In April 2023, a member of Indago — who are all supply-chain and logistics executives from manufacturing and retail companies — submitted the question below:
“We see the future moving towards electric and autonomous vehicles. Ownership, energy sources, labor relations, and market structure will change dramatically compared to the current market of shippers, brokers, 4PLs and carriers. What do you think about [the future of transportation] in light of these factors?”
We surveyed his peers within our Indago research community, and only 12% were testing the use electric trucks for shipping or receiving goods at the time. 76% did not plan to test them over the next 12 month. In the meantime, 0% of respondents were using autonomous vehicles and 92% did not plan to test them within the next year.
Source: Indago survey conducted in April 2023 of 25 supply chain and logistic executives from manufacturing, retail and distribution companies.
One executive said, “I don’t agree with the statement that the future of transport will rely on electric and autonomous vehicles.” “Recent experience has shown that our road network is simply not ready for automated vehicles (e.g. Google & Tesla). Some truck hauls may be converted to electric, but not all. “Given that major investments in road networks will be required to accommodate electric and automated vehicles in terms infrastructures and security, I tend to think this won’t be a reality for many parts of world.”
Another executive stated, “We use electric trucks for local shuttle operation between the plant and DC.” We would like to use electric trucks for additional inbound or outbound movements, but are restricted by the limited range.
We asked our Indago Members, “How much of an impact do you think electric trucks and autonomous vehicles will have on your transportation operations in 2030?”
More than a third (36%) of respondents believe that electric trucks will play a “Very large” (12%) or a “Large ” (24%) part in their transportation operations before 2030. Only 8% of respondents believe autonomous trucks will play a “Large role” in their transportation operations.
Source: Indago survey conducted in April 2023 of 25 supply chain and logistic executives from manufacturing, retail and distribution companies.
“We know [autonomous vehicles] are coming. However, the liability issue still needs to be addressed,” said one executive. “The age-old problem, who is responsible for an autonomous truck that crashes into a busload? Where would the liability lie if no one was actually driving the truck? Who is responsible for loading the truck? The truck manufacturer? The [carrier] who deployed the asset? As excited as I am about the next generation of logistics technology, I don’t expect to be able to experience it as a professional. I will hopefully retire before 2030.”
Here are some more comments that add value from our Indago Members:
“Autonomous is not happening, but electric is.” California regulations are pushing for electric trucks despite their enormous cost and infrastructure risks.”
The market economy will lead to a gradual evolution of truck transportation. As electric and autonomous trucks become cheaper, adoption will increase.
“I think certain parts of the operation lend themselves to autonomous and electric transport. For example, I think that yard tractors could easily be autonomous and perform well. Autonomous trucks are also suitable for long-haul OTR, but they would be difficult to use for the ‘final mile’. A large drop-off lot near an interstate exit ramp allows a company to use autonomous trucks to handle 90% of the OTR component, while human drivers drive the trailers to the final destination. This combination would allow for a’sweet-spot’ solution that allows a company to gain huge benefits without having to await the trucks to be able travel city streets without incident.”
What are the biggest obstacles you see to using electric trucks in freight transportation today? Download the report to get more information on this question and others.
What do you think the future of truck transport will be? Do you agree with the idea that the future of truck transportation will be electric and automated? What steps (if any) have you taken to prepare for your future transportation environment? Post a comment to share your perspective.
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If you are a supply-chain or logistics practitioner in a manufacturing, distribution, or retail company, and you want to learn from your peers, I encourage you to learn more about Indago, and to join our research community. It’s confidential. There is no charge to join. And the time commitment is minimal.