Forwarders turn to tech amid supply chain uncertainty

Forwarders and brokers are most concerned about uncertainty in the trading environment driven by global instability, pricing pressures and tariffs, according to the 2025 Forwarder/Broker Benchmark Study from Descartes. Survey results show that 60% of forwarders and brokers consider global instability the top macroeconomic challenge, while prices (61%) and tariffs (42%) are the primary regulatory or industry challenges.

The industry seems to be split on how to deal with this uncertainty. The survey results show that progressive forwarders and brokers are taking this opportunity to invest in technology to gain insight, automation, and ultimately a competitive edge, while many others are taking a “wait-and-see” approach that may cost them in the end.

Tech Investments

Six consecutive surveys show forwarders and brokers are investing in technology as the primary approach to prepare for economic, regulatory and industry changes, including 63% in 2025. In addition, 65% see technology as fundamental or highly important to their growth strategy.

“To maximize the impact of technology, forwarders and brokers should align technology strategies and investments with their size, capabilities, and competitive objectives,” says Glenn Palanacki, VP of Industry Solutions, Broker and Forwarder for Descartes Systems Group, advising forwarders and brokers to start with a quick-win initiative — for example, self-service quoting, rate management, or document automation — that can be implemented rapidly and deliver measurable results such as time savings or error reduction.

Next, focus on customer value. Choose technologies that enhance the customer experience through faster quotes, greater shipment visibility, and fewer surprises — outcomes that differentiate providers while strengthening ROI.

Finally, adopt a phased roadmap. Digital transformation doesn’t need to happen all at once, Palanacki explains. A structured approach — such as a Year 1 focus on self-service quoting, Year 2 on AI-based classification, and Year 3 on predictive analytics for disruption management — builds sustainable capability and ensures every step delivers tangible business value.

The survey findings also reveal a technology gap between large and small forwarders and brokers. Larger companies are more aggressively pursuing a technology-driven strategy, while smaller companies are hampered by limited capital. Reflecting this divergence, large companies are more committed to technology as an enabler of growth (60%) than small companies (27%). Similarly, most large companies (50%) plan to increase IT spending by more than 5%, while most small companies (41%) are not increasing spending.

“While the survey shows that larger forwarders and brokers benefit from scale, capital, and more advanced technology adoption, smaller firms are far from locked out,” Palanacki counters. “By playing to their agility, focusing technology investments strategically, and operating with disciplined efficiency, smaller forwarders can compete effectively even against much larger competitors.”

Since capital is more constrained for smaller forwarders and brokers, he advises them to prioritize technology that delivers quick wins and strong ROI solutions that enhance visibility, automate manual work, and strengthen customer engagement without overextending resources.

AI Momentum

One of the most interesting, if not surprising, findings in the survey is the rapid rise in the focus on artificial intelligence (AI). Even though it was a new option in the 2025 survey, AI ranked as the number one driver of IT value (65.5%) and number one target of IT investment (55%).

While there’s still hype around AI, mainly where expectations exceed adoption, the momentum in logistics is very real, Palanacki asserts. For forwarders and brokers, 2026 marks the shift from asking “Should we explore AI?” to deciding “Which AI use cases will we implement and how?”

The report shows 18% of forwarders and brokers are already extracting value from AI through live use cases, while 24% are in the process of implementing solutions.

“Over the next year, we expect more organizations to move from pilot programs to full-scale deployment in high-impact areas such as document automation and classification (including Harmonized System (HS) code assignment and customs forms), AI-driven rate quoting and self-service customer portals, and predictive visibility and disruption alerts that blend historical and real-time data. According to the Descartes survey, these are the leading domains where forwarders and brokers are already investing and where they’re seeing the greatest potential returns in productivity, accuracy, and customer experience.”

Competitive Edge

“We’re seeing a clear divide between customs brokers and freight forwarders that are evolving and those standing still,” Palanacki says, adding that there are two areas where progressive brokers and forwarders can capitalize on the inertia of some peers to gain a competitive advantage.

First, he recommends delivering real-time visibility and self-service digital tools that 37% of customers now expect, yet most providers still do not offer.

Second, forwarders and brokers can elevate the digital customer experience. Providers that differentiate through instant quoting, real-time status updates, and analytics-driven dashboards earn deeper trust and loyalty — qualities that become even more valuable when market conditions are uncertain.

Turning Tariffs into a Competitive Advantage

The 2025 Forwarder/Broker Benchmark Study from Descartes indicates that the volatility of U.S. tariff policies is a major concern for forwarders and brokers, and they are actively pursuing solutions to mitigate the impacts of tariffs on their customers.

“Forwarders and customs brokers aren’t sitting idle in the face of tariff uncertainty,” observes Glenn Palanacki, VP of Industry Solutions, Broker and Forwarder for Descartes Systems Group. “The most forward-thinking companies now view tariffs as dynamic cost variables, not fixed burdens. They’re strengthening compliance and product classification processes to minimize cost surprises and using data-driven tools to predict and act on changes faster.”

The survey found that forwarders and brokers regard regulatory compliance systems as a primary driver of IT value (31%) in 2025. In addition, forwarders and brokers see technology as the key to regulatory compliance ­ 62% of survey respondents and 89% of large companies consider technology “fundamental” or “highly important” to regulatory compliance.

Palanacki concludes, “By adopting a proactive approach, forwarders and brokers are turning tariff volatility into a competitive advantage helping their customers navigate uncertainty with greater stability, transparency, and control across global trade flows.”