Freight Brokers Face a Threat, But It’s Not From AI
The peril is not digital.
Photographer: Eric Thayer/Bloomberg
The so-called AI scare trade that is sweeping through different sectors landed on freight brokers on Thursday, which is ironic because the largest of them are already using artificial intelligence effectively. Additionally, they do face a true threat, but it’s one that is in no way digital.
The latest AI-induced selloff was sparked when Algorhythm Holdings Inc., a former karaoke company with a stock market value of only $6 million, touted that its logistics platform could do the same work as brokers, according to a report by Bloomberg. The Russell 3000 Trucking Index fell 6.6%, and the largest of the cargo matchmakers — C.H. Robinson Worldwide Inc., RXO Inc. and Expeditors International of Washington Inc. — dropped 15% or more.