Editor's note:This article is the final installment 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 large third-party logistics (3PL) providers who 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 like the ELD mandate mainly target tractors. Another common reason is ownership issues: fleets typically own tractors, while trailers are often leased or shared, making it unclear who bears the cost of upgrades.

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

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

A clear business case

Although compliance may be the primary reason for forgoing trailer telematics, it is actually a driving force for installation on reefers. Higdon noted that evolving cold chain regulations and shippers' demands for visibility are forcing fleets to adjust long-standing practices.

For example, mandatory requirements under the Food Safety Modernization Act (FSMA) call fora higher level of traceabilitywithin the cold chain. Additionally, a survey sponsored by Werner Enterprises showed that 61% of operations executives believe real-time visibility is the most important technological capability for transportation partners.

Add to that the risk of cargo damage 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 cover the entire cost of a telematics program," Werk said.

Darrell Tarry, vice president of maintenance at Nagle Companies, believes telematics has been widely adopted by fleets of all sizes. His company, a temperature-controlled food carrier, began exploring Thermo King 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, along 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 also helps ensure compliance with FSMA requirements.

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

"Being able to check the status of a 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 improves utilization of drivers' available hours because they don't have to spend time going to a dealer to download information."

Getting on board

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

Tarry advises these operators to request demonstrations from reefer original equipment manufacturers (OEMs). Today's solutions offer customizable settings, and partnerships between suppliers and common TMS providers can make implementation straightforward.

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

This mindset is becoming increasingly common among fleets. With dry van rates in aprolonged downturn, operators are working to extract maximum value from existing assets. Even simple information like trailer location data can be useful.

Tarry noted that many fleets have had to expand their trailer pools to accommodate more drop-and-hook operations. Being able to see drop trailers left unattended at shippers and consignees is crucial.

Higdon agreed, pointing out that for trailers parked in a yard, two notifications are no longer enough. On-demand access to 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 from trailers directly impacts customer satisfaction and profitability," Higdon said.