How AI and telematics are reshaping trucking and rail

Trucking is a dominant force in the North American supply chain and logistics sector. In Canada, more than 90 per cent of consumer products are shipped, either in part or solely, by truck, according to the Canadian Trucking Alliance. Approximately two-thirds of Canada’s trade with the U.S. is done by truck—followed by rail—with over 10 million trucks crossing the border each year.

In the U.S., the numbers are similar, with the American Trucking Associations saying around 73 per cent of the country’s freight by weight is moved by truck.

Given these statistics, it’s not surprising there is a continued push to improve the efficiency of truck transportation for the betterment of the industry, consumers, businesses and the environment.

This is what excites Derek Luke and his team at Geotab, where innovative new technologies are being developed to help transform the supply chain over the next decade.

Luke, chief operating officer at Geotab, first pointed to the integration of artificial intelligence to help provide actionable insights to fleets.

“Rapid advances in artificial intelligence are leveraging billions of data points to solve complex customer problems with unparalleled precision,” said Luke. “These models can identify collision risks, predict safety-critical maintenance needs and deliver actionable insights that set new benchmarks for operational efficiency.”

With the incorporation of AI in telematics, Luke said not only will there be improvements in fleet performance, but also driver safety.

To monitor fleet performance, real-time tracking is essential, something Luke said must work seamlessly with transportation management software.

“These integrations streamline logistics and operations by enabling route optimization, real-time tracking and automated processes,” he said. “Backed by a powerful rules engine for real-time data to ensure a safer, sustainable, efficient and effective supply chain management.”

Telematics can also be better integrated with warehouse management and inventory systems, Luke said, by using advanced asset tracking technologies that provide real-time visibility and communication across the supply chain.

“Solutions like Bluetooth and Wi-Fi beaconing technology enable precise tracking of assets within warehouses and transportation hubs, offering location-based insights that improve inventory management and streamline operations,” said Luke.

Jason Gillespie, senior director of continuous improvement innovation at DHL, is also seeing continued expansion of AI to predict delivery times, using machine learning and enhanced data sources like traffic and weather.

Fully autonomous Class 8 trucks are another area Gillespie said DHL is leveraging new truck technology, working with Volvo Autonomous Solutions on this project and launching its first autonomous operation in the U.S. in December.

“The operations will be enabled by the purpose-built, production-ready Volvo VNL Autonomous, which is powered by Aurora’s SAV Level 4 technology. This truly enhances our operations, as we will use DHL Supply Chain drivers to deliver to the autonomous hubs, as well as final mile from the AV hubs, to complement the longer autonomous haul,” said Gillespie, adding that there will be a safety driver in the vehicle for the foreseeable future.

Ensuring cargo integrity is always an area of concern for any shipper, whether it be high-value goods or temperature-sensitive shipments.

“For temperature-sensitive goods, telematics systems can integrate with cold chain management solutions to monitor and maintain optimal conditions during transit,” said Luke. “This ensures compliance with regulatory standards and minimizes the risk of spoilage or damage, which is especially critical for industries such as food and pharmaceuticals.”

DHL Supply Chain uses an Internet of Things (IoT) solution, partnering with several providers to establish a solution for every use case—passive or active, temperature, impact, light exposure, etc.

Sustainability is another area DHL prioritizes, operating around 130 alternative-fuel Class 8 trucks, including renewable diesel and natural gas, hydrogen fuel cell electric and battery electric, to help reach its environmental goals.

And, as Luke highlights, telematics can help companies meet sustainability goals. Smarter routing, reduced idle time, monitoring driver behaviour, predictive maintenance and sustainability metrics and reporting are all key to reaching those goals.

“By leveraging telematics, companies can take significant strides toward achieving sustainability goals while simultaneously enhancing operational efficiency and reducing costs.”

Derek Luke, chief operating officer at Geotab

Moving forward, the trucking sector will always have its share of challenges, and for individual fleets, the cost of these new technologies is top of mind.

“With our electric yard trucks, we’ve proven that there is a return on investment and, in many ways, better than a traditional diesel due to reduced maintenance and driver comfort,” said Gillespie.

But new technologies like fuel cells and battery-electric trucks bring their own challenges, like weight—reducing cargo capacity—and scalability.

“Can the solution scale outside of a specific use case?” questioned Gillespie. “The availability of EV charging stations or hydrogen fueling stations is a key issue for scalability, and something that we are working to solve with our partners.”

On track

The efficiency, safety and sustainability of rail have also improved with the use of AI and machine learning (ML).

Danny Dever, senior product manager at rail management software company TransmetriQ, said shippers are seeing improvements in how their cargo is being tracked.

“More accurate ETA predictions are supported by massive amounts of data coming from a sophisticated network of wayside detectors, GPS and other on-board sensors and railroad dispatching systems,” he said. “AI and ML are being applied to instantly bring shippers the data they need in a format they can use.”

Dever also pointed to the efficiency of rail transportation, and although trucking has benefited from its flexibility, that is now changing.

“Intermodal service combines the long-haul efficiency of rail with the first- and last-mile flexibility of trucks,” he said. “Railroads are expanding the number of intermodal terminals to make rail shipping attractive to more shippers.”

Advanced technology in the rail sector is helping to attract more shippers to the mode, including the development of autonomous terminal operations and AI-enabled shipment tracking.

The sharing of technology tools by railroads at high-volume terminal locations is another way the sector is trying to improve operations and prevent congestion.

“This not only keeps shipments moving on schedule, but it also enables more efficient crew deployments, reduces locomotive idling and supports more accurate shipment ETAs,” said Dever.

Like the trucking sector, predictive maintenance technology helps improve the reliability of rail and its infrastructure.

AI and ML support operational safety and reliability by identifying issues on railcars.

“Railroads have installed an extensive network of track-side detectors that collect images, measure bearing heat and sound signatures, identify dragging equipment and develop other data from moving trains,” said Dever. “With advanced technology, this data is instantly analyzed and—when necessary—alerts are immediately generated for managers to order corrective actions.

“Railroads, car owners and lessors now have much more detailed data that enables the identification of equipment and component wear trends for early intervention that can extend the life of rail assets.”

With the vast network of the North American rail industry, the amount of data produced can be overwhelming. Dever said this data has been optimized in recent years through auditing of gathering techniques and the use of advanced technologies to produce more useful analysis.

“Though there is more work to do, rail industry planners now have accurate and insightful predictive tools to support improvements across a wide range of critical management functions,” said Dever, underscoring safety, system integration and cybersecurity as a few examples.

In the coming years, Dever sees improved real-time visibility, greater reliability and flexibility and more use of autonomous technology, drones and robotics playing a significant role in advancing the rail sector.

Working together

Though at times they are competing modes in the North American supply chain, trucking and rail are not always jostling each other for position. As Dever points out, better intermodal connections between rail, highway and ocean open new options for logistics planners.

“AI and ML technologies empower managers to make real-time routing and schedule adjustments based on dynamic conditions, which facilitate more accurate planning for an efficient handoff at terminals,” he said.

Geotab provides solutions for greater intermodal compatibility, integrating with transportation management systems and leveraging location data to allow telematics to facilitate better collaboration across transport modes.

Working together also helps address sustainability.

“Coordinating with other transport modes often enables more sustainable logistics solutions,” said Luke. “Telematics helps identify opportunities to shift portions of cargo to rail or maritime—modes with lower carbon footprints—while ensuring that trucking remains an integral part of the supply chain for last-mile delivery.”