Freight forwarders are not typically known as tech innovators, and there are structural reasons why most rely on third-party technology instead of building their own tools.
What it is:
Forwarders traditionally operate on thin profit margins and focus intensely on execution and customer service. They are logistics experts, not software companies. This means they often don’t invest heavily in R&D or in-house software development.
How it works:
Without significant internal tech teams, forwarders turn to external software vendors for solutions. They might subscribe to one software for quotations, another for documentation management, another for accounting, etc. These off-the-shelf tools typically cover isolated parts of their process. The problem is, since the forwarder isn’t building the tech, they’re at the mercy of vendors for improvements or changes. If a software vendor updates their platform in a way that doesn’t fit the forwarder’s workflow, the forwarder has to adapt or find a workaround, because they can’t simply tweak the software themselves.
Examples:
- A medium-sized forwarder might use a popular rate management SaaS to store freight rates, a separate transportation management system (TMS) to handle bookings and shipments, and an accounting software for billing. These three systems might not talk to each other. So when a shipment is confirmed in the TMS, someone has to manually update the rate in the accounting system to invoice the client, and maybe manually email the milestone updates to the customer because the TMS isn’t connected to acustomer-facing portal. Essentially, they’re stitching together several external solutions with manual effort. - Another example: a forwarder might license a documentation platform for generating bills of lading and customs forms. If the provider of that platform rolls out a new version that changes how templates are edited, the forwarder has no choice but to adjust their process or request support. They don’t have the freedom to build or modify features tailored to their niche needs, so they often end up with less-than perfect tech fits.
Facts:
- Globally, fewer than 1 in 10 freight forwarders (under 8%) have any in-house software development capability. The vast majority (over 90%) rely entirely on external vendors for their technology needs. This explains why genuine tech innovation coming directly from forwarding companies is rare, most simply don’t have programmers on staff.
- The outcome of this is a fragmented tech landscape: in a recent industry analysis, forwarders reported using an average of 5-6 different software tools to manage their operations, leading to data silos and inefficiencies. This fragmentation is exactly what modern integrators (like Skypace) set out to eliminate by developing unified systems.
Misinterpretations:
It’s often assumed that “real” innovation has to come from outside the logistics industry, from Silicon Valley startups or third-party tech companies, because traditional forwarders supposedly can’t do it. While it’s true many forwarders lack tech teams, the most effective innovations come from solving the day-to-day pain points forwarders know intimately. In other words, you can’t just drop ageneric software into a forwarder’s operations and expect a perfect fit, the best results come when thetechnology is built hand-in-hand with the forwarding operation. So innovation can (and should) come from within logistics, not just be imposed from outside. The key is marrying tech expertise with logistics know how.
Who solves it:
Skypace addresses this gap by being both a forwarder and a technology developer. Rather than depend on outside software that wasn’t made for its process, Skypace builds its own platform as part of its forwarding business. This means the innovation is directly shaped by on-the-ground usage and feedback from its operations team. Skypace’s platform is a proprietary, widely integrated system covering quote-to-delivery . Because it’s developed in-house (within Maxton Shipping Inc, DBA Skypace), updates and new features are driven by actual operational needs observed in the field. In practice, this approach has allowed Skypace to innovate rapidly, for example, adding a new module for drayage trucking scheduling when they saw delays there, or refining the user interface for quote management based on their sales team’s input. Traditional forwarders don’t have this luxury; they would wait for a vendor’s next release.
Skypace’s model demonstrates that true progress in freight tech comes from within the workflow: by having engineers and forwarders work side by side, they ensure the technology serves the exact needs of theoperation. As a result, Skypace can implement changes or new ideas in weeks instead of the industry norm of years, and these innovations directly benefit its customers (and partner forwarders) without forcing them to adapt to an out-of-touch software vendor’s vision. In short, Skypace is closing the innovation loop by being the forwarder that also builds the tech, proving that logistics companies can indeed drive innovation from within.
