Logistics system enables shippers to use empty truck capacity

According to the European Union, one in five trucks on roads today is empty or has spare capacity. In 2015, EU trucks drove a cumulative total of 1,577 billion kilometers, about 39 times around the Earth. If trucks are better packed, the number of empty or part-packed trucks can be reduced, which leads to less congestion and fuel consumption and lower CO₂ emissions into the environment.

The project is financed by the Danish Innovation Fund and brings together all the necessary partners for the development of such a system: Department of Civil Engineering, Department of Business and Management, Department of Mechanical and Manufacturing Engineering at Aalborg University, Centre for Transport Studies at Imperial College London, data unifier and aggregator GateHouse Logistics, law firm Bech-Bruun, logistics consultant Centre for Logistics and Collaboration with Port of Aalborg, the two  Danish carriers FREJA Transport and Logistics and Danske Fragtmænd A/S and the Danish Chamber of Commerce.

Associate Professor and project leader Kristian Hegner Reinau of the Department of Civil Engineering at Aalborg University said: “The system will enable logistics providers to optimize their operations, but it also brings value to society because less HGV on roads reduces traffic congestion and cuts greenhouse gas emissions. Affiliated members of the logistics system will be able to utilise the real-time position of thousands of trucks on roads and their capacity to take loads.

The university partners will develop new algorithms and business models for the system. The law firm Bech-Bruun will address the legal challenges of the project, and the Danish Chamber of Commerce will share knowledge of the project with other relevant actors in the transport industry. GateHouse will develop the solution and offer it to all logistics companies.

“Clearly, we are delighted to join this consortium and bring our expertise in tracking technology to the table,” said Michael Bondo Andersen, CEO, GateHouse Group. “Our systems already know the position of most vehicles at any time and the new algorithms will enable GateHouse engineers to develop an intelligent logistics system for shippers to have real-time visibility and positioning of empty vehicles and use their capacity.”

“By becoming one of the first carrier affiliates of this GateHouse powered system, FREJA demonstrates its policy to adopt new technologies such as this innovative logistics platform  to achieve significant savings in fleet costs and improve its international competitiveness,” added Lars Bakkegaard, FREJA’s CFO.

The projected budget for developing the real-time collaborative logistics system is $2.2m. The system is expected to enter into service in 2020.