How to Avoid the Last-Mile Black Hole

One big challenge in first and last mile logistics is the “landside container black hole”, when freight forwarders and their customers lose visibility into container movements once they enter domestic transport networks. This “black hole” creates blind spots in carrier selection, shipment milestones, and cost management—leading to inefficiencies, delays, and unplanned expenses.

Yet the first/last mile leg is being overlooked, and the process remains largely manual and fragmented. It’s often bundled with the ocean move, yet it operates within a completely different network of providers and is typically managed by a separate local team with port-specific expertise.

The decentralized nature of drayage management means decisions are made in silos, leading to ad-hoc carrier selection, often based on long-standing relationships that aren’t always cost-effective, or performance driven.

For multinational logistics providers this can incur unnecessary costs and inefficiencies including: siloed vendor selection and execution processes that limit opportunities for volume-based rate negotiations; untracked accessorial fees and hidden charges that erode forwarder margins or create unexpected costs for shippers; operational inefficiencies due to manual processes (emails, phone calls, terminal website checks), and high operational costs due to the resource-intensive nature of managing first and last mile logistics.

With the digital freight forwarding market projected to grow, the industry’s shift toward digital solutions to enhance efficiency and reliability is clear. The key to success lies in creating a flexible, multi-sourced landside supply chain with alternative routes and partners that ensure continuity during disruptions. This can be enabled by choosing the right solution that fits your needs.

Let’s dive into the capabilities to look for:

Real-time tracking. GPS and IoT-enabled devices achieve the end-to-end visibility needed to combat the “black hole.” These tools allow freight forwarders to monitor the movement milestones of containers at every step. This helps predict delays, optimize routes, and proactively manage exceptions during the first and last mile.

Automation. Automation and AI integration into the core functions of GPS and IoT are what improve operational efficiency. AI-powered route optimization software considers traffic, weather, and delivery windows to find the most efficient paths for shipments. This reduces fuel consumption, delivery times, and costs—especially crucial for the last mile, where many deliveries are made to diverse locations.

Integration. Interconnectivity and interoperability across multiple areas of business via automation offers freight forwarders the ability to review and select improved carrier options based on preferred carrier(s), cost, and other KPIs. This integration can also better manage freight volumes based on carrier capacity, contractual commitments, and load allocation.

Choosing the right solution is critical for building a responsive, efficient, and customer-centric supply chain.