'AI won’t replace forwarders – but forwarders using AI will'
Freight tech firms love to call themselves disruptors. But real transformation in forwarding isn’t about ...
WTC: ANOTHER DIFFICULT WEEK CHRW: NEW PRODUCT LAUNCHDSV: LEADING THE DROP RXO: CRATERINGDSV: WHAT TO LIKEDSV: BULLISH BAMZN: 'AI EDGE'HD: HERE IS HOW IT LOOKSAMZN: REG RISKMAERSK: MOST HARMED
WTC: ANOTHER DIFFICULT WEEK CHRW: NEW PRODUCT LAUNCHDSV: LEADING THE DROP RXO: CRATERINGDSV: WHAT TO LIKEDSV: BULLISH BAMZN: 'AI EDGE'HD: HERE IS HOW IT LOOKSAMZN: REG RISKMAERSK: MOST HARMED
Reducing errors in customs documentation represents one of the clearest benefits AI can bring to freight forwarding and logistics providers.
Nisarg Mehta, chief technology officer and one of the founders of logistics AI company Raft, told The Loadstar improvements in customs declarations had been one of the biggest wins the company could point to when replacing manual processes with AI-supported systems.
“One of our customers found there were between 70% and 80% fewer errors in declarations processed by the automated systems than those that had been processed through traditional, manual means,” Mr Mehta said.
“And it makes sense. Rather than looking at reams and reams of data, checking that each data point fits within parameters, regulations and SOPs, the individual is instead able to focus on inaccuracies and spotting outliers.”
Mr Mehta (pictured) said some of Raft’s customers had “publicised” this statistic as a key selling point to their end customers, noting that it has not only improved service levels but has also helped those same customers secure new contracts.
“What we’re seeing across the 60-plus industry leaders, including many multinationals and enterprise scale customers, we work with is pretty consistent.
Teams are overwhelmed by repetitive, manual tasks, eating up 60%-70% of their operational capacity – data entry, document classification, HS code checks,” Mr Mehta continued. “All of this is essential, but none of it is strategic. It’s work that keeps skilled operators from focusing on customers, exceptions, and problem-solving. Raft does not take over anyone’s data or decisions. We take over the busywork.”
This vision of human-AI collaboration is echoed by industry leaders.
Sanjeev Ghadia, CEO of Astral Aviation, said: “It’s so important that the human factor complements the AI, and the AI factor complements the human factor. I really believe that we would not lose a single person in the journey of adopting AI technology.
“This is where I would try and encourage my team to look at the use of AI technology, not to do anything else, not to replace them, but to reduce the time that they’re actually spending in the office.”
For uninterrupted access, sign in or sign up to The Daily News, Premium or The Loadstar Enterprise Plan.
Comment on this article