Insights - September/October 2017 - 27

The result will be challenges to the more complex existing
model that involves dispatchers, brokers and carriers, that he
referred to collectively as "a lot of manual touchpoints."
He also said he believes that the Uber model's improved
visibility over other freight shipping systems will force service
improvements.
He repeatedly cited the goal of being "driver centric," giving
drivers the ability to quickly select and book loads.

Other Key Intermodal Issues
Other important factors are at work, shaping the interface
between intermodal and technology.
There was brief discussion of promise from the spread of
blockchain technology, with its potential to simplify tracking
based on recent tests. Rick Mihelic, program manager for the
North American Council for Freight Efficiency, said he believes
fully autonomous vehicles will be focused on longer-haul routes
and drivers will still be needed for local pickups and deliveries.
On the other hand, autonomous trucks' flexibility could be limited
when traveling to multiple destinations.
Rod Case, a partner at consultant Oliver Wyman, also noted
risk for intermodal because domestic equipment utilization needs

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improvement and autonomous vehicles would compete directly
with rail over long distances.
Mihelic cautioned that automation will be fueled by private
sector carriers and investors, unless something else happens.
The public and government reactions to the first few incidents
involving autonomous vehicles could alter that picture, he said,
citing how in years past that new regulations resulted from
widely publicized SUV rollovers.
"The reality is that innovators don't want rules at all, or very
little," Mihelic said.
Case agreed, saying "regulators in the U.S. will be on their
heels, trying to catch up."
Case believes that the potential for lawsuits will hinder
many U.S. transportation innovations despite the fact that
technology development has been robust. The results of those
advancements are surfacing overseas, such as advanced
truck autonomy in Europe and automated trains tested in
Kazakhstan.
Automation also will change the labor force. Several
speakers said there may be reluctance to switch to managing
new technology, such as positive train control, by those who
now perform similar tasks.

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September/October 2017 | Intermodal Insights

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Table of Contents for the Digital Edition of Insights - September/October 2017
