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International Forwarding Association Blog » International freight forwarding » 4 Advantages of Embracing Digital Freight Forwarding

4 Advantages of Embracing Digital Freight Forwarding

Today’s supply chains are being impacted by multiple disruptions, but it’s not all negative. The advent of digital innovation is one example expected to enhance precision, nimbleness, cost-efficiency, and security in the logistics arena. Its adoption by an increasing number of businesses is reshaping the landscape of the sector.

In 2022, the value of the digital freight forwarding sector was a smidgen below $7 billion, and it’s projected to almost triple by 2027. If the current momentum persists, these digitally-centric approaches could fundamentally alter the trajectory of the European logistics sector.

Let’s look at the most important benefits of Digital Freight Forwarding.



Among the major benefits of digital-centric approaches is transparency. IoT tracking offers instant data on the whereabouts of shipments, and sometimes even on their condition. These prompt insights allow for enhanced planning and swift reaction to evolving circumstances so that forwarders avert extensive disruptions.

Likewise, the employment of cloud platforms by digital forwarders provides access to shipment details, including costs and carriers from almost any location. This information can also be exchanged with other parties, promoting more collaborative interactions across supply chains.


Fast Response Times

The use of digital solutions enables logistic companies to respond more rapidly. As these solutions amalgamate current data from shippers into one platform, creating and comparing quotes becomes almost immediate.

Second, by employing a unified cloud platform to oversee cargo, forwarders gain firsthand visibility into many details without needing to solicit information. They can leverage these online resources to access the same details an employee would typically need to gather and dispatch to them.



Digital freight forwarding also contributes to a reduction in operational expenditure. The capability to instantaneously compare quotes from multiple carriers aids in securing the best rates. Certain technologies employ machine learning for individual shipments. This knowledge guarantees that providers can identify the most financially viable solution for each task.

Similarly, the wide-ranging automation inherent in digital forwarding can contribute to the cost-effectiveness of transportation. Automated platforms save on labor costs and can execute recurrent, data-intensive tasks with greater efficiency than personnel. As a result, freight forwarders with a high degree of automation can offer services equivalent to those of conventional counterparts, yet with diminished operational expenditures and cost savings for the final consumer.


Improved Security

A major advantage of digital systems lies in their robust security, preservation of data integrity, and safeguards against fraud. Protection of freight transport information, recipient data, and transaction details is of utmost importance. The primary answer to system inefficiencies and security challenges is focusing on the power of cloud technology. Information is no longer housed locally but rather in a secure cloud, which helps thwart data interception and unsanctioned access. Enhanced safeguards for validating connections are also embedded, coupled with cryptographic processes. Additionally, developers employ supplementary tools for enhanced data security and resistance against phishing, like secure erasure, methods for data integrity verification, and more. These not only help improve security but data loads with increased speed and turns more reachable.