The future of supply chain: Smarter solutions for shippers and carriers

Acknowledging the past: A foundation built on human effort

For decades, we’ve relied on human intuition, relationships, and long hours to keep freight moving. Human workers, from drivers to dispatchers to freight brokers, have powered supply chains and kept businesses running in a world without automation or artificial intelligence. These individuals were the backbone of the logistics industry, playing essential roles in ensuring shipments reached their destinations.

However, as technology advances, our supply chain must evolve, and that evolution means doing things more efficiently, more transparently, and with fewer human bottlenecks. It’s not about replacing human effort but leveraging new tools to do more with less, increasing accuracy and reducing the costs of human coordination.

The cost of human logistics services: The hidden price shippers and carriers pay

For years, freight brokers have been critical players in coordinating shipments. They’ve acted as the middlemen, making phone calls, sending emails, and managing the relationships between shippers and carriers. While their role has been essential, relying on humans to coordinate freight comes with limitations that we can no longer afford to ignore in a tech-driven world.

Humans make mistakes, have limited time, and often prioritize their own needs. This can lead to delays, errors, and higher costs. These limitations are inherent in a broker-driven system where brokers control key information. This information asymmetry allows them to mark up freight costs for shippers while offering lower pay to carriers, all to maximize their own margins.

This isn’t a small issue—it has a major financial impact. The typical broker markup is around 15-20%, which is substantial when we consider how much freight is moved globally. This markup is built into the price of everything we buy, from groceries to electronics, because it raises the costs of shipping that manufacturers and retailers pass on to consumers. In total, this broker markup adds billions to the overall supply chain cost each year.

Shippers lose out: High costs and lack of transparency

In a system controlled by brokers, shippers are left at a disadvantage. Freight brokers thrive on keeping information hidden, which leads to inflated rates and a lack of visibility into the shipment process. Shippers pay more and often don’t know where their freight is or how much of their money is going to the actual carriers.

Here are the key pain points shippers face:

1. Delays in Receiving Quotes: Brokers take time to search for the cheapest capacity to maximize their profit. This delay can lead to shippers waiting days for quotes, which slows down their ability to plan and execute shipments.

2. Inflated Costs: Brokers often add significant markups without transparency. Shippers may not realize that 15-25% of what they pay is going straight to the broker, while the carrier receives a fraction of that payment.

3. Limited Visibility: Brokers control the flow of information, offering minimal tracking updates and keeping carrier information hidden. This leaves shippers with little control or insight into their shipments’ progress.

These inefficiencies create a system where shippers pay more than they should while receiving less control and visibility than they deserve.

Carriers are squeezed: Thin margins and unfair treatment

Carriers, who are the backbone of logistics, are also negatively impacted by the broker-driven model. Despite being essential to moving goods, they often get the short end of the stick when it comes to pricing, freight availability, and fair treatment:

1. Thin Margins: Carriers operate on razor-thin margins, especially in a competitive market. Broker markups eat into their earnings, making it difficult to invest in their fleet, pay drivers fairly, or even stay profitable.

2. Inconsistent Freight Volumes: Brokers often secure freight on an as-needed basis, leading to inconsistent freight availability for carriers. This makes it hard for them to plan long-term and creates a feast-or-famine situation that’s difficult to manage.

3. Unfair Rate Negotiations: Because brokers control the flow of opportunities, they often present last-minute freight to carriers with little room for negotiation. This can lead to unfair rates that don’t reflect the value of the carrier’s service, further squeezing margins.

How supply chain technology companies are solving these pain points

The challenges faced by both shippers and carriers have persisted for decades, but with advancements in technology and AI, many of these pain points are being solved. New technology in supply chain management has the potential to change the logistics landscape by addressing inefficiencies, reducing costs, and providing greater transparency.

AI isn’t just improving logistics—it’s reshaping it.

1. Automation for Speed and Accuracy: With AI-powered systems, many of the manual tasks that slowed down operations, like tracking shipments and negotiating rates, are now automated. This doesn’t just save time—it ensures tasks are completed with greater accuracy. AI eliminates the human errors that often lead to costly delays and miscommunications, streamlining every step of the supply chain. Shippers and carriers can now count on faster responses, more accurate data, and fewer operational headaches.

2. Real-Time Visibility and Data: In a world where data is more valuable than ever, AI technology examples show how real-time data can revolutionize logistics. Carriers can receive immediate updates on available freight, allowing them to plan better and maximize fleet efficiency. Meanwhile, shippers can track their shipments at every stage, eliminating the uncertainty that once plagued the industry. Transparency becomes the norm, not the exception.

3. Levelling the Playing Field: Historically, brokers held most of the power in the logistics process. But with AI technology, the balance is shifting. AI provides shippers and carriers with access to the same data and insights, enabling fairer negotiations and better decision-making. Instead of relying on a middleman who may prioritize their own profit, businesses can now take control of their logistics process, knowing they have the information they need to make the best choices for their operation.

4. Data-Driven Pricing and Optimization: One of the most powerful artificial intelligence use cases is real-time, data-driven pricing. AI analyzes market trends, historical data, and real-time conditions to offer instant, fair pricing for both shippers and carriers. This ensures both parties get competitive rates, free from hidden fees and broker markups. As AI learns from each transaction, it optimizes future operations, continuously improving efficiency.

5. Reduced Costs for Shippers, Better Pay for Carriers: By automating many of the tasks once handled by brokers, AI reduces unnecessary costs for shippers while increasing earnings for carriers. Shippers can enjoy lower freight costs because there are no broker markups, while carriers benefit from more predictable loads and higher pay. AI also helps minimize empty miles and maximize efficiency, further improving the bottom line for carriers.

The takeaway? Technology has advanced to the point where these longstanding pain points—whether it's a lack of visibility, unfair pricing, or inefficient processes—can finally be solved. Shippers and carriers no longer have to settle for outdated, broker-driven models. They should expect more from their logistics partners—more transparency, better pricing, and smarter operations.

Why accept anything less? Shippers and carriers should demand that their logistics partners leverage the power of artificial intelligence to offer faster, more transparent, and more efficient solutions. In today’s world, there’s no excuse for working with outdated systems or paying for unnecessary middlemen.

The future of supply chain: Smarter solutions for shippers and carriers

Freight brokers have historically added value, but their human limitations—delays, errors, and inflated costs—are holding the logistics industry back. With advancements in technology and AI, the future of supply chain management is looking bright for shippers and carriers.

That’s where Cartage comes in.

At Cartage, we use Wilson, our AI-powered assistant, to automate everything brokers handle manually—emails, phone calls, rate negotiations, and shipment tracking. Wilson eliminates the delays, errors, and inflated costs that come from relying on human coordination.

The best part? We don’t change how shippers and carriers work. You continue using the same processes—emails, phone calls, and workflows—but now, it’s Wilson handling everything, making it faster, more accurate, and more transparent. No learning curve. No complex systems. Just the same workflow you already know.

For Shippers:

Cartage provides real-time pricing, instant responses, and full visibility into your freight. No more waiting days for quotes or worrying about hidden broker fees. With Cartage, you get transparent pricing and faster service while still maintaining control over your shipments. Our AI automates the coordination process, so you don’t have to change the way you operate—just get better, more efficient results.

For Carriers:

Cartage ensures fair pay and a steady flow of reliable work for carriers. By cutting out broker markups, we offer better compensation for carriers, helping them increase profitability while maintaining consistent freight opportunities. Wilson optimizes loads and reduces deadhead miles, making sure carriers get the support they need to plan their business more effectively.

Cartage isn’t just another logistics platform—it’s a smarter, tech-driven way to work. With AI at the helm, both shippers and carriers can finally operate with greater efficiency, transparency, and fairness.

Our Mission at Cartage: The future of supply chain

At Cartage, our mission is simple: to solve the challenges created by the traditional broker model so shippers pay less, and carriers earn more. We use AI to simplify the coordination process for both shippers and carriers, so our team can spend time on high-touch service and escalations for customers.

There’s no need to worry about human errors, hidden fees, or slow responses. Wilson ensures everything runs smoothly, saving time, cutting costs, and guaranteeing that carriers are compensated fairly. By removing brokers from the equation, Cartage provides more transparent, efficient, and cost-effective logistics services that benefit everyone involved.

Why shippers and carriers should embrace digital supply chains

In today’s fast-moving logistics industry, relying on outdated, manual systems limits growth and drives up costs. Recent advancements in supply chain management like Cartage offer a smarter, more transparent way to manage freight. By automating the process and removing costly intermediaries, Cartage helps shippers gain control over their operations and allows carriers to earn what they deserve.

Shippers and carriers who embrace supply chain technology companies today are not only improving their current operations but future-proofing their businesses for long-term success.

Don’t get left behind—experience the Cartage difference.

Join the future of logistics today. Visit us at cartage.ai to talk to our team.