Dive Brief:
- XPO deployed artificial intelligence-driven linehaul models to optimize freight flows across its network, according to a Q1 earnings call.
- The carrier looks to minimize the distance freight travels and the number of times freight is handled, Jay Silberkleit, XPO’s chief information officer, told Trucking Dive in an email. XPO handles an average of 2.6 millions of miles of linehaul freight per day.
- The AI-driven linehaul models “have already significantly improved trailer utilization and reduced miles driven. We expect to continue fine tuning the models over time to make our linehaul network even more efficient,” Silberkleit said.
Dive Insight:
LTL carriers are using various strategies to optimize routes, maximize space and minimize freight handling during pickups and deliveries.
While Saia is looking to grow its access to direct routes as a way to reduce the number of stops a truck makes, XPO is using AI to take the guesswork out of decision making, so it can maximize space and avoid unloading freight when unnecessary during delivery. AI within XPO’s TMS instructs employees on how to load each trailer, according to Silberkleit.
“Proprietary AI is supercharging these efforts by analyzing massive amounts of data – including volume, capacity and dimensions – and determining the most effective ways to consolidate and route linehaul freight,” Silberkleit said.
The carrier is also in process of beta testing AI to optimize trailer and route assignments at the shipment level, CEO Mario Harik said on the call.
“These tools factor in appointment windows and other logistics to enhance on-time performance. We see AI playing a major role in how we operate, compete, and create value over the long term,” Harik said.
Other logistics companies leveraging AI-driven technology include C.H. Robinson and Wabash. C.H. Robinson grew its use of AI to streamline its shipping fulfillment process, which resulted in Q1 gross profit improvement year over year. And Wabash is working with UP.Labs on using AI for trailer, truck and aftermarket parts manufacturing.
