C.H. Robinson sees gains from AI tools; UPS delays dimensional rounding
C.H. Robinson is crediting AI for some of its market share gains as they begin rolling out more AI tools, according to Supply Chain Dive. Q2 marks the ninth consecutive quarter that the company has expanded its market share - a notable streak of sustained growth while freight capacity remains elevated.
The carrier is using AI to quote LTL shipments, offer shipments to truckers, and set appointments with shippers. Since launching an AI-driven quoting agent for LTL shipments in April, the volume of quotes delivered via AI has surged by 30% per month. They are also using AI to help shippers determine freight class, an important tool since freight classifications were changed in July. The tool is helping determine freight class for about 2000 orders a day and processing each in 10 seconds or less.
These user focused tools are keeping C.H. Robinson front of mind for all shippers seeking clear logistics data and cost savings. The company plans to expand the AI tools to their global markets as well.
UPS and FedEx are still rounding up dimensional calculations for packages - but UPS is holding off until after the holiday rush.
UPS announced the change in June, but now says they will wait to implement it until December 22, 2025. The change to the Domestic Large Package Surcharge and Additional Handling Charge was supposed to take effect on August 18.
It’s possible UPS is delaying the change as a way to attract and maintain volumes through the holiday season, giving shippers an incentive to stick with UPS over FedEx. But it’s a short term reprieve and brands need to understand and optimize for the price increase, even if it’s delayed for now.