AI could automate 70% of ocean carrier customer service, leading to significant cost savings, according to New York's Journal of Commerce.
Artificial intelligence could automate up to 70 percent of ocean carrier customer service within two years, offering major cost savings, reports New York's Journal of Commerce.
Freight transport companies are under pressure to reduce costs in competitive markets. With few opportunities left for consolidation, carriers are turning to AI to automate core processes such as customer service, dispute resolution, and order-to-cash cycles.
Siddharth Vijay, founder of Lynk Labs, stated that customer inquiries regarding vessel ETA, free time extensions, and bills of lading are standardized and ripe for automation. He estimated that 40 percent of service volume could be automated now, rising to 70 percent by 2028.
Assuming a US$30,000 annual cost per representative, a carrier with 2,000 staff could save US$24 million a year, while one with 5,000 staff could save US$60 million. Mr. Vijay noted that automation would also enhance customer relationships through faster responses.
AI could also streamline dispute resolution by identifying root causes, summarizing cases, and suggesting fixes, thereby reducing handling time and preventing repeat issues.
Mr. Vijay mentioned that large-scale AI integration could eventually drive core carrier decisions, including bookings, container positioning, port calls, and blank sailings. He described the challenge as a data availability problem rather than an algorithmic one.
Industry executives indicated that carriers, though conservative, are unlikely to ignore the competitive implications of AI adoption, given the scale of potential savings and efficiency gains.
