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Descartes' Study Finds 67% of Freight Forwarders and Customs Brokers View Technology as Fundamental to Growth

1. Descartes highlights logistics challenges like global instability and tariff volatility. 2. 67% of companies view technology as crucial for growth in logistics. 3. AI is expected to deliver the highest value in logistics over two years. 4. 55% will prioritize AI investment amid industry shifts toward automation. 5. Manual processes are cited as a major inhibitor to growth.

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Why Bullish?

Given the significant emphasis on AI and technology, DSGX stands to benefit as demand for logistics solutions rises. Additionally, the bullish sentiment around investing in AI aligns with DSGX's offerings, historically resulting in positive price movements for tech-focused firms during similar market conditions.

How important is it?

With rising challenges in logistics that necessitate technological solutions, DSGX is positioned effectively. As the leader in logistics technology, trends highlighted in the article are directly relevant and likely to influence investor sentiment positively.

Why Long Term?

The industry shift towards automation and AI suggests ongoing growth beyond two years. Companies investing in these technologies are likely to see sustained competitive advantages.

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TKCLOGIKNDI
Automation and AI emerge as critical differentiators for logistics services providers facing global instability, tariff volatility and cost pressures LONDON and ATLANTA, Nov. 04, 2025 (GLOBE NEWSWIRE) -- Descartes Systems Group (Nasdaq:DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, announced the results of its Global Forwarder/Broker Benchmark Study of more than 400 companies, highlighting a logistics industry navigating global uncertainty and technological opportunity. According to the study, global instability (60%), tariff changes (42%) and customer pricing pressure (61%) are among the most significant challenges freight forwarders and customs brokers expect to face over the next five years. In the face of these headwinds, however, 67% of respondents viewed technology as fundamental or highly important to growth, and an overwhelming 55% cited implementing new technologies as the top strategy to grow over competitors (see Figure 1). Figure 1: What strategies are expected to help differentiate your organization from and grow over competitors? Source: Descartes Respondents viewed the ability to leverage automation and artificial intelligence (AI) as vital to achieving long-term efficiency, compliance agility and profitability. AI (65%) was cited as the technology expected to deliver the greatest value to organizations over the next two years. While many traditional technologies experienced a decline in perceived value, both rate management (20%) and regulatory compliance systems (30%) showed gains in 2025 (see Figure 2). Rate management solutions have grown in importance for the ability to deliver automated, self-service rating and quoting capabilities to customers, while the value of regulatory compliance systems has increased given the complexities of meeting quickly evolving regulatory demands. Figure 2. What technologies are expected to deliver the greatest value to your organization over the next 2 years? Source: Descartes Other key findings include: Manual processes hinder growth: 25% cited manual workflows as the top inhibitor to growth, with smaller companies especially constrained by limited access to capital (27%).AI dominates technology investment: 55% of respondents plan to prioritize AI investment over the next two years.Competitive edge shifting: Tailored services (33%) overtook high service (31%) as the top competitive advantage, signaling a move toward more customized and data-driven customer experiences.Importance of technology diverges by company size: While 60% of large companies view technology as fundamental to growth, only 27% of small companies share that view. “Over the nine editions of the study, the role of technology has changed significantly for freight forwarders and customs brokers—from streamlining back-office operations, to enabling digital customer engagement, to harnessing intelligent automation,” said Scott Sangster, General Manager, Logistics Services Providers at Descartes. “This shift is mirrored in the industry’s IT investment priorities, which have evolved in step with technological maturity: from technology for efficiency in 2019–2020, digitization in 2021–2022 and now intelligence and automation through 2025. While forwarders and brokers are facing unprecedented global trade volatility today, many organizations remain optimistic about technology’s potential to help redefine their future.” Descartes surveyed 434 freight forwarders and customs brokers across North America, EMEA, APAC and Latin America, including Descartes customers, industry publication readers and members of seven trade associations: Airforwarders Association (AfA), Association of International Customs and Border Agencies (AICBA), British International Freight Association (BIFA), Canadian International Freight Forwarders Association (CIFFA), European Association for Forwarding, Transport, Logistics and Customs Services (CLECAT), International Federation of Freight Forwarders Association (FIATA), National Customs Brokers & Forwarders Association of America (NCBFAA). The goal was to gain a comprehensive look at the forces shaping the logistics industry from a diverse group of global logistics professionals. The study examines key economic, regulatory and industry trends creating new challenges while also highlighting the strategies, tactics and technologies companies are using to adapt and drive growth. It explores the competitive landscape, areas of technology investments and the impact of emerging technologies, such as AI, on the industry’s future. To learn more, read the full report: Descartes 2025 Forwarder/Broker Benchmark Study. Learn more about Descartes’ Broker and Forwarder Enterprise Systems. About Descartes Descartes (Nasdaq:DSGX) (TSX:DSG) is the global leader in providing on-demand, software-as-a-service solutions focused on improving the productivity, security and sustainability of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, track and help improve the safety, performance and compliance of delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world’s largest, collaborative multimodal logistics community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world. Learn more at www.descartes.com, and connect with us on LinkedIn and Twitter. Global Media Contact Cara StrohackTel: 226-750-8050cstrohack@descartes.com Cautionary Statement Regarding Forward-Looking Statements This release contains forward-looking information within the meaning of applicable securities laws (“forward-looking statements”) that relate to Descartes’ broker and forwarder enterprise solution offerings and potential benefits derived therefrom; and other matters. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the factors and assumptions discussed in the section entitled, “Certain Factors That May Affect Future Results” in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities regulatory authorities across Canada including Descartes’ most recently filed annual and interim management’s discussion and analysis which are available under Descartes’ profile through the EDGAR website at http://www.sec.gov or through the SEDAR+ website at http://www.sedarplus.com/. If any such risks actually occur, they could, among other consequences, materially adversely affect our business, financial condition or results of operations. In that case, the trading price of our common shares could decline, perhaps materially. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purposes of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law. Photos accompanying this announcement are available athttps://www.globenewswire.com/NewsRoom/AttachmentNg/76d3d091-8348-439b-ab9c-d97439fa1834https://www.globenewswire.com/NewsRoom/AttachmentNg/92f339ca-cf62-4eee-b821-4a5b5ee19795

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