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Digital Freight Forwarders Disrupt Road Freight Space

In: Disrupting Logistics

Author

Listed:
  • Philip Ortwein

    (Instafreight)

  • Jennifer Kuchinke

    (Instafreight)

Abstract

The road freight space is becoming increasingly disrupted by digital freight forwarders, platform-based business models revolutionizing the logistics industry. In contrast to other digital services like freight exchanges and transport management systems, digital freight forwarders are the contact person and contractual party for both shippers and carriers. What distinguishes them from traditional freight forwarders is the digitalization of the entire transport process along the shipment life cycle. This digital disruption provides benefits for both parties, especially in terms of time, cost savings, and transparency. Digital freight forwarding has also become an interesting opportunity for venture capitalists investing 13.8bn USD in that promising industry in 2019 alone. To date, digital forwarders have emerged in three different ways: ventures with funding, corporate digital forwarders, and digital players of other industries starting their own forwarding service. Multiple trends including internationalization, globalization, and sustainability are driving the evolvement of the road freight market. In the future, road freight logistics will continue to change, and digital solutions will come to dominate this market.

Suggested Citation

Handle: RePEc:spr:fuobcp:978-3-030-61093-7_13
DOI: 10.1007/978-3-030-61093-7_13
as

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