Project44 has announced a corporate split, creating a new business called LSP44 that will focus exclusively on third-party logistics providers, freight forwarders, and brokers. The move reflects the company's belief that artificial intelligence is beginning to undermine the dominance of CargoWise in the freight forwarding software market. Project44 itself will continue serving enterprise shippers with applications for transportation management, visibility, yard management, and last-mile services.
Founder and CEO Jett McCandless explained that the split addresses the fundamentally different needs of shippers and logistics service providers. While shippers typically buy applications like transportation management and visibility software, forwarders are seeking infrastructure that can be embedded into their own operating systems and customer workflows. The separation also allows Project44 to develop dedicated product, sales, and support teams for each market.
McCandless noted that while CargoWise remains a popular operating system for many forwarders, customers are increasingly turning to Project44 for carrier connectivity, analytics, and AI capabilities. He claimed that Project44 is “better at it” and is being used for AI agents and exception management, areas where CargoWise “doesn’t have anything that even competes.” More significantly, advances in generative AI are enabling some forwarders to build their own application layers, moving away from off-the-shelf software like CargoWise. “We are seeing more companies engage us… they’re building their own… and they’re engaging us to be that connectivity to their carriers and to essentially move off CargoWise,” McCandless said, calling it “a pretty dangerous trend for CargoWise.”
McCandless also predicted that AI will drive consolidation among logistics service providers, as those that embrace AI and APIs will gain market share while reducing headcount. He confirmed that Project44 has no plans to sell LSP44 and continues to position itself for a potential IPO, describing it as “a milestone” rather than an end goal. For importers and exporters navigating cross-border trade, these developments underscore the growing role of AI in customs clearance and supply chain visibility, with platforms like Project44 increasingly competing with traditional customs document and operating system providers. As the freight forwarding landscape evolves, companies may need to reassess their technology choices for customs broker services and overall logistics management.