Smarter Logistics can drive Sustainability Gains

Smarter logistics, by using AI, can drive sustainability gains, writes Philipp Pfister (pictured, below), Sector Vice President, Transporeon.

How do you decarbonise an industry built on movement? Freight alone is responsible for an estimated 7% of global greenhouse gas emissions: a stark reminder of the sector’s environmental footprint. The cost of inefficiency is simply too big to ignore. As supply chains stretch and demand for fast, flexible delivery keeps rising, the pressure is only mounting. From underserviced fleets to empty mileage and poor routing, the industry suffers from breakdowns in planning and execution that don’t just drive up emissions — it also chips away at profits. But these challenges can be tackled.

Driving sustainable change with AI

AI is already delivering real sustainability gains across two critical areas that one wouldn’t necessarily consider at first sight: fleet maintenance and transport operations. By enabling faster decisions, streamlined processes and smarter systems, it’s allowing logistics to move cleaner, without compromising performance.

The stakes are high. According to Siemens, the world’s 500 biggest companies lose almost $1.4 trillion annually through unplanned downtime. This is equivalent to a staggering 11% of their revenues. Logistics operations, with their tight delivery windows and high asset utilisation, acutely feel this impact.

Fleet maintenance is often overlooked in the sustainability conversation, but it’s a critical area for impact. Vehicles that are overserviced waste resources — not just materials but time. Those underserviced are prone to breakdowns, costly repairs and early replacement. Either way, it’s bad news for both business and the environment.

Smart AI-enabled maintenance to extend asset life

AI offers a better way forward, starting with standardised maintenance. Predictive and optimised maintenance are gaining traction, particularly in North America, where new industry standards are pushing AI-driven approaches to the forefront. At the heart of this evolution is the need for standardised data. Without it, fleets rely on inconsistent or proprietary codes to track service intervals, making it almost impossible to train AI models at scale or share insights across systems.

Philipp Pfister, Transporeon

New frameworks like the Vehicle Maintenance Reporting Standards (VMRS), developed through the American Trucking Association’s Technology and Maintenance Council, are changing that. By creating a universal language for tracking maintenance items, they lay the foundation for adaptive, AI-powered decisions, such as when to change oil based on real-world engine load and usage, not arbitrary intervals.

While VMRS is a strong step forward in North America, there’s still a long way to go globally, where much of today’s maintenance data remains fragmented. To unlock AI’s full potential, the industry needs a shared data foundation: code key standards that act as a common language across fleets, platforms and regions. Some platforms are already building toward that future by developing open, interoperable data models designed for global adoption.

The impact is tangible. AI can identify the ‘sweet spot’ for servicing, reducing waste from premature oil changes while avoiding unnecessary wear and tear. Today, maintenance often relies on a dashboard light, but AI enables a future where the vehicle doesn’t just alert the driver. It books its own appointment, sends performance data to a third party and rolls into the shop at exactly the right moment.

Optimising operations for fewer empty miles

Beyond the vehicle itself, AI is transforming how freight is planned, routed and executed. One of the biggest challenges in logistics today is empty mileage: trucks that travel without cargo, burning fuel and time. While some inefficiencies are structural — rooted in geography or how the freight network is organised — many can be addressed with the right technology. AI-powered systems now analyse real-time and historical data to recommend the most efficient routes, plan multi-stop loads and continuously recalculate in transit to adapt to delays, traffic or weather.

AI in load planning, procurement and visibility

Cloud-based platforms are already putting these capabilities into practice, using AI to dynamically match loads with carriers and minimise waiting times at docks. They’re also reducing the strain of just-in-time logistics, where tight delivery windows leave little room for error. Autonomous procurement tools can now handle transport sourcing with minimal human input, using statistical and symbolic AI to analyse unstructured requests, identify suitable partners and select the best fit across time, cost and environmental criteria. Combined with intelligent load planning tools that maximise truck space and reduce the total number of journeys required, these systems help cut emissions across every kilometre travelled.

The future is collaborative and AI-enabled

When applied across maintenance, execution and operational processes, AI can help drive significant sustainability gains in the logistics sector. While AI does consume considerable energy, particularly in generative AI (GenAI) models, the types of applications used in transportation and logistics are far less compute-intensive. The efficiency gains and emissions reductions they enable usually outweigh their footprint. It’s the net effect that matters. And in this context, AI is already showing transformative potential in building a more sustainable future for the industry.

However, sustainability in logistics depends on shared data, interoperable systems and collaboration between carriers, shippers, OEMs and tech providers. Whether it’s maintenance schedules or routing algorithms, AI only works when it can access reliable data and apply it across a broad enough sample to generate meaningful insights. That’s why standardisation is so important. We’re not just building tools. We’re shaping a smarter ecosystem, one where every decision, whether on the road or in the yard, contributes to a more efficient and sustainable whole. AI won’t transform logistics in a single leap. But by focusing on the fundamentals, it’s already reshaping how goods move, how fleets are managed and how sustainability goals are met. Because when the industry moves together, we lay the groundwork for a cleaner, more resilient future.

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Podcast: AI for smarter, more efficient and resilient business

In this insightful transport management focused episode of Logistics Business Conversations, Peter MacLeod sits down with Jonah McIntire, Chief Product and Technology Officer at Trimble, to explore how artificial intelligence—particularly generative AI—is reshaping the logistics and transportation industries.

Jonah challenges the misconception that AI must be fed a company’s proprietary data to be useful. Instead, he explains that modern generative AI systems can thrive even in messy, incomplete environments, learning patterns and improving performance with limited structure. These AI systems function less like traditional software and more like digital colleagues—adaptive, communicative, and capable of learning from real-world complexity.

This transport management podcast conversation, delves into Trimble’s Transport platform, a multi-party ecosystem connecting shippers, carriers, and retailers. AI plays a pivotal role in helping these parties work together more efficiently, solving shared problems like real-time ETA prediction, theft detection, and enhanced visibility. Jonah offers a compelling example: onboarding new users to the platform, a process that previously required a large team, is now being handled autonomously by AI agents, speeding up operations and freeing up human talent for strategic tasks.

Jonah also outlines a future where logistics professionals evolve into managers of AI teams—overseeing intelligent agents that handle tactical execution while humans guide direction and decision-making. Rather than replacing workers, AI is augmenting their capabilities, enabling smarter decision-making and greater resilience across the supply chain.

This transport management podcast episode offers a realistic and optimistic view of AI’s role in logistics, showing how it’s not only improving business performance but also redefining how people work within the industry. A must-listen for logistics professionals looking to understand how to harness AI for smarter, faster, and more collaborative operations.

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Four Myths About AI in Transport and Logistics

AI’s transformative influence on the transport and logistics industry is significant, but there are still many misconceptions that need addressing, writes Bernhard Schmaldienst (pictured), Senior Director Transport Execution and Visibility Products, Transporeon (a Trimble company).

This is common for new technology. Change can be challenging, and while it is an incredible tool that has helped businesses streamline operations, cut costs, and improve efficiency, it will take time before all AI myths are debunked.

Time is running so let us get to work so we can speed the process up. Myths and misinformation about AI lead to resistance, slowing the adoption process down, meaning the supply chain industry will lag behind and miss out on the real benefits AI has to offer. So, let’s tackle four common myths and set the record straight with real-world insights and evidence.

Myth 1: AI-powered transportation is expensive and doesn’t deliver measurable savings

The reality: Like any tool, AI-powered transportation solutions have a cost to start with, but they deliver rapid returns, often within weeks. By leaning on automation and data-driven decision-making, AI cuts costs and makes the whole operation significantly more efficient. The proof: Companies using AI-driven freight procurement solutions have achieved measurable savings. AI-driven autonomous procurement tools integrate seamlessly with existing transport management systems, and for a leading FMCG customer, they have been proven to reduce freight costs by more than 10% while simultaneously cutting down on manual workloads by 80%. One global food and beverages company reported securing lower spot rates while reallocating team resources to higher-value tasks.

Myth 2: AI-powered transportation requires big internal changes

The reality: Quite the contrary. Over the past five years, the logistics and supply chain industry has seen a lot of changes, and AI has been a big part of that. Earlier-stage AI-powered solutions required time to adapt, though now they are designed to integrate seamlessly with existing systems for easy adoption. The proof: Many businesses have implemented AI solutions without overhauling their existing processes. Autonomous procurement solutions, for example, can connect via APIs, facilitating quick adoption with minimal disruption. The ‘big internal change’ in this instance would then be that the team spends less time on simple activities like accepting offers and more time on value-adding, strategic tasks. In other words, there is a degree of internal change – but it’s beneficial, not disruptive.

Myth 3: AI-powered transportation adds little value and can’t actively perform critical tasks

The reality: AI isn’t purely about automation anymore. It now actively improves decision-making, helping people optimize procurement, pricing, and carrier selection, resulting in better and faster decisions. The proof: AI earned its place as an established tool in logistics. For instance, AI-driven procurement solutions identify the best transportation capacity at the most competitive rates, lowering cost and increasing efficiency. A logistics company using AI-powered tools saw a 7–12% reduction in freight expenses while increasing automation, letting their teams focus on important negotiations instead of day-to-day transactions.

Myth 4: AI-powered transportation damages relationships with carrier partners

The reality: It’s the other way around. AI actually strengthens relationships with carriers by ensuring transparency, in-market pricing, and efficiency. It doesn’t replace human interactions – it strengthens them. The proof: Many AI-powered procurement platforms provide carriers with instant visibility into available shipments and instant pricing. With features like ‘buy-it-now’ options, carriers can accept shipments with confidence. One logistics leader noted that AI freed time up for the team to build stronger partnerships instead of being bogged down by manual negotiations and coordination activities.

Conclusion? AI is a strategic asset, not a liability

Companies in the transportation and logistics industry are under constant pressure to cut costs, improve efficiency, and adapt to shifting market dynamics. AI-powered solutions are not just another tech trend, they’re a tried and tested approach. Companies that embrace AI are already seeing considerable cost savings, streamlined operations, and strengthened relationships with carriers and partners. Rather than fearing AI, businesses should see it as a tool that complements human expertise, automates routine tasks, and empowers teams to focus on strategic growth.
The key takeaway? AI in transportation is all about helping people to work smarter, and achieve better results more efficiently.

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State of the Road Transportation Market

Despite Brexit, the UK continues to maintain strong connections with European markets. And although the UK boasts a robust maritime infrastructure, it relies heavily on road transport for trade with Ireland and mainland Europe, with road freight accounting for more than 80% of domestic cargo movements.

However, in recent years, a combination of factors, such as declines in international trade due to Brexit, rising fuel and operational costs, and labor shortages, has placed considerable pressure on local carriers, resulting in high insolvency rates, especially among smaller carriers. So how does the landscape look just over three months into 2025? Christian Dolderer, Lead Research Analyst at Transporeon, a Trimble Company, explores this further.

Demand characteristics

Our data shows, South East England, including London, is the most significant area for transportation demand, due to its high population density and concentration of industries, as well as its role as a major centre for trade and commerce. Additionally, North West England, with cities like Manchester and Liverpool as well as the Midlands, with a regional centre in Birmingham, are key areas with high transport demand.

However, there was a significant imbalance in UK international transport: inbound transport (75.9%) far exceeds outbound transport (24.1%). In 2024, the main inbound routes originated from Germany, Belgium, Netherlands, Poland and France, while primary outbound routes led to Ireland, Germany, Belgium, and France. But despite ongoing shifts toward a service-dominated economy, road transport demand in the country remains strongly influenced by industrial activity, port operations, and population centres.

Yet, cross-border shipments in the UK are heavily focused on neighbouring European countries and a large portion of transport is facilitated by ferries offering diverse routing options, complemented by the high capacity of the Eurotunnel shuttle system.

Infrastructure characteristics

The UK’s road infrastructure plays a crucial role in its transportation capabilities. The UK has a rather unusual road transport network, with only 3,864 kilometres of high-capacity motorway (19th place in density in Europe) accompanied by a vast network of lower-class main roads. While the UK benefits from well designed motorways, limitations such as congestion levels in urban areas and at key ports continue to rise, impacting the efficiency of freight movement. The supporting infrastructure, including truck stops and loading zones, is causing concern on availability and quality, as well as present need for significant investment in maintenance and upgrades to cope with motorway traffic volumes.

Another market affecting feature of the UK road infrastructure is ferries, enabling cargo to travel to Northern Ireland, minor islands and internationally. To combat the demand, a plethora of ports offer ferry connections, with natural connections going to Ireland from the West Coast and to continental Europe from ports of South-Eastern England.

Capacity characteristics

Capacity within the UK’s road transport market is defined by several factors. The UK registered 37,920 new heavy trucks in 2024, an 8.7% decrease compared to 2023, a notably lower number than the 12% average decrease in Europe. However, the fluctuation of the rejection rate is low, indicating a stable capacity availability after Brexit turbulence.

The UK relies mostly on internal capacity to fulfill domestic demand, as the level of cabotage in the UK was less than 1% of all truck activity, with Polish, Irish and Romanian registered trucks taking the largest share of that small market. Average level of cabotage penetration in the UK is significantly below that of the EU, which makes it harder to fulfill extra demand during short peak periods and might become a strategic concern in future in case of considerable demand increases.

One of the possible solutions to the looming capacity problem might be increasing the share of intermodal road-rail-road capacity on the key north-south routes, but it comes with its own set of infrastructure issues to solve.

Rate characteristics

The grand picture for transport rates in the UK is significantly more influenced by trade imbalances than by market developments. Due to the significant prevalence of imported goods volumes over exports, international transport rates for transports going into the UK from mainland Europe are significantly higher. The discrepancy is sometimes reaching over 100% increase for inbound transports versus outbound. Domestically this effect is also visible, within transports to South West England or Scottish Highlands and islands.

The UK’s road transportation market is characterised by a high domestic focus, significant inbound transport activity and infrastructure attributes specifics. The existing motorway network is densely utilised, the country experiences an imbalance in trade flows and an ongoing decrease in transport activities, but without accompanying capacity increases, as truck registrations are declining, and driver shortage is significant.

However, considerable challenges related to maintenance and congestions also exist. So, while the current domestic market still maintains a stable capacity environment with moderate rate variations, this might gradually change in coming years, as sustained and focused efforts are required to ensure the British road transportation sector can adequately support the broader economy.
While COVID-19 had a short-term impact for cross border transportation, Brexit appears to have instigated a lasting shift. This enduring change in price imbalance is likely due to reduced competition and foreign capacity for outbound transports, as UK specialists absorb operations, leveraging their expertise to navigate administrative complexities. Additionally more business to local UK carriers, operating on a different cost basis compared to continental carriers, have bolstered outbound prices.

Four years on, it seems this reduced imbalance proportion has become the new norm, poised to remain until another external factor disrupts or gradually alters the market. Considerable challenges related to maintenance and congestions also exist. Therefore, although the domestic market maintains a stable capacity environment with moderate rate fluctuations, this may gradually change over time as sustained and focused efforts are required to ensure the British road transportation sector is capable of adequately supporting the broader economy in the coming years.

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Freight Marketplace Capabilities Expanded

Transporeon, a Trimble company and transportation management platform with one of the largest logistics networks in Europe, has announced a significant expansion of its Freight Marketplace solution. The company is introducing new capabilities specifically designed for the forwarder-to-carrier spot freight market, marking Transporeon’s strategic entry into the traditional Freight Exchange segment.

While Transporeon’s platform has long facilitated connections within its extensive network, this expansion directly addresses the dynamics between freight forwarders seeking reliable capacity and asset-operating carriers looking for spot loads. It offers a modern, efficient alternative to established freight exchanges, leveraging Transporeon’s technological foundation and user base.

This enhanced Freight Marketplace functionality tackles common pain points in the spot market. It introduces a disruptive pricing model: free access for forwarders posting shipments, and a flat, low monthly fee of €100 for carriers, regardless of company size or user count. This typically represents an average 50% cost savings compared to other incumbent platforms.

Built with modern technology and drawing on Transporeon’s industry expertise, the expanded Freight Marketplace features an intuitive interface. Key innovations include:

• AI-Powered Verification: Automated checks of carrier identity and insurance details replace cumbersome manual processes, delivering greater speed and accuracy.
• Integrated Negotiation: Price negotiation occurs directly within the platform, enhanced by access to anonymised market rate benchmarks and trends, moving beyond inefficient offline haggling.

“This is a strategic expansion for us, leveraging the power of our platform and network,” said Jonah McIntire, Chief Platform Officer at Transporeon. “We are now extending our proven capabilities to specifically serve the forwarder-carrier spot market, a segment that deserves modernisation and lower prices. We are introducing a significantly more cost-effective, efficient, and transparent solution, incorporating AI and integrated negotiations to fundamentally improve how forwarders and carriers connect and transact spot business.”

The launch of these new capabilities follows strong market interest. Ten anchor forwarders are already actively using Freight Marketplace for their spot freight needs, migrating volume previously handled via other Freight Exchanges. Thousands of carriers have joined a waitlist and will gain live access to these new forwarder-focused features starting in April.

“As a leading freight forwarder, we are always looking for innovative solutions that enhance efficiency and transparency in the spot freight market,” said Markus Fuerlinger, chief information officer at Gartner KG. “Transporeon’s Freight Marketplace presents a compelling opportunity to streamline our operations, providing a modern, cost-effective alternative to traditional freight exchanges. With its intuitive interface, integrated negotiation tools and AI-powered carrier verification, we see great potential in this technology to improve how we connect with reliable carriers and manage our spot freight needs.”

The expansion of the Transporeon Marketplace into the forwarder-carrier segment signals a new phase for the European road freight spot market, leading to enhanced efficiency, greater transparency, and improved accessibility built on a trusted, large-scale network.

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Mapping and Routing Technology can Elevate Logistics Operations

With peak season rapidly approaching, logistics companies are once again preparing for the busiest time of the year. Typically, the rush leading up to Black Friday, Christmas, and Boxing Day sales means a surge in demand, with consumers snapping up deals and bagging a bargain. However, the peak period has slowly started to extend beyond the usual end of year rush, and logistics companies are being forced to scale up their operations sooner than ever before.

As a result, businesses will hire additional staff over the next few months, ranging from warehouse workers to drivers, to handle the increased volume. However, blindly adding more staff is no longer the answer – or in some cases, due to the driver shortages, even harder to do anymore. Now, having the right technology in place early is essential to deliver a flawless service during this critical period.

Andrew Nowell, Sales Director at Trimble, believes that in a season where every minute counts and consumer expectations are at an all-time high, commercial mapping and routing technology can support logistics companies by staying ahead of the curve and delivering a 10/10 service when it matters most.

Fail to Prepare Then Prepare to Fail

Unlike five years ago, when planning for peak season involved the use of manual tools and guesswork, today’s data-driven insights allow companies to forecast with confidence what Q4 will look like. When it comes to last-mile delivery, mapping and route planning technology is specifically designed for fleets and commercial vehicles, offering historical data and strategic and operational strategies to create precise plans ahead of time. Ultimately, this technology allows logistics businesses to optimise delivery routes, ensure the best utilisation of the fleet, and maintain driver retention, which is key in an industry where every parcel company is competing for additional peak season drivers.

Boosting the Onboarding Process

Commercial mapping and routing technology can be a game-changer for peak season drivers. For example, with companies onboarding seasonal specific or inexperienced drivers who are unfamiliar with routes, advanced mapping tools can really simplify the process, making a new driver’s day-to-day a lot less stressful. The reason for this is that these tools enable new drivers to confidently navigate unknown areas by providing them with optimised routes and historical traffic data.

This means that even someone unfamiliar with a route can be handed a van loaded with parcels, and they would be able to successfully complete their deliveries. This capability not only helps the drivers ease into their new job, but also improves their efficiency. Without this technology, logistics businesses’ would ordinarily have to assign fewer parcels and avoid late-night routes for inexperienced drivers in order to make the learning curve less daunting. However, with smart mapping technology helping to integrate staff into a business’s delivery ranks seamlessly, companies gain the ability to onboard new recruits in days rather than the weeks or months it traditionally takes – which is crucial during the peak season when time is of the essence.

Boosting Employee Retention

Due to the fact that many seasonal delivery drivers are paid per stop, meaning their income directly correlates to how efficiently they can complete their deliveries, route optimisation not only beneficial for the company but also for the drivers themselves. Ultimately, this can significantly reduce the number of stops a driver can make in a day, impacting their earnings and overall job satisfaction. By reducing unnecessary driving and time spent in traffic, drivers can increase their per-day earnings while also reducing the stress that comes with inefficient routing.

It’s clear that advanced mapping and routing technology presents a solution that extends beyond simply managing increased demand. With features like data-driven route optimisation, historical traffic insights, and strategic planning, logistics businesses can deliver an efficient service when it matters most. Not only can businesses onboard new employees and get them up to speed faster, but it will also enhance the experience for both seasoned and seasonal employees. In a competitive environment where the peak season stretches beyond traditional boundaries, embracing mapping technology is essential to stay ahead of the curve.

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What stops Logistics Companies Achieving Sustainability?

Sustainability is an important subject in 2024, especially when faced with rising pollution and climate change crises, writes Serge Schamschula, Head of Ecosystem at Trimble. Global logistics, which involves the transportation and storage of materials and information through supply chains, is part of the challenge that affects every industry.

Despite the crucial role the logistics and transport sector plays in global trade, its contribution to the environmental impact equals 11% equivalent to its share of the global national product.
Moreover, by 2030, the demand for urban last mile delivery is expected to increase by 78%, leading to a 36% increase in delivery vehicles in the world’s top 100 cities. Ultimately, responsibility for action rests with all of the companies involved, from shipping companies to delivery companies to airlines to retailers. Additionally, this exponential growth in delivery services is further compounded by the rapid expansion of e-commerce.

And while there are numerous challenges from this hard-to-abate sector, many companies are tackling their carbon footprint with strategies that deliver greener modes of transportation and more sustainable supply chains – from optimising routes to digitising logistics, electrifying freight fleets to solar-powering logistic facilities.

The Golden Ticket to Decarbonisation

Decarbonisation can’t be achieved by one single element, it requires a larger set of initiatives working in tandem together. There are a number of pressures both regulatory and financially on businesses to decarbonise their fleet. As mandated by the Paris Agreement, the British government has set ambitious targets for organisations to meet in order to achieve net zero emissions by 2050, and 68% reductions by 2030. Additionally, another pressure comes from customers, who are now choosing to purchase products and services from businesses that are committed to sustainability.

As a base for assessing its emissions outlay, fleets need to begin by collecting data and calculating greenhouse gas emissions, improving fleet, load and route planning, and reducing fuel and energy consumption. It is important to note that most of these solutions don’t just help reduce a company’s carbon footprint, but they also help reduce supply chain costs in many cases. For example, fleet monitoring, driver support systems, and eco-driving can reduce GHG emissions as well as fuel costs by as much as 20% at the same time.

The Challenges

Decarbonising fleets is a complex challenge, but one that businesses must address if they want to play a role in combating climate change and doing right by the planet and people. By taking action now, even if it’s small steps, businesses can help to create a more sustainable future. The biggest challenge for companies lies in data collection. Traditionally, Shippers and 3PLs have usually only planned transportation data of moderate quality, but by tapping into planning data, fleets can unlock a plethora of benefits, especially in reporting where they can see the gaps.

The use of planning data will lead to results for reporting purposes, but in reality, the actual emissions will significantly differ between carriers. The businesses need a neutral partner that can connect the supply chain players, be scalable, and allow them to obtain more realistic data by lifting what is called ‘primary data’ from the transport process. In the case of more than one consignment, the weight factor determines the share of the accountable weight, the type of energy, the mode of transportation, and the empty trip factor.

Refining processes

Through proactive refinement of key operational processes, businesses can reduce the environmental impact of their fleets and combat climate change. Fleet management systems are a prerequisite for businesses to track fuel usage and driver behaviour, with the information used to identify areas where significant fuel savings could be made. As an additional measure, route optimisation is likely to be of the utmost importance, along with driver training as a solution that is identified. In tandem, these two can lead to improved fuel efficiency for drivers, ensuring that everyone in your fleet knows the same level of best practice on the roads.

In an era defined by environmental awareness and sustainable business practices, industries are called upon to reevaluate their operational methods. And it’s no secret that the transport and logistics sector, known for its pivotal role in global connectivity, is also recognised as a substantial contributor to carbon emissions. As a result, incorporating innovative technologies and continuous refinement of strategies will enhance route planning’s transformative potential and enable organisations to meet their sustainability objectives for 2024 and beyond.

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Transforming Transport Operations with Mapping Intelligence

Route optimisation has become ever more important in recent years. The rise in ecommerce has created new routing pressures, especially in the last mile; while rising fuel costs, the push towards net zero, load theft have placed the spotlight on using preferred refuelling locations and the need for safe, comfortable parking, especially overnight.

Layering these demands over the traditional goals of controlling costs and meeting tight deadlines has highlighted the limitations of generic mapping and routing solutions. From large HGVs stuck in tiny rural lanes to the damage – and cost – incurred when a HGV hits a low bridge or the risk of compliance breach associated with taking a hazardous load through a tunnel without permission, many transportation companies have learnt the painful lesson of relying on a phone’s satnav.

Consumer mapping technologies may be ubiquitous but they lack the depth of insight required to manage the complexity associated with the commercial movement of goods. As Kate Legnola, Sr. Product Manager, Map Data at Trimble explains, dedicated commercial route mapping technology has been developed to address the very specific demands of transportation fleets, from height and weight restrictions and hazardous materials transport designations to improving driver well-being and safety.

Meeting Operational Goals

Reliance on online maps has become standard for most drivers but effective commercial route optimisation requires far more depth and breadth of insight than the basic, ubiquitous directions that cannot differentiate between a driver in a heavy goods vehicle or a two-seater sports car. Commercial mapping intelligence has evolved beyond simple visualisation on a map to offer a wide range of insights on business and driver behaviour that can significantly enhance fleet management. Complex routing algorithms are used to determine the most efficient routes for delivery or service vehicles by considering factors such as traffic patterns, road permissions, congestion and clean air zones, low bridges, narrow lanes and fuel consumption. Data, including not only construction of new infrastructure, but also any changes in existing restrictions is continually updated following routine bridge and tunnel inspections undertaken by highways authorities to give planners confidence in the safety and legality of the designated route.

Making Transportation Sustainable

Transportation companies can leverage this depth of information to plan based on different priorities, comparing routes based on sustainability, cost and time objectives. The ability to offer clients different routing models provides a competitive advantage by enabling a transport business to demonstrate how it is supporting a client’s sustainability reputation, for example. It is also assisting fleets in future-proofing their operations so they can better serve and meet their sustainability goals. Among them are a better ability to adhere to environmental rules and guidelines, a better understanding of vehicle carbon footprint, a reduction in operating costs with the efficient allocation of vehicles based on electric vehicles thus achieving long-term, sustainable cost reduction.

Boosting Fleet Efficiency

Complex algorithms are used to determine the most efficient routes for delivery or service vehicles by considering factors such as traffic patterns, road permissions, congestion and clean air zones and low bridges.. Route intelligence software can also track dwell time, a perennial problem for all transportation companies. Using precise polygonal geofencing to improve the accuracy of arrival and departure notifications, the overall journey time, including both travel and stop time, is more precise. It is also enabling companies to better understand the overall efficiency and performance of the fleet, information that can help to reduce empty miles, cutting costs and reducing emissions whilst adding revenue.

Keeping Drivers Safe

Indeed, by investing in smart mapping technology, elements such as planning processes will automatically consider drivers’ hours of service (HOS) and can include specific locations for resting and parking to avoid the risk of drivers being compelled to park up on the roadside which is both uncomfortable and unsafe. Further, using intelligent route mapping, transportation companies can optimise loyalty programs and discounts around specific brands of fuel to optimise routes, understand freight spend, and plan routes more efficiently. The routes can be designed around the use of rest stops preferred by drivers wherever possible to ensure they have access to good quality food and showers.

Driver safety can be further enhanced with vehicle specific information throughout the journey especially regarding the trickier problems that can arise during the last mile. Commercial mapping intelligence solutions pinpoint the actual final locations, such as the delivery entrance to the shopping centre rather than the consumer entrance used by the generic mapping solutions. In addition, transportation companies can opt to customise the mapping, overlaying a preferred approach path for specific locations to ensure every driver, however new to the business, has the optimal, safe route to each location, whether that is a store, warehouse or distribution centre.

For transportation companies wrestling daily with the need to mitigate disruption, reduce costs and meet escalating customer demands, intelligent route mapping and routing is becoming a strategic imperative. Companies can no longer afford to rely on traditional manual route planning processes or allow drivers to rely on their own generic mapping systems. The risks of delays, damage and missed opportunities are simply too high.

Intelligent route mapping provides businesses with a chance to improve day to day planning and ensure routes are optimised for each vehicle, taking into account the essential features of weight, size and hazardous materials. It gives the chance to focus on both driver performance and well-being, enabling companies to prioritise access to safe overnight parking and rest stops. Finally, it also delivers vital insight into the intricate interplay of suppliers, processes, and partners that allows transportation companies to optimise operations, intelligently consider innovations in areas such as EVs, and confidently navigate today’s complex marketplace.

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More Turmoil for Shipping?

Geopolitical upheaval and legislative change: More turmoil for shipping ahead.

There’s no such thing as a typical week for shipping. Global routes form a delicate web, and disruption is to be expected. From inclement weather to economic headwinds, disruption rarely makes global headlines, as contingency planning by shippers and carriers usually shields consumers from its effects. Notable exceptions include the period following COVID-19 lockdowns, when the whole globe felt the impact of port congestion and skyrocketing shipping costs. Recent events appear similarly momentous, putting global shipping in a precarious position and highlighting endemic issues.

When lightning doesn’t just strike once

Rather than a single lightning strike, current shipping disruption can be attributed to a barrage of unforeseen geopolitical and climatic developments. Currently, attacks by Houthi rebels are disrupting shipping in the Suez Canal, which usually accommodates roughly 12% of annual world trade and 30% of all global container traffic. Meanwhile, across the globe, an ongoing drought in the Panama Canal continues to restrict shipping capacity.

The result? Shippers are experiencing significant delays, and freight costs are skyrocketing again. For example, Transporeon data shows that container shipping prices from Asia to Europe have recently spiked by 300%. And with no end to disruption in sight, this may just be the start! But geopolitical upheaval is just one of many sources of disruption facing the European maritime transportation sector, with two important legislative changes coming into force.

Introducing the EU Emissions Trading Scheme

Designed to reduce shipping emissions by encouraging carriers to invest in sustainably-fuelled vessels, the EU Emission Trading Scheme (ETS) came into force at the start of 2024. Shipping companies are now obliged to buy permits for a portion of their emissions (gradually increasing to 100% by 2027) for all inbound, outbound and transhipment vessel movements. LNG and other ‘sustainable’ fuels are exempt from EU ETS. However, these are currently used in less than 1% of maritime transportation, and it’s likely to take decades to build capacity. So, in the short term, most carriers will view EU ETS as a ‘cost of doing business’. An extra ‘ETS/fuel surcharge’ will most likely be passed onto shippers.

The end of CBER

In April, the EU will make another significant legislative change by discontinuing the 2009 Consortia Block Exemption Regulation (CBER), which allowed shipping companies to cooperate in consortia. CBER was introduced to improve service availability and market options for shippers, intended to drive down the price of maritime transportation. However, the pandemic exposed its flaws (limited oversight and information-sharing), which allowed larger carriers to consolidate and potentially exploit loopholes. This led to higher prices and reduced service options for shippers – and ultimately to the exemption’s demise.

The full implications of ending CBER aren’t clear yet. Shipping consortia will need to carefully assess whether their current cooperation agreements are compatible with general EU antitrust rules when offering joint services or sharing slots, capacity and data. However, some speculate that we could see reduced competition (and therefore capacity). Container shipping is very capital-intensive, and there’s a high barrier for carriers to add new services to a line, particularly when collaboration is limited. However, there’s also a clear expansion opportunity for carriers who already have a strong market position.

If disruption is a given, how can shippers prepare?

Ask any shipper, and they’ll tell you that delays aren’t always inherently problematic. However, a mismatch between their expectations (i.e. the timely arrival of cargo) and reality (i.e. delays) can have serious repercussions in the form of resource misallocation and unnecessary costs. These are ultimately passed onto consumers when problems stack up – so everyone loses.

Unfortunately, ‘unexpected’ delays are far too common in maritime transportation. The problem isn’t that delays happen ‘too suddenly’ for shippers to act, but that there’s a lack of information-sharing within the industry. Shippers routinely lack regular updates on the status of their freight, and if freight has been booked via a third party, tracking information is often completely unavailable.
Maritime transportation suffers from endemic data fragmentation. For instance, to track freight, shippers currently have to ‘call’ different carriers’ APIs individually for each vessel. The technology to fix this problem already exists. In recent years, it has been widely implemented across other transportation modes – to the point where real-time visibility is now becoming standard practice for road freight.

In maritime transportation, the key to minimising disruption lies in increasing cross-industry collaboration and boosting the data maturity of shippers and carriers. Ideally, early impact identification and analysis require shippers to have access to a single source of truth with data from all carriers. Though data fragmentation can’t be fixed overnight, shippers can already implement technologies that offer improved visibility into the location of freight and enable them to predict where future disruption might occur. The bottom line? Shippers can’t control the climate. Or geopolitics. Or legislative changes. But they can control how they respond to disruption.

by Lena von Fritschen, Director Market Intelligence at Transporeon, a Trimble Company.

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Industry View: Secure Your Supply Chain Now to Beat Disruption

 

Transporeon Launches Freight Marketplace

Transporeon, a leading Transportation Management Platform and a Trimble Company, announced today the launch of Freight Marketplace, a neutral (of equal benefit to both shippers and carriers) deal-making hub for freight procurement.

Both buyers and sellers of transportation services face ongoing challenges in aligning capacity and assessing fair pricing. In addition, insufficient transparency and fragmented systems can lead to low relevance on carrier tender invitations and inefficient alignment with shippers’ service preferences. Negotiating efficiently and fairly is also a challenge due to the lack of standardised data sets, which hinder like-for-like comparisons and make it difficult to consider factors beyond price, such as sustainability and service levels.

Transporeon’s Freight Marketplace addresses these challenges head-on with a new solution designed to transform logistics procurement and redefine how companies buy, sell, negotiate and contract. Its key benefits include:

● A central location for deal-making: Freight Marketplace unites carriers and shippers ‘under one roof’ to do business based on their specific needs, capabilities and requirements. It taps into Transporeon’s extensive network of 1,400+ shippers and 158,000+ carriers for instant scale, creating a definitive catalogue of buyers and sellers.
● Simplified negotiations: Freight Marketplace uses advanced algorithms to simplify negotiations and optimise the procurement process.
● Multi-dimensional negotiations that factor in sustainability: Negotiations between shippers and carriers often focus solely on price, disregarding other factors such as volume, lead time and sustainability. Freight Marketplace solves this challenge, enabling shippers and carriers to factor pricing, volume, CO2 emissions and more into negotiations. Buyers can prioritise low-emission options, while sellers have a platform to showcase their efforts in reducing emissions.
● Enhanced visibility and transparency: Freight Marketplace allows logistics providers to build comprehensive profiles that include their expertise, services, performance metrics and fleet data. To establish transparency, it blends self-declared facts with third-party verified information and real-world insights from the Transporeon platform. Shippers have similar profiles, enabling both parties to search for partners that precisely match their specific requirements, ensuring a smooth matchmaking process.

Platform neutrality

Freight Marketplace drives value for both buyers and sellers through neutrality, ensuring an environment where all players can benefit equally:
● Buyers benefit from pre-structured, standardised data that simplifies finding new partners through high-quality profiles. Freight Marketplace makes it easy to access fair pricing and optimise decisions based on other factors such as volume, lead time, and sustainability.
● Sellers gain access to a broader range of shippers and mini tenders, allowing them to win new business. Since every event is structured the same way, sellers can also evaluate opportunities more efficiently, meaning they no longer need to decipher shipper-specific jargon or endless Excel table names.

Stephan Sieber, CEO at Transporeon, said: “Finding reliable partners, aligning capacity and securing fair agreements is a long-standing industry challenge. That’s why we built Freight Marketplace to take freight procurement to the next level. At its core, our new solution is a one-stop shop for deal-making, empowering buyers and sellers alike to connect, negotiate and close new business. This is supported by advanced algorithms, full transparency and a focus on sustainability.”

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