Disruptions in US Freight Transportation: What You Should Know


Nov. 30 2017, Updated 1:47 p.m. ET

Disruptions in the US transportation sector

The US transportation sector (IYT) is set to witness some disruptions in the near term. They will most likely happen on three fronts. First is the full-fledged implementation of the ELD (electronic logging device). Second is Tesla Motors’ (TSLA) recently showcased all-electric semi truck. The third is the emergence of blockchain technology in the transportation (JBHT) and logistics industry.

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Electronic logging device

The deadline is December 18, 2017, for ELD implementation. The US transportation and logistics (XPO) industry will most likely face service issues due to the ELD mandate. It’s human nature that most people, including truck drivers, won’t like an electronic gadget telling them when to stop, take a break, and restart.

Tesla’s new electric semi truck

On November 16, 2017, Tesla Motors (TSLA) unveiled its all-electric semi truck. The unveiling had been scheduled for September. With Brent crude oil prices hovering around $63.60 per barrel, TSLA’s announcement of an electric truck was much anticipated.

Blockchain technology in logistics

Blockchain technology, originally designed for the Bitcoin system, has spread its wings. Now, the technology will be tested in the transportation and logistics (CHRW), healthcare, and financial services industries.

Blockchain is an electronic ledger that contains an enormous database. This ledger is updated in real time and kept at various locations so it can be monitored easily. Blockchain technology is a real person remotely working for the participants of the supply chain.

In this short series, we’ll discuss each of the disruptions, starting with the ELD.


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