Global logistics provider C.H. Robinson has announced the launch of a pioneering AI agent designed to adapt to the upcoming changes in the National Motor Freight Classification (NMFC) system for less-than-truckload (LTL) freight. As the largest mover of LTL freight among third-party logistics (3PL) providers in North America, C.H. Robinson is positioning its proprietary technology to revolutionize how shippers classify their freight, marking a major leap in efficiency and accuracy in the logistics industry.
Classifying LTL freight has long posed challenges for shippers due to the complex, manual processes involved. Traditionally, each shipment’s classification required a detailed analysis of four factors: density, handling, liability, and stowability. Density involves calculating the pounds per cubic foot, with higher density often resulting in a lower freight class and thus a lower shipping cost. Handling considerations look at the ease with which a product can be moved between terminals, with more fragile items potentially requiring higher freight classes. Liability encompasses the potential for damage or perishability of the item and its ability to damage adjacent shipments. Lastly, stowability evaluates whether freight can be stacked or turned to maximize space utilization without requiring special handling conditions.
C.H. Robinson’s new AI tool is set to simplify these evaluations. By automating the classification process, the AI agent minimizes human error and expedites order processing. “We have a fleet of over 30 AI agents performing tasks that had defied automation for decades,” said Arun Rajan, Chief Strategy and Innovation Officer at C.H. Robinson. “Now we’re building AI agents that help our AI agents.” This innovation is particularly significant given the upcoming changes to NMFC classifications, which can increase uncertainty and errors if not addressed with precision.
The AI agent’s ability to automate and streamline freight classification will have profound implications for the company’s operations.
Greg West, Vice President for LTL, noted the impact on efficiency: “Before generative AI, half of our LTL orders were automated by way of customers using our global shipper platform or direct connectivity between our tech and their tech. We have the freight classifications for those shippers baked into our system.” With the new AI agent in place, C.H. Robinson has enhanced its automation capabilities, resulting in over 75% of LTL orders being automated—particularly benefiting small-to-medium businesses heavily reliant on email-based freight tenders.
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