Flexport CEO: ‘Every single member on your team should be using AI’

Flexport is making noise in logistics after unveiling 20 AI-driven products and updates last week.

Founder Ryan Petersen sat down with FreightWaves to discuss the reasoning behind the massive product release, the role of AI in global logistics and the evolving landscape of international trade regulations.

A deadline-driven innovation surge

Launching such a large suite of products at once was a strategic decision, according to Petersen, who credits Airbnb CEO Brian Chesky for inspiring Flexport’s approach.

“There’s nothing like the power of a deadline to make people work really hard. … It did create a moment for us to drop a bit of a bomb into the supply chain world,” he explained.

By consolidating updates into a single major release, Petersen was able to drive momentum within his tech team, fostering collaboration between marketing and development and generating industry buzz.

Among the standout announcements is Flexport Intelligence, an AI-driven reporting tool that allows customers to generate insights with natural language queries. 

“You just type, ask questions and we generate reports – lists, graphs, charts,” Petersen explained. The platform builds SQL queries in the background, allowing users to create dashboards that update in real time.

Also noteworthy is the Flexport Control Tower, which enables businesses to leverage Flexport’s technology even when they use other freight forwarders. Petersen highlighted how allowing customers to use other freight forwarding services addresses a long-standing industry challenge.

“Your data is less valuable if it’s only on one-third of your shipments. Having the best-quality data and reports that don’t cover everything comes up short,” he said.

By providing a centralized logistics management system, Control Tower enhances visibility and efficiency across multiple freight providers.

Flexport isn’t just looking to streamline supply chains, but to redefine supply chains’ value. Petersen emphasized the need for businesses to see logistics as a growth driver rather than a cost burden. For example, the company’s fulfillment services, enhanced by its acquisition of Shopify Logistics, now enable customers to offer two-day shipping at lower costs, boosting conversion rates and customer satisfaction.

Related: Flexport raises $260M from Shopify

No discussion about global logistics with the freight forwarding founder would be complete without addressing trade regulations, something Petersen openly discusses on his trending X account.

With the Trump administration introducing new tariffs, including a 10% increase on China, Flexport is at the center of the resulting uncertainty. Petersen acknowledged the challenges tariffs create but also noted how they amplify the importance of Flexport’s services. 

“[Tariffs] are massively impactful to our mission. We want to make global trade easy. … We are anti-tariff as a company. We’re proud to say we want there to be no barriers for our customers to do global trade. But the more barriers that are thrown up, the more important our work becomes,” he told FreightWaves.

Flexport has built a reputation for agility, using an “OODA loop” framework (Observe, Orient, Decide, Act) to quickly adapt to policy shifts. The company’s trade advisory team helps shippers navigate duties, reclassify products and take advantage of refund programs. 

As Petersen pointed out, billions of dollars in duties go unclaimed each year and Flexport is actively working to ensure customers recoup what they’re owed.

AI in FreightTech

Petersen also told FreightWaves he is bullish on AI’s potential in logistics, urging companies to integrate AI into daily workflows. 

“Every single member of your team should be using AI at least 10 to 20 times a day,” he said, encouraging professionals to explore tools like ChatGPT and Gemini.

For Flexport, AI isn’t just a buzzword, it’s a strategic advantage. With its scale as a large American freight forwarder, Flexport possesses the data and distribution needed to implement AI-driven solutions efficiently across the supply chain. Petersen remains vigilant, however, acknowledging that newer AI-native companies could emerge as serious competitors. 

“We are paranoid [about competitors]. … There’s a lot of AI talent in the world that does not work at Flexport. … We got to hire awesome people and we have the opportunity to deploy [their AI models] at scale. I think that is pretty unique across any industry. I think we’re really well positioned for it,” he said.

Looking ahead, Flexport plans to deepen the integration between its international freight and fulfillment businesses. The company is also exploring AI-driven inventory financing, where having goods in Flexport’s fulfillment centers could unlock better financing rates for merchants.

Petersen explained the company remains committed to maintaining high innovation velocity, with product releases expected in six months – another tip he got from Airbnb’s Chesky. 

While regulatory uncertainty remains a challenge, Petersen and his team are looking to prove they can meet that challenge with the right mix of innovation and adaptability.

Check out the full FreightWaves interview with Petersen here.

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