The Transformation of Freight Forwarding and Customs Broker Clerks in the Age of AI

As artificial intelligence (AI) continues to revolutionize industries worldwide, logistics and customs operations are undergoing a significant shift. Within this evolving landscape, the roles of freight forwarding clerks and customs broker clerks are particularly impacted. These clerical positions have traditionally been responsible for much of the administrative and repetitive tasks in global trade. However, with AI automating many of these functions, clerks are transitioning from routine task performers to critical contributors in more strategic operations.

This article explores how AI is changing the nature of clerical work in freight forwarding and customs brokerage and what the future holds for these professionals.

?The Traditional Role of Freight Forwarding Clerks

Freight forwarding clerks have long been the backbone of logistics operations, responsible for a range of crucial tasks, including:

- Sending quotes to clients.

- Opening new shipment files in the system.

- Inputting and managing shipping details.

- Handling communication between carriers and clients.

- Ensuring that documentation, such as bills of lading, export licenses, and invoices, is accurate and up to date.

These tasks required significant manual effort, with clerks often juggling multiple shipments at once, updating systems, and sending quotes based on varying conditions. The work was repetitive, prone to human error, and consumed valuable time that could otherwise be used for more strategic tasks.

?The Traditional Role of Customs Broker Clerks

Customs broker clerks have also played a vital role in ensuring smooth customs clearance. Their responsibilities included:

- Classifying goods with the correct Harmonized System (HS) codes.

- Preparing and submitting customs documentation.

- Calculating duties, taxes, and tariffs.

- Managing communication with customs authorities.

- Coordinating inspections and ensuring compliance with international trade regulations.

This role involved manually entering large volumes of data, navigating complex regulations, and ensuring that shipments met the requirements of different countries. The risk of errors in HS code classification or duty calculations often led to delays or penalties, adding pressure to clerks to perform accurately under tight deadlines.

?AI's Impact on Freight Forwarding Clerks

With the introduction of AI, many of the manual, repetitive tasks that freight forwarding clerks once handled are becoming automated. AI-driven systems can:

- Generate quotes instantly by analyzing real-time data, such as shipping rates, client preferences, and cargo specifics. What used to take hours of back-and-forth communication and manual rate calculations can now be completed in seconds.

- Open and manage shipment files automatically, integrating data from multiple sources and reducing human errors in data entry.

- Streamline communication with carriers, automating routine messages and updates.

- Track shipments in real-time, providing updates to clients without the need for constant manual input from clerks.

Impact on Clerks: The role of the freight forwarding clerk is evolving from a focus on repetitive tasks to a more supervisory and strategic one. Clerks are now expected to manage and oversee AI systems, handle exceptions, and ensure that data-driven decisions align with client needs. Instead of spending hours on administrative work, clerks can focus on enhancing customer relationships, solving complex issues, and ensuring overall service quality.

?AI's Impact on Customs Broker Clerks

Similarly, customs broker clerks are benefiting from AI automation in several key areas:

- Automated HS code classification: AI systems can quickly and accurately assign HS codes to products based on historical data and product descriptions, reducing errors and speeding up the process.

- Customs documentation preparation: AI can automatically generate and submit the necessary documentation, significantly reducing the time clerks spend on data entry.

- Risk assessment and compliance monitoring: AI systems can analyze shipments for potential compliance risks or red flags, offering suggestions to clerks on how to mitigate these issues.

- Duty and tariff calculations: AI can instantly calculate duties and taxes based on the latest trade regulations, ensuring accuracy and minimizing the risk of costly mistakes.

Impact on Clerks: Customs broker clerks are transitioning from data entry roles to compliance strategists. With AI handling much of the administrative burden, clerks can now focus on ensuring compliance with complex regulations, handling exceptions where AI might struggle, and providing high-level insights to their clients.

?The New Role of Freight Forwarding and Customs Broker Clerks

?The Freight Forwarding Clerk of the Future

In an AI-powered world, freight forwarding clerks will take on a more analytical and client-centric role. Their responsibilities will include:

- Managing AI systems to ensure they are functioning correctly and delivering accurate quotes and data.

- Handling exceptions where AI may flag unusual shipments, delays, or pricing issues that require human intervention.

- Providing strategic advice to clients based on insights drawn from AI data, helping optimize shipping routes, costs, and timelines.

- Enhancing client relationships through more frequent and meaningful communication, as AI reduces their administrative load.

The role is shifting from routine tasks to a more value-added position that requires problem-solving, strategic thinking, and a deeper understanding of client needs.

?The Customs Broker Clerk of the Future

For customs broker clerks, the future will focus on compliance and advisory roles. Their new responsibilities will include:

- Overseeing AI-driven classification and documentation processes to ensure accuracy and address any anomalies.

- Offering compliance insights based on AI-generated data, ensuring that shipments meet the evolving legal and regulatory standards.

- Managing disputes and exceptions where AI might not fully capture the complexity of certain regulations or unique situations.

- Working closely with customs authorities to handle more nuanced or complex cases that require human judgment.

As AI takes over data entry and calculations, the customs broker clerk will evolve into a compliance expert, providing critical oversight and strategic advice to ensure seamless customs operations.

?The Financial Impact of AI on Clerical Roles

AI’s ability to automate clerical work has significant financial implications for logistics and customs operations:

- Increased productivity: AI allows clerks to handle 2-3 times more workload than before. For example, where a freight forwarding clerk might have managed 50-70 quotes per month, AI enables them to oversee 150-200 quotes while maintaining higher accuracy.

- Reduction in errors: The automation of data entry and documentation reduces costly mistakes, which can lead to fines, delays, or penalties.

- Faster turnaround times: By automating repetitive tasks, AI reduces the time needed to process quotes, open files, and submit customs documentation, improving overall client satisfaction.

- Cost savings: With fewer clerks needed for data entry and manual tasks, companies can reduce their staffing costs while increasing output and quality of service.

?Adapting to AI: The Human Element

AI might be changing the nature of clerical work, but the human element remains crucial. Here’s how different age groups of clerks are expected to adapt to these changes:

- Aged 20-30: Digital natives who are quick to embrace new technologies will easily adopt AI tools. They will likely become the champions of AI in the workplace, helping train and implement systems.

- Aged 30-40: This group, with a balance of experience and digital proficiency, will serve as the bridge between manual processes and AI automation. They will be instrumental in ensuring a smooth transition.

- Aged 40-50: More experienced clerks may face a steeper learning curve, but their deep industry knowledge will remain vital. They will focus on managing exceptions and providing oversight where AI may fall short.

- Aged 50 and beyond: While this group may initially resist AI, their expertise in handling complex cases will be essential. They can use AI to reduce their workload while focusing on high-level decision-making.

The Future is Collaborative

The rise of AI in freight forwarding and customs brokerage is reshaping clerical roles, but it isn’t eliminating them. Instead, clerks are becoming more strategic, data-driven, and client-focused, while AI handles the repetitive, administrative aspects of their work. The future of logistics and customs operations will be a collaboration between AI systems and human professionals, with clerks playing a pivotal role in ensuring the seamless integration of technology into global trade.