Posted 10 months ago | by Ben Armstrong
Blockchain may Help to Tackle Truck Driver Shortages in USA
According to statistics from the American Trucking Association, the national logistics industry is facing a shortage of 63,000 truck drivers, and this gap is predicted to triple to 176,000 by 2026 – and blockchain can help!
Since three quarters of US freight depends on truck transportation, the lack of drivers may lead to more severe issues and damage for both suppliers and consumers, creating a negative impact on an increasingly contactless economy.
One of the reasons that has caused the decline in truck drivers is stressful work which requires drivers to spend long hours on the road. They have to sacrifice their health, and a personal life with their family.
Blockchain Could Help Build a Better Market
Despite the oppurtunity to make good money, the percentage of experienced drivers quitting the game is higher than in many other professions. Finding new recruits is also another challenge for carriers.
Carrier companies are seeking help from new technologies, such as self-driving cars, but so far this technology is still just in its pilot stage with high costs and no guarantee of regulatory cooperation.
Blockchain may be able to help this situation – and build a better trucking industry.
LaneAxis is one of the first freight carriers to start applying blockchain to create a new trucking system. Blockchain technology can help increase productivity of human drivers by constantly updating schedules and route maps, which speeds up delivery process and saves fuel costs.
But blockchain can do a lot more.
An Industry in Need of an Overhaul
Drivers don't need to spend much time on loading and verification when they use blockchain powered tracking systems, so they will feel less anxious.
Moreover, their legal rights and insurance are protected thanks to transparent records which are secured on the blockchain system. As the result, the ratio of drivers dropping out of the job may be lower, easing the pressure which burdens on employers.
From a wider perspective, blockchain technology can connect and enhance the entire trucking industry.
Not only does it provide better solutions for operating, storage, distribution, payment, but blockchain also automates those processes and increases effective multilateral contracting between drivers, carriers and corporate clients.
With the assistance of blockchain technology, it may gradually eliminate roles of intermediary agencies, who now work in as middlemen and push shipping costs up by double digits.
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