The digital freight network is slowly entering the freight forwarding industry, becoming a new type of freight partner. The network is an open market,it uses machines and automated services to effectively connect shippers and carriers.and also can provide shippers with real-time pricing and strong freight strength.

In recent years, data has shown that the core functions of the digital freight network can help the global transportation industry catch up with other industries.

It can distribute the shipper's goods to the appropriate carrier, but now some logistics companies still use traditional methods, electronic forms and telephone.

Currently, the digital freight network is in its infancy, and there are still widespread misunderstandings about the digital freight network. Under this circumstance, many people in the industry have begun to worry that this technology will replace human labor and reduce the employment rate.

Zach Strickland, FreightWaves freight market intelligence director, said: "Technology rarely eliminates the need for human capital." "It usually improves efficiency. Looking back at the US economy over the past 30 years is a good example. Technology has greatly improved and work has increased."

Advantages of digital freight network

Judging from the past, shippers are more inclined to capitalized carriers because they are more reliable and prices are more consistent. But when the capacity is tight, the carrier has the right to price the shipper.

As the capacity increases, the capacity will be transferred back to the shipper. This continuous volatility makes it difficult for shippers to ensure reliable capacity and prices. 

Digital freight networks use automated brokerage processes, they can quickly adapt to those same market changes. According to a Gartner report, “Digital freight networks are helping shippers overcome the challenges of COVID-19 by providing the reliability of asset-based carriers and the flexibility of brokers.”

In addition, maintaining relationships with multiple brokers is the only way for operators to gain visibility into available loads. However, no matter how many broker relationships the carrier maintains, this visibility is always limited.

However, the digital freight network also undermines this historical framework by democratizing the way all carriers have access to all freight. As more and more shippers and carriers join the network, it becomes more effective for algorithms to connect the correct load to the correct carrier.

The operation of the digital freight network is similar to that of the social network, because as more participants join, the revenue will increase.

 As more and more shippers join the network, carriers have obtained more load options, and have experienced fewer empty miles and shorter stay times, thus providing carriers with opportunities to optimize revenue.As more and more carriers join, capacity increases, shippers enjoy better service levels and reduce costs.

By automating the process of matching loads with trucks, digital freight networks can also significantly reduce labor costs and time required for labor. The increase in efficiency has translated into lower prices for shippers and helped carriers earn more.

In conclusion, the digital freight network may be better popularized in the future.