What is Freight Tech?
Freight technology to refers to any business/concept that uses technology to aid or support the shipment of commodities, goods and cargo via land, sea or air. As many industries are getting impacted by the rapid evolution of technology, the logistics industry is just in its initial disruption phase, growing at a rapid pace. There are many companies that started investing and developing in the area of freight tech and, if you’d like to see a few of the top innovators, make sure to check this link.
How is Freight Tech impacting the shipping industry?
At the beginning of 2018, less than 0.5% of global freight was moved by pure digital freight companies, without any single dominant digital force in the shipping, logistics or freight forwarding industry. The market share is small but as early disruptors are commencing their investments, many more are predicted to join the digital wave.
In these current times, more and more emphasis is being put on client satisfaction and customer management. Good logistics and great organization have become critical in the export/import business. Technology is known to facilitate and help automate processes, which is why is can have a huge impact on the industry as it is today.
So what are the particular areas that Freight Tech touches and what are some of the technology trends that impact it:
The type of technology IoT uses is comprised of a database, a reader, a chip and a GPS cloud-based system. These elements speak to each other, creating a detailed and valuable outlay of your operations. This enables the freight industry to effectively track their shipments, and the conditions of these shipments.
Advanced machine learning is one of the latest technologies providing the freight industry with a big advantage. This technology looks at data, and allows people to make business decisions based on patterns. The computers use dashboards and pre-determined reports to conduct sophisticated analysis. This provides market insight in the freight industry that allows companies to pivot to more efficient operations.
In addition, advance machine learning diminishes human error, as there is a lesser need for human intervention in the process. The technology is also tapping into business intelligence and could help improve accuracy in terms of forecasting & predictability
The freight industry requires a reliable and efficient means of transmitting data, and this is crucial for logistics. Technological advances will enable numerous applications to communicate with each other in intra- and inter-business scenarios and B2C and B2B. These apps will communicate with the existing systems and digitally transform the freight industry.
Successful logistic firms such as; DHL, TNT and UPS are at the forefront of adopting new technologies into their daily processes. These companies, alongside with others using technology, have already seen the great added value that comes with it.
Technology that has been specifically made for the freight industry is becoming readily available and growing, meaning there are few excuses that freight companies can use for valid reasons for lacking behind in today’s competitive economy.
New technologies will keep emerging, adapted more and more to the needs of business. Freight Tech is now impacting logistics and businesses globally, in a positive manner. Right now, is the time to jump on board and join the digital wave that is predicted to continue impacting the shipping industry more and more.