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Smart trucks and tugs that never sleep. Automation rewires US transport: Maguire

U.S. Transportation has become increasingly efficient with advances in engine technologies, infrastructure upgrades and more sophisticated logistic networks.

The next wave will be different. The automation of transportation networks is transforming them into continually optimizing systems. These systems consume less energy for each unit moved, work longer, and reduce labor bottlenecks. They also reshape the demand for fuels, electricity, and other resources.

Software increasingly dictates the way energy is consumed in the United States and how goods are transported.

In Texas, driverless trucks haul commercial loads while AI is deployed on Mississippi River tugboats. Rails are increasingly relying on automated inspection and machine vision systems. Aviation regulators prepare for a world where cargo flights will operate with less human intervention.

Viewed separately, ?these developments may appear incremental. They point to an increasingly autonomous, constantly?optimized, and more productive freight economy.

According to the Energy Information Administration (EIA), transportation is the biggest source of energy in the U.S. It accounts for 37% of the total energy consumption. Around 70% of the total U.S. petroleum product demand is accounted for by transportation.

A major overhaul in the transportation sector will have a far-reaching impact on the U.S. as well as global energy markets for the next decade.

THE MISSISSIPPI GOES DIGITAL

The Mississippi River, the oldest freight artery of North America, is one of the latest adopters.

America's inland waters move hundreds of millions tons of commodities each year, including fertilizer and grain, as well as biofuel feedstocks.

Waterborne transportation accounts for just 4% of U.S. fuel consumption.

In the past, river navigation was a human-experienced activity. To navigate the changing river conditions, captains relied on their local knowledge, visual observations and accumulated judgement. This is changing. The situation is changing.

The technology can monitor hazards, track vessels, calculate stopping distances and analyze river conditions. It also identifies strategies to save fuel.

It goes beyond navigation.

The river transportation has an energy efficiency advantage over trucking. Towboats use buoyancy to do the majority of the work, while the water flow does the rest.

According to the U.S. Army Corps of Engineers, one?gallon of diesel fuel can move a cargo of one ton more than 500 miles by barge. This compares to 60 miles for a truck.

Automating barge traffic will increase this advantage by reducing fuel consumption, improving planning and minimizing delays.

It is important because many of the commodities that travel on these waterways have energy content, from fuels, crude oil, and coal to biofuels. Transport costs that are lower can have a ripple effect on commodity markets and ultimately result in lower prices for energy-intensive goods.

TRUCKS THAT NEVER SLEEEP

American highways are likely to see the most noticeable automation revolution. The trucking industry, which accounts for more than 60% of the total fuel used in U.S. transport, is on the verge of a major overhaul.

Trucking has improved over the years due to better aerodynamics and logistics software, as well as new engines. One constraint, however, remained the same: trucks would stop when drivers stopped. This limitation is removed by autonomous trucking.

Aurora Innovation, along with other self-driving tech developers, have shown that driverless freight operations are commercially viable in Texas. They are working on a model where trucks will be used almost continuously.

Theoretically, autonomous trucks could operate around the clock and not just during federally mandated driving times.

This is a very different type of productivity improvement from previous transport advancements.

The Industrial Revolution largely improved transportation by enhancing the power of machines. Automation increases asset utilization.

The productivity of a truck that can move freight 20 hours a day, instead of 10, is doubled. This reduces the need for idle equipment across the network.

Energy implications are complex. Automated systems can optimize speed, brake and acceleration to reduce fuel consumption per mile. Improved routing and platooning - where trucks move in close convoys for reduced drag - could reduce diesel consumption.

A reduction in freight costs may stimulate demand. The history shows that efficiency improvements have often led to an increase in overall activity. If driverless systems dramatically lower shipping costs, freight volume could increase enough to offset fuel saving.

Over time, however, autonomous fleets may also be able to accelerate the electric trucking industry through centralized fleet management and optimized charging schedules. It would not only reduce costs, but also shift the energy demand away from diesel.

RAIL'S QUIET REVOLUTION

The railroads are one of the most mature examples of automation, but they're also the least talked about. Rail automation, unlike the autonomous truck story, is happening behind the scenes, through sensors, digital maps and predictive analytics.

Freight railroads deploy automated track inspection systems more and more while trains are still in motion. Lasers, cameras, and machine-learning system continuously monitor track condition, wheel integrity, and equipment performance.

This is a major shift in the way we monitor our systems.

In the past, maintenance of rails was based on visual inspections. Defects are usually discovered after they become significant problems. Automated systems are increasingly able to identify problems before they pose a risk.

Wabtec is a major rail technology company and locomotive manufacturer. They have developed Pathfinder, an easy-to-use device.

Pathfinder equips standard locomotives using hardware and sensors with digital capabilities, cameras and autonomous?operation.

Pathfinder, and other digital upgrade systems, could enable smaller railroad operators to upgrade their train lines using advanced autonomous technologies such as Positive Train Control and trip Optimizer.

Benefits go beyond safety. A more reliable infrastructure allows trains to move faster, reduces bottlenecks, and increases asset utilization.

Rail is the most efficient land transportation mode, accounting for only 2% of all transportation fuel used in the U.S. Any shift from trucks to rails could reduce energy intensity across the economy.

This may be one of the most underrated energy contributions of automation: it allows for greater use of modes of transport that consume less fuel per tonne-mile.

AVIATION'S NEXT FUTURE

Aviation is the least automated sector of transport, but this may change soon. The Federal Aviation Administration has started developing regulatory frameworks to support increasingly automated operations.

Reliable Robotics, for example, is developing FAA-certified autonomous cargo aircraft that can operate from gate to door under remote supervision. The U.S. Air Force also invests in pilotless cargo planes that can be integrated into civil airspace.

Aviation automation is about increasing operational flexibility. Remote or autonomous cargo planes could connect smaller towns, improve logistics resilience, and create new freight network that is currently uneconomical.

Initial energy savings could be modest. Aviation fuel consumption in the United States is only 9%, but aircraft are heavily optimized. Automation could open up new transport models, especially in regional cargo, advanced air mobility, and electric-powered flight.

Aviation automation could be compared to the early days on the Internet: the biggest impact may not come from making current activities cheaper, but by creating new options that were previously unavailable.

What this means for energy markets

The narrative that is most commonly heard about transport automation is that machines will replace people. This is a narrow view. Software is replacing inefficiency.

Backhauls that are empty. Backhauls that are empty. River delays. Fuel waste. Preventable rail slowdowns. Unutilized aircraft. This inefficiency represents hidden energy consumption throughout the economy. Automating these losses is a direct way to reduce them.

Maintenance can be more proactive than reactive, and as transportation systems become smarter, they can smoothen freight movements, increase asset life, and improve logistics networks.

This could lead to an economy that is able to move significantly more goods, without having to increase?energy consumption proportionally.

NON-STOP LOGISTICS?

Fuel transitions is often referred to as energy transitions. History shows that productivity shifts are often the most important economic transformative factors.

Steam power was important because it multiplied human effort. Electricity increased productivity in factories and homes. Computing has reduced the cost to obtain information.

Transportation automation is part of that lineage. AI-assisted boats on the Mississippi and autonomous trucks in Texas are part of the U.S.'s freight system, which is designed to save time, reduce fuel consumption, and maximize output.

It may not matter whether trucks run on batteries, diesel or hydrogen. The question is whether trucks ever have to stop.

The opinions expressed are those of the columnist, author. This column is a great read! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.

(source: Reuters)