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As weather patterns grow increasingly erratic, traditional shipping routes become more dangerous or unreliable. Severe weather and climate events cost carriers an average of over $2 billion a year in rising fuel costs due to rerouting, higher maintenance expense and increased insurance premiums. As the climate changes, so too must shipping, before the profession grows too dangerous due to adverse conditions.
Technologies for mitigating these climate risks, driven by artificial intelligence, are in development. Researchers at Nvidia recently launched CorrDiff, an AI-based weather forecasting model that downscales global weather predictions to a regional and even local level, capable of predicting extreme weather events with far greater accuracy than ever before.
Technologies like CorrDiff aren’t just impactful for people looking to plan their weekends around the weather. Rather, these advances will be vital in the future as shippers contend with climate-fueled disruptions. Going forward, AI-generated weather forecasts will make shippers more effective at minimizing the impacts of severe climate events, enabling deliveries to be rerouted in real time and saving time and money in the process.
While AI’s weather forecasting abilities have the potential to transform the supply chain, its capabilities can also help improve the relationship between carriers and customers. Few things are more frustrating to consumers today than not knowing the status of their shipment. In fact, tracking information is so important that 90% of customers are willing to wait longer for their items to arrive if sufficient tracking information is provided.
The value of tracking and AI is even more pronounced in the case of highly valuable or oversized items, movements of the latter being nearly impossible to automate. The weight, irregular size, and fragility of many “ugly” freight shipments introduce unique variables into the shipping process. These attributes can slow shipping times and result in additional costs for services, such as specialized “white-glove” delivery. A recent report from uShip found that, of those who bought secondhand furniture, just under one in three said the item in question was complicated to transport.
In such cases, good communication with the customer becomes vital. If there are delays due to weather, for example, frustrations can grow if buyers aren’t kept in the loop. AI enables shippers to convey real-time shipping updates. If a package is going to be delayed, the technology can also proactively alert the buyer days in advance, allowing for more time to arrange alternative delivery.
The use of AI to forecast weather and proactively communicate with customers marks a significant step forward for the logistics industry. In addition, the ability to reroute drivers away from inclement weather provides a significant value-add to organizations looking to hire amid a trucking shortage. As the climate continues to grow more extreme, AI becomes a no-brainer for carriers looking to reduce costs and boost customer satisfaction.
Jami Caruso is vice president, customer operations and home delivery at uShip.
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