Supply chain disruption is a daily occurrence. Look no further than the tragic collapse of the Francis Scott Key Bridge, which by impacting both the Baltimore port and a major highway artery, has forced the rerouting and modal shift of countless ocean, rail, and over-the-road shipments. While cleanup of the waterway will progress swiftly, it may take years for the Baltimore bridge to be fully rebuilt, and rail carriers will likely present an attractive option for keeping the flow of goods moving around the country.
The Baltimore bridge accident, which cost the lives of six workers, adds complexity to a global supply chain ecosystem already dealing with the rerouting of ships from the Suez Canal. Houthi rebels have made the Canal all but impassable since late 2023, forcing ocean vessels laden with goods to add weeks to shipment transit times. In early March, that blockage became fatal when the rebels attacked a commercial ship, killing three crew members.
As modal shifts due to supply chain disruptions occur, and shippers move more goods to reliable and stable railways, railroad technology has become increasingly important. New innovations in shipment tracking, safety, and even sustainability have helped bring rail freight into the spotlight as an efficient, cost-effective option for moving goods from coast to coast.
Bringing technology into the railroads — and, in some ways, letting the rails catch up to advancements that have already proliferated in the seas and over the roads — ensures Class I railroad carriers can focus on creating a more flexible, truck-like experience for their intermodal customers, resulting in a greater modal shift toward the rails. Rail technology will also help stem the tide of a declining railroad freight market share, enabling Class I rails to reclaim some of the freight lost to trucking in the last few years.
Evolution of Rail Freight Technology
Innovation and the advancement of supply chain technology have turned rail freight tracking from an opaque and imprecise game of guesswork — a manual undertaking that gave shippers relatively little information — to a data-rich, real-time experience fueled by APIs and IoT devices. The progress toward digitization and automation has helped shippers maintain supply chain resilience even in the face of increased supply chain disruption, increased consumer demand and capacity constraints.
From Manual to Automated Freight Tracking
Since soon after the first railroad in North America and the birth of intermodal rail more than 100 years later, shippers have wanted to know how their goods have gotten from place to place — and to make sure they are safe and secure during the journey. Until 1961, tracking goods was all done by hand, but when the Missouri Pacific purchased an IBM 7070 solid-state computer, rail tracking took a giant leap forward. Of course, shipment tracking investment and the rise of real-time visibility data relied on consumer interest in the railroads. Take it from former GE Chief Transportation Officer Laurie Tolson, who laid out the progression pretty clearly in 2018: “The growing trend of digitalization in the rail freight industry is linked with a growth in intermodal networks, which itself is largely being driven by consumerism.” By all accounts, the pandemic sped up the adoption of visibility tools and supply chain technology exponentially. Companies like Blume Global now offer shippers direct access to IoT and other visibility tools, giving shippers a new look at shipment tracking. These third-party providers also rely on Class I railroads to make significant investments in their operations — for example, IoT sensors can’t track rail containers if they haven’t been installed on the containers — so supply chain advancement in the railroad industry requires demand from shippers but buy-in from all parties.
What’s Driving Rail Freight Technology Advancements?
The supply chain industry is slow to change in general, and when technology advancements are considered, the shift of pace has historically been glacial. Think about it. There are myriad stakeholders in the supply chain, and all of them have to be aligned for forward momentum to start paying off. There also has been concern that advancements in the short term may not pay off years down the road; with so much advancement in the space, and a huge price tag for innovation investment, carriers and users have to be careful to pick the right technology. That’s why “the adoption cycle for new technologies in the rail industry tends to take some time.” Any advancements in the technology used for rail freight transportation need to first proliferate at the carrier and terminal level before it can be useful for shippers; that takes time.
The vast amount of data produced by these new IoT and rail tracking devices will further revolutionize the rail freight and intermodal industries. Users just need to be prepared for the big data revolution and have the tools necessary to extract meaningful insights from the data pipeline.
The Impact of Advanced Tracking on Rail Freight Efficiency
Rail freight visibility solutions can provide nearly immediate ROI in terms of efficiency, accuracy, customer service, and productivity improvements. Shippers using a trusted rail freight and intermodal tracking platform that enables end-to-end visibility without lapses in coverage can more accurately predict shifts in demand and changes in capacity, forecast usage to increase the reliability of future plans, and react to unpredictable black swan supply chain pain points with relative ease.
Moving Beyond Supply Chain and Shipment Visibility
The future of rail supply chain technology innovations is coming soon, according to the Association of American Railroads. In addition to the massive amounts of big data creating insights for railroads and their direct customers alike, the railroad lobbying group is excited about technology moving beyond a pure visibility play. “Next-generation automation technology will continue to reduce the impact of human error and human limitations on railroad operations, improving safety and efficiency,” the agency wrote. While in some cases, technology can only advance as far as regulations will allow, the organization is looking forward to a bright future of innovation spurred on by third-party firms that work with railroads to push the industry forward.
Reducing Energy Consumption and Costs
In addition to providing shippers with loads of rich data about their shipments and supply chain, new technologies like IoT devices help shippers and railroads work together to reduce energy consumption. Advanced tracking technology attached to each container alerts shippers to any exception to temperature or climate controls in those containers. Advanced metrics regarding transportation patterns will help railroads operate more efficiently and reduce congestion, helping bleed carbon emissions out of the supply chain.
Adopting New Rail Technologies Can Meet Resistance
An industry that is historically slow to adapt to change can make introducing new technology a challenge. Beyond hemming and hawing about new technology, railroad users can sometimes balk at the price of such innovation. Finally, companies can resist introducing new technology to established processes because of integration unknowns. Large shippers need to be certain that all technologies will work well together and that all their carrier partners have embraced the new innovations.
Overcoming Technological Barriers
The key to overcoming rail tracking technology reluctance is to embrace collaboration. Implementing a winning solution requires that all stakeholders have a seat at the table, working with a trusted technology provider to establish new processes. Shippers and railroads can also look to organizations like AAR working to develop industry standards that turn cutting-edge technology into the new normal.
Shippers Save Time and Money with Container Tracking
Shippers look to Vizion, a secure, reliable supply chain provider, to tap into the latest supply chain technology advancements. One customer, 1Concier, used Vizion’s advanced tracking technologies to eliminate the 15 hours each week employees spent tracking down containers. Countless other customers use Vizion to realize the promise of increased productivity and lower costs that supply chain technology tools deliver.
The Future Outlook of Rail Freight Tracking Technology
Rail freight technology advancements are fueled by shipper demand, but the future of the industry is also being shaped by the adoption of technology in OTR freight transportation. Competition from trucking shouldn’t worry rail shippers — cargo shipping post-COVID has become mode agnostic — but should instead encourage them to find an end-to-end technology solution that embraces a holistic view of the supply chain. A truly innovative rail tracking technology is wonderful, but connecting that data to the rest of the supply chain world is where the true impact can be experienced.
Shippers should align themselves with a supply chain technology company that tracks rail digitization innovation. Automation is the new big disruptor in the supply chain, and shippers need a provider that can integrate the latest trends into its offerings, providing customers with a platform that continually incorporates new railroad technology advancements. Start with a brief intro speculating on the future developments in rail freight tracking technology, focusing on sustainability, automation, and digitalization trends.
Schedule a demo with Vizion today to learn how the company’s API-based technology empowers shippers with the insights needed to revolutionize their rail shipping routines.
