Issue #45: AI in Freight: The Right Role for Technology
Before diving in, let’s thank our friends at FreightCaviar for the shoutout in this morning’s newsletter about my X debate with my brother, Andrew. It’s always fun when these conversations spark deeper industry discussions.
Today, I want to tackle an idea that’s been on my mind: the role of AI in freight and where it makes sense—and where it doesn’t.
Technology’s Longstanding Role in Freight
Technology has been shaping the freight industry for decades. We’ve seen the introduction of tools and systems that promised to make operations more efficient, but many of these innovations haven’t fundamentally solved the core challenges of moving freight.
Take phone calls, for example. They’ve always been central to how brokers and carriers communicate. But here’s the problem: even with advances in technology, too many of these phone calls still revolve around outdated systems, messy data, and mismatched expectations.
The rise of AI agents has been pitched as the next evolution in freight – replacing human phone calls with automated ones. But does that really solve the underlying issues? Or does it just perpetuate an old problem in a slightly different way?
The Right Role for AI in Freight
AI can—and should—play a significant role in transforming our industry. But the value of AI isn’t in replacing human conversations; it’s in making them more meaningful by eliminating the unnecessary ones. Here’s where AI can truly shine:
Streamlining Repetitive Tasks: AI is great for handling tasks like scheduling, invoicing, or parsing through contracts. These are time-consuming but don’t require the intuition or relationship-building that human interactions provide.
Providing Richer Data: Brokers and carriers alike struggle with fragmented systems and incomplete information. AI can bring together data from different sources, organize it, and surface actionable insights – empowering people to make smarter decisions faster.
Reducing Operational Noise: AI can help eliminate the friction caused by mismatched or irrelevant freight opportunities, ensuring that conversations between brokers and carriers are actually productive.
“Agent! Agent! Agent!” The Intuition Gap
When it comes to negotiating with drivers or handling complex logistics situations, AI still falls short. Freight isn’t just about data or logistics – it’s about relationships. Drivers want to talk to someone who understands the context of their routes, challenges, and priorities. AI agents don’t yet have the intuition to navigate these nuances, and until they do, they’re more likely to frustrate drivers than help them.
We’ve all experienced this frustration ourselves. Whether it’s dealing with a chatbot that can’t answer a specific question or being stuck in a loop with an automated call system, the lack of human understanding creates friction. Freight professionals don’t want to deal with the same thing when their livelihoods are on the line.
Better Systems Over More Calls
The real problem isn’t just about too many phone calls – it’s about the inefficiency and lack of structure behind those calls. Instead of trying to replace human phone conversations with AI, we should focus on building systems that reduce the need for unnecessary calls altogether.
By improving the way brokers and carriers access and use information, we can make freight conversations more intentional, efficient, and productive. This is where technology can have the biggest impact – not by taking over relationships but by supporting them with better data and tools.
How Cargado Fits In
At Cargado, we’re solving some of these challenges for cross-border freight. Our load board is designed to simplify how brokers and carriers connect, helping them spend less time on the phone and more time focusing on what matters: moving freight. By leveraging smarter systems and better data, we’re enabling brokers to find trusted carriers quickly and efficiently, while carriers get matched with loads that fit their routes and equipment.
And this is just the beginning. The cross-border load board is only the first product in a full stack of tools we’re building to improve how the industry collaborates and communicates. Whether it’s enabling seamless coordination or tackling operational inefficiencies, our goal is to make freight simpler and more efficient for everyone involved.
Will AI factor into this vision? Absolutely. But don’t worry – it won’t be answering phones. It’ll be doing the behind-the-scenes work, like helping us figure out which brokers are putting pineapple on pizza so we can deal with those “trust issues” first.
Freight is – and always will be – a relationship-driven industry. At Cargado, we’re here to enhance those relationships, not replace them.