By Matthew Yeshin (Global Digital Leader,  Marsh Cargo and Logistics Specialty)

New tools and technology are emerging that collect and analyze vast amounts of data from every corner of the cargo industry. As freight and logistics service providers (FLSPs) , you are at the heart of global supply chains, managing complex shipments daily. Leveraging this data can significantly enhance your operational efficiency, risk management, and service offerings.

Over recent decades, freight and logistics industry has evolved with increasing digitization, yet many opportunities remain untapped to use granular shipment data to optimize decision-making and improve client satisfaction. By embracing real-time and detailed supply chain data, freight and logistics service providers can transform how they manage shipments, mitigate risks, and collaborate with insurers and clients.

Here are three ways logistics service providers can harness data to enhance their operations and value proposition:

1. Proactively Collect and Share Shipment Data
FLSPs have access to extensive data through transportation management systems (TMS), electronic bills of lading, customs documentation, and IoT devices embedded in cargo or containers. This data includes cargo values, precise routes, geopolitical risks, weather conditions, and port statuses.

However, this data is often underutilized if not systematically collected or shared with partners such as insurers and clients. By actively gathering and providing granular shipment data, FLSPs can enable more tailored risk assessments and dynamic insurance policies that reflect real-time conditions.

2. Standardize Data for Consistency and Insight
Collecting data is just the first step. FLSPs should work towards standardizing cargo descriptions, shipment routes, and documentation formats based on international standards like electronic Air Waybills (eAWBs) and customs data.

Standardization enables consistent analysis across shipments and clients, helping to identify risk patterns, streamline operations, and improve communication with insurers and other stakeholders. It also facilitates benchmarking and predictive analytics, allowing freight forwarders to anticipate potential issues and optimize supply chain decisions.

3. Use Data to Enable Flexible and Responsive Services
With properly collected and standardized data, FLSPs can develop more flexible service offerings that adapt to the complexities of modern supply chains. This includes integrating data into freight cost calculations, contracting, and financing arrangements.
By leveraging real-time shipment data, FLSPs can offer dynamic solutions such as route adjustments in response to geopolitical events or weather disruptions, enhancing the reliability and resilience of their services.

Moreover, FLSPs can collaborate with insurers to facilitate innovative insurance products like parametric insurance, which triggers payouts automatically based on predefined conditions such as shipment delays or temperature excursions detected by cargo sensors.

Enhancing Claims Handling and Risk Management
Access to accurate, real-time data also improves claims handling efficiency. Instead of relying solely on manual reports and lengthy investigations, FLSPs can provide verified data from IoT devices and telematics that monitor cargo condition and movement, speeding up claim validation and reducing disputes.

Additionally, monitoring shipments continuously allows FLSPs to identify and address risks proactively, such as route deviations or adverse weather, minimizing potential losses and enhancing client trust.

Harnessing data-driven insights is no longer optional but essential for staying competitive in today’s dynamic global logistics environment.

This article is prepared by Marsh. If you would like to enquire the cargo solutions, please contact Mr. Samson Ng (samson.ng@marsh.com) & Ms. Marilyn Chu (marilyn.my.chu@marsh.com) for more details.