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Business Wire
a day ago
- Business
- Business Wire
C.H. Robinson Launches an AI Agent to Help Shippers Adapt to the New National System for Classifying LTL Freight
EDEN PRAIRIE, Minn.--(BUSINESS WIRE)--With the national classifications for less-than-truckload freight changing in July, global logistics provider C.H. Robinson has created a new AI agent that automates the process of determining how freight should be classified. C.H. Robinson moves more LTL freight than any other 3PL in North America, and this proprietary tech will help shippers smoothly transition to the new national system. It also represents a new frontier for the company's innovation with generative artificial intelligence. '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. 'Now we're building AI agents that help our AI agents.' Because LTL shipping involves freight sharing a truck, the National Motor Freight Classification (NMFC) system provides thousands of classes and codes that help LTL carriers know how much space and weight to plan for each individual shipment – depending on whether it's bulky auto parts or a pallet of retail goods like socks. LTL carriers charge based on the NMFC classifications, and those will change starting July 19. 'Many LTL shippers are unaware or uncertain of the classification for their freight,' said Greg West, Vice President for LTL. 'So when they email us a tender, the freight class and code might be missing or incorrect. This is bound to increase with the massive overhaul of the national LTL freight classification system. So we built an AI agent that determines the correct class and code for a shipment and assists another of our AI agents in turning that tender into an accurate order in our system.' The new AI agent helps shippers avoid the delays that can come with misclassified freight being held by the carrier for inspection, reinvoicing and potentially higher charges. It has already helped significantly increase LTL automation at C.H. Robinson, resulting in enhanced service and greater speed-to-market for LTL customers. '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,' West said. 'Where this new AI agent is particularly useful is assisting with orders for our small-to-medium business customers, who are heavy users of both LTL shipping and email. Now that this agent is helping with shipping requests that come in by email, over 75% of all our LTL orders are automated.' In the AI agent's first few months, it has been determining the freight class and code for about 2,000 orders a day. '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 said. 'For shipments the AI agent is reasoning through for the first time, it can choose a freight classification in about 10 seconds. After getting more training on that type of freight from our LTL experts, it takes only three seconds. Unlike a person, the AI agent can also handle hundreds of LTL shipments at once and determine the freight classification for all of them simultaneously. So far, that's saving over 300 hours a day. Our customers' freight gets on the road faster, and our people can devote more time to helping customers manage disruptions and operate their supply chains more strategically.' The day the new freight classification system goes into effect, the AI agent will be able to apply the new classes and codes. Customers who tender LTL freight by email or any other method are advised to prepare by making sure they know the accurate weight and dimensions for their freight. Both are essential for applying the correct NMFC classification. Dimensioner technology can help, and C.H. Robinson has collaborated with dimensioner vendors to provide discounts for its customers. 'C.H. Robinson's track record of LTL innovation sets the standard for our industry,' said Michael Castagnetto, President of North American Surface Transportation. 'We were first to adopt the new electronic bill of lading. We're using AI-powered tech to help customers predict and save on their accessorial charges. Now with generative AI, the agents we've built are giving our customers an advantage by responding to LTL quote requests and processing LTL orders in numbers that are growing every day.' ABOUT C.H. ROBINSON C.H. Robinson delivers logistics like no one else™. Companies around the world look to us to reimagine supply chains, advance freight technology and solve logistics challenges—from the simple to the most complex. 83,000 customers and 450,000 contract carriers in our network trust us to manage 37 million shipments and $23 billion in freight annually. Through our unmatched expertise, unrivaled scale and tailored solutions, we ensure the seamless delivery of goods across industries and continents via truckload, less-than-truckload, ocean, air and beyond. As a responsible global citizen, we make supply chains more sustainable and proudly contribute millions to the causes that matter most to our employees. For more information, go to (Nasdaq: CHRW)
Yahoo
16-04-2025
- Business
- Yahoo
C.H. Robinson delivers on AI, but investors still skeptical
C.H. Robinson (NASDAQ:CHRW) revealed Wednesday it has executed more than 3 million shipping tasks through its proprietary generative AI agents. 'Each additional shipping step we've automated beyond those has created new leaps in efficiency for global supply chains and freed our people to do more high-value work for our customers,' said Arun Rajan, chief strategy and innovation officer, in the release. For context, Robinson isn't new to AI. According to the global logistics provider, it has spent more than a decade integrating artificial intelligence at scale. In 2023, C.H. Robinson launched its first generative AI agent and began rolling out its features throughout 2024. Rajan explained that more than 1 million price quotes and 1 million orders have already been processed by AI. Beyond quoting and ordering, these agents handle appointment setting for pickups and deliveries, monitor loads in transit and send tracking updates. One area seeing particularly strong traction in its AI investments is less-than-truckload shipping. Since incorporating LTL into its AI-driven quoting system, Robinson has reported monthly quote volumes jumping by at least 30%. 'In February and March, our AI took care of just as many LTL orders as truckload orders. … We first applied our orders AI agent to emails from our biggest customers with the most truckload volume. Now in 2025, we're extending it to more of our customers in the small and medium business sector, who are heavy users of both email and LTL shipping. Instead of waiting up to four hours for a person to get to their shipment in an email queue, over 5,200 customers are getting their loads accepted in under 90 seconds,' said Mark Albrecht, VP for artificial intelligence, in the release. In January, Robinson also launched an AI agent specifically designed to process inbound carrier emails offering truck capacity. Within a month, the system reportedly was uploading 10 times more trucks into the company's real-time capacity center. March had its own AI updates as well, including an upgraded appointment-scheduling AI, a pilot voice AI capability used for carrier status updates and a new model to automate responses to customer tracking requests. For anyone who's followed the company's earnings calls, these updates shouldn't come as a surprise. CEO Dave Bozeman and Rajan have been consistently transparent about the company's digital ambitions, especially as the freight market remains stuck in what Bozeman has called a 'prolonged freight recession.' Robinson's fourth-quarter 2024 earnings painted a mixed picture: strong year-over-year gains in profitability, with its adjusted operating margin climbing to 26.8% and North American Surface Transportation income up 41.2%, even as revenue slid 6.6%. Yet, sequential declines across some segments and cautious forward guidance underscored that the company's earnings strength isn't riding on a market rebound. Instead, its focus remains on operational transformation. Rajan made this clear on the last earnings call when he shared how generative AI is already helping automate nearly 10,000 transactions a day by parsing the flood of emails that logistics firms juggle. The results shared Wednesday are important given how wary investors reacted to Robinson's last earnings, when the stock slid nearly 6% despite margin improvements, as Wall Street remained skeptical about the freight recession's grip. Since those earnings, its stock has declined approximately 8.8%. C.H. Robinson's next earnings call is set for April 30. Articles by Grace Sharkey Freight industry still lags in technology adoption Landstar anticipates fraud-related earnings hit Q&A: Can the industry loosen up its data bottlenecks? The post C.H. Robinson delivers on AI, but investors still skeptical appeared first on FreightWaves.
