Logistics Service Providers (LSPs) are navigating an unpredictable global trade environment fueled by geopolitical instability and fluctuating tariffs. The latest findings indicate that freight forwarders and customs brokers feel pressure to lower operational costs, comply with complex regulations, and meet heightened customer expectations for transparency and service efficiency.
Technology as a Key to Success Amid Trade Uncertainty
The 9th Edition of the Descartes Global Forwarder/Broker Benchmark Study highlights a growing consensus among LSPs: technology is vital for competitiveness in today’s market. In fact, 63% of forwarders and brokers are embracing technological solutions to address economic and regulatory challenges.
Shifting Trade Landscape
Forwarders and brokers face numerous challenges in a fluctuating trade landscape. Key insights from the 2025 survey include:
- Global instability is identified as the top macroeconomic challenge (60%).
- Pricing pressures remain significant, with 61% of respondents noting its impact.
- Regulatory complexity, particularly due to inconsistent tariffs, affects 42% of LSPs.
Customers increasingly demand real-time data and digital self-service options. According to the survey, 37% of LSPs anticipate significant impacts from customer demands for timely data over the next five years.
Investment in Technology
LSPs are recognizing the necessity of investing in technology for growth. A significant 65% of survey participants classify technology as crucial to their growth strategies. Furthermore, 55% believe that investing in innovative technologies will drive their success forward.
Plans for increased IT spending are evident, with 35% intending to allocate an additional 1% to 5% over the next two years, while 31% aim to increase spending by more than 5%.
AI’s Role in Logistics
Artificial Intelligence (AI) is increasingly integral to the logistics industry. In the 2025 survey, 55% of forwarders and brokers identified AI as their primary focus for IT investment. Its anticipated contributions include:
- Rate management improvements (21% cite it as a major source of IT value).
- Enhanced digital self-service platforms, recognized by 38% of LSPs for their potential value.
- Advanced regulatory compliance systems, essential for 62% of participants.
However, while enthusiasm for AI is high, actual implementation lags behind. Only 18% of LSPs currently utilize AI effectively, though many are in the process of adopting AI-driven solutions.
The Technology Divide
The survey reveals a technology adoption gap between larger and smaller companies. A notable 60% of larger LSPs regard technology as essential, contrasted with just 27% of smaller firms. This discrepancy affects technology investment priorities, with larger companies focusing on AI and digital tools.
Small businesses often face capital constraints, which hinder their capacity to enhance technological capabilities.
Future Trends in AI Adoption
Over the next few years, heavy adoption of AI is anticipated among forwarders and brokers. High-impact use cases include:
- Document automation.
- Rate quoting enhancements.
- Self-service customer portals.
- Predictive visibility technologies.
Despite some companies opting for a cautious approach due to trade volatility, those embracing technology are better positioned for success.
Strategic Recommendations for LSPs
To remain competitive in this challenging environment, LSPs should:
- Prioritize technology investments focused on quick automation wins.
- Enhance customer value through improved speed, transparency, and self-service options.
- Build strong compliance capabilities and agility in trade policies.
Shippers must choose partners wisely, favoring LSPs that leverage advanced technology to deliver better risk management solutions.
Conclusion
The logistics sector is witnessing a pivotal transformation. As LSPs shift from traditional methods to embracing AI and automation, they can prepare for a future marked by ongoing uncertainty and change. The Descartes 2025 Global Forwarder/Broker Benchmark Study emphasizes that technology is not just an aid but a necessity for success in a complex trading world.
