Tech pioneer FreightExchange poised to drive Australian freight industry evolution in 202
Special Report: The Australian freight and logistics landscape is on the brink of a groundbreaking transformation in 2024, fueled by the relentless ascent of artificial intelligence (AI).
As the industry grapples with persistent challenges like a chronic driver shortage, underutilised trucking capacity, and the escalating demand for dynamic pricing and real-time visibility, the stage is set for technological disruption to revolutionise operational efficiency.
At the forefront of this shift is FreightExchange, a leading logistics and supply chain solutions provider with a distinct focus on handling “ugly freight” – those unconventional, oversized items that defy the constraints of standard shipping containers. Catering specifically to small and medium-sized businesses, the backbone of the Australian economy, FreightExchange is carving out a niche in a sector ripe for innovation.
Founder and CEO Cate Hull notes that the freight and logistics industry weathered unprecedented volatility in 2023, stemming from the disruptions caused by the COVID-19 pandemic. The sudden threefold increase in global demand strained industry resources, leading to a scramble to meet the surge.
“It really was a perfect storm of demand softening and prices really increasing,” she said.
However, as the year progressed, volumes subsided from their peak, presenting fresh challenges such as labour shortages, rising wages, and soaring fuel costs, creating a complex operating environment for businesses in the sector.
Hull anticipates that demand will remain elevated in 2024 compared to pre-pandemic levels, but with a softening trend. Labour shortages and heightened fuel costs are expected to persist, maintaining the industry’s challenging operating landscape. As the freight and logistics industry in Australia braces for continued uncertainty, businesses are compelled to adapt and innovate to successfully navigate the evolving economic environment.
“We’re seeing many more types of businesses really rushing to automate and digitise and also to be far more conscious of their utilisation,” she said.
“We’re seeing greater adoption of simple, easy to use software solutions that automate processes across the business. We’re really focused on bringing simpler, smarter logistics software solutions to our mid-teri businesses here and in North America in 2024.”
To address the ongoing challenges, Hull underscores the industry’s increasing emphasis on automation, digitization, and sustainability. Businesses are strategically adopting technology solutions to automate processes, reduce labour dependence, and optimise resource utilisation.
Customers, now more environmentally conscious, are demanding transparency in carbon costs associated with shipping.
Hull emphasises that the integration of AI, machine learning (ML), and real-time tracking systems will play a pivotal role in enhancing operational efficiency and sustainability.
The freight and logistics sector is undergoing a notable shift toward eco-friendly practices, prompted by escalating costs, labour shortages, and heightened environmental awareness. Automation and digitization not only tackle efficiency concerns but also contribute to reducing carbon footprints. Hull observes that businesses are progressively integrating eco-friendly considerations into their logistics strategies, aligning with a global push towards sustainability.
Looking ahead to 2024, FreightExchange has set its sights on international expansion, with a primary target being North America. The platform aims to extend its services globally, capitalising on the demand for seamless, automated, and transparent global trade.
Hull believes that the inherently global nature of the industry, combined with the diminishing significance of borders, positions FreightExchange for success on the world stage.
This article was developed in collaboration with FreightExchange, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.