By Jake Diana, ALC San Francisco
When it comes to the rapid advancement of AI and automated technology, there are few topics more controversial than autonomous vehicles. Many states are not only utilizing, but actively encouraging the implementation of autonomous trucking technologies. From Elon Musk’s Tesla line featuring autopilot mode to the seemingly endless supply of Waymo driverless vehicles throughout major California cities like San Francisco and Los Angeles, it seems that autonomous transportation is becoming less and less avoidable in today’s society.
For some folks, it is evidence of the state’s willingness to change with the times and adapt in ways that allow for a more streamlined future. For others, autonomous vehicles represent a threat to the economy, potentially taking the livelihoods of thousands of hard-working industry veterans by eliminating the need for truck drivers.
On May 31, 2023, the California State Assembly voted to ban driverless trucks from operating within state lines, mandating the presence of a safety driver within these vehicles. Should this bill (AB 316) pass in the California State Senate, California would fall further behind in terms of implementing autonomous technology into the trucking logistics industry. Jeff Farrah, executive director of the AVIA (Autonomous Vehicle Industry Association), stated directly after that “AB 316 undermines California’s law enforcement and safety officials as they seek to regulate and conduct oversight over life-saving autonomous trucks” in reference to the often utilized argument that the use of self-driving vehicles actually increases road safety and causes a regression in transportation-related deaths. Industry veterans strongly refute this argument, believing that their experience and human characteristics allow for better results.
Fernando Reyes, Teamster Local 350 member, advocated for trucks needing drivers, stating: “…the thought of it barreling down the highway with no driver is a terrifying thought and it isn’t safe…”. He goes on to elaborate further into the safety risks posed by a lack of drivers, saying, “…I know to look out for people texting while driving, potholes in the middle of the road and folks on the side of the highway…”. Clearly, this is a divisive issue featuring some strong points on both sides, yet how does it affect freight brokerage companies?
The answer is that a potential monopoly on trucking due to utilizing autonomous trucks could be just as devastating for brokerages as the carriers themselves. Automated transportation would have a cascading effect on the industry as a whole, as the need for drivers would be eliminated. If there were no drivers involved, there would be no dispatchers. Therefore, shippers would likely come to the conclusion that they would be better served purchasing automated trucks and their accompanying tracking/logistical management systems. Most, if not all, brokerages would be forced to end operation given that much of the moment-to-moment load management would become obsolete as driver error would be eliminated. Rate negotiations would cease, as shippers would own their own fleets in entirety and therefore have no reason to seek outside guidance or management.
However, the need for truck drivers for produce and perishable products is an entirely different conversation. Most of these loads are multi-pick, where a human is needed, so they will probably not see driverless vehicles in the future. As of now, it seems that fully autonomous freight transportation is still decades away from being viable – seemingly in step with the gradual implementation of autonomous technology across all sectors of the world.
*****
Jake Diana graduated in 2020 from the University of Oregon with a Bachelor of Arts degree in General Social Sciences. Diana joined the ALC San Francisco office in August 2022 as a broker’s assistant, before being promoted to carrier sales representative, and most recently to carrier sales manager. He is a high-energy individual with a passion for competition, teamwork, and tech.
jake.diana@allenlund.com