The Vital Role of Technology in Freight Forwarding

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The involvement of technology in freight forwarding today is pushing boundaries and changing the world’s business system. Improved technology is invariable equal to increased productivity in the supply chain, cost reduction and error, increased customer satisfaction, etc.  

Before the COVID-19 pandemic, the logistic industry, like every other industry, was gradually transiting to a permanent transformation in adopting technology. However, during the pandemic, the industry struggled with heavy disruption and restrictions on the transportation of goods and people. 

On a global scale, the freight forwarding market is here to stay due to technological advancement. The pandemic was not only testing the resilience and adequacy of the supply chain but has opened the way for adopting technology in the freight forwarding industry. Its vital role is discussed in this article.   

Role of Technology in Freight Forwarding

We cannot downplay the importance of technology in freight forwarding. Its benefits are immersing, especially if you get a freight forwarder in China, shipping to the UK and other regions across the globe. Its services are fast, and goods are delivered within the shortest possible time using advanced networking channels. 

The best part of technological innovations is that it makes the entire process efficient and smarter. Here are some tech trends causing a paradigm shift in the freight forwarding industry.

Cloud-based Solutions

The industry is set to experience exponential growth due to easy access to data. Cloud-based companies can now rely on cloud solutions to store data and archive all their information concerning docking, transit, and storage. It impacts productivity positively and improves efficiency.

Internet of Things

Internet of Things, commonly known as IoT, is a technology though vague can alone simplify the operations in the industry. It can change the supply chain starting from fleet monitoring to inventory management. 

Also, IoT enhances the transparency of cargo, which is its primary goal in the freight forwarding industry. That is to say; it allows customers to track the status of shipment from the warehouse till it gets to the customer’s final destination. 

Shipment Tracking System

In the past, clients booked shipments, received the estimated date of delivery, and were left in the dark to figure out when goods when arrived or they put a call through. But today, with the aid of the internet and advanced software tools, customers can track shipment systems 24/7. This advancement in technology saves time and effort for the company while maintaining users’ experience.   

Advanced Machine Learning (AML)

With advanced machine learning, many freight forwarding companies can sort out patterns and implore technology to make better decisions in business. Machine learning makes computers act and reason like humans. 

In the freight forwarding industry, AML improves supply chain visibility and reduces the cost of transportation by recognizing ports and routes that are cost-effective and productive for companies.    

Connected Applications

In the freight forwarding business, excellent connectivity makes the battle half won. Connected applications proffer solutions to communication barriers and easy data transfer across the oceans.   

Electronic Data Interchange is a technology that works via these applications, allowing the transfer of information within the twinkling of an eye. Mobile apps also transfer information on the road, simplifying correspondence.  

Enhanced GPS Accuracy

These days, almost everyone uses GPS either built in the vehicle or right on the mobile device. The accuracy of this device has increasingly improved over the years. It not only helps frustrated and lost drivers but enhances the supply chain. Advanced GPS accuracy improves customers’ experience by tracking truck locations and improves overall exposure to traffic data.  

Security Management  

Some logistic companies now depend on data and cloud-based technology are likely to be exposed to cyber threats. But with cloud computing and IoT, many freight forwarding software can escape virtual attacks and keep track of impending threats through scanning the software. Regular testing and security audit are a vital part of security management solutions. 

Benefits of Technology in the Freight Forwarding Industry

The benefits of  the application of technology in freight forwarding can be summarized below; 

  • The application of technology improves efficiency and processes.
  • With technology, forwarders can utilize the data gathered from various capabilities to corporate with customers to create multiple new products and develop strategies for growth.
  • Robotics, partial automation, full automation, and AI-enhanced tools that perfect routing can speed up transportation and improve the service levels between segments.
  • Software such as AI and ML can lower shipping times, enhance delivery routes, and assist logistics managers in making decisions that will effectively reduce costs. 
  • Customers appreciate top-quality products and services, fast and prompt delivery, and excellent sales service from order placement to final destination. E-commerce software and systems promise speed, easy payment, and multiple communication channels.


 Its obvious technology has been of more advantage to the freight forwarding industry over the years. Its benefits are unending. With more advancements in tech, the industry will keep improving drastically and provide a better experience to its customers.