C.H. Robinson Pioneers AI Agent to Streamline LTL Freight Classification Amid Industry Changes
As the logistics industry braces for a significant shift in the national system for classifying less-than-truckload (LTL) freight, C.H. Robinson, a global leader in logistics, has unveiled a groundbreaking innovation: an AI agent designed to automate the process of determining freight classifications. This development not only aids shippers in adapting to the upcoming changes but also marks a new milestone in the company’s use of generative artificial intelligence. Slated to take effect on July 19, the revamped National Motor Freight Classification (NMFC) system will redefine how LTL carriers categorize shipments based on factors like weight, dimensions, and type of goods. C.H. Robinson’s proprietary AI solution ensures a seamless transition for its customers while setting a new benchmark for efficiency in the logistics sector.
Navigating the Complexity of LTL Freight Classification
LTL shipping involves multiple shipments sharing space on a single truck, making accurate classification essential for carriers to plan capacity and costs effectively. The NMFC system provides thousands of classes and codes that dictate how much space and weight each shipment requires—whether it’s bulky auto parts or lightweight retail goods like socks. LTL carriers rely on these classifications to determine pricing, and any discrepancies can lead to delays, inspections, reinvoicing, and even higher charges for shippers.
“Many LTL shippers are either unaware or uncertain about the correct classification for their freight,” said Greg West, Vice President for LTL at C.H. Robinson. “When they email us a tender, the freight class and code might be missing or incorrect. With the massive overhaul of the national LTL freight classification system, this issue is expected to increase. To address this, we’ve built an AI agent that determines the correct class and code for a shipment and assists another of our AI agents in converting that tender into an accurate order in our system.”
This innovative AI agent eliminates the bottlenecks caused by manual classification processes, enabling shippers to avoid costly delays and ensuring their freight moves smoothly through the supply chain.
A New Frontier in AI Innovation
The launch of this AI agent represents more than just a tool for classification—it signals a new frontier in C.H. Robinson’s approach to AI. According to Arun Rajan, Chief Strategy and Innovation Officer, the company has already deployed a fleet of over 30 AI agents to perform tasks that were once considered too complex for automation. “Now we’re building AI agents that help our AI agents,” Rajan explained. “This layered approach allows us to solve problems faster and more efficiently than ever before.”
For example, manually confirming or looking up the freight class and code for an emailed LTL tender can take a person 10 minutes or more per shipment. In contrast, the AI agent can determine the classification in about 10 seconds for shipments it encounters for the first time. After receiving additional training from LTL experts, the agent reduces this time to just three seconds per shipment. Moreover, unlike human agents, the AI can handle hundreds of shipments simultaneously, saving over 300 hours of work daily. This efficiency translates into faster service for customers and frees up C.H. Robinson’s team to focus on strategic supply chain management and addressing disruptions.
Expanding Automation for Enhanced Customer Experience
Before the advent of generative AI, approximately half of C.H. Robinson’s LTL orders were automated through its global shipper platform or direct integrations with customer systems. However, this new AI agent has proven particularly valuable for small-to-medium business customers, who frequently rely on email for their shipping requests. By automating the classification process for emailed tenders, the company has increased its LTL order automation rate to over 75%.
In its first few months of operation, the AI agent has been processing freight classifications for roughly 2,000 orders per day. “This level of automation not only speeds up the process but also enhances accuracy,” said Michael Castagnetto, President of North American Surface Transportation. “Our customers’ freight gets on the road faster, and our team can dedicate more time to helping them manage disruptions and optimize their supply chains.”
Preparing for the New Classification System
To ensure a smooth transition to the updated NMFC system, C.H. Robinson advises customers to prepare by verifying the accurate weight and dimensions of their freight. These details are critical for applying the correct classification under the new system. For businesses lacking advanced tools, dimensioner technology can assist in capturing precise measurements. C.H. Robinson has partnered with dimensioner vendors to offer discounts to its customers, further supporting their adaptation to the changes.
On the day the new classification system takes effect, the AI agent will seamlessly apply the updated classes and codes, ensuring uninterrupted service for customers. This proactive approach underscores C.H. Robinson’s commitment to staying ahead of industry challenges and leveraging cutting-edge technology to deliver value.
Setting the Standard for LTL Innovation
C.H. Robinson’s track record of innovation in the LTL space continues to set the standard for the logistics industry. From being the first to adopt electronic bills of lading to deploying AI-powered tools that predict and reduce accessorial charges, the company consistently empowers its customers with advanced solutions. Now, with generative AI, C.H. Robinson’s AI agents are transforming how LTL quote requests are handled and orders are processed, driving efficiency and scalability.
“This is just the beginning,” Castagnetto added. “Our AI agents are giving customers an edge by responding to LTL quote requests and processing orders in growing numbers every day. As we continue to refine and expand these capabilities, we’re confident that our customers will see even greater benefits in terms of speed, accuracy, and cost savings.”
By combining human expertise with AI-driven automation, C.H. Robinson is not only addressing the immediate challenges posed by the new NMFC system but also paving the way for a smarter, more efficient future in logistics. As the industry evolves, the company remains at the forefront, delivering innovative solutions that empower businesses to thrive in an increasingly complex supply chain environment.
ABOUT C.H. ROBINSON
C.H. Robinson delivers logistics like no one else™. Companies around the world look to us to reimagine supply chains, advance freight technology and solve logistics challenges—from the simple to the most complex. 83,000 customers and 450,000 contract carriers in our network trust us to manage 37 million shipments and $23 billion in freight annually. Through our unmatched expertise, unrivaled scale and tailored solutions, we ensure the seamless delivery of goods across industries and continents via truckload, less-than-truckload, ocean, air and beyond. As a responsible global citizen, we make supply chains more sustainable and proudly contribute millions to the causes that matter most to our employees.
