• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » Blogs » Think Tank » New Tech May Be Eroding Trust in the Freight Industry

Think Tank
Think Tank RSS FeedRSS

New Tech May Be Eroding Trust in the Freight Industry

New Tech May Be Eroding Trust in the Freight Industry
October 24, 2019
Ashik Karim, SCB Contributor

Some call it an apocalypse. Others a bloodbath.

Whatever you call it, things aren’t looking good in the freight industry, where companies shutting down is now a daily event rather than something that only happens a few times a year. In fact, while the rest of the country is just now ringing alarm bells, truckers, shippers, and carriers have been using the term “recession” for months.

At first, it was just smaller carriers shuttering. Then names like New England Motor Freight started popping up on the ever-growing list of companies that have closed their doors this year.

Blame it on the trade war, on signals of a wider economic recession, on whatever you want: the bottom line is that things are bad, and might get worse.

At the same time, Silicon Valley clearly thinks logistics is an industry ripe for cost-saving technology to come in and save the day. Why else would Convoy, just one example of many, be valued at $1 billion?

The gap has never been greater between how the industry is viewed by investors with money to spend and the people actually working on the ground. Those who seek out risky endeavors have found an industry that is justifiably risk-averse. Such disparity highlights the fact that no amount of new technology matters if it doesn’t take into account a business’s most valuable asset: its relationships.

Recently, a carrier executive related how his company had to shell out nearly $4 million in detention fees last year alone. That’s something I hear all the time, whether it’s detention, late arrival or unloading fees.

It’s a seemingly simple problem with a seemingly simple solution, one that can be found in new technology. But while the barrier to entry for tech has been lowered, that development has become part of the problem.

Five years ago, it would have been cost-prohibitive for many freight companies to consider investing in new technology, no matter how much it would save them in the long run. Today, that’s no longer the case. The tech is cheaper and easier to get than ever before. And there is no shortage of people trying to sell it as a quick fix.

That has led to an influx of options that are doing more harm than good. With more choice comes the imperative to spend more time analyzing options. And clearly that’s time many carriers don’t have.

Some recent tech has actually eroded trust between partners. Take electronic logging devices (ELDs). Everyone has to have them, but with their arrival, we’ve also seen the potential for data manipulation.

At a recent industry conference, I counted at least 120 new logistics startups. How can any carrier who’s fighting for its life right now spend the time and resources to parse out which of those options is the right one? How can it know which is going to deliver on the promise of cutting costs and providing much-needed relief to the business? And can how can it be assured that this new tech won’t be a headache for the customers who keep it afloat?

We are spoiled for choice, at a time when what everyone needs is fewer, better enterprise-strength options.

The logistics lead for a prominent fast-food chain recently told me that he can find out where his spouse is simply by looking at his smartphone. Yet he has to spend hours tied up on the phone tracking down where his trucks are. Surely among those 120 companies, someone has the technology that can make tracking his trucks a painless, user-friendly experience. But how will he ever find them, and how will he know he can trust them once he does?

The answer is to look beyond the technology.

Companies feeling the pains of the freight recession need to look at the people who are building the products that are being pitched as their salvation. Do they actually understand freight, or are they simply coming out of Silicon Valley eyeing the next industry to disrupt? When they arrive touting huge partnerships, is that actually a good thing for your company, or is it merely good marketing?

If you’re a smaller player with huge clients to attend to, you’re never going to influence their roadmap. But if you find the right fit, you’ll have a better chance of working with them to tailor technology that will solve your specific needs.

Chances are you’re already working with fragmented systems that you’ve pieced together for years or even decades. You end up taking data out of all these systems to be manipulated manually in spreadsheets. They work for now, and it’s scary to change. But most existing tech solving only one piece of the puzzle.

Whomever you choose to work with should demonstrate the capability to solve your problems, a willingness to adjust their product roadmap to meet your needs, or the ability to bring in additional partners to create a seamless experience.

Anyone can build an app, but not everyone can understand the intricacies of an industry that is massively complex by its very nature. To get logistics right, start with the people who are working for you, and work from there.

Ashik Karim is CEO of LiteLink Technologies.

Technology Supply Chain Planning & Optimization Quality & Metrics Sourcing/Procurement/SRM

RELATED CONTENT

RELATED VIDEOS

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Featured Product

Popular Stories

  • GIST-webinar-DecisionPoint.png

    From Fragmented Tools to Unified Workflows: How to Transform Field Operations

  • 023_automation's_scalability_in_the_warehouse_v1 (540p).png

    Watch: Automation's Scalability in the Warehouse

    All Warehouse Services
  • TWO WORKERS SITTING AT A DESK CONSULT OVER A TABLET COMPUTER, SEVERAL COLLEAGUES VISIBLE BEHIND THEM

    Supply Chain Resilience in Today’s Geo-Political Mess

    Artificial Intelligence
  • MULTIPLE SHIPS PLY WATERS WITH A COASTLINE IN THE BACKGROUND

    Hormuz Gauntlet Runner Says Trump Has Been Good for Shipping

    Global Gateways
  • A LARGE AIRCRAFT BEARING THE LUFTHANSA LOG FLIES ABOVE FLUFFLY CLOUDS

    787-9 Dreamliner’s Nose Collapses on Runway

    Air Cargo

Digital Edition

2026 esg cover main scb q2 2026 cover

SupplyChainBrain 2026 ESG Guide: ESG — The Supply Chain’s Biggest Secret

VIEW THE LATEST ISSUE

Case Studies

  • Recycled Tagging Fasteners: Small Changes Make a Big Impact

  • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

    Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

  • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

    Moving Robots Site-to-Site

  • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

  • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

Visit Our Sponsors

4flow Arkieva Blue Yonder
Carton Cloud CoEnterprise Dassault
Duravant E2Open General Logistics Systems
Hy-Tek iGPS Korber
Lyngsoe Procurability Quinyx
SAP Sikick Systech
S&P Global Mobility TADA TransImpact
US Bank Werner Enterprises WSI
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Email Preferences
    • Newsletters
  • Resources
    • Events Calendar
    • 2026 Event Coverage
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2026 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing