Significant changes in the industry will change the future of freight brokering in the upcoming years. In domestic shipping, freight brokers are the middleman between the shipper and the carrier. They coordinate a shipment’s success by providing various solutions on behalf of the shipper. Along with finding carriers, they negotiate rates, coordinate transport, handle documentation, and more. As the transportation industry has evolved over the last century, so has its need for brokers. Today, individual shippers and large corporations use this service due to the value offered. Technological advancements have increased the capabilities of freight brokers and will continue to do so. This article will explain the trends in brokering that will appear in the future.
What Will Be The Future Of Freight Brokering?
Various factors are affecting the future of the freight brokerage market, including advanced technologies like AI (artificial intelligence). There has been a growing increase in AI that automates certain aspects of the brokerage process, such as transaction-related tasks. Automation will grow operational speeds, reduce costs, and increase efficiency. The use of APIs (pricing application programming interfaces may also increase in popularity. APIs allow shippers access to real-time pricing and give an automatic rate even when the broker is unavailable. ML (Machine Learning) is a subfield of AI that may further streamline the brokering process. This is when computers use data and algorithms to learn without human programming.
Another future expectation is that visibility will continue to grow in significance. Brokers are the middleman, and they must constantly shippers on the status of their shipments. IoT (Internet of Things) and electronic logging devices will provide excellent real-time tracking. Along with advancements in capabilities, the freight brokering industry may have a growing focus on sustainability. With goals to reduce their carbon footprint, this can include offering more eco-friendly shipping options. Brokers have already started doing more sustainable operations, like using digital technologies to reduce paper usage. The future growth of global trade and regulations will also lead to new opportunities for brokers.
Security Will Grow In The Industry
Advancements in technology may also create greater security for freight brokers. An example is the growing use of blockchain technologies that encrypt transactions in a digital database. Blockchain is a secure digitized ledger that uses cryptographic hashes to reduce fraud and theft. With the usage of digitalized technologies increasing, so will the need for advanced security measures in the future. Particularly in cybersecurity, which will rise in importance as freight brokers use more technology in their operations. Another way that security may grow is with carrier compliance. A crucial task brokers are responsible for is finding safe, trustworthy carriers for their clients.
They do this by checking a carrier’s record and DOT rating. Future technologies may be able to better track if a carrier is meeting specific standards and following safety regulations. In turn, truckers will try harder to ensure compliance with the standards. While the future of freight brokering seems optimistic for shipping, it may be some time before it becomes a reality. Shippers still have to move cargo domestically, and we have freight brokers prepared to assist. Contact A1 Freight Solutions at 786-375-9420 or info@a1fsinc.com to speak to one of our brokers regarding your shipment’s transport.