Improving Logistics Efficiency Through Collaborative Truck Routing

The logistics industry is among the world’s largest and most essential. Specifically, trucking is a massive component of the modern logistics system. In 2012, truck transportation carried 68% of all freight tonnage in the U.S. However, trucking currently faces significant problems with efficiency and sustainability. Of all miles driven by trucks yearly in the U.S., 25% are driven with empty loads and 36% are driven with underutilized loads. In addition to this economic inefficiency, the industry faces social and environmental challenges. Driver turnover rates are near 100%, and trucking accounts for a significant level of greenhouse gas emissions. One potential cause of these issues is the segmented nature of the industry which results in transportation service providers routing their shipments independently of each other, therefore increasing the number of miles driven and emissions produced. Collaborative routing, wherein providers work together to share trucks, routes, and resources, is one approach to solving this issue. However, current research has yet to develop a method that is both effective and efficient. This research aims to develop a model for a collaborative routing methodology wherein trucking service providers would share resources to increase load efficiency while decreasing emissions and long-haul drive frequency