Several threats such as cyber attacks on physical asset, driver shortage, deteriorating infrastructure are affecting the transportation industry.
FREMONT, CA: The transportation industry is facing several risks, including market fluctuation, cyber exposure, driver shortage, and others. Executives of the industry are most worried about cyber-attacks and threats arising from technology.
Here are some of the risks faced by the transportation industry:
1. Cyber Attacks on Physical Assets
According to Willis Towers Watson Report, the biggest threat faced by transportation executives is cyber vulnerability. Hackers mainly target fleet telematics systems because it tracks status, location, and condition of physical assets. While breaching a private network expose private data of customers, which is the most significant threat to transportation companies. It makes an easy way for cyber criminals to cause physical damage to vehicles and shipments. Attackers can take over the digital dashboard to access real-time information.
2. Continuing Driver Shortage
As per the American Trucking Associations, the sector is facing a shortage of more than 100,000 drivers by 2022. The driver shortage will also put more pressure on veteran drivers. They have to spend more hours on the road per day to make deliveries on time; it will lead to more fatigue and an increased likelihood of an accident. The constant shortage is driven by the retirement of older workers, difficulty filling vacant positions with new employees, and improved delivery demand created by the rise of e-commerce.
3. Demand Volatility
Profit relies on the price of fuel in the transportation industry. As the fuel prices are not stable rail, trucking and aviation have to contend with unpredictable swings that affect every sector.
4. Advancing Technology
New technologies are emerging day by day; it is accelerating the cyber transportation risks. As per the Marsh report on cyber risks, advanced technologies should not be deployed until it can be controlled and protected by the employees. Implementation of new advanced technologies increases the risk of the cyber attacks, so companies should get ready to save themselves from such cyber attacks.