Inflation is causing suppliers to look for ways to reduce costs in any way possible, from altering product lineups to forging new alliances.
Supply chain service provider Procurant BB #:355257, based in Watsonville, CA, partnered with Uber Freight to give its grocery retail and produce supplier customers a new way to ship perishables. Users can book online, enjoy competitive rates, and view shipments in real time. The company is also looking into other partnerships, such as for load insurance, according to Procurant’s CEO, Eric Peters.
Another challenge for truckers is the phaseout of 2G cellular service at the end of last year.
“Since most ‘real-time’ cargo monitoring devices are based on the 2G technology band, this has caused all cargo monitoring providers to move to a new cellular platform,” explains Amy Childress, vice president of monitoring, cold chain at Emerson Cargo Solutions BB #:194324 in Boise, ID.
Over the past few years, Emerson has worked closely with technology providers to develop a 4/5G offering based on the new Cat-M1 narrow-band cellular spectrum that resides on both 4G and 5G consumer cellular networks.
Another move to the future involves electric vehicles.
Ed Treacy, vice president of supply chain and sustainability for the International Fresh Produce Association BB #:378962 in Newark, DE, for one, is impressed with the progress. “I’m seeing more and more companies starting to add electric vehicles to their fleets,” he says.
“High-priced diesel fuel is sure making people think about [electric vehicles],” says Marshall Kipp, president and CEO of Advanced Transportation Services, Inc. or ATS BB #:120506 in Visalia, CA.
“But the infrastructure to charge these electric vehicles is just not in enough places to make it a functioning option at this point. I think when you see the major truckstops putting in charging stations for 18-wheelers, we’ll see the purchase of electric trucks pick up.”
Pilot efforts for autonomous vehicles are on the rise as well. “There will be a use for these vehicles in our industry,” predicts Treacy. “We already have autonomous tractors in our fields. The mainstream rollout will be dependent on regulators and public acceptance.”
“Fully autonomous vehicles won’t back a tractor-trailer into a tight loading space,” cautions Kipp. “What I do see as a realistic possibility is linking multiple tractor-trailers together to create drafting, similar to NASCAR, to avoid drag and conserve fuel. This is a viable solution for long-distance interstate travel on dry roads. One of the biggest challenges for autonomous vehicles is dealing with the weather and road conditions.”
Another barrier is the need to provide an incentive for truckers. “You have to compensate the carrier for making those kinds of investments,” points out Fred Plotsky, president of Cool Runnings, Ltd. BB #:125423, a truck brokerage headquartered in Kenosha, WI.
This is an excerpt from the cover story in the January/February 2023 issue of Produce Blueprints Magazine. Click here to read the whole issue. https://apps.bluebookservices.com/BBOS/LearningCenter/BP/January%202023/eBook/index.html