06 Aug The Amazon era: how to prepare for the rise of the transportation, freight and logistics industries
The transportation, freight and logistics industries are set to experience huge booms in the near future which means now is the time to prepare your business operations.
According to the Federal Government’s Department of Infrastructure and Regional Development’s Transport and Australia’s Development to 2040 and Beyond report, the transportation industry is set to be a key cornerstone of our growth moving forward.
Australia’s national land freight task is expected to grow by around 75 per cent between 2011 and 2031. And globally, freight demand is expected to triple by 2050 according to International Transport Forum (ITF) projections.
This is largely because of the explosion of home delivery services like Amazon while ride-sharing and food delivery apps also mean more drivers will be on the road than ever before.
That means the industry is set to transform and there are a number of challenges ahead that companies will need to prepare for, to ensure they are ready for the rapid growth to come.
We can expect a shift towards more renewable fuel solutions for our vehicles
While the technology exists in 2020, there has not been a great thirst to adopt electric vehicles by the general public. But that is likely to change over the coming years as the need to reduce emissions becomes a more pressing issue.
Australia is already the 13th largest emitter of overall greenhouse gas emissions and transport emissions are projected to increase by 25 per cent by 2030 as more and more vehicles hit the road to accommodate the need for more freight and transport solutions.
That is likely to mean that more companies shift towards electric options as the technology improves in the coming years, while the ITF Transport Outlook 2019 report predicts that new technologies and improvements in logistical efficiency could also help negate freight-related CO2 emissions, reducing them by 60 per cent in 2050 compared to current projections.
Lack of suitable drivers could lead to safety issues
The surge in transportation and freight routes is already presenting a challenge when it comes to recruitment. More than 220,000 jobs are expected to open up in the next decade and filling those positions will be a challenge.
That is a safety concern, as it means drivers could work until much older ages while others behind the wheel might not have the correct training and qualifications. Freight and logistics companies are already recognising this, with 60 public submissions made to a Senate committee reviewing safety and efficiency in Australia’s road transport sector related to the looming driver shortage.
It means work will need to be done to attract talent to the industry and ensure only qualified, safe drivers are behind the wheel in an ever-expanding fleet.
Technology and innovations are going to change to benefit the transport, freight and logistics industries
The self-driving car is not just science fiction, it is rapidly becoming a reality with trials being held by major automotive companies all over the world. Right here in Australia, we saw South Australia hosting the first demonstration of a highly automated vehicle on a public road in 2015.
But to think we will have an entire network of self-driving vehicles handling all of our transport and freight by 2040 is probably a bit fanciful. Instead of looking at total automation, the real technologies that are right here at our doorstep now involve partial automation which helps assist drivers and keep them safe.
Innovations like autonomous emergency braking and advanced speed control are some of the innovations available right now that can ensure safer and more efficient operations and these are only going to improve as the technology is refined in the coming years.
There will be a greater focus on risk assessment, OHS and work safety policies to accommodate the growth in the transportation, freight and logistics industries
As these industries grow, more drivers, more routes, more hours driven, more roads to drive on and advances in technology mean that there are going to be more things that can potentially go wrong.
While legislation and industry standards are likely to evolve to more with the growth of the industry, individual companies will also have a role to play in ensuring all work safety policies and risk management strategies are up to date – and also planning ahead for the future.
You can begin your preparation for the future today by reviewing your risk assessment and OHS policies and roll out new policies and technologies that will ensure the safety of the drivers in your fleet.
JMS is the most powerful and complete journey management software available that will enable you to ensure your drivers arrive at their destinations, adhere to fatigue management requirements and that emergency assistance can be provided rapidly in the advent of an accident or breakdown in a remote location.
The app is simple to install on the drivers’ mobile device and is totally hands-free, unlike some of the competition that requires drivers to manually check-in which is unsafe and illegal. Journeys are mapped into the device and geofences are placed around destinations along the way. If a driver fails to reach these geofenced locations on time, alerts will be sent to management via SMS, push notification and email.
JMS uses the GPS built into the mobile device as well to ensure alerts are sent even in areas of no and low mobile reception and last known location can be used by emergency services to find the driver. There is also a panic button, voice reminders and when the trip is finished, the app will automatically disengage to ensure the driver is not monitored in their own time.
JMS offers free trials and a consultation with our journey management experts. Click here to find out more.