Freight forwarding, an industry once dominated by manual record-keeping and communication via telex and fax, has witnessed profound evolution. This transformation has been largely driven by technological advancements. This article explores the evolution through the various stages.
The Manual Era (Pre-1990s)
In this era, every detail of a shipment was painstakingly documented using pen and paper. From bills of lading to customs declarations, all information was physically recorded. Communication relied heavily on phone calls, telex messages, and fax machines. Notably, companies such as Panalpina utilized telex messages during the 1980s to communicate shipping information across continents. For instance, telex messages were the primary means of sharing crucial cargo details between Panalpina's offices in different regions.
Introduction of Computers (the 1990s)
The 1990s saw the gradual integration of basic computer systems into operational processes. Although these systems could store digital documents, they often operated in isolation, lacking interconnectivity. An example of this transition is how companies like FedEx began adopting computer-based systems for managing tracking information, streamlining the process of monitoring shipments' progress.
Internet’s Impact (Early 2000s)
With the advent of the 2000s, the internet began reshaping the freight forwarding landscape. Faxes and telex messages were gradually replaced by emails. Industry leaders like DHL introduced online platforms for tracking shipments, revolutionizing the customer experience. For instance, DHL's online tracking portal allowed customers to access real-time information about their shipments, reducing the need for manual inquiries.
Digital Documentation (2013 - 2020)
The industry shifted from paper to digital, as electronic bills of lading (eBOLs) and electronic air waybills (eAWBs) became more widely adopted. This shift aimed to reduce paperwork and expedite various processes. For example, companies like CMA CGM started implementing eBOLs in 2020, enabling shippers and consignees to process and transmit essential shipping documents electronically1. However, eBOLs and eAWBs were not standard in the mid-2000s, as they faced many challenges and barriers, such as lack of harmonized regulations, interoperability issues, and resistance to change . It was not until 2010 that the International Air Transport Association (IATA) launched a global campaign to promote the use of eAWBs. Similarly, the Digital LTL Council was formed in 2019 to establish an industrywide standard for eBOLs1.
Data & Automation (2015 - )
Advanced software solutions emerged, enabling more efficient data collection and analysis. These tools allowed forwarders to optimize routes and enhance overall supply chain performance. UPS, for instance, employed data-driven optimization tools to refine its delivery routes and minimize fuel consumption, showcasing the integration of data and automation for efficiency.
AI's Debut (2020s - )
The late 2010s and early 2020s marked the introduction of AI in freight forwarding. Predictive analytics powered by AI were employed to forecast demand and manage inventory. Industry giant Maersk utilized AI to optimize routing, offering faster and more efficient shipping solutions. By analyzing historical data and external factors, Maersk's AI algorithms determined the optimal routes and scheduling to reduce transit times and costs.
As the freight forwarding industry continues to evolve, Logic emerges as a seamless integration into this dynamic landscape. Building on the ongoing digital transformation narrative, Logic aims to revolutionize the industry by automating manual aspects of the shipping process. This not only empowers businesses to operate efficiently but also minimizes errors and provides unparalleled customer satisfaction.