Editor's note: This is the final article in a series on the evolution of telematics technology in the trucking industry.Click here to read the previous article。

Fleets typically install telematics devices on tractors rather than trailers. Nik Werk, managing director of market research firm Werk Insight, has asked fleets why.

"We still work with some large third-party logistics (3PL) providers who openly admit, 'Sometimes we don't know where our trailers are,'" Werk said.

He found that many 3PLs give similar reasons. The primary reason is compliance, as regulations such as ELD mandates mainly target tractors. Another common reason is ownership issues: fleets typically own tractors, while trailers may be leased or shared, making it unclear who bears the upgrade costs.

The situation is more pronounced for refrigerated containers (reefers), as refrigerated trailers show the strongest resistance to trailer telematics. According to Robert Higdon, director of equipment monitoring at telematics provider Motive, industry practice has relied on manual temperature checks. But fleets are beginning to reconsider.

"This is changing rapidly," Higdon said in an email, adding in a follow-up, "Reefer trailer telematics offers one of the clearest return-on-investment cases in fleet technology."

A clear business case

While compliance may be the primary reason for skipping trailer telematics, it is actually the driving force behind installing devices on reefers. Higdon noted that evolving cold chain regulations and shipper demands for visibility are forcing fleets to adjust their long-standing practices.

For example, mandates in the Food Safety Modernization Act (FSMA) requirehigher levels of traceabilityin the cold chain.

Add to that the risk of cargo spoilage and related financial losses, and the business case becomes even stronger. According to a 2019 survey, temperature control failures in pharmaceutical logistics cost the industry $35 billion annually, a figure that continues to have an impact years later. Higdon also pointed out that beyond lost freight revenue, financial losses from temperature issues can lead to claims, refunds, and even lost contracts.

"The return on investment from avoiding just one incident could be enough to pay for the entire telematics program," Werk said.

Darrell Tarry, vice president of maintenance at Nagle Companies, believes fleets of all sizes are widely adopting telematics. His company, a temperature-controlled food carrier, began exploring Thermo King's technology in 2012; currently, Nagle has installed the supplier's telematics and fleet management system, TracKing, on 78 trailers.

Tarry said telematics enables real-time location tracking and provides the ability to view temperature and cargo integrity, with dedicated reporting features. Location data, while basic, is crucial for monitoring return air and supply air temperatures during transit. The technology also helps fleets answer temperature-related questions and defend against unfounded claims. He noted that all this data helps ensure FSMA compliance.

Furthermore, although reefer trailer telematics devices are not inside the cab, they still improve drivers' quality of life.

"Being able to check the status of the loaded trailer and temperature settings en route greatly reduces driver worry, allowing them to focus more on arriving safely at their destination," Tarry said in an email. "Additionally, it makes better use of drivers' available driving time, as they don't have to make special trips to dealers to download information."

Getting on board

Werk said that among fleets that have not yet invested in reefer trailer telematics, many are not temperature-controlled transport specialists. Since they don't view themselves as reefer operators, they may not prioritize solutions for their reefers, and they may also lack the knowledge and awareness of how to get started with telematics.

Tarry advises these operators to request demonstrations from reefer original equipment manufacturers (OEMs). Today's solutions offer customizable settings, and suppliers' relationships with familiar transportation management system (TMS) providers can make implementation straightforward.

"While there are some upfront costs, they are relatively small," Tarry said, especially considering the reduced risk in temperature-controlled transport and the potential savings on freight claims.

This mindset is becoming more common. With dry van rates in astagnant downturn, carriers are trying to extract maximum value from existing assets. Even simple information like trailer location data can help.

Tarry said many fleets have had to expand their trailer pools to accommodate more drop-and-hook operations. Being able to see drop trailers sitting unattended at shippers and receivers is crucial.

Higdon agreed, noting that for trailers parked in yards, two notifications are no longer enough. On-demand location data is useful not only for daily operations but also for recovering stolen trailers or high-value cargo.

"The smartest organizations recognize that data generated by trailers directly impacts customer satisfaction and profitability," Higdon said.