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AI’s Role In Freight Forwarding

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The freight forwarding industry is constantly evolving as new technologies arise and
adapt, the most important of which has been the growth of artificial intelligence (AI). AI
seems to be everywhere at the moment and has been a hot topic of discussion for some
time now. It has revolutionised the way some businesses work, automating and
optimising their processes to make operations more efficient.

Whilst the use of AI in freight hasn’t quite taken off yet, it’s expected to play a significant
role as it continues to develop, transforming and improving aspects of the industry. There
are numerous ways AI is predicted to be used in the freight sector, from enhancing the
customer experience to improving efficiencies and streamlining operations. Let’s take a
look at the exact role AI is expected to play in freight forwarding.

Smart Route Planning

One of the most significant challenges in freight forwarding is planning efficient shipping
routes. Using AI technology however, large amounts of historical and real-time data can
be analysed, considering factors such as traffic patterns and weather conditions. This can
then enable freight forwarders to optimise shipping routes therefore reducing transit
times and reducing costs.

A map with arrows travelling off in different directions towards pins dotted around the world map

Demand Forecasting

This isn’t the only way data and analytics can be used by AI to provide updated insights in
the freight industry. By using AI to analyse historical shipping data, market trends and
other external factors, this can provide accurate forecasting and allow companies to plan
for peak shipping seasons effectively. By taking a proactive approach and planning in
advance, freight forwarders can ensure that resources are allocated efficiently, therefore
preventing disruptions.

Documentation and Compliance

There is a lot of documentation and compliance requirements that come with freight
forwarding no matter which transportation method you choose. Filling out these forms
and ensuring you have the correct information can be a long and complex process. Using
AI-powered tools can simplify the process however, all whilst maintaining accuracy and
adhering to regulations. According to Medium, the capabilities of Natural Language
Processing (NLP) can be used to sort through large amounts of information and pull the
most relevant pieces out to streamline the documentation process.

Someone working on a laptop and taking notes

Customer Service Chatbots

AI-powered chatbots have already begun springing up across various other industries,
helping to transform their customer services and the customer experience. Utilising this
tool in the freight industry can provide similar benefits as virtual assistants can be on
hand to provide instant answers to customer queries. By automating this process, this
allows employees time to be redirected to more complex tasks and issues, improving
customer satisfaction overall.

person holding a phone, with a computer switched on in background on emails.

By embracing the power of AI tools and technologies, the freight forwarding industry
could be transformed to become better streamlined and more efficient. Using AI-powered
data and analytics, freight forwarders can automate and improve processes across their
business, leading to better decision-making, cost savings and improved customer
satisfaction.

The future of freight has never been more exciting and we’re sure that as technology
continues to develop, the integration of AI tools will become more advanced and
unavoidable.

This does not mean however that AI technology will be taking over the freight industry
and taking away everyone’s jobs. AI-powered tools will simply help freight forwarders
improve operations and efficiencies but don’t worry, there will still be a team of people to
help customers on the other side. Here at Jenkar, our experienced and intelligent team of
friendly freight experts are always happy to help so please don’t hesitate to get in touch if
you’ve got a query or are in need of a freight quote

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