How Cartage is Rethinking Freight Logistics with AI

Freight tendering has long been an antiquated process, with brokers and shippers often relying on a patchwork of phone calls and email threads to coordinate shipments. It’s an approach that works - but not without significant inefficiencies.

Cartage is on a mission to change that.

Cartage is an AI-managed logistics service that coordinates freight directly for shippers, eliminating the need for brokers or large logistics teams. 

By leveraging AI to automate workflows, Cartage integrates seamlessly into existing communication methods like email, reducing costs and improving efficiency without requiring behavioural changes from shippers or carriers.

This approach is resonating with customers. Since its launch in December 2023, Cartage has already onboarded over 30 shippers across the US and Canada, coordinating millions of dollars worth of freight.

Now, with $3.3M in funding led by Y Combinator, Garage Capital, Wayfinder Ventures, Northside Ventures, Pioneer Fund, and Ritual Capital, Cartage is focused on scaling its operations, refining its AI, and redefining how freight logistics are managed.

I sat down with Abdul Basharat, co-founder and CEO of Cartage, to discuss his journey, the challenges of building in the logistics space, and how AI is transforming freight management.

Now, on to the Q&A with Abdul!

Connect with Cartage on LinkedIn and their website.

This conversation has been edited for length and clarity. If you're short on time, skip to the TL;DR section for the key takeaways.

To kick things off, could you share your story - what led you to founding Cartage?

Abdul Basharat: My journey to Cartage has been anything but linear. I grew up in Mississauga, Canada, with a strong desire to become a military pilot. That dream shaped much of my early life. During university, I joined the Canadian military through a program called ROTP (Regular Officer Training Program), which allowed me to train as a pilot while completing a business degree.

Like many people, after undergrad, I turned to business school. I pursued a master’s in international business at Ivy Business School in Canada, with additional semesters at HEC Paris in France and another in Hong Kong.

During my studies, I interned at McKinsey, gaining valuable consulting experience, and at Eon, an energy company in Germany. Consulting taught me a lot, but I often felt detached from the real-world problems I wanted to solve. I realized I wanted to work in startups, particularly in tech, where I could see the tangible impact of my work.

Eventually, I joined Rose Rocket, a YC-backed startup in Toronto that develops transportation management systems (TMS) for freight brokers and trucking companies. I started in sales and quickly transitioned to product management, where I tackled some of the industry's biggest inefficiencies, particularly around coordinating shipments between carriers, brokers, and shippers.

At Rose Rocket, I learned a crucial lesson: trucking and logistics workflows are deeply entrenched, and solutions need to adapt to how people work rather than forcing them to change. This insight became the cornerstone of Cartage’s approach.

What motivated you to start Cartage, and how did the company evolve in its early days?

Abdul Basharat: Starting Cartage was about addressing a long-standing inefficiency in trucking and logistics while leveraging emerging technologies like large language models (LLMs). My co-founder, Josh, and I worked together at Rose Rocket—he was an engineer, and I was in sales and product. We became close friends and always talked about starting something together.

The real breakthrough came with the rise of LLMs. The logistics industry relies heavily on email communication, with data locked away in text. LLMs offered a revolutionary way to access and manipulate that data without changing workflows. We saw an opportunity to use AI to solve trucking challenges in a way that respected the industry’s reluctance to adapt to new tools.

Initially, we started small by automating back-office processes for freight brokers. One of our first projects involved helping a broker process carrier payables, a tedious task that previously required a full-time employee. Within weeks, we developed a prototype that worked so well they gave us a $50,000 contract to handle the process.

Those early wins helped us realize we could aim higher. While back-office automation was a good starting point, we saw a much bigger opportunity in directly coordinating freight for shippers using AI.

What is Cartage’s core offering today, and how does it stand out?

Abdul Basharat: Cartage is an AI-managed logistics service designed to streamline freight coordination for shippers. Essentially, we take over the logistics function for our clients, handling everything from booking carriers to ensuring timely delivery.

What sets us apart is our approach. Traditional brokers charge high margins—anywhere from 10% to 25%—and rely on inefficient manual processes. We eliminate the need for brokers by connecting shippers directly with carriers. Our AI, named Wilson, acts as the shipper’s representative, managing all communications with carriers through familiar channels like email.

Shippers can either use their existing carrier relationships or tap into our growing network of carriers. We also provide a platform that gives them full visibility into their freight. Unlike traditional transportation management systems (TMS), which require significant setup and training, our service is seamless. The shipper doesn’t have to worry about hiring a logistics team or purchasing software—we handle it all.

Our model offers immediate cost savings to shippers while achieving software-level margins for us. This is possible because our AI automates much of the process, reducing the need for large teams.

How has Cartage grown since its launch?

Abdul Basharat: It’s been a whirlwind. We started in December last year with a small project automating back-office processes for brokers. That initial success led to contracts with more clients, and soon we were moving freight for shippers directly.

Today, we’re coordinating freight for over 30 shippers across the U.S. and Canada, with load volumes in the millions. While I can’t share exact figures, our growth has been strong, thanks in part to our participation in Y Combinator.

YC was transformative for us. It pushed us to think bigger and refine our vision. Initially, we focused on automating tasks behind the scenes to build trust with clients. Now, we’re addressing broader inefficiencies in freight coordination and delivering significant value to shippers.

What challenges have you faced building Cartage, and how are you addressing them?

Abdul Basharat: One of our biggest challenges is building AI that can handle the complexity of logistics. Currently, our AI manages about 40% of the freight coordination process, and for the rest, our team steps in, ensuring there are no disruptions for shippers.

Another challenge is industry skepticism toward AI. However, our approach mitigates this. Shippers don’t interact with the AI directly—they just see the results. This positions AI as a tool we use to deliver better service, not as a risk they need to manage.

Our biggest focus is refining our technology to handle more of the process autonomously. As we scale, this will allow us to deliver even greater efficiency and cost savings to our clients.

How does your recent $3.3M seed funding support Cartage’s vision?

Abdul Basharat: The funding is instrumental in helping us achieve two main goals: growing our shipper network and advancing our AI technology.

We’re using the funds to hire top talent from both the logistics and tech industries. This includes experts who understand the nuances of trucking operations and engineers who can push the boundaries of what our AI can do.

Our ultimate aim is to build an AI that can handle 90% of freight coordination autonomously while establishing long-term partnerships with shippers. By acting as a dedicated logistics partner, we’re moving away from transactional relationships and toward a model that delivers consistent value and trust.

Any final thoughts on where Cartage is headed?

Abdul Basharat: Logistics is an industry full of inefficiencies, but it’s also deeply resistant to change. At Cartage, we’re proving that you can drive significant improvements without disrupting established workflows.

By combining cutting-edge AI, deep industry knowledge, and a customer-first approach, we’re reshaping how freight is managed. The journey is just beginning, and we’re excited about what’s ahead.

TL;DR - Key Takeaways from Abdul Basharat

1. Early Insights: Abdul’s experience at freight-tech taught him that solutions in trucking and logistics must adapt to how people already work rather than forcing behavior changes. This insight is central to Cartage’s approach.

2. AI-Driven Managed Service: Cartage uses AI, specifically large language models (LLMs), to coordinate freight directly for shippers. This eliminates the need for brokers or large logistics teams, offering a seamless, cost-effective solution.

3. Cost Savings for Shippers: Shippers save 10-20% compared to traditional brokers. Cartage charges a margin of 8% or less while maintaining software-level profit margins due to its AI-driven operations.

4. Human-In-The-Loop for Reliability: Cartage’s AI currently automates 40% of freight coordination, with the team stepping in to handle complex edge cases. This ensures uninterrupted service while the technology improves.

5. Cartage’s Approach to AI: Cartage positions AI as a behind-the-scenes tool. Shippers interact with results, not the AI itself, minimizing resistance and ensuring reliability.

6. Growth and Traction: Since its launch in December 2023, Cartage has onboarded over 30 shippers across the U.S. and Canada, moving millions of dollars worth of freight.

7. Seed Funding: With $3.3M in seed funding, Cartage is focused on refining its AI to autonomously handle 90% of freight coordination and building stronger relationships with shippers.

8. Leadership and Industry Expertise: The founding team combines tech expertise with deep operational knowledge. Co-founder Harman, a trucking veteran with over 15 years of logistics experience, ensures the company’s operations align with real-world logistics demands.

PS: Do you have any questions for Abdul? Reach out to me at [email protected] and I can pass it on.