Excess Capacity in Trucking: The Role of Machine Learning in Empowering Small Carriers

The trucking industry is getting a major makeover thanks to machine learning and AI. These tech marvels are helping small carriers stay in the game, even when there’s too much capacity.

Excess Capacity in Trucking

The truckload market has been swamped with too many trucks and not enough loads, with accepted truckload tender volumes down 25% from their peak in 2021. This excess capacity is due to various factors like economic ups and downs and shifting demand. But machine learning and AI are stepping in to help tackle this issue.

The Impact of Machine Learning

Machine learning, a branch of AI, is shaking up the trucking industry. It’s powering advanced digital freight matching (DFM) platforms that use AI to boost visibility and real-time monitoring. These platforms are becoming a hit with carriers, logistics tech providers, shippers, and investors.

DFM platforms use smart algorithms to efficiently match loads with trucks. These algorithms get better with each match, leading to greater efficiency and lower costs. This is especially great for small independent trucking companies working in the spot market.

Empowering Small Carriers

Machine learning software is leveling the playing field for small carriers by giving them the tools they need to compete. Truck drivers just need an app on their phones to ensure they’re making the returns they need to keep rolling.

Plus, machine learning helps small carriers make smarter business decisions. They can use AI to pull data from multiple sources—like shippers, drivers, routes, and more—in almost real-time. This lets them automate tasks and avoid problems, boosting their operational efficiency.

Conclusion

The trucking industry is being transformed by machine learning and AI. While excess capacity is a challenge, these technologies are offering new solutions and making it easier for small carriers to stay in business. As machine learning software continues to evolve, it’s expected to bring even more changes, leading to increased efficiency, lower costs, and better competitiveness for small carriers.