CJ Logistics Launches 'The Unban' Platform to Solve Multi-Level Transportation Market Issues

[Asia Economy Reporter Hyunseok Yoo] CJ Logistics is launching an artificial intelligence (AI)-based transportation platform that directly connects shippers and truck owners. As the transportation market, a representative "lemon market" in the logistics sector, becomes more transparent and reasonable transportation fees are established, it is expected to create a win-win structure that benefits both shippers and truck owners.

On the 22nd, CJ Logistics announced the launch of the transportation platform "The Unban (the unban)," which uses AI and big data technology to find the optimal real-time freight rates and quickly connect shippers and truck owners directly. After shippers register on the shipper-specific Unban web, they upload information such as origin, destination, type of cargo, and quantity, which truck owners can check and select via a mobile app before transporting the goods.

This platform is expected to play a significant role in resolving the unreasonable brokerage fee issues that small-scale truck owners have faced. Since shippers and truck owners are directly connected through the platform, excessive fees previously paid to intermediaries in the process can be reduced. This lowers logistics costs for shippers while increasing income for truck owners.

Currently, in the transportation market, both shippers and truck owners lack accurate information about each other and have had to rely on intermediaries. This process has led to high fees and deteriorated transportation service quality. Due to information asymmetry and low service quality, it has been regarded as a representative "lemon market" in Korea. Truck owners have continuously filed complaints with the government, and discussions on introducing a cap on brokerage fees have also taken place. However, these issues have not been resolved due to concerns about side effects from government market intervention and the absence of a trustworthy transparent platform.

CJ Logistics has implemented a high-quality platform based on logistics big data and transportation expertise. CJ Logistics uses big data analysis of transportation-related information such as cargo type and size, travel distance, along with AI that learns various external factors including weather conditions, oil prices, and seasonal factors to find the optimal real-time freight rates. The AI also proposes matching by finding the most suitable truck owner according to the shipper’s registration information. It provides a customized matching service considering the truck owner’s current location and preferred travel routes.

Choi Hyungwook, Head of the Transportation Platform at CJ Logistics, said, “We have implemented a differentiated transportation platform based on outstanding IT capabilities, transportation big data, and expertise.” He added, “Through innovative logistics technology, we will create a market environment where the closed transportation market can grow transparently and healthily, and through continuous service advancement, we will develop it into a ‘good platform’ that benefits both shippers and truck owners.”

This content was produced with the assistance of AI translation services.