The trucking industry has seen its fair share of capacity issues over the past several years. Even before COVID-19, the industry faced an ongoing driver shortage that has chipped away at independent truckers and small trucking companies that make up most of the industry. The pandemic and other recent factors have compounded these problems.

Let’s take a closer look at capacity issues facing the industry and how intermodal transportation and advanced telematics can address these challenges.

The COVID-19 pandemic has exacerbated the trucking industry’s capacity challenges—and telematics are critical to solving them.

Capacity Issues in Logistics

The logistics industry has experienced high demand for the movement of essential goods and pharmaceuticals throughout the COVID-19 pandemic. These demands are compounded by a secular trend toward ecommerce sales that require higher levels of shipments between distribution centers and customers throughout the country.

Capacity has also been impacted by several factors:

1. Changing Demand Patterns: COVID-19 has had a mixed impact on the economy with some industries performing better than others. Trucking companies serving heavy industry, for example, have suffered from less demand whereas ecommerce distribution has seen a sharp uptick in demand—trends that are likely to continue.
2. Fewer Trucking Companies: Trucking company failures nearly tripled in 2020 from the prior year as COVID-19 put pressure on smaller operators. These independent truckers and small trucking companies make up the majority of freight carriers, with 91% of fleets operating six or fewer trucks and 97% operating 20 or fewer trucks.
3. Fewer Truck Drivers: The trucking industry had about 80,000 fewer drivers in 2020 from the prior year as federal stimulus increased unemployment benefits, making it possible for drivers to earn more staying home than being on the road. At the same time, truck drivers tend to skew older, and many are approaching retirement age.
4. More Government Regulation: The CDL Drug & Alcohol Clearinghouse removed 40,000 drivers between January and September of last year due to failed test results while new hair follicle testing could eliminate five or ten times that amount. Existing tort laws also put smaller trucking companies in jeopardy when crashes occur.

At the same time that demand is on the rise, there are fewer containers and space available for freight due to driver shortages and other factors. These dynamics make it difficult for shippers to find a full truckload to haul freight to specific destinations and can cause a dramatic increase in full truckload pricing that impacts the entire market.

Intermodal Transportation

The most obvious way to address these challenges is through the use of intermodal transportation that combines trucks, freight trains and ships. In fact, fourth quarter 2020 intermodal loads were up nearly 10% compared to 2019, according to the Association of American Railroads, as rail executives hope to capture some trucking market share.

There are a handful of cases where intermodal makes sense for shippers:

• They’re transporting cargo over long distances (> 300 miles).
• Their cargo weighs less than 25 tons.
• Their cargo has an intermediate value.
• Cargo flow must be continuous in similar quantities.

Railroads work almost exclusively with intermodal marketing companies, or IMCs, that buy wholesale and sell to beneficial cargo owners, or BCOs. When choosing an IMC, shippers should ensure that they have policies in place to handle intermodal damage, visibility into shipments in transit (e.g., real-time EDI updates) and cargo insurance coverage in place.

The challenge is that intermodal requires a paradigm shift in the way that cargo is shipped to customers. For example, trailers are a suboptimal solution because they cannot be double stacked—a key advantage of containers—while international container owners don’t like their containers going too far inland and away from ports.

In addition, intermodal requires a change to load configurations compared to truckload operations. Shipments must be legal at both origin and destination ramps with a recommended maximum laden weight of 42,500 pounds and a maximum weight of 80,000 pounds. Loads also experience harmonic vibrations that will move a load laterally or longitudinally in transit.

Finally, the trucking industry could resolve its capacity issues and intermodal could see its own capacity problems in the future—as happened in 2018. The move may be necessary for some larger shippers that require the additional capacity, but for many smaller to mid-sized shippers, there may be better ways to address capacity issues.

How Telematics Can Help

A better way to solve capacity issues is by improving efficiency through the use of telematics and data. By integrating telematics devices, fork trucks and in-cab solutions, back-office logistics management portals and advanced analytics create transparency and efficiency at each point in the supply chain and eliminate many of the underlying causes of capacity issues.

For example, companies that embrace telematics can identify empty containers, validate drop-and-hook opportunities or alert a receiver of cargo shifts in transit that will require additional time to inspect, which can dramatically reduce turn times. Distribution centers can also use the data to be proactive in preparing for truck turns and dramatically cut down dwell time.

Powerfleet’s LV Series Analytics – Source: Powerfleet

There are several key capabilities to consider:

• Assets: Advanced analytics from a wide range of sensors can gather key performance indicators, enable data-driven decisions and streamline operations to better understand opportunities to improve efficiency.
• Yard: Sensors provide a real-time look at asset locations in the yard, enabling you to choose the closest options, obtain status updates like percent loaded or temperature, and search assets for different combinations of conditions.
• Reefers: Telematics make it easy to manage reefer engines, alarms and sensors without the trailer attached, record unit hours and fault codes for predictive maintenance and integrate with TMS platforms for accurate reporting.
• In-Cab: Advanced in-cab solutions go beyond ELD compliance to provide an automated driver’s log book that’s fully compliant with FMCSA rules, real-time information on driving time and remaining hours of service and support for multiple languages.

Powerfleet for Logistics provides a wide range of solutions for the shipping and logistics industry, including in-cab ELD-compliant solutions, solar-powered supercapacitors and batteries, freight cameras, integrated reefer sensors, advance sensors for container mounting, and full visibility of containers from when they’re moved from the yard to the final destination.

The Bottom Line

The trucking industry continues to face capacity issues from both long-term supply trends and the shorter-term impact of COVID-19 on demand. Intermodal transportation is one option to address some of these supply concerns, but a more sustainable option may be an investment in advanced telematics that can improve efficiency and drive better decision-making.

Contact us or find your local sales representative today to learn more about how Powerfleet for Logistics can help address capacity issues and improve your performance.

Detention time is one of the most common complaints among drivers—and free Diet Coke and pretzels does little to help the problem. When looking at the problem more deeply, dwell time inefficiencies cost over $1 billion each year and can even impact safety on the road. Carriers and shippers should work together to solve these problems for themselves and drivers.

Let’s take a look at the impact of rising dwell times and some strategies that both carriers and shippers can implement to reduce it.

Detention time is not only a common complaint among drivers, it costs shippers and carriers more than $1 billion each year.

What’s the Impact of Dwell Time?

Dwell time refers to the total amount of time spent at a facility. According to DAT Solutions, more than 60% of drivers spend more than three hours at the shipper’s dock each time they’re getting loaded and unloaded. A separate survey found that detention times exceeded two hours in 49.5% of deliveries and pickups, with 9.3% exceeding six hours.

Detention Times Are Getting Worse – Source: ATRI Survey

The ATRI survey found that detention times have worsened between 2014 and 2018—particularly for refrigerated trucks, or reefers. While trucking volumes experienced a lot of gyration during COVID-19, the long-term trend remains toward longer dwell times during periods of normal trucking volume, although that could change post-pandemic.

Detention time—a major component of dwell time—costs drivers and carriers over $1 billion annually and may be associated with increased crash risk, according to the Department of Transportation. Despite frequent complaints from drivers, shippers and receivers aren’t typically aware of or overly concerned by these costs or risk factors.

Dwell time also impacts driver and carrier abilities to meet federal hours of service, or HOS, regulations that limit on-duty hours. In addition to losing on-duty revenue-generating time in detention, electronic logging devices, or ELDs, have made it easier than ever to get caught for HOS violations, which can impact safety ratings or trigger financial penalties.

Finally, there are significant environmental costs associated with dwell time as trucks spend long periods of time idling at picking or delivery facilities. These environmental costs are particularly high for refrigerated trailers that must be kept running at all times.

Tracking & Measuring Dwell Time

Accurate and up-to-date data is a prerequisite to any strategy aimed at reducing dwell time. Without the right statistics in hand, it’s impossible to know the location and severity of problems and come up with the right solutions. The right data can help you pinpoint where problems exist and provide alerts when they go unsolved for too long.

There are several metrics that can help assess dwell time:

• Appointment Rate = Number of Loads / Number of Appointments
• Compliance Rate = Non-Compliant Loads / Total Loads
• Delay Rate = Delayed Arrivals / Total Arrivals
• Average Delay = Total Delay Time per Period / Number of Loads per Period

Powerfleet’s Analytics – Source: Powerfleet

Powerfleet® for Logistics provides in-depth, real-time analytics to comply with federal HOS and FMSA guidelines and track dwell time and asset turns. You can easily gain visibility into exactly where and when a trailer stops, how long it dwells and whether it’s loaded or empty, as well as real-time insights into the dwell times of all trailers in a fleet.

The benefits of these technologies extend well beyond reducing dwell time. Modern tracking systems provide real-time position reports, engine performance information, two-way communication with drivers, environmental status reports and more. These capabilities make it easy to comply with regulations and conduct root cause analyses when problems arise.

Shippers can use the same technology to improve yard visibility by accessing real-time insights into what assets are in the yard by location, their status (loaded or unloaded) and what yards and terminals are operating most efficiently. The information can be used for everything from improving billing accuracy to assessing fleet utilization based on seasonality.

Strategies to Reduce Dwell Time

The primary cause of excessive dwell time is a lack of communication that leads to inaccurate schedules and missed appointments. While both shippers and carriers share responsibility, there are some best practices that can help improve communication and incentivize both parties to keep a tight schedule that minimizes dwell time for drivers.

Appointments

Appointments are critical to ensuring that everything is running on time. By staggering pick up times, shippers can keep their staff focused and reduce dwell times. When the schedule becomes too busy, shippers may want to consider using extended hours, such as weekends, to reduce congestion and make it easier to stick to a regular schedule.

In addition, there should be a simple check-in procedure for arrivals to avoid creating bottlenecks. A paperless check-in process is much faster, less frustrating and more accurate than having drivers fill out paperwork on-site. A lot of the paperwork can also be automated away with technology when using a paperless check-in process.

Detention Fees

A logical way to reconcile lost productivity and incentivize shippers to be on-time is to charge hourly detention fees. While delays can still cause issues downstream, these fees can partially offset productivity losses for both drivers and carriers. The ATRI survey found that about half of carriers charge $50 to $69 per hour and one-third charge more than $70 per hour.

Live Loads

Modern technologies are opening the door to live loading possibilities. By designating “live load” dock doors, shippers can load a trailer immediately after it docks to virtually eliminate dwell time. These live loads may only be possible under a specific set of circumstances, but when they occur, they can make a big dent on averages over time.

Drop Trailers

Drop-and-hook systems remove dwell time from the equation by enabling truck drivers to simply unhitch their trailers and keep moving onward. By keeping loaded trailers available and organized, these systems can virtually eliminate dwell times and keep products moving quickly—a win-win situation for drivers, carriers and shippers.

The Bottom Line

Dwell time—and especially detention time—is a major problem in the trucking industry. Fortunately, there are several strategies that both shippers and carriers can use to mitigate the problem. Most of these solutions rely on technology at the core in order to pinpoint problems, improve communication and keep tighter schedules.

Learn more about Powerfleet® for Logistics and how it can help your business stay on track through greater visibility or contact us today to schedule a free consultation.

Most telematics and Internet-of-Things (IoT) devices purchased after 2018 often come with 4G/LTE modems, but there are still tens of thousands of legacy 3G telematics devices in use across North America. As cellular networks begin to sunset their 3G networks, transportation and logistics fleets should act now to replace 3G devices purchased before 2018 to avoid service disruption—particularly in rural areas.

Let’s take a look at when 3G networks are expected to shut down, why fleets should upgrade to 4G/LTE and how to make the change with minimal disruption.

When Will 3G Shutdown?

The transition from 3G to 4G is starting now and will increase as the 3G networks begin to shut down in late 2021 through 2022. This means fleet operators should start the upgrade process to avoid service disruptions as soon as possible. By closing down their older networks, the cellular service providers (e.g., AT&T, Verizon, T-Mobile/Sprint) are freeing up bandwidth to accommodate increased data requirements and faster speeds for 4G/LTE and the newer 5G networks.

The official sunset dates vary by cellular provider:

• AT&T 3G: February 22, 2022
• Sprint 3G (T-Mobile): March 31, 2022
• Sprint LTE (T-Mobile): June 30, 2022
• T-Mobile 3G: July 1, 2022
• Verizon 3G: December 31, 2022

Apart from these hard deadlines, many cellular service providers have stopped accepting new 3G subscriptions and aren’t permitting legacy devices to be reactivated once their subscription ends. As a result, some fleets may be forced to upgrade ahead of the sunset dates set by the cellular service providers—which means it’s important to take action now.

Fleets shouldn’t wait until the last second to make the switch to avoid potential bottlenecks as the sunset dates approach. For example, there could be a shortage of equipment by vendors or a lack of personnel to help with installation. These delays could prove costly as more and more fleets start to ramp up their transition to 4G/LTE or newer telematics solutions over the coming months.

Benefits of Upgrading to 4G/LTE

The benefit of moving to 4G/LTE will be more reliable data connections, especially in areas of heavily congested wireless networks. 4G/LTE offers higher data throughput speeds once in session. In addition to faster speeds, 4G/LTE networks offer better coverage, more data, and improved compatibility with other technologies, which in turn, equates to more powerful information transmitted. There may be other benefits specific to various solutions providers that are enabled by the faster connection, increased bandwidth and lower latency, too. 4G/LTE provides the infrastructure that offers the ability to do more.

There are several benefits to upgrading to 4G/LTE:

• Extended Coverage: Extended wireless network coverage, particularly in rural areas, with wider coverage ranges and improved network reliability.
• Faster Connections: More bandwidth and faster data speeds along with lower latency when it comes to initiating connections.
• Compatibility: Better compatibility with new technologies and, in many cases, lower total costs over the long run.

Newer 5G networks are just starting to roll out and offer even faster connections and lower latency, but most 4G/LTE technologies remain the most widely supported and cost-effective (and the 4G sunset won’t happen until after 2030). As they come online, 5G networks could open the door to autonomous driving, and other next-generation technologies.

How to Prepare Your Fleet

The process of upgrading from 3G to 4G/LTE may seem daunting, but given the near-term 3G sunset, it’s important to start the process as soon as possible. As with most technology projects, the upgrade process includes both business and technological considerations, which makes it important to plan in conjunction with your solutions provider.

Start with the business considerations:

1. Allocate Budget: Budget must be allocated to the project in order to ensure that it can be executed without any issues. Oftentimes, solutions providers can provide an outline of the total costs for both the equipment and service. In addition, talk with your provider about budgeting options to help upgrade your fleet with zero upfront cost.
2. Name a Point Person: Choose someone within the organization to spearhead the upgrade process and coordinate between the solutions provider and the internal team.
3. Consider the Options: Assess satisfaction with your current telematics solutions provider and evaluate the newest advances in trailer tracking and ELD technologies available today to see if it makes sense to upgrade your overall solution. Consider newer features such as:
   • Asset tracking device power management, leveraging solar panels, supercapacitors and long-lasting primary batteries for long service life.
   • Camera technology providing high-definition images, get accurate visual proof of the empty or loaded status of trailers, and trailer utilization, which enables more accurate customer billing.
   • Sensor data, such as door opened or closed, cargo area environmental sensors (e.g., temperature, humidity, shock) for true freight visibility and conditions.
4. Prepare for the Upgrade: Determine the optimal times for the upgrades to take place with minimal disruption to the rest of the business. As with prices, solutions providers can usually provide a timeline for device replacement and installation.

Then, iron out the technical details:

1. Take an Inventory: Determine how many legacy 3G devices are in the fleet, as well as their brand, location, type of asset it’s on (e.g., dry van trailer, container, chassis, tanker, flatbed, reefer, in-cab, in-vehicle). The goal is to determine what type and how many assets need to be upgraded and what types of upgraded devices are best suited for your operations.
2. Come up with a Plan: Select a solutions provider, determine the costs, get up to speed on new systems and plan a phased rollout. Take into consideration the time it takes to uninstall your existing devices and the time it takes to install the new devices. Work with your solutions provider to find out their typical installation time. Depending on the device and sensors solution selected, installation can take from 15 to 30 minutes per device, phased rollouts can reduce downtime of your fleet. The key is coordinating with your solutions provider to minimize disruption. Transportation and logistics companies that address the 3G to 4G/LTE transition early enough will ensure no loss of visibility of their assets. This enables them to receive continued intelligence on the location and status of their assets.
3. Archive Legacy Data: Hardware is easy to retire but data from telematics systems should be accessible in archive or cloud-based solutions. That way, fleets can still access data from before the migration to new 4G/LTE solutions. These data archives are important for both data consistency and compliance purposes.
4. Execute Your Plan: Work with your solutions provider to create a schedule to ship and receive your 4G/LTE devices and schedule your assets to come in for uninstalling and reinstalling devices. We recommend planning on scheduling a set amount of assets per month to be addressed. Next, you’ll want to ensure that everyone at your company knows what to expect when a migration occurs and coordinate any necessary training to bring everyone from drivers to logistics professionals up-to-speed on how to utilize the new technology. Solutions providers may provide training services to both drivers and logistics personnel.

In the end, it helps to work closely with your selected solutions providers to ensure a smooth transition. By establishing an internal point person and coming in prepared with a plan, your company can ensure that the process is conducted efficiently with minimal disruptions to the business, and most importantly, ensure that the process is finished before the deadline and loss of visibility.

The Bottom Line

The 3G sunset will begin as early as Fall 2021 and could affect tens of thousands of legacy telematics and IoT devices. If fleets haven’t prepared for the 4G/LTE migration, there has never been a better time to start the process. By taking a measured approach, you can minimize disruption to the business and ensure a smooth transition to 4G/LTE or 5G compatible technologies.

If you’re ready to start the process or are considering a new solutions provider, contact us to schedule a free consultation and learn how we can help ensure a smooth transition.

Powerfleet has 20 years of experience in logistics telematics with more than 125,000 telematics devices in the field, spanning in-cab ELDs, dry van trailers, reefers, containers, chassis, tankers, flatbeds, and much more. We have previous experience with transitioning customers from Analog to 2G to 3G and we understand the unique challenges of retrofitting your fleet when you can’t stop operations. We have a team approach and can advise you on the best plan to approach the 3G sunset and offer a strong implementation team to walk you through the upgrade/rollout (e.g. uninstall and install) process.  We design, develop and manufacture a large breadth of product options for superior quality and ability to address multiple needs of mixed fleets.

FIRESIDE CHAT: Pharma Supply Chain Lessons Abroad

Each region of the globe presents a different challenge in creating efficient medical supply chains to address the unique needs of its populations. Nowhere is that more evident than in the rollout of the COVID-19 vaccine.

Our CEO, Chris Wolfe, connected with FreightWaves CSO, John “JT” Engstrom, at the FreightWaves Health & Pharma Summit to discuss the different cold chain technologies and methods to getting critical medical supplies around the globe from Israel to Africa.

Watch the full interview.

Learn more about Powerfleet cold chain and refrigerated trailer monitoring solutions. You can also request a consultation from our team of experts.