C.H. Robinson will use AI agents to classify LTL freight
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.
The AI agent's speed and capacity for multitasking vastly outperform human abilities in processing freight classifications. In its early months of operation, it has managed to determine the freight class and code for about 2,000 orders per day—a task that would conventionally require substantial human resources and time.
'Manually looking up or confirming the freight class and code for every emailed LTL tender can easily take a person 10 minutes or more per shipment,' Rajan pointed out. 'Our AI agent can do the same in about 10 seconds for first-time reasoning tasks, and just three seconds post-training, handling numerous shipments simultaneously.'
This technological advancement not only accelerates the classification process but also reduces operational costs and turnaround times, effectively getting customers' freight on the road faster. C.H. Robinson expects this will result in enhanced customer satisfaction and more strategic supply chain operations without the risk of delays associated with misclassified freight.As the overhaul of the NMFC system looms, C.H. Robinson advises shippers to ensure their readiness by accurately gauging their freight dimensions and weight, both crucial for correct NMFC classification. The logistics leader also announced collaborations with dimensioner technology vendors to offer discounts, aiding customers in achieving precise measurements for their shipments.
'C.H. Robinson's track record of LTL innovation sets the standard for our industry,' commented Michael Castagnetto, President of North American Surface Transportation.
C.H. Robinson's new LTL freight classification tool is a step into the future of freight logistics, providing a transformative solution to a longstanding industry challenge. As the new NMFC standards take effect, this AI agent is poised to play a crucial role in supporting shippers through the transition.
The post C.H. Robinson will use AI agents to classify LTL freight appeared first on FreightWaves.
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