How Tech Changes Impact Freight and Logistics

Technology has a massive impact on all of our lives, including the freight industry. What happens when an old system is rendered obsolete? The recent rollback of 3G has a sunset impact on GPS. Trucks across the country, which once relied on 3G networks, may not be able to use their original technology, which will further strain the supply chain.

Read on to learn about this unique challenge to logistics technology in 2022.

Say goodbye to 3G

AT&T has recently retired their 3G network. As of February 22, 2022, trucks that used 3G technology will be crippled. More than 350,000 trucks and cold-chain trailers will no longer be in regulatory compliance. This is expected to have a significant impact on smaller fleets, which are less likely to have updated technology.

As you undoubtedly know, the supply chain is already under immense strain. The COVID-19 pandemic not only caused massive delays in shipping ports, but there’s also an increased need for truck drivers and other freight industry professionals.

Throwing this new wrench into the mix is frustrating for the freight industry and consumers alike. Now, with 350,000 trucks potentially out of commission, we are likely to see increased delays and frustration. According to Susan Beardslee, Supply Chain and Logistics Principal Analyst at ABI Research:

“It is entirely likely that many fleets that have not yet transitioned will be unable to purchase, remove, and replace devices prior to February 22. This will result in serious compliance, safety, vehicle health, and operational capability challenges to an industry that moves roughly 72.5% of the nation’s freight by weight, and during a time of rolling, crucial shortages of consumer and business products.”

To further complicate matters, both Canada and Mexico still use 3G technology. They plan to shutter their networks closer to the middle of the decade. While American drivers will be able to use updated 4G technology, international shipping partners may not be able to do so—unless they want to upgrade their trucks en masse before their own countries require it.

Finally, this has come at a time when semiconductors are at an all-time premium. Prices have risen dramatically. In turn, the technology needed to upgrade trucks is in high demand, and that demand shows no signs of slowing down the longer the wait goes on.

Logistics technology in 2022

As you can see, technology has a bigger impact on the freight industry than most people realize. The new 3G complication has added more strain to the supply chain. Smaller fleets may not have the income and access to upgrade their trucks, and international partners may not be willing to upgrade their trucks to meet American standards. The ripple effect could add to significant ground transportation delays.

Luckily, there’s a solution. Double Tap Transportation LLC can help get your products where they need to go. Call us today to talk about our logistics technology solutions for 2022. We pride ourselves on making sure that your cargo arrives safely on time—even if technological updates add new challenges.