Self-driving trucks will cut logistics costs in half and boost GDP

The digitization and automation of processes and delivery vehicles will reduce logistics costs for standardized transport by 47% by 2030, according to a new report from PwC’s Strategy and consultancy.

The Global Truck Study 2018 has found that around 80% of these savings will be attributable to the reduction of personnel in the transport and logistics industry. In addition, there will be enormous increases in efficiency: autonomous lorries, for example, will be able to travel 78% of the time from 2030 onwards, as opposed to 29% of the time since 2030. This will be because there will be no breaks for drivers and idling time will be reduced through the use of algorithms.

The future model will require more engine types, including electric, hybrid, and those powered by compressed natural gas (CNG), liquid natural gas (LNG), or fuel cells. These will coexist with the internal combustion engine that accounts for 97 percent of the market today. With these new engine types, fuel costs for trucking companies will come down significantly.

After fuel, the next biggest cost center is the driver. A fully automated truck obviously does not need a driver, which results in significant savings. Such a truck also eliminates the need for a cab, which will reduce the cost of a truck by about a third, given that the cab is one of the most expensive parts of a truck. The remaining vehicle will be a much more commoditized affair, with the only meaningful differentiating factor being the type of powertrain.

If all countries were to improve their logistics performance and reduce supply chain barriers to just half the level observed in the best-performing country in their respective regions, global GDP could increase by 2.6%.

If countries improve their border management and transport-related infrastructure services to attain 50% of the global best practice level (as observed in Singapore), global GDP would jump by 4.7% – six times more than what could result from removing all import tariffs.

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87 thoughts on “Self-driving trucks will cut logistics costs in half and boost GDP”

  1. Read in an article somewhere that most Trump supporters know in their heart or subconsciously that a billionaire will not be able to help them in any way, shape, or form. However, they supported him because he’s the one sticking his middle finger at those in the new technological society/order.

  2. Read in an article somewhere that most Trump supporters know in their heart or subconsciously that a billionaire will not be able to help them in any way shape or form. However they supported him because he’s the one sticking his middle finger at those in the new technological society/order.

  3. True, but those teamsters will get old and retire, and the unions will likely also die out once full automation becomes pervasive. The whole logistics and transportation industry is due for an upheaval in the next 10-20 years with the current rate of automation development and proliferation.

  4. True but those teamsters will get old and retire and the unions will likely also die out once full automation becomes pervasive. The whole logistics and transportation industry is due for an upheaval in the next 10-20 years with the current rate of automation development and proliferation.

  5. One major country eliminating most barriers to labour migration would provide a one time DOUBLING of world GDP and far surpass the gains from erasing worldwide import tarriffs. Check out the paper by Clemens et al called Economics and Emigration: Trillion Dollar Bills on the Sidewalk?

  6. One major country eliminating most barriers to labour migration would provide a one time DOUBLING of world GDP and far surpass the gains from erasing worldwide import tarriffs. Check out the paper by Clemens et al called Economics and Emigration: Trillion Dollar Bills on the Sidewalk?

  7. Most truck drivers don’t earn much, and they typically find somewhere dirt cheap to buy a house or land. Most of the money ends up in the pocket of the trucking company. It is supply and demand. There are a lot of people that can drive (and learn to drive a truck)…so they don’t have to pay them much. And it is one of those jobs where criminal records are often ignored as long as they have been clean a few years. They wouldn’t get a register job at Walmart. That means there are always people clamoring to get the job and accept less pay. Some drivers do earn good money, union people, and people who haul dangerous stuff like fuel. Truck maintenance can also be extremely expensive, and there is no shortage of mechanics eager to rip people off.

  8. Most truck drivers don’t earn much and they typically find somewhere dirt cheap to buy a house or land. Most of the money ends up in the pocket of the trucking company. It is supply and demand. There are a lot of people that can drive (and learn to drive a truck)…so they don’t have to pay them much. And it is one of those jobs where criminal records are often ignored as long as they have been clean a few years. They wouldn’t get a register job at Walmart. That means there are always people clamoring to get the job and accept less pay.Some drivers do earn good money union people and people who haul dangerous stuff like fuel.Truck maintenance can also be extremely expensive and there is no shortage of mechanics eager to rip people off.

  9. Read in an article somewhere that most Trump supporters know in their heart or subconsciously that a billionaire will not be able to help them in any way, shape, or form. However, they supported him because he’s the one sticking his middle finger at those in the new technological society/order.

  10. True, but those teamsters will get old and retire, and the unions will likely also die out once full automation becomes pervasive. The whole logistics and transportation industry is due for an upheaval in the next 10-20 years with the current rate of automation development and proliferation.

  11. One major country eliminating most barriers to labour migration would provide a one time DOUBLING of world GDP and far surpass the gains from erasing worldwide import tarriffs. Check out the paper by Clemens et al called Economics and Emigration: Trillion Dollar Bills on the Sidewalk?

  12. Most truck drivers don’t earn much, and they typically find somewhere dirt cheap to buy a house or land. Most of the money ends up in the pocket of the trucking company.

    It is supply and demand. There are a lot of people that can drive (and learn to drive a truck)…so they don’t have to pay them much. And it is one of those jobs where criminal records are often ignored as long as they have been clean a few years. They wouldn’t get a register job at Walmart. That means there are always people clamoring to get the job and accept less pay.

    Some drivers do earn good money, union people, and people who haul dangerous stuff like fuel.

    Truck maintenance can also be extremely expensive, and there is no shortage of mechanics eager to rip people off.

  13. Well, it will free up some of the interstate truck stops, rest stops, and entrance/exit ramps that have become clogged up with trucks due to the silly electronic log books that mandate they stop where they are, after x hours behind the wheel.

  14. Well it will free up some of the interstate truck stops rest stops and entrance/exit ramps that have become clogged up with trucks due to the silly electronic log books that mandate they stop where they are after x hours behind the wheel.

  15. They used to transport everything by train so I think there is room in the future for more freight traffic if they develop the right software to manage it correctly.

  16. They used to transport everything by train so I think there is room in the future for more freight traffic if they develop the right software to manage it correctly.

  17. This is all so Buba can take his guns out to shoot things up in order to take his anger out on society??? No thanks. Those that are displaced need to be permanently compensated or our society will eventually collapse. Gary John the Libertarian said he eventually realized that a lot of those that voted for him didn’t share his Libertarian views, they were merely voting you for the craziest guy running. We can’t foster this kind of self destructive anger, we have to make sure everybody benefits from the advances made in automation or we are doomed.

  18. This is all so Buba can take his guns out to shoot things up in order to take his anger out on society??? No thanks. Those that are displaced need to be permanently compensated or our society will eventually collapse.Gary John the Libertarian said he eventually realized that a lot of those that voted for him didn’t share his Libertarian views they were merely voting you for the craziest guy running. We can’t foster this kind of self destructive anger we have to make sure everybody benefits from the advances made in automation or we are doomed.

  19. That includes fuel since you have a lighter vehicle.” And the bulk of these truck drivers are carrying many excess pounds of fat as they don’t exercise sitting all day and eat fattening fast food at truck stops.

  20. That includes fuel since you have a lighter vehicle.””And the bulk of these truck drivers are carrying many excess pounds of fat as they don’t exercise sitting all day and eat fattening fast food at truck stops.”””

  21. Also $ are saved on the front cab design. And the reason the front cab can be compact and vertical like that is the robot that drives the truck can sleep standing up.

  22. Also $ are saved on the front cab design. And the reason the front cab can be compact and vertical like that is the robot that drives the truck can sleep standing up.

  23. Have you looked into how easy (or not) it is to steal a Tesla and get away with it? I think only two have been stolen and not recovered.

  24. Have you looked into how easy (or not) it is to steal a Tesla and get away with it? I think only two have been stolen and not recovered.

  25. The US does use freight trains, obviously. You might want to put Switzerland (you can see Lucca from there) on a map of the US and then you might see why there are different transportation markets in the US. Trucks are for “hot freight” and trains are for bulk transport. They are not interchangeable. I would expect more transportation market segmentation in the future not less. I could see using drones (wheeled and/or flying) for light delivery and transportation pods for people. All parts of the the US’s transportation system could use a technology upgrade and automation. When our politics get straightened out maybe we can fix our bridges while doing it.

  26. The US does use freight trains obviously. You might want to put Switzerland (you can see Lucca from there) on a map of the US and then you might see why there are different transportation markets in the US. Trucks are for hot freight”” and trains are for bulk transport. They are not interchangeable.I would expect more transportation market segmentation in the future not less. I could see using drones (wheeled and/or flying) for light delivery and transportation pods for people. All parts of the the US’s transportation system could use a technology upgrade and automation. When our politics get straightened out maybe we can fix our bridges while doing it.”””

  27. You sound like a person that wouldn’t have the first clue about how to do such things. Also, remember, there will be cameras everywhere so don’t forget to smile.

  28. You sound like a person that wouldn’t have the first clue about how to do such things. Also remember there will be cameras everywhere so don’t forget to smile.

  29. No. The biggest cost center by far is the driver. For the entire US fleet, the marginal cost per mile in 2016 is $1.60. $0.67 is the driver, $0.34 is fuel, $0.25 is credit/leasing, $0.17 is maintenance. I.e., you take out the driver and you instantly reduce your costs by 40% (give or take though you need to invest in autopilots). That includes fuel since you have a lighter vehicle. Fuel types alternatives won’t move the needle much – if at all. If freight rates decline as a result and volumes remain the same GDP impact will be negative. Singapore might be best practice on their little island, but it largely irrelevant to how trucking in the US works.

  30. No. The biggest cost center by far is the driver. For the entire US fleet the marginal cost per mile in 2016 is $1.60. $0.67 is the driver $0.34 is fuel $0.25 is credit/leasing $0.17 is maintenance. I.e. you take out the driver and you instantly reduce your costs by 40{22800fc54956079738b58e74e4dcd846757aa319aad70fcf90c97a58f3119a12} (give or take though you need to invest in autopilots). That includes fuel since you have a lighter vehicle. Fuel types alternatives won’t move the needle much – if at all. If freight rates decline as a result and volumes remain the same GDP impact will be negative. Singapore might be best practice on their little island but it largely irrelevant to how trucking in the US works.

  31. Well, it will free up some of the interstate truck stops, rest stops, and entrance/exit ramps that have become clogged up with trucks due to the silly electronic log books that mandate they stop where they are, after x hours behind the wheel.

  32. Unskilled people used to work in factories. Now they drive trucks (or work for the government). They spend their whole life sitting on asz and burning diesel fuel. They can make enough money to own a $1M house in Anaheim and send their daughter to George Washington University in the limit… it’s time to take that income source away from the unskilled. I mean it. I love the idea of robots taking this job. Go cut grass until the robots take that job too.

  33. Unskilled people used to work in factories. Now they drive trucks (or work for the government). They spend their whole life sitting on asz and burning diesel fuel. They can make enough money to own a $1M house in Anaheim and send their daughter to George Washington University in the limit… it’s time to take that income source away from the unskilled. I mean it. I love the idea of robots taking this job. Go cut grass until the robots take that job too.

  34. They used to transport everything by train so I think there is room in the future for more freight traffic if they develop the right software to manage it correctly.

  35. This is all so Buba can take his guns out to shoot things up in order to take his anger out on society??? No thanks. Those that are displaced need to be permanently compensated or our society will eventually collapse.

    Gary John the Libertarian said he eventually realized that a lot of those that voted for him didn’t share his Libertarian views, they were merely voting you for the craziest guy running. We can’t foster this kind of self destructive anger, we have to make sure everybody benefits from the advances made in automation or we are doomed.

  36. It will be an easy job to attack these kinds of truck ! Just punch the tires and open up the doors or more subtle hack the system !

  37. It will be an easy job to attack these kinds of truck ! Just punch the tires and open up the doors or more subtle hack the system !

  38. “That includes fuel since you have a lighter vehicle.”

    And the bulk of these truck drivers are carrying many excess pounds of fat as they don’t exercise sitting all day and eat fattening fast food at truck stops.

  39. Also $ are saved on the front cab design.

    And the reason the front cab can be compact and vertical like that is the robot that drives the truck can sleep standing up.

  40. The US does use freight trains, obviously. You might want to put Switzerland (you can see Lucca from there) on a map of the US and then you might see why there are different transportation markets in the US. Trucks are for “hot freight” and trains are for bulk transport. They are not interchangeable.

    I would expect more transportation market segmentation in the future not less. I could see using drones (wheeled and/or flying) for light delivery and transportation pods for people. All parts of the the US’s transportation system could use a technology upgrade and automation. When our politics get straightened out maybe we can fix our bridges while doing it.

  41. No. The biggest cost center by far is the driver. For the entire US fleet, the marginal cost per mile in 2016 is $1.60. $0.67 is the driver, $0.34 is fuel, $0.25 is credit/leasing, $0.17 is maintenance. I.e., you take out the driver and you instantly reduce your costs by 40% (give or take though you need to invest in autopilots). That includes fuel since you have a lighter vehicle. Fuel types alternatives won’t move the needle much – if at all.

    If freight rates decline as a result and volumes remain the same GDP impact will be negative. Singapore might be best practice on their little island, but it largely irrelevant to how trucking in the US works.

  42. Unskilled people used to work in factories. Now they drive trucks (or work for the government). They spend their whole life sitting on asz and burning diesel fuel. They can make enough money to own a $1M house in Anaheim and send their daughter to George Washington University in the limit… it’s time to take that income source away from the unskilled. I mean it. I love the idea of robots taking this job. Go cut grass until the robots take that job too.

  43. Read in an article somewhere that most Trump supporters know in their heart or subconsciously that a billionaire will not be able to help them in any way, shape, or form. However, they supported him because he’s the one sticking his middle finger at those in the new technological society/order.

  44. Read in an article somewhere that most Trump supporters know in their heart or subconsciously that a billionaire will not be able to help them in any way shape or form. However they supported him because he’s the one sticking his middle finger at those in the new technological society/order.

  45. True, but those teamsters will get old and retire, and the unions will likely also die out once full automation becomes pervasive. The whole logistics and transportation industry is due for an upheaval in the next 10-20 years with the current rate of automation development and proliferation.

  46. True but those teamsters will get old and retire and the unions will likely also die out once full automation becomes pervasive. The whole logistics and transportation industry is due for an upheaval in the next 10-20 years with the current rate of automation development and proliferation.

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