C.H. Robinson Unveils AI Agent to Simplify New LTL Freight Classification System for Shippers

Global logistics provider C.H. Robinson has introduced a new AI agent to assist with the upcoming changes in the National Motor Freight Classification (NMFC) system for less-than-truckload (LTL) freight shipping. The company, known for its leadership in logistics innovation, is leveraging generative artificial intelligence (AI) to automate the process of determining correct freight classifications, ensuring that shippers can adapt seamlessly to the new system set to take effect on July 19. C.H. Robinson is the largest third-party logistics (3PL) provider for LTL freight in North America, handling millions of shipments annually. The NMFC system, which includes thousands of classes and codes, is crucial for LTL carriers as it helps them plan for the space and weight required for each shipment, whether it's bulky auto parts or a pallet of retail goods. Misclassifications can lead to delays and additional costs, as freight may be held for inspection or re-invoiced. To address these issues, the company developed an AI agent specifically designed to determine the accurate class and code for LTL shipments. This agent works in tandem with C.H. Robinson's existing automated systems, significantly enhancing the efficiency and accuracy of the process. According to Greg West, Vice President for LTL, many shippers are often unaware or unsure of the correct classification for their freight, especially when submitting tenders via email. The new AI agent fills this gap, reducing the time previously spent manually looking up or confirming classifications. Before the implementation of this AI agent, about half of C.H. Robinson's LTL orders were already automated through the use of the company's global shipper platform and direct technological connections with customers. However, the introduction of the new AI agent has pushed this figure to over 75%, including a significant increase in automation for small-to-medium business (SMB) customers, who frequently use email for shipping requests. The impact of this AI agent has been substantial. In its initial few months, the agent has been handling around 2,000 orders daily, significantly cutting down the time needed for manual classification. Arun Rajan, Chief Strategy and Innovation Officer, noted that the agent can determine a freight classification in just 10 seconds for unfamiliar shipments and in as little as three seconds after receiving further training. This efficiency saves over 300 hours of work each day, allowing employees to focus on more strategic aspects of supply chain management and customer support during disruptions. As the new NMFC system rolls out, the AI agent will automatically apply the updated classes and codes, minimizing the potential for errors and delays. To further assist customers, C.H. Robinson recommends ensuring the accurate weight and dimensions of freight are provided, as these are essential for correct classification. The company has also collaborated with dimensioner technology vendors to offer discounts, making it easier for customers to comply with the new standards. Michael Castagnetto, President of North American Surface Transportation, emphasized that C.H. Robinson's commitment to LTL innovation continues to set the industry standard. The company's previous ventures include pioneering electronic bills of lading and using AI to predict and reduce accessorial charges. With the addition of this new generative AI agent, C.H. Robinson is giving its customers a competitive edge by swiftly and accurately processing LTL orders and quote requests. Industry insiders have praised C.H. Robinson’s new AI agent for its potential to revolutionize LTL shipping processes. The agent not only streamlines operations but also sets a benchmark for how AI can be leveraged to enhance service reliability and reduce operational costs. C.H. Robinson, known for its comprehensive logistics solutions and strong industry presence, continues to push the boundaries of technology in supply chain management. The company's robust AI infrastructure, combined with its deep logistical expertise, ensures that it remains at the forefront of logistics innovation, providing unparalleled value to its customers.