Matt Salefski
Co-founder and CEO at Rectangle
November 1, 2024
The telegraph
In 1844, the telegraph revolutionized communication. But only for the wealthy. Learn why logistics is in its own telegraph era.
Sending a single message could cost a day’s wage. A telegraph message cost up to $1, a significant expense considering the average worker only earned $6 per week. Imagine if you had to spend $200 to send an email in America today.
This meant that the telegraph was only accessible to governments, large corporations, and the wealthy.
Today, the freight logistics industry is in its own “telegraph era” of data and communication. EDI (electronic data interchange) is the de-facto standard. When people think of integrations, EDI is the first thing that comes to mind.
But with additional hidden costs, it can cost tens of thousands per year, takes months to implement, is complicated to learn, and breaks all the time. And it doesn’t even cover every delivery milestone and data point shippers need.
So just like the telegraph, EDI is functional, but exclusive. Small to mid-sized freight brokers and forwarders are left relying on workarounds or outdated processes while larger companies leverage their scale to make EDI work for them.
Technology should be an equalizer, not a wedge. If the telegraph taught us anything, it’s that the true power of communication lies in its accessibility.
So how do we break down the barriers that keep freight communication locked in the past? The future isn’t about tearing down EDI or existing systems. It’s about rethinking how tech fits into a connected future where integrations are simple, affordable, and accessible to all players in the industry—not just the biggest.
Because when the tools work for everyone, we all move faster.
Thinking about integrating with carriers or shippers? Skip the 60s tech with Rectangle.
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