Equipment & Tech

EDEN PRAIRIE, Minn. — By creating technology that reads incoming email then replicates tasks a person would do, global logistics company C.H. Robinson has automated steps across the entire lifecycle of a freight shipment: from giving customers a price quote, to accepting a load, to setting appointments for pickup and delivery, to checking on the load in transit. “We announced in May that we’d been using our new tech for emailed price requests. Within a few short months, we created new models to automate more shipping steps and have already implemented them at scale,” said Arun Rajan, chief strategy and innovation officer. “This a major efficiency breakthrough for the industry and for supply chains around the world. When you think about retailers that need hundreds of different products on their shelves or automakers that rely on just-in-time delivery for the 30,000 different parts in a car, saving hours and minutes on every shipment matters.” According to a company media release, the new proprietary tech incorporates generative artificial intelligence to overcome the decades-old challenge of automating transactions that shippers still commonly choose to do by email. Shippers directly integrated with C.H. Robinson’s platform have for years been able to get automated service instantly. But the same request sent by email had to wait for a person. Now, more than 10,000 of those routine transactions per day have been automated. Shippers who use email can get the same speed-to-market and cost savings as other customers, and the C.H. Robinson teams that serve them can spend more time on more valuable work. After starting with price quotes, C.H. Robinson has applied generative AI to increasingly complex tasks. That required infusing the technology with the company’s market knowledge, specialized expertise in nearly every kind of supply chain and the specifics of each customer’s unique needs. “An emailed load tender might only say, ‘I have a load for Tuesday’ because the shipper knows we know what they ship on Tuesdays,” said Mark Albrecht, the company’s vice president for Artificial Intelligence. “Or it could contain thousands of words about 20 loads in a PDF attachment with handwritten notes on it. Our tech can connect details in different parts of the email, discern what’s missing, go fill in the blanks and take action. We’ve even built it to determine things like which shipments are best for less-than-truckload and how different commodities should be palletized. We can do that like no one else, because we have the competitive advantage of the largest dataset in the industry and because our generative AI tools continually learn from our experts.” Before C.H. Robinson’s newest technology, it took as much as four hours for an emailed load tender to be taken care of by a person. That’s been reduced to 90 seconds, according to the release. “Once a person got to the email in their inbox, it still took an average of seven minutes to manually enter all the shipment details into our system – and that’s for a single load,” Albrecht said. “If the email tendered us 20 loads, a person would be stuck manually entering the information one load at a time. With generative AI, we can process all 20 loads simultaneously in the same 90 seconds. That’s an enormous time savings, especially when you consider we’ve scaled this to thousands of shipment orders per day just since June.” C.H. Robinson’s new automation tech is being used for Emailed price requests: This has grown to 2,600 quotes delivered a day, and at 32 seconds is now even faster. Having started with truckload quotes, the tech has also been expanded to handle LTL quotes. Emailed load tenders: The tech is turning emails into 5,500 shipment orders a day, achieved in 90 seconds. Emailed appointments: When a customer uses email rather than C.H. Robinson’s touchless appointments, the tech extracts the details needed to lock in a pick-up or delivery time. So far, this is done 3,000 times a day across more than 26,000 locations within 60 seconds. In-transit visibility: For instances when a carrier’s automated status updates aren’t working, C.H. Robinson is piloting the use of generative AI to interact with the carrier, rather than taking up staff time to send an email, text or instant message. “While other companies may be using generative AI for simple data queries or chatbots, we’re harnessing that power to create tangible business value for our customers,” Rajan said. “The faster we can accomplish every routine step in getting their freight on a truck, the greater their potential cost savings. The more we free our staff from mundane tasks, the more they can enhance and strengthen our customers’ supply chains. In a world where a port strike, a hurricane and a Middle East war can be happening all at once, we’re focused on helping our customers be resilient in the face of these increasingly frequent and intense disruptions.”

SACRAMENTO, Calif. — California air regulators voted to approve changes to a key climate program aimed at reducing planet-warming emissions that has a wide swath of critics and could increase gas prices statewide.  The California Air Resources Board voted to make significant updates to the low carbon fuel standard, or LCFS, which requires the state to reduce the environmental impact of gas and other transportation fuels by incentivizing producers to cut emissions.  The plan, approved late Friday, Nov. 8, at the end of a 12-hour meeting, will increase the state’s emission reduction targets and fund charging infrastructure for zero-emission vehicles. It also will phase out incentives for capturing methane emissions from dairy farms to turn into fuel.  Environmental groups have criticized the program for stimulating the production of biofuels, which are derived from sources including plants and animal waste, when they say the state should focus more on supporting power for electric vehicles. They argue the proposal fails to adequately address those concerns.  The oil industry, state lawmakers and others have said the agency hasn’t been transparent about how the proposed updates could increase gas prices.  Agency staff released a cost-benefit analysis last year estimating the initial proposal could have led to an increase in gas prices by 47 cents per gallon by 2025. But the staff has not repeated the analysis since later updating the proposal and the agency contends it cannot accurately predict gas prices.  “If you’re going to ask drivers to pay a lot, which is what this program proposal is going to do, I think you need to be able to make the case that it’s worth paying for,” said Danny Cullenward, a climate economist with the University of Pennsylvania’s Kleinman Center for Energy Policy. “What concerns me most about this is I think a lot of the things that are being credited do not actually help the climate.”  Gas prices could increase by as high as 85 cents per gallon by 2030 and $1.50 per gallon by 2035 under the proposal, according to an estimate from Cullenward. Cullenward said his figures and the estimates initially released by board staff are not an apples-to-apples comparison, in part because his projection uses 2023 dollars and the board staff used 2021 dollars.  State Assemblymember Tom Lackey, a Republican representing Palmdale in Southern California, said at the meeting that his constituents cannot afford an increase in gas prices.  “On behalf of the people of the 34th Assembly district, I ask you to not approve this rulemaking and find other alternatives that won’t cost us quite that much,” he said.  The California Air Resources Board says the program will ultimately lower the cost of sustainable transportation fuels.  The agency first approved the low carbon fuel standard in 2009, the first of its kind in the nation. It is part of California’s overall plan to achieve so-called carbon neutrality by 2045, meaning the state will remove as many carbon emissions from the atmosphere as it emits. The state has passed policies in recent years to phase out the sale of new fossil-fuel powered cars, trucks, trains and lawn mowers.  “The low carbon fuel standard has already successfully created lower-cost, lower-carbon alternatives, and the benefits of the proposal vastly outweigh those costs,” Steven Cliff, the agency’s executive officer, said last month.  Suncheth Bhat, chief commercial officer for EV Realty, an electric vehicle infrastructure company, called the program “one of the most powerful, transformational policies” to speed up the transition to electric vehicles.  The vote comes a day after Democratic Gov. Gavin Newsom called the state Legislature into a special session to protect some of California’s environmental and other liberal policies ahead of former President Donald Trump’s second term in office.  “CARB’s justification for this version of the LCFS as a bridge for combustion fuels while we transition to zero-emissions needs to be reconsidered in light of the profoundly altered landscape we suddenly landed in this week,” Adrian Martinez, deputy managing attorney at environmental nonprofit Earthjustice, said of Trump’s election win.  The Trump administration in 2019 revoked California’s ability to enforce its own tailpipe emissions standards. President Joe Biden later restored the state’s authority, which was upheld in federal court.  Future challenges from the Trump administration could lead to long court battles, said David Pettit, a senior attorney with the Center for Biological Diversity’s Climate Law Institute.  “In the meantime, I think we still need something … to enhance the development of electric vehicles and the electric vehicle infrastructure,” Pettit said. “The LCFS is a way that we might be able to do that.”  By Sophie Austin, The Associated Press/Report for America 

LINCOLN, Neb., —  New Sandhills Global market reports show used day cab truck inventory surpassing sleeper truck inventory for the first time while asking and auction values continue trending down. The market reports cover used trucks, trailers, construction equipment, and farm machinery in Sandhills’ U.S. marketplaces. “Auction values have been falling quicker than asking values for heavy-duty trucks. While this is not uncommon, it’s an important trend to monitor because auction values indicate where the market is heading,” said Scott Lubischer, Truck Paper manager. According to a media release, in the used farm equipment market, the spread between asking and auction values remains elevated and is well above historic highs. Auction prices are falling faster than asking values, most notably within the used combine market. Looking at the high-horsepower (300 hp or greater) tractor market, TractorHouse Manager Ryan Dolezal noted that Inventory is at an unprecedented level. A possible consequence of this inventory surge will be a glut of lower-hour used tractors on the market. In used construction equipment markets, inventory levels continued consecutive months of increases in October, with auction values falling faster than asking values. “While it’s not unusual to see asking values lag behind auction values, it is a critical trend for sellers to watch,” said Stephanie Olberding director of North American Construction. “This is especially true as we head into the end of 2024, as auction prices often indicate the market’s future direction.” The key metric in all of Sandhills’ market reports is the Sandhills Equipment Value Index (EVI). Buyers and sellers can use the information in the Sandhills EVI to monitor equipment markets and maximize returns on acquisition, liquidation, and related business decisions. The Sandhills EVI data include equipment available in auction and retail markets and model-year equipment actively in use. EVI spread measures the percentage difference between asking and auction values. Additional Market Report Takeaways Sandhills market reports highlight the most significant changes in Sandhills’ used heavy-duty truck, semitrailer, farm machinery, and construction equipment markets. Key points from the current reports are listed below. U.S. Heavy-Duty Trucks In this market, used day cab truck inventory levels surpassed used sleeper truck inventory for the first time, driven by the 5- to 10-year-old heavy-duty truck category. In the overall market, inventory levels were down 2.28% M/M and 10.42% YOY, continuing months of decreases. Unlike day cabs, sleeper truck inventory trends have been declining or steady since January, and inventory has not yet reached pre-COVID levels. Day cabs have also not reached pre-COVID levels, but they’re close and continuing to edge closer as these trends continue. Day cab inventory levels were up 27% YOY in October, while sleeper truck inventory levels were down 31.77% YOY. Used heavy-duty truck asking values have been trending down for 25 months. Asking values were down 1.12% M/M and 15.27% YOY in October, with the greatest YOY decrease occurring in the sleeper truck category, down 15.94%. Auction values decreased 1% M/M and 18.68% YOY in October and are trending down. Day cabs posted the largest auction value decreases, down 23.5% YOY. U.S. Used Semitrailers In the used semitrailer market, Sandhills noted a shift from an upward trend to a steady trend in October. Inventory levels were down 5.84% M/M and up 8.52% YOY. The flatbed trailer category showed the largest YOY inventory gain, up 28.53%, while the dry van trailer category showed the largest M/M inventory loss, down 8.74%. Asking values continued a 26-month-long downward trend, posting decreases of 3.48% M/M and 18.87% YOY in October. Used reefer trailers led the way, down 26.68% YOY. Similarly, auction values have been trending downward for 28 months in a row. Auction values dropped 2.27% M/M and 18.12% YOY in October. Used reefer trailers led the way in auction value decreases, as well, with values falling 6.99% M/M and 30.38% YOY. U.S. Used Medium-Duty Trucks Inventory levels in this market rose 1.35% M/M and 5.45% YOY and are trending sideways. Asking values have been trending down for 22 months. This continued in October with decreases of 0.33% M/M and 13.93% YOY, driven by the used cab and chassis truck category, down 22.46% YOY. Auction values have also been trending down for 22 months. Despite a slight uptick of 0.65% M/M, auction values in this market fell 22.31% YOY in October. Used cab and chassis trucks showed the greatest decrease, down 28.08% YOY. U.S. Used Tractors 100 Horsepower and Greater Inventory levels in this market were up 1.61% month over month and 29.04% year over year in October. These increases were driven largely by high-horsepower tractors; inventory was up 46.54% YOY in that category. Rising inventory is continuing to put pressure on values. Asking values were up 0.7% M/M in October but down 3.61% YOY, continuing a six-month-long downward trend. The 175-299-hp tractor category showed the most notable decrease, down 6.69% YOY. Auction values have been trending down for seven consecutive months. Auction values were up 1.48% M/M and down 13.77% YOY, with the greatest decrease observed in the high-horsepower tractor segment, down 14.89% YOY. Although asking and auction values are both decreasing, auction values are declining at a faster rate, causing the EVI spread to climb. EVI spread, which measures the percentage difference between asking and auction values, remained historically high for farm equipment at 47% in October. Although this figure is 1% lower than in September, it is still higher than previous peak values observed in 2015. U.S. Used Combines Inventory levels of used combines in Sandhills marketplaces have been declining for several months. This continued in October, with inventory up 7.62% YOY but down 5.73% M/M. Asking values ticked up slightly, by 0.8% M/M and 0.9% YOY, in October, but are trending down. Auction values were up 0.52% M/M and down 7.99% YOY and are trending down. With auction values falling faster than asking prices, the EVI spread remains high; EVI spread was 56% in October, much higher than the 45% value typically observed in this market. U.S. Used Self-Propelled Sprayers Inventory levels for used sprayers continue to rise and are trending up. Inventory rose 3.66% M/M and 28.38% YOY in October. Asking values increased 0.31% M/M and decreased 5.27% YOY, continuing a steady trend. Auction values were up 2.83% M/M and down 20.62% YOY in October, continuing a seven-month-long downward trend. The EVI spread remains elevated with auction values falling significantly faster than asking values. Although the EVI spread for used sprayers dropped from 62% in September to 58% in October, it remains higher than the historic peaks observed in 2015. U.S. Used Planters Inventory levels of used planters in Sandhills’ U.S. used marketplaces remained steady in October, decreasing 0.54% M/M and increasing 1.07% YOY. Inventory levels in this market are trending sideways. Asking and auction values have been declining for several consecutive months. Asking values fell 1.81% M/M and 10.11% YOY in October and are trending down. Auction values dropped 3.31% M/M and 24.07% YOY. With auction value decreases outpacing asking price decreases, the EVI spread for this market rose to 69%, only slightly lower than the historic peak of 72% observed in 2015. U.S. Used Compact and Utility Tractors Sandhills noted downward trends across the board for used compact and utility tractors. Inventory levels fell 4.95% M/M and 21.41% YOY and are trending down. Less-than-40-hp tractors showed the greatest inventory drops, down 26.51% YOY and 6.82% M/M. Asking values decreased 0.17% M/M and 4.38% YOY, marking the tenth consecutive month showing a downward trend. The less-than-40-hp tractor category also stood out in this area, with auction values down 5.25% YOY. Auction values ticked down 0.19% M/M and fell 5.86% YOY, continuing an eight-month-long downward trend. Again, the less-than-40-hp tractor category led the way in decreases, with auction values down 2.35% M/M and 8.4% YOY. U.S. Used Heavy-Duty Construction Equipment Inventory levels have been trending up for nine months in a row in this market, which includes crawler excavators, dozers, and wheel loaders in Sandhills’ U.S. marketplaces. Inventory levels dipped 1.85% lower M/M but were 19.26% higher than year-ago levels in October. These increases were primarily driven by the wheel loader category, with inventory up 35.85% YOY. Asking values have been trending down for seven months. This continued in October with decreases of 2.36% M/M and 5.82% YOY. Crawler excavator asking values decreased the most YOY with an 8.62% drop. Auction values have been falling faster than asking values. Continuing a seven-month-long downward trend, auction values fell 2.15% M/M and 10.29% YOY in October. Again, crawler excavators led these decreases, with auction values dropping 13.68% YOY. U.S. Used Medium-Duty Construction Equipment Inventory levels continued a steady trend in this market, which includes used skid steers, loader backhoes, and mini excavators in Sandhills’ U.S. marketplaces. Inventory levels were down 3.34% M/M and up 26.58% YOY in October. Track skid steers showed the greatest M/M decrease, down 4.12%, while wheel skid steers showed the largest YOY increase, up 35.96%. Continuing a downward trend for the seventh consecutive month, asking values ticked up 0.3% M/M but fell 5.34% YOY. Track skid steer asking values decreased the most YOY, down 7.58%. Loader backhoes showed the greatest M/M increase, up 1.92% M/M. Auction values have also been trending downward for seven months in a row. Auction values were up 0.36% M/M but down 8.24% YOY in October. The wheel skid steer category showed the greatest YOY decrease at 11.69%. U.S. Used Lifts Used lifting equipment inventory levels were down 2.92% M/M in October but 17.9% higher than year-ago levels. Inventory is currently trending upward. Sandhills noted the largest category increase among telehandlers, with inventory up 50.73% YOY. Asking values were up 1.02% M/M and down 6.54% YOY and are trending steady. Used pneumatic-tire forklifts showed the largest decrease, with auction values down 12.1% YOY. Auction values posted a marginal increase of 0.07% M/M but fell 10.99% YOY. Auction values are currently steady. The used pneumatic-tire forklift category also led the way with auction value decreases, down 17.06% YOY.