Look mom, no hands! Zhijia Tech driving driverless logistics

Autonomous heavy-duty trucks are expected to reshape China's massive long-haul logistics market, helping the sector reduce costs and increase efficiency with new quality productive forces, industry experts said.

"Compared with developed countries, logistics costs make up a much higher proportion of China's GDP. Road freight comprises the largest share of China's logistics industry, and long-haul logistics makes up a trillion-yuan market in China," said Rong Li, CEO of Zhijia Technology, a Suzhou, Jiangsu province-based startup that has obtained China's first license to conduct open-road tests for its driverless heavy-duty trucks.

During the 29th World Congress on Intelligent Transport Systems held in Suzhou in October last year, the company's driverless heavy-duty truck successfully conducted the world's first demonstration operation on the S17 Expressway, demonstrating the safety and reliability of driverless heavy-duty trucks in actual road conditions.

Statistics from the China Logistics Information Center show that China's total logistics costs in 2023 were 18.2 trillion yuan ($2.5 trillion), accounting for 14.4 percent of its GDP. In contrast, logistics costs in developed countries typically account for less than 10 percent of their GDP.

Wang Peng, associate research fellow at the Beijing Academy of Social Sciences, said: "With the rapid development of the global logistics industry, improving transportation efficiency and safety has become an urgent demand. Traditional transport methods no longer meet requirements of efficiency, safety and low cost. Instead, there is an increasing demand for autonomous heavy-duty trucks, as they can provide more stable and reliable transportation services. During transportation, the cost of drivers accounts for a significant portion. The application of autonomous driving technology significantly reduces demand for drivers, thereby reducing labor costs."

Many governments are promoting the development of autonomous driving technology, accelerating its commercialization process through policy support and financial investment, Wang said.

According to a report released by Beijing-based think tank EqualOcean, the number of heavy-duty trucks in China's logistics system is expected to reach 6.27 million in 2030, with revenue from autonomous trucks hitting 853.9 billion yuan by then.

Fang Jianxian, general manager of lmjx.net, the official website of the road machine division of the China Construction Machinery Association, said: "Autonomous heavy-duty driving plays an important role in the development of massive long-haul logistics, reshaping the industry in China to a large extent. It can improve transportation safety, reduce traffic accidents and thus lower the operating costs of logistics enterprises. In addition, autonomous driving can achieve 24-hour uninterrupted transportation, improve transportation efficiency and shorten the delivery time of goods. By realizing route optimization, energy conservation and emissions reduction, the application of autonomous heavy-duty driving promotes the sustainable development of the industry as a whole."

Test data collected in real-world logistics scenarios by Zhijia Technology showed that the fuel-saving algorithm of its autonomous driving system enables a truck to save up to 10 percent of fuel compared with manual driving, the company said.

Last year, Zhijia Technology jointly produced the intelligent heavy-duty truck K7+ for the express delivery and logistics market with Anhui Jianghuai Automobile Group Corp Ltd. The truck is equipped with a fully upgraded PlusDrive 2.0 autonomous driving system, allowing a single trucker to cover a distance of 800 kilometers per day, instead of the previous requirement of two.

"Our ultimate goal is to achieve fully autonomous driving, which will help liberate people from repetitive and low-value physical labor, thereby creating significant economic value," Rong said.

By developing autonomous driving technology for heavy-duty trucks, Zhijia Technology aims to help make the long-haul logistics safer, reduce delivery costs and cope with the shortage of truck drivers, he said.

According to research by data intelligence services provider iDigital, labor and transportation are the most significant costs for logistics companies. Industry insiders believe that labor costs can be reduced by two-thirds with the implementation of autonomous driving technology.

In addition, autonomous driving technology can achieve the most efficient driving method on fixed routes, significantly lowering the probability of traffic accidents, and triggering a reduction in fuel and insurance expenses. As a result, the implementation of an autonomous driving system can lead to an almost threefold increase in overall profit margins, said the research.