Thursday’s session on U.S. stock exchanges brought sharp declines in logistics companies’ share prices. Landstar System and C.H. Robinson fell by more than 14%, while the Dow Jones Transportation Average dropped 4% a day after reaching a record high. This is another sector that has come under pressure amid rising expectations for AI-based solutions – Reuters reports.
Freight brokers in investors’ crosshairs
The biggest concerns relate to the freight brokerage segment. Investors assume that AI can automate a significant part of these processes, including carrier selection and price negotiations. As a result, traditional players such as C.H. Robinson, RXO or Forward Air may come under pressure from new business models based on algorithms and real-time data analysis.
The declines in logistics companies’ share prices are part of a broader wave of sell-offs in technology stocks. The market fears that new AI-based products will lead to a rapid increase in competition and erosion of margins in well-established market segments.
Digital platforms are accelerating
Digital freight networks are putting pressure on traditional brokers, using machine-learning algorithms to automate logistics processes, enabling faster matching of loads to carriers and offering real-time pricing and shipment visibility.
An additional catalyst for the market was information provided by Algorhythm Holdings. The company reported that its SemiCab unit increased the volume of loads handled by 300–400% without a proportional increase in operational headcount. In response to these figures, the company’s share price rose by around 30%, and its market capitalization reached approximately $6 million.
It is worth recalling that Algorhythm Holdings operated until recently under the name The Singing Machine Company and sold karaoke equipment. In August, it sold that business to Stingray Music and changed its name, focusing on AI-based logistics solutions.
Efficiency versus relationships
The potential of artificial intelligence in logistics is hard to dispute. AI-based systems can analyze vast datasets, optimize routes, predict delays and automate documentation. This means fewer errors, lower operating costs and greater supply chain transparency.
For shippers, this could translate into more competitive rates and higher service reliability.
Some analysts, however, are urging caution. In their view, the market reaction may be exaggerated, because in the complex logistics industry interpersonal relationships and experience in handling non-standard situations remain key. These are areas in which algorithms cannot always replace humans.
In experts’ assessment, companies that treat AI as a supporting tool rather than a substitute for their services may, in the longer term, emerge stronger from this transformation.
A market between euphoria and uncertainty
Concerns about the impact of artificial intelligence on traditional business models also intensified after Anthropic introduced plug-ins for the Claude Cowork agent. Markets reacted nervously, fearing that further AI solutions would move into areas previously reserved for software and service companies.
On the one hand, Wall Street has risen in recent years on the back of enthusiasm around AI. On the other, it is becoming increasingly clear that the same technology may become a destabilizing factor for some established sectors, including transport and logistics.
For traditional freight brokers, the pace of adaptation will be crucial. What’s at stake is no longer just operational efficiency, but the ability to defend margins in a world where an algorithm can become a fully fledged participant in the transport market.
