous progress in our first year. But we are just getting started. There is so much more to come.

And today, September 19th, marks a new day for Powerfleet where we bring our new direction and strategy to life with an updated brand identity, including a refreshed look and feel, a new website and most importantly, better reflects the direction of our organization. Part of reimagining Powerfleet is our new innovative IoT platform we call Powerfleet Unity.

• Unity brings dispersed IoT data points together on a single pane of glass through our Data Ingestion Layer.
• Unity brings all vehicle and asset types onto the same platform for the broadest view you’ve ever had. And that includes supporting your transition to Electric Vehicle fleets.
• Unity’s Cognitive Data Engine applies Artificial Intelligence (AI) and Machine Learning (ML) to power traditional operational benefits as well as new data applications to solve some of your most intractable challenges, such as:
  • Advanced Fuel Management – Combine third-party pricing and livestream data with AI, gamification, and integrated incentives to improve driver behavior and optimize fuel usage.
  • Safety and Risk Management –  Over the last 10 years, fatal truck crashes have increased 29% and 90% of forklift trucks are involved in an accident over the course of their lifetime. With ongoing labor shortages and supply chains getting more complex, safety has never been more important. Use Unity’s livestream data to enhance driver coaching and performance to reduce accidents on the road and in the warehouse.  In addition, use third-party data to help identify danger spots for your drivers and proactively work around them to further reduce risk.
  • Sustainability, Electric Vehicles, and Optimized Fleet Performance – Advance your green agenda. Unity is ready to support your organization’s transition to electric vehicles (EV) with hundreds of EV data elements to optimize fleet planning, battery range, EV safety, and maintenance.
  • Fleet Compliance and Maintenance – Unity automates compliance workflows and enables your drivers to focus on getting to their destinations safely and on time. Reduce downtime and manage your maintenance operations based on real-world usage and history to ensure you don’t overspend or underspend against budget.
  • Unified Operations – With Unity’s 360 degree view of your powered and non-powered assets, you can better support your customers with automated workflows to boost efficiency and reduce errors while improving utilization, which lowers capital costs and helps ensure you have the right equipment available for the job.
  • Data for All – Share Unity’s real-time data insights across your enterprise and with partners by utilizing our Business Integration Layer to create new integrated and scalable workflows.

Powerfleet Unity brings people, assets and data together on a single intelligent platform to transform the way we do business.

The Human Heart of IoT

But what’s really at the heart of the digital transformation? Or any transformation for that matter? One of the prevailing themes in Ted Lasso is the importance of the team. Great teams play with heart. They collaborate and share openly. They share common goals and each person understands their role to make things happen. They show resilience in the face of adversity. It’s the people at the heart of digital transformation. Undeniably people. That’s why our new tagline is People Powered IoT. We have some of the most innovative IoT technology in the world but we know it takes you and your team of people and our people to make it happen. The knowledge that people bring are at the heart of your IoT transformation and is what we are all about.

Right now, there are over 800 Powerfleet team members around the world hard at work transforming businesses. It’s a team I’m thrilled to lead and one with a bright future. We hope you will join us on our journey and learn more about how People Powered IoT can transform your business at Powerfleet.com.

Steve Towe, CEO
Powerfleet

Telematics are making it easier than ever to monitor, track, and secure trucking assets and cargo across the supply chain. While GPS is the most widely adopted telematics technology, many other sensors provide immense value beyond location. You can track everything from environmental conditions to load status for maximum visibility.

Let’s look at three ways that sensors help keep cargo safe, increase efficiency, and provide visibility.

#1. Freight Visibility

Visibility is a critical aspect of staying on schedule and providing quality customer service to any transportation and logistics company. Fortunately, IoT sensor technologies offer a full view inside trailers with freight cameras, and cargo and door sensors. These technologies are making it easier to protect cargo, reduce empty miles, and plan routes efficiently.

Freight sensors/cameras can relay real-time information to drivers and dispatchers and provide alerts when things go awry. In addition to temperature, these sensors can also track humidity, defrost cycles, power status, and various other conditions. Using freight cameras can also help reduce idle time by detecting idle assets, their locations, and whether they are empty or loaded. 

This is especially important for refrigerated trailer operations as they must provide accurate proof of temperature information to comply with food and drug safety regulations and avoid costly spoilage claims. 

These technologies allow carriers to provide more than just the right temperature and set themselves apart from competitors.

#2. Just-in-Time Capacity

Several factors, including the massive increase in consumer and industrial demands, have thrown the supply chains out of balance over the last two years. The normal 3.5-day cycle for a chassis to pick up a container and return to the yard has been stretched to 17 days. A clever intermodal operation however can help keep things moving smoothly in such a volatile environment. 

There are many different ways that telematics can help improve asset utilization:

• Location Tracking: Knowing the real-time location of trucks, trailers, and chassis can help you optimize asset utilization and ensure everyone is taking the most efficient routes with the right trailers and containers.
• Load Status: Trailer sensors can tell you the real-time load status of every trailer, making it easy to optimize their usage and redistribute them between locations to address capacity issues, as well as automate yard checks.
• Chassis Tracking and Monitoring: In order to increase container utilization and reduce transit cycle time, chassis tracking and monitoring information about whether a container is on or off and whether a container is loaded or empty are vital. With this information, you can improve tight capacity issues and dwell time.

In addition to greater efficiency, telematics can help avoid mistakes in trailer assignments—a significant concern for drivers. Companies that send drivers to locations they cannot bill experience frequent reassignment and a lot of driver frustration. These frustrations can result in higher driver turnover and exacerbate existing driver shortages.

Powerfleet’s Chassis Monitoring Solutions provide continuous real-time visibility during transit, as well as more accurate arrival and departure information. Additionally, the solution offers next-level intelligence regarding container availability. It detects the displacement of weight to determine if cargo is being loaded in the container. Gaining this intelligence is crucial for creating more velocity in the supply chain while increasing utilization of your existing fleet. 

#3. Third-Party Visibility

Nowadays, customers expect full transparency into the location and status of their shipments. However, tracking containers becomes much more difficult when they leave your fleet vehicles. Intermodal transportation for example has become a vital part of the process as a result of driver and chassis shortages in the supply chain. However, this can also cause a lack of visibility into delivery processes. Carriers can gain a competitive edge by using cloud-based software solutions that provide accurate arrival and departure times and freight status with their customers. This leads to improved customer satisfaction through communication of the latest updates, a reduction of dwell/detention times by letting customers know how long a trailer has sat at the site, and ultimately improving bottom line. 

Powerfleet SaaS platform features open APIs and the ability to integrate with other third-party systems for shared intelligence that provides our customers a competitive advantage.

Choosing the Right Platform

Telematics are a central component of a fleet management system. When choosing the right provider, you should consider more than just the upfront cost. The lowest total cost of ownership and best long-term return on investment depends on several factors, including reliability, ease-of-use, customer support, and more.

Some features to look for include:

• Ease of Use: An intuitive and easy-to-use business dashboard is essential to get the most value from telematics solutions.
• Compatibility: If you already use a specific fleet management system, you should ensure new telematics work with it.
• Durability: Telematics solutions should be able to weather heat, precipitation, and external shocks to maximize uptime.
• Power: The best telematics use long-term batteries or solar power to deliver insights without interruption.
• Support: Strong customer support teams are critical to quickly addressing any questions and challenges you might face.

Real Cargo Status Visibility Source: Powerfleet

The Bottom Line

Telematics make it easy to monitor, track, and secure fleet assets. While GPS is the most widely used technology, many other sensors and freight cameras provide insights beyond location. Fleets should embrace these sensors to maximize their quality assurance and minimize disputes from customers or supply chain partners.

Contact us for a free consultation today!

Manufacturing and warehousing have the second-largest rate of preventable fatal work injuries of any sector—ahead of mining and construction.. In fact, approximately 11% of forklifts in the U.S. will be involved in an accident each year. In 2022 forklifts were responsible for 78 work-related deaths and 7,290 non-fatal injuries that affected days away from work. A serious injury usually involves worker hospitalization, days away from work and in some cases permanent disability, while a single forklift accident can cost $180,000 or more. So, if your facility has ten or more forklifts, there’s a good chance that you will experience at least one accident per year.

Fortunately, new technologies are improving workplace safety. For example, cameras provide forklift operators with increased visibility, LEDs alert pedestrians of a forklift’s presence in noisy work environments, and sensors aggregate safety data and enable managers to address problems before they result in injuries or fatalities.

Let’s take a look at breakthroughs in pedestrian warning systems and why you may want to consider them for your forklift fleets.

Forklift Safety Challenges

Material handling equipment like forklifts frequently run products or materials throughout environments such as factories, plants and warehouses where pedestrians are present. The combination of fast-moving vehicles, blind corners, and a noisy environment create inherent risks that lead to fatal and non-fatal accidents.

Some common challenges include:

• Operators cannot simultaneously look at what they’re doing and be completely aware of their surroundings.
  
• Vertical stacking is necessary to maximize efficiency but creates the risk of dangerous falling objects.
  
• Loud work environments and hearing protection reduce the effectiveness of audible warnings like horns.

While some of these problems remain unavoidable, new technologies eliminate others, opening the door to safer work environments. Facility and equipment managers may want to consider adopting these technologies to prevent costly safety incidents. As a bonus, many of these technologies simultaneously provide actionable business intelligence.

AI-based Camera Solutions

Artificial intelligence, or AI, has made tremendous strides over the past several years. In particular, AI has become quite adept at recognizing objects, enabling machines to distinguish between pedestrians, other vehicles, signs and objects. These same technologies could also solve key forklift safety challenges.

While forklift cameras provide some level of visibility, operators cannot be watching camera feeds at all times—they also need to collect loads and transport them to their destination. AI-powered cameras provide an extra set of eyes by automatically recognizing the human form in any camera and triggering real-time alerts.

These systems improve upon traditional pedestrian monitors, which require tags that must be worn at all times by anyone walking around in a warehouse. AI-powered cameras don’t require any special equipment or procedural changes. You can mount multiple cameras to provide extra safeguards when it comes to pedestrian safety hazards.

The Pedestrian & Vehicle Warning System automatically detects pedestrians and ensures safety regardless of the PPE they’re wearing. Source: Powerfleet

Powerfleet’s Pedestrian and Vehicle Warning System doesn’t require the use of any tags or high-visibility vests to detect pedestrians, ensuring safety regardless of PPE standards. When combined with industrial telematics data, it can provide additional insights for identifying areas for improvement and driver coaching to help you promote a culture of safety at your facility.

Pedestrian & Vehicle Warning Systems

Powerfleet’s Pedestrian and Vehicle Warning System uses AI and up to three cameras to help prevent accidents and protect pedestrians, goods, and facilities. With two fully-configurable, 120-degree, field-of-view zones for each camera, you can provide operators with visual and audio advanced warning and critical action based on a hazard’s proximity.

Unlike many competing solutions, the Pedestrian and Vehicle Warning System doesn’t require pedestrians to wear special apparel or wearable tags and the system activates based on the direction of travel to avoid false positives. When capturing images of a dangerous event, the system also blurs out faces to ensure privacy while capturing data to help managers assess the situation.

Additional Pedestrian Safety Technologies

Non-camera based safety accessories such as Powerfleet’s Forewarner systems are also helpful in alerting pedestrians of nearby forklifts. Rather than relying on horns in noisy environments, Forewarner systems project a bright spot  on the floor’s surface. With about 15 feet of warning time, pedestrians have a visible warning to get out of the way.

Other forewarning systems project solid blue or red LED lines below overhead crane hook locations. That way, pedestrians are immediately aware of any overhead risks that they may not be paying attention to when walking past. And like the other forewarners, these projections don’t rely on hearing in a noisy environment.

Powerfleet provides a range of visual forewarning systems, including its Forewarner Sideliner LED, and Forewarner MAXI for overhead objects. As with the Pedestrian and Vehicle Warning System, these technologies work with other telematics to improve overall safety and performance, creating a robust safety culture.

Cameras & Telematics

Many forklift safety hazards arise from risky driving habits. For example, overconfident drivers may speed back and forth when moving materials. Telematics provide an easy way to monitor these driving habits and address any problems before they result in injuries or fatalities. And when paired with cameras, you can use incident recordings for evidence or training footage.

Powerfleet’s advanced telematics platform provides wireless, automated control, and monitoring of industrial vehicles. Managers can receive alerts in real-time through a cloud-based portal for analytics, coaching, and other purposes.

The combination of AI-powered cameras and telematics can help make your drivers safer and more productive with fewer accidents. In addition, you can ensure compliance with OSHA regulations and other workplace guidelines while minimizing liability.

The Bottom Line

Pedestrian safety is essential in manufacturing, warehouse, and other environments where material handling equipment is in use. While the combination of fast-moving vehicles, blind corners, and a noisy environment can create many hazards, new technologies proactively alert both operators and pedestrians when risky situations arise. The result is fewer safety incidents and a more streamlined work environment.

If you’re interested in transforming your fleet safety, contact us today, to schedule a free consultation.

AT&T phased out its 3G network on February 22, 2022, leaving unprepared fleets at risk for lack of ELD compliance and zero visibility. In addition, fleets lost real-time data from sensors, trackers, and other technologies installed across their fleet. The lack of historical data could skew analyses even after an emergency migration to 4G LTE.

T-Mobile sunset Sprint’s 3G CDMA on March 31, 2022, and plans to shut down its 3G UMTS network on July 1, 2022. And Verizon will shut down its 3G CDMA network on December 31, 2022. In the meantime, many carriers are repurposing spectrum in certain geographic areas, causing slowdowns and impacting connectivity well before these deadlines.

Fleets shouldn’t wait to take action and upgrade their ELDs and telematics to 4G LTE. In addition to connectivity issues, microchip supply challenges could cause a delay to critical parts required to make these upgrades. As a result, fleets that don’t take action now could face an emergency situation in the near future.

Let’s take a look at why and how you should upgrade your fleet to 4G LTE technology.

4G Lifespan and Benefits

Cellular connectivity has evolved over multiple generations. In the 1980s, 1G networks provided analog, voice-only services with 2.4 Kbps data speeds. 2G networks enabled SMS and MMS messages with a maximum speed of 50 Kbps. And 3G paved the way for video calling and mobile internet with a 384 Kbps moving data limit.

4G LTE networks ushered in a new era of capabilities with 500x greater speed than 3G networks. For example, moving vehicles can access rates of 10 Mbps (10,000 kbps). The 20 MHz bandwidth sector also has a peak capacity of 400 Mbps, translating to more available bandwidth per unit of geographic area, as well as greater availability.

While 5G networks are rolling out across the country, these networks aren’t likely to replace 4G LTE in the same way that 4G replaced 3G. Rather, 5G is building on 4G using updated radios and software to improve throughput while sharing capabilities. As a result, 4G LTE networks aren’t likely to phase out for at least another ten years.

These advances have numerous benefits for trucking:

• Extended Coverage – 4G LTE networks have greater coverage in rural areas with better network reliability than 3G.
• Faster Speeds – 4G LTE networks have faster data speeds and lower latency when initiating new connections.
• Compatibility – 4G LTE networks are more compatible with new technologies and, in many cases, have a lower long-term cost.
• Video Capabilities – 4G LTE networks enable higher data speeds that support real-time video, such as Powerfleet Vista.

The rise of 4G LTE networks also comes amid a surge in new fleet telematics technologies. For example, asset tracking devices offer advanced power management with solar panels, supercapacitors, and long-lasting primary batteries. And camera technologies provide high-definition images, providing visual proof of road and cargo conditions.

New sensors also provide real-time data showing door status (open/closed), environmental conditions in the cargo area (temperature, humidity, or shock), and the load status of trailers. The result is more accurate billing and evidence to support or deny claims, which in turn helps improve customer satisfaction and retention.

How to Migrate to 4G LTE Solutions

Many trucking companies are aware of the upcoming 3G sunset but still haven’t finished evaluating technology providers. Others have no budget to acquire new technologies or remain hopeful that carriers will push out their sunset dates. Some companies are even switching carriers hoping that the new one will have a later sunset date.

There are a few things to keep in mind when upgrading your devices:

• Identify your essential requirements, such as battery life, environment, security, voice support, throughput, and cost. Each device has different capabilities, ranging from simple sensors to telematic hubs.
• Assess how the upgrades might impact other technologies, such as your fleet management solutions. In addition, consider whether you’ll need training and support for dispatchers, customer support, and other personnel.
• Determine if you want to access new technologies, like Bluetooth, solar power, or video solutions. In many cases, adding these features during an upgrade is an excellent way to level up your capabilities without a lot of added cost.

In addition to technology selection, you should have a technical migration plan in place—even if you have a small fleet with few drivers. For example, you need to catalog how many legacy 3G devices are in the fleet, archive your legacy data, and coordinate the shipping, receiving, and installation of the new telematics devices across your fleet.

The actual installation takes between 15 and 30 minutes per device. Of course, you must also ensure that drivers, dispatchers, and managers know how to use the new devices to avoid any miscommunications. As a result, you may need to budget time for a training session for these individuals and ensure that they are ready when the new solutions go live.

Consider Partnering with an Expert

The 3G sunset is imminent, and planning a large-scale deployment can be stressful on short notice. At this point, the easiest option for most fleets is working with an experienced partner that can help select the proper devices, plan out a deployment, and provide all of the extra installation and support that you need to get up and running on time.

Powerfleet provides a broad range of 4G LTE-compatible solutions across all asset types, from intermodal equipment to in-cab solutions to trailer and reefer to cargo visibility. With over 20 years of experience in telematics, we have helped transition customers from analog to 2G and 2G to 3G and understand the unique challenges these processes present.

Powerfleet’s team approach can help you devise the best plan to update your fleet, while our implementation team can walk you through the upgrade/rollout (e.g., uninstall and install) process. We also design, develop, and manufacture a wide range of product options, providing you with the flexibility to address every need with one provider.

The Bottom Line

3G networks have shut down across the U.S., paving the way for next-generation 5G networks with better speeds and connectivity. As a result, fleets using 3G ELDs and telematics are experiencing a loss of connectivity until they upgrade to 4G LTE-compatible devices. These newer devices can help not only restore connectivity, but boost performance and asset visibility.

Powerfleet has over 20 years of experience in logistics telematics with more than 125,000 devices in the field, spanning in-cab ELDs, reefers, containers, chassis, tankers, flatbeds, and much more. With experience transitioning from analog to 2G and 2G to 3G, we understand the unique challenges of implementing devices when you cannot stop operations.

Contact us to schedule a free consultation and learn how we can help ensure a smooth transition.