The market is changing fast, and the freight forwarding industry has to adjust to these changes immediately. That’s the point where AI-driven software and tools turn into a revolutionary power that reorganizes freight forwarding into a faster and more effective process.
Whether it comes to client support responses, better route planning, minimizing fuel spends, or communication within the team, AI tools are stepping in. A recent McKinsey survey shows that AI is currently boosting the industry’s development that resulting in lower logistics costs and significantly better service levels.
Below, we are taking a closer look at how AI helps freight-forwarders in 9 key areas:
1. Smarter Cost Calculation
Figuring out the right cost for shipping used to be a real struggle. Moreover, it carried many financial risks, as it was often impossible to predict fuel surcharges, changes in cross-border tariffs, etc. Smart AI tools, like a freight cost calculator, turned the process into a single-click task, taking seconds to analyze current market trends and prices, route history, potential risks, and the possibility of fuel price changes. At the end, you receive accurate estimates incredibly quickly.
2. Automatic Carrier Matching
Connecting shipments with the right carrier used to be a mostly manual task. Today, it can be done with the help of AI software that minimizes the risk of human errors. Modern programs are able to analyze several core factors like the size of cargo, estimated delivery time, route efficiency, etc., to choose a carrier effectively and smartly. As a result, it increases the speed of delivery, minimizes idling time, and fuel consumption.
3. Better Delivery Time Predictions
Predicting the exact delivery times is often a guesswork. Yet, with AI tools, it becomes much easier, as the program does something more than counting approximate speed and distance of trucking; it processes dozens of factors, like the current traffic and road situation, seasonal hazards, weather forecasts, etc. It helps to improve the accuracy of delivery time prediction greatly. That’s crucial not only for smooth operational planning, but it also becomes a base for a positive customer experience.
4. Improved Shipment Tracking
AI tools and portable trackers are a great combo that ensures an opportunity to always know where the transported items are. It’s a significant step towards more transparent and better-controlled delivery. Such information gives you a great advantage, allowing managers to adjust routes or change carriers, avoiding delays. It also helps to inform your customers about the actual delivery time without extra manual work.
5. Cheaper Shipments through Consolidation
Consolidation is an effective way to cut delivery costs by the combination of smaller shipments and carrying them at once. AI analyzes the size and destination of the transported goods, quickly showing whether there’s an opportunity to load them in a single truck or container.
6. Faster Route Optimization
Smart route planning is important when it comes to fuel costs and time of shipment. Often, it’s difficult to choose the best route, according to many factors that can impact the delivery process (weather, current traffic situation, closures, etc.). AI can analyze all available data received from the inner data system or outside of it (e.g., weather forecast) and suggest the best possible route and alternatives.
7. Simplified Freight Accounting
Accounting is a complicated, time-consuming process, where errors can lead to very unwanted consequences. AI tools can help with the task, automating billing, determining errors, and sorting out clients’ information.
8. Predictive Fleet Maintenance
AI tools help to evaluate vehicle conditions, diagnose even minor issues, and even predict technical problems before they occur. Such assistance makes it possible to plan maintenance in advance, avoiding costly repairs and extending the lifetime of the equipment.
9. Faster, Smarter Email Management
Most freight forwarders receive so many emails that they often need to hire another person to deal with them. AI tools can simplify the task, sorting and prioritizing emails. Despite standard tools that are often mistaken, AI analyzes information about the sender, the content of the e-mail, and its importance, making sure nothing gets lost.
Let’s explore how AI improves email communication:
- Tagging and Prioritizing Messages
Using natural language processing (NLP), AI can read emails, understand what they’re about, and tag them automatically. This helps teams to see what’s urgent, what’s routine, and what can wait. No need to open every single message! - Ensuring Compliance with Data Rules
AI tools can also determine different types of sensitive information (like personal data) in messages and make sure it’s handled properly. AI can also remove all personal or banking data automatically (as it’s required by regulations), helping companies stay legal without extra effort. - Automating Data Extraction and Routing
If your team has to copy data from emails into logistics systems, AI can help. It can extract key details and send them directly to the right software or specialist. This saves time and reduces human error.
The Bigger Picture: AI Is the Future of Freight
According to a market survey, more than half of companies dealing with supply chains are planning to invest in AI by the end of the year. It shows that AI and accurate data-driven decisions are becoming the new reality within the industry, helping freight forwarders:
- Save time;
- Cut down on errors;
- Improve customer service;
- Focus on what matters.
FAQ: Quick Answers About AI in Freight Forwarding
- How does AI improve logistics operations?
AI analyzes both past and real-time data to help predict demand, track shipments, optimize routes, and avoid disruptions. This helps companies plan better and work more efficiently. - What are the challenges of using AI?
Today, when the AI tools are still new, companies often face difficulties choosing the right software, combining data from different systems, training staff, and protecting information.
Summary
The transportation industry is facing core changes today. Despite the necessity to adjust and to invest more money for effective digitalization, these changes are not only about new challenges, but more about beautiful opportunities that help businesses to optimize their workflow, reduce spending, and environmental impact. AI-operated solutions are becoming part of routine processes for freight forwarders, changing the standards for delivery services.
