Trucknet’s selection by Logistics Tech Outlook magazine last October was actually the outcome of the company’s successful launch of innovative technology within a traditional, stable and well-established industry.
“The global market suffers from severe logistical inefficiency. Every year, trucks are responsible for approximately 46 billion miles of empty rides,” says Hanan Fridman, founder and CEO of Trucknet Enterprise, explaining the industry’s challenge in the magazine’s October 2021 cover story. “It is a traditional industry that resists using technology, while working with many different types of service givers who connect and transport shipments using trucks, trains, ships and planes. The primary problem is the operational gap between the different modes of transport as their systems do not ‘speak' with one another, and therefore are not synchronized.”
Immediate solutions for global supply chain problems
International trade is disrupted when serious problems arise in global supply chains. Since the outbreak of the COVID-19 crisis these problems have become more severe, alongside an increase in demand and consumption as the world heads back to some kind of routine. This is reflected in rising expenses for manufacturers and carriers, due to the delay of transported goods caught in bottlenecks, a situation that causes a rise in input prices, and consequently, higher costs of products leading to an increase in the cost-of-living.
Experts claim that it will take at least three years to find a solution, and for this to happen the market must integrate efficient solutions such as Trucknet’s technology, which can be implemented immediately.
The transport and logistics industry faces a significant challenge as it forced to become more efficient and reduce its GHG emissions. We know that over 20% of the world’s total GHG emissions come from the "hard to abate" transport sector. During the recent (UNFCCC) Climate Change Conference held in Glasgow in November 2021, a Declaration on Accelerating the Transition to 100% Zero Emissions Cars and Vans by 2035 was agreed upon. It was signed by over 35 countries, 6 major carmakers, 43 cities, states and regions, 28 fleet owners and 15 financial institutions. Achieving zero emissions in the transport sector will require switching to electric transportation, a process that has yet to reach the logistics industry. Trucknet's platform is a milestone on the road to reaching this goal.
Trucknet's sharing economy model is already generating a significant change throughout Europe, focusing on transforming traditional work scheduling systems. In a nutshell, it is a cloud-based platform for efficient management which offers digitalization of the supply and transportation chain.
The platform is able to collect big data based on artificial intelligence (AI), business intelligence (BI) and machine learning (ML), and includes an online calculator to track carbon emissions reductions. In addition, the system provides smart automatic "matching" between truck capacity and available cargo based on location, as well as an easy and rapid payment system for the B2B market.
“The platform enables transport and logistics companies to significantly minimize empty rides (trucks traveling without cargo), thanks to an automatic prioritizing interface that matches available vehicles with cargo.”
Fewer rides, fewer emissions, fewer accidents
Logistics Tech Outlook is considered the leading publication in the field of transport and logistics. The printed magazine edition is distributed throughout Europe, and its digital edition is read by many around the world. The journalists are experts and opinion shapers in the field, who are constantly on the lookout for innovative and new technologies that have potential to offer groundbreaking solutions for the industry.
There are many reasons why this Israeli big data platform is generating so much interest worldwide. Fridman describes the features that were important for his selection by the publication's experts: “The platform enables full automation and optimization of land transportation for companies that manage fleets of commercial vehicles and require logistics services. It allows them to become more efficient and reduce their costs, thereby improving company efficiency, reducing costs, increasing profitability, and decreasing the number of empty trucks on the road. As a result, polluting emissions and environmental damage are mitigated, and the number of accidents involving trucks are reduced.”
In this regard, the Israel Central Bureau of Statistics’ data for 2020 show that around 30% of road accidents involve heavy vehicles (18% in the OECD and Australia), with 23% of pedestrian deaths in urban areas caused by heavy vehicles (trucks and buses). Fridman concludes: “This is a win-win-win solution we are offering the transport and logistics industry on their challenging journey towards achieving net zero emissions.”
Trucknet’s extensive sharing platform knows how to calculate transportation data in real-time and create automatic, digital transport processes. At the same time, it can collect information from organizations and companies in a transparent manner, in order to create an online single transport fleet (“floating fleet”) based on real-time locations, enabling members of the community connected to the platform to share resources.
“In the past, transport companies had limited solutions for filling empty rides, relying mainly on existing scheduling workloads. However, fleet managers can now eliminate empty runs and replace them with profitable rides by using Trucknet's system of tenders, ensuring that a company will receive the most profitable and sustainable offer."
Connecting to air cargo logistics
Fridman joined the discussions at the UNFCCC Climate Change Conferences that took place in Paris (COP21, 2015), by invitation of the Israeli delegation, and in Madrid (COP25, 2019) by invitation of the International Transport Forum (ITF). Again, at COP26 in Glasgow he was invited by the ITF to be part of a professional panel on the subject of decarbonizing transport. Each time, he was struck by the need to find a solution for shared transport, especially in Europe, where, from a logistics viewpoint, we have a huge connected region without physical borders.
To date, approximately 5,000 European transport and logistics companies have joined the Trucknet platform and the company has opened offices in France and Romania, in addition to its Israeli offices in Eilat and Tel Aviv. Trucknet has agreements with prominent companies in Israel and around the world, including Allcargo, Chronopost, DPD, La Poste and others.
During the past year the company signed several contracts, two of which are especially significant: one with the logistics giant DSV Romania and the other with the Romanian glass factory Saint Gobain that transports over 170,000 loads a year across Europe. Recently, the company also expanded its operations to include air freight logistics with the signing of an Agreement in Principle with C.A.L. Cargo Airlines Ltd., part of the Challenge Group.
In November (2021), Trucknet signed a memorandum of understanding (MoU) with Logpay -a company from the Volkswagen Group that operates a system for locating and reserving parking and rest places for truck drivers in 47,000 rest stops in 32 countries in Europe.
Another important endeavor is the very recent collaboration with Haifa Port, Israel's leading port in which millions of tons of cargo pass through. Trucknet's system will be integrated in order to improve supply chain efficiency for the many customers involved and to reduce harmful emissions; a win-win solution for all.
Expending to Europe and the USA
According to Fridman, Trucknet's business plan calls for continued expansion into Belgium, Germany and Spain. The company is also beginning to advance business development in the United States, which could subsequently lead to going public on Nasdaq. This follows a milestone from March 2021 when Trucknet began trading on the Tel Aviv Stock Exchange (TASE), where the company raised over NIS 26 million.
The return of the U.S. to the Paris Agreement (2015) and President Biden's commitment to confronting the climate crisis has increased public awareness regarding harmful GHG emissions. In addition, the acute problem affecting the global supply chain since the onset of COVID-19 is a top priority issue for his administration.
As mentioned, Fridman participated in an official ITF (International Transport Forum) event at COP26 in Glasgow. He presented Trucknet's technology as an available and accessible solution to the global supply chain problem, noting that "Only strong national and international regulation will encourage the private sector to achieve ambitious net zero-emissions targets by 2050."
The Israeli business newspaper Calcalist recently mentioned Trucknet in an article on new companies included in the Tel Aviv Stock Exchange’s prestigious “100% Yield Club”; a list that comprised only 35 out of the 90 companies that went public since the beginning of 2021.
Hanan Fridman was selected by the British History of Parliament Trust and St. James's House as one of the pioneers in the logistics and sustainability industry. A special event was held at Westminster Abbey in London last September to mark the British Parliament’s 300th anniversary, and to acknowledge the achievements of the selected successful entrepreneurs.
Partnered with Trucknet