Automation and artificial intelligence (AI) are emerging as differentiators for logistics service providers navigating global instability, tariff changes, and mounting cost pressures. According to Descartes’ latest Global Forwarder/Broker Benchmark Study of more than 400 companies, 67% view technology as fundamental to growth. While concerns and strategies are similar worldwide, we also see some notable differences between EMEA, North America and other regions.

The shared challenges and responses highlight that freight forwarders and customs brokers operate in an increasingly globalised industry. What happens in the U.S. affects Europe, and developments in China have repercussions in North America. At the same time, each region has its own dynamics, resulting in three key regional differences. James Stafford, Sales Director, LSP EMEA, Descartes explains.

1. Unpredictable tariff changes drive value-added services

One difference relates to the unpredictability of tariff changes. Compared to EMEA, forwarders and brokers in other regions more frequently report that customers are asking for value-added services to help them classify goods, navigate regulations, and predict the impact of tariffs.

The reason is twofold. First, predicting tariff changes is a higher priority in North America, where their impact is felt more acutely than in EMEA—unless, of course, a company is trading with the U.S. Second, shippers in EMEA tend to prefer retaining ownership of goods classification and related processes. If inaccuracies occur, the shipper directly faces fines from regulatory authorities, which is why many choose to keep these activities in-house for compliance reasons.

In North America, by contrast, there is a stronger tendency to outsource classification and tariff analysis. With tariffs changing so rapidly, it has become extremely difficult for individual shippers to keep pace. As a result, they prefer to rely on specialists who work with multiple companies facing similar challenges and who have a broad, up-to-date view of how unpredictable tariff changes are being managed.

For EMEA forwarders and brokers, following this trend could be an opportunity to differentiate by proactively engaging customers and introducing new value-added services.

2. Geopolitical instability impacts EMEA

Another notable difference is that EMEA respondents highlight instability and conflict as their greatest challenge. Over the past six years, the world has faced trade wars with China, the impact of COVID-19, and the impact of the ecommerce boom.

Today, geopolitical conflicts are occurring close to home. These developments are disrupting trade routes and displacing business, which is likely why EMEA forwarders and brokers rate this challenge more highly than their counterparts in the U.S. and other regions.

3. Digitisation and customer self-service are key in EMEA

Finally, EMEA and other regions show greater interest in digitisation and customer self-service than North America. Our own experience supports this finding: clients report that their customers increasingly expect higher levels of self-service and transparency from forwarders and brokers, enabling them to identify and resolve issues quickly, before it is too late to act. This interest may also be explained by the fact that Europe needs to catch up with the U.S. in this area.

While the U.S. is arguably already more advanced than Europe in terms of digitisation, the EMEA region is characterised by a more fragmented market and a higher concentration of smaller, family-owned businesses operating with lower volumes, narrower service portfolios, and limited geographic reach. As a result, these companies often react more slowly to technological trends. They also tend to have less access to capital, as many are not backed by private equity. For privately-owned businesses that rely on their own cash flow, investment decisions are more difficult than for larger, well-capitalised organisations.

Consider a European company faced with a choice between investing €30,000 in digitisation or using that same budget to lease an additional truck for a year. The truck will often win. Encouragingly, however, awareness of the importance of technology is growing, and we expect to see increased budgets allocated to digitisation. As in other regions, EMEA respondents identify technology as the key area where competitive advantage will be found.

Conclusion

Technology is the common thread connecting all regions in the survey. Europe shows slightly higher interest in AI than regions such as North America. This may partly be explained by the smaller average size of European businesses, which tend to be more agile and open to adopting new technologies. Larger organisations are often more cautious, preferring to wait until others have tested new solutions. For smaller companies that cannot simply hire additional staff, AI is increasingly viewed as an efficient way to add a digital colleague.

Ultimately, every region is likely to recognise the technology’s benefits. Despite this strong global interest, however, AI adoption remains relatively low. One reason is the significant investment still required; another important factor is the lack of trust in AI. In many organisations, the need for close supervision still outweighs the perceived benefits AI can deliver.

Fortunately, this hesitation is expected to diminish as the technology matures and forwarders and brokers gain confidence in AI’s ability to operate more autonomously. Returning to the challenge of unpredictable tariff changes, AI also presents new opportunities for advanced analysis, helping companies manage uncertainty more effectively. It can provide clearer insight into how changes impact strategies and operations. In short, the industry stands on the brink of a technological transformation that will reshape how forwarders and brokers worldwide operate.