Freight Technologies Reports AI-Driven Productivity Gains

- The global market for AI in logistics and supply chain was valued at $20.1 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 25.9% through 2034. This growth is driven by the increasing need for real-time visibility, demand forecasting, and automation in warehousing and transportation. - Freight Technologies' focus on the U.S.-Mexico cross-border trade route is significant as Mexico surpassed China and Canada to become the largest U.S. trading partner in 2023. This "nearshoring" trend is driven by a desire to simplify supply chains, reduce transportation costs, and mitigate geopolitical risks associated with sourcing from Asia. - Complex customs compliance, including Mexico's Complemento Carta Porte system, and potential for border delays are significant challenges in U.S.-Mexico cross-border logistics that AI-driven platforms can help mitigate. The United States-Mexico-Canada Agreement (USMCA) has introduced new rules for digital trade and customs facilitation to streamline these processes. - The Securities and Exchange Commission's (SEC) proposed rules on climate-related disclosures will require public companies to report on climate-related risks within their supply chains. While Scope 3 emissions (indirect emissions from suppliers) were dropped from the final rule, state-level regulations in places like California still mandate this reporting, increasing the need for supply chain visibility. - The Occupational Safety and Health Administration (OSHA) updated its regulations effective January 1, 2024, requiring establishments with 100 or more employees in high-hazard industries, including many manufacturing sectors, to electronically submit detailed injury and illness data from Forms 300 and 301. This increases the compliance burden and public transparency regarding workplace safety. - Internal audit functions in manufacturing are shifting their focus to address increasing supply chain vulnerabilities, tariff and trade volatility, and ESG (Environmental, Social, and Governance) imperatives. There is a growing trend towards using technology, including AI and data analytics, to conduct more frequent, risk-based audits and provide strategic insights rather than just traditional compliance checks. - Freight Technologies reported a 1.8% year-over-year increase in gross margin percentage for 2024 and improved its cash flow from operations by $1.6 million, attributing these gains to focusing on more profitable routes and operational efficiencies. The company also reduced its net loss by $3.7 million compared to the previous year. - In addition to its AI-driven productivity gains, Freight Technologies has been expanding its product offerings, launching "Fleet Rocket," a Transportation Management System (TMS) for brokers and shippers, and "Zayren Pro" with next-generation AI agents in early 2026.