Supply chain management and the freight industry are rapidly playing even bigger roles due to advanced technologies. And with the rapid pace of innovation, a new artificial intelligence (AI) solution has been developed by South Korean researchers which uses approximately 2 million big data records, including information on the day of the week, travel time, and weather, to determine the appropriate cargo freight rate.
The Gyeonggi Provincial Government announced on Tuesday that researchers from Kyonggi University who are working at the Gyeonggi-do Regional Research Center have created a freight transportation brokerage upgrade service in collaboration with a private company and are getting ready to commercialize the technology.
The research team found that a fair freight rate could be calculated by taking into account a number of variables, such as the day of the week, weather, weight, and distance. As a result, they observed that by entering the cargo type and destination, it is possible to present an accurate freight rate in comparison to the available data.
Due to the lack of defined freight rates in the domestic freight transportation industry, there is an opportunity for disagreement between the shipper and the transporter about the determination of freight rates. Meanwhile, the recently created service offers reasonable freight prices to shippers and transporters, thereby reducing the gap in their viewpoints.
Moreover, using this technology, a freight transportation brokerage platform is currently working to create a mobile app that can offer a service with standardized freight rates.
