Market Currents #2: Automation

August 05, 2024


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Best,

Curtis, Elliot, and the Freight Trends Team

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This Issue's Index/Trend:

Automation and digital investments continue to accelerate.

Our Outlook

From the Editor's Desks....

The opinions expressed in the content of this newsletter are solely our own. They do not reflect the views of any affiliated organizations or partners and should be considered as individual perspectives offered for informational purposes only.

Automation is top of mind for many of us in this industry, and for good reason. We’re at an inflection point where technology is taking on a bigger role in our day-to-day operations, and the direction we choose (individually and collectively) will shape the future of our businesses and our industry. The question is: will automation slowly replace human workers, or will it empower them and positively change the nature of their work?

Automation technologies, robotic process automation (RPA), API integrations, machine learning are all making waves. We’re seeing automated quoting systems, route optimization, an increasing minimization of empty miles, and predictive analytics becoming a more common part of our toolkits.

We’ve seen examples where automation has played out poorly. We all remember market entrants who have entered the space, assuming our industry is a simple supply/demand optimization problem, only to get bogged down in exception management. Some companies have gone all-in on replacing humans entirely with machines, losing the critical relationship building and management aspect of our business that simply cannot be automated away.

There’s another, more promising path. Automation doesn’t have to mean replacing humans; instead it can change the nature of work and empower our teams. By automating ‘the boring stuff,’ we can free up our people and empower them to focus on what they do best: creative problem-solving, strategy, and building and managing relationships.

There are things machines can’t replicate. In our opinion, companies will successfully integrate automation by enhancing their workforces, not replacing them. The future of work in our industry makes some nervous, but we’re excited. If we strike the right balance, we can create a more effective and human-centric freight space, with new jobs and opportunities emerging, with the potential for us to positively change the nature of the work we all do.

-Elliot

I look at automation from an LTL perspective (not surprisingly) and frankly I see a long time of stagnation. I've said for some time now that LTL has been "fake automated" for a couple decades. The current auto-rating capabilities were a necessity when carriers started building and maintaining their own base rates primarily due to the sheer amount of data (zip, class and weight tier combinations).

Excitingly - we are seeing signals of the next era of automation in LTL. Everything from operational planning and execution, to digital connectivity and communication with carriers - even down to analytics, pricing and costing.

PLEASE buckle in because the next 5-10 years in LTL freight will contain the snowball of automation rolling downhill and gaining volume rapidly!

-Curtis

Companies Working on Automation:

AVRL: As highlighted with our interview with Chadd above. Tune in to learn more!
Project Apollo: Interesting work being done here in the dynamic route optimization space.
Navix: Automation of freight bill audit and invoicing for brokers and 3PLs
Parade: Capacity management and automation for 3PLs and brokers
Maven Machines: LTL routing for carriers

Podcast Ep. 1:

Our interview with Chadd Olesen of AVRL

Greenscreens Market Update

August 2024

Takeaways:

  • Weakness continues in all markets excluding the Southwest

  • While the industry patiently waits for a rebound, 2024H1 showed some seasonal trends but was far below what most hoped for.

  • Van and Reefer markets at +5.1% and +8.6% to 2024H1 baselines.

Outlook

Weakness continues in all markets excluding the Southwest. With Van and Reefer markets at +5.1% and +8.6% to 2024H1 baselines.

All other markets are relatively quiet with the Northwest showing -5.8% and -6.0% compared to 2024H1 for Van and Reefer baselines.

While the industry patiently waits for a rebound, 2024H1 showed some seasonal trends but was far below what most hoped for. With the obvious uncertainty of the Fed’s interest rate policy and a looming election, any significant improvements are difficult to forecast. Expectations for the remainder of the year are muted as a result.

Future Automation Jobs in the Space:

Some of the hot jobs in the future of supply chain automation...

Supply Chain Data Scientists

/def/: A supply chain data scientist analyzes and interprets complex data to optimize supply chain operations. They use statistical models, machine learning, and analytics to forecast demand, improve efficiency, reduce costs, and manage risks. By transforming data into actionable insights, they help businesses make informed decisions and enhance overall supply chain performance.

Companies Hiring for this role:

Automation Engineers

/def/: An automation engineer designs, develops, and implements automated systems and processes to enhance efficiency and productivity. They use technologies like robotics, control systems, and software to automate tasks, reduce human intervention, and improve accuracy. Their work involves troubleshooting, testing, and maintaining these systems to ensure optimal performance and continuous improvement.

Companies Hiring for this role:

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