How Shipping and Logistic Industries are Leveraging AI tools

How AI tools are gaining importance in the field of shipping and logistics.



AI plays the most important role from social media algorithms to autonomous vehicles. Artificial Intelligence is providing visibility, optimization, analytical insights, and the enhanced decision to the Shipping & Logistics industry. Data is produced and apprehended during the entire process of shipping. It starts right from a client profile to usage and behavior data, delivery and returns, tracing, billing and support. This data is extracted using artificial intelligence algorithms by shipping carriers to add to earnings and optimize operations.

The benefits of applying technology in shipping have the potential to impact possible capabilities and make operations more optimized. 

Here’s how the Shipping & Logistics Industry is using AI tools to transfigure its business operations and improve efficiencies.


New Client Acquisition

AI helps in gaining new customers by enabling providers to organize a structure of potential clients, analyze their shipping and logistics efficiencies. It also helps them to realize existing points for effort and intensify potential solutions. AI assists the companies to provide added value to the existing clients through segmentation and targeted marketing campaigns.


Improved User Experience

Customer experience depends on the intelligence of the company’s front-end ( initial part of the business). Recommendations in workflows are based on client segmentation. Suggestions to make shipping cheaper and faster, and automated business rules are some of the use cases that are being applied to help firms to differentiate on experience.


New monetizable offerings

AI helps shipping companies to employ new monetizable services to clients. For example, AI algorithms consider zip codes, real-time climate, and traffic data, combined with historic data to evaluate delivery dates for parcels quite accurately, and companies provide guaranteed delivery services. Similarly, data on theft and damage is used to offer Delivery insurance services.


Optimized operations

  • Predictions based on ML

Volume Prediction- AI helps to predict volumes in the future by focusing on historic data and patterns. Having a view of incoming and outgoing volumes allows businesses to predict and plan better infrastructure and resources, both human and machine.

Return prediction- AI helps in analyzing the chance of a package return based on product reviews, quality of service in a zip code, and past behaviors of the client.

Weight prediction- The weighted models help to analyze the weight of the commodity and also to enumerate the correct shipping charges.


  • Cross border transactions and Tax/Duty calculators

Harmonized System (HS) code, the universally accepted method of structuring traded goods is used to itemize exact duty, taxes, and restrictions. To deliver cross-border transactions, an HS code is required for each parcel. AI algorithms help in forecasting the correct HS codes for cross-border duty, tax, and restriction determination. 

  • Facility and Warehouse management- Real-time data analytics enables route optimization of vehicles and cargo for quick deliveries.
  • Simulating the real world- Simulation methods can help in replicating the whole network of a Shipping firm, from client demand to warehouse operations to fulfillment of shipping, deliveries, and so on. Simulation provides end-to-end insights on how the network will perform under hypothetical conditions and which one is the source of shipments detention. 


AI in fleet management 

AI conveys tools and insights that are capable of transforming industry efficiency into managing fleets. And these tools are already in use and available to businesses. 

AI is becoming a vital and competitive technology in the shipping industry. Shipping logistics is an industry that requires as much information as possible to function properly. From inventory rates, weights, and locations to direct management and coordination, there is a lot that goes into the field where AI and automation are elegant.