2020-11-13
The race is on to meet demand for autonomous trucks Since 2013, venture capital investment in trucking and logistics-related technologies have soared from just over US$100 million to what, in 2020, seems to set surpass US$2 billion. The innovation associated with autonomy – and the fabled self-driving truck, above all – has attracted the most interest. Their proponents point to perks around delivery times, costs, and the counteracting of a truck driver shortage. With 65% of consumable goods in the US trucked to market, a report by McKinsey & Company said autonomous trucks would change the cost structure and utilization of trucking. This is compounded by ever-greater pressure from e-commerce. Automation at every point in the supply chain is proving vital to cope with demand— autonomous trucks are estimated to save 45% in operating costs (between US$85 billion and US$125 billion) for the US for-hire trucking industry. The fledgling industry is attracting the keen interest and convergence of a strange combination of cutting-edge start-ups and age-old, well-oiled stalwarts. Back in ’17, Elon Musk rolled out Tesla’s fully electric semi-truck, capable of 500 miles between charges and 80,000 pounds in carrying capacity. Every step of the way, its Autopilot technology has been developed, nudged, and rivaled by a smorgasbord of competitors, one of which – Nikola – has claimed Tesla’s creation infringes its own patents. Last year, Daimler bought autonomous vehicle firm Torc Robotics, acquiring “advanced, road-ready technology” for level 4 autonomous driving, while last year, Plus.AI conducted the first real-world commercial freight delivery by a self-driving truck, carrying 40,000 pounds of Land O’Lakes butter in a three-day trip across the United States. What will change? For starters, as the race for autonomous trucking passes the finishing line, and all starters are joined by more and more competitors, daily operating times will increase. This necessitates the surrounding supply chain to shift, expand, and mold to new reality of operation. Such a shift will be incremental, and won’t be seamless. Companies working in logistics and dealing with goods across the supply chain will need to put a renewed onus on flexibility and around-the-clock operations, which is no mean feat. Ultimately, capturing economic gains from autonomy requires mastering an (almost) entirely new set of processes and systems, designed to keep vehicles rolling in a manner that not only assures safety – for any inefficiency will be exposed and scrutinized – but also provides a positive return on investment. Over time, we would expect to see a more balanced utilization of routes, as well as a reduction in mixed traffic and commuter congestion. If the technology is nailed, then peak hours of travel can be circumnavigated to provide greater assurance on cargo arrival times, partnered with improved safety of fellow road-users. Then there are the drivers. Though decreasing in popularity...
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