For decades, electronic data interchange (EDI) has been the backbone of digital communication in trucking. It standardized how carriers, shippers, and 3PLs exchanged bills of lading, invoices, and shipment updates. But in today’s world—where real-time visibility, accuracy, and speed are no longer “nice to haves,” but table stakes—EDI is showing its age.
That’s why the industry is moving toward API standards, developed by organizations like the Digital Standards Development Council (DSDC)™. Application programming interfaces (APIs) connect systems instantly, not in batch cycles, giving everyone in the supply chain the same real-time picture of what’s happening with freight.
The case for change is clear:
- A recent study found that only 15% of companies report having high visibility across their supply chains, meaning 85% remain effectively blind to critical operational data (RedCloud Technology, 2025).
- API logistics solutions are projected to grow at a 20.2% CAGR through 2030 to USD 5.23 billion, more than double the growth rate of legacy EDI systems (Grand View Research, 2024).
- By adopting API Standards such as the eBOL, Pickup Request & Visibility, and Preliminary Freight Charges (PFC), trucking companies can cut disputes, reduce billing surprises, and accelerate cash flow.
EDI got us here—but APIs standards are where the industry is heading.
Q&A: API 101 for Trucking CIOs, CTOs, and IT Leaders
Q1: What is EDI, and why has it been so widely used in trucking?
Electronic data interchange (EDI) is a standardized way of exchanging business documents electronically. In trucking, it’s been used for decades to transfer bills of lading, freight invoices, and shipment status updates.
- Strengths: Standardized, secure, and broadly adopted.
- Limitations: Data moves in batch cycles, not real-time. That means delays, blind spots, and often disputes when information changes mid-shipment.
Q2: What is an API, and how is it different from EDI?
An application programming interface (API) is a digital “connector” that lets two systems exchange data instantly. Unlike EDI, which updates on a schedule, APIs provide real-time communication.
- Think of EDI like sending a fax overnight.
- Think of APIs like texting someone instantly.
Q3: Why are API standards important for the trucking industry?
Without standards, every company builds APIs differently, which creates compatibility headaches. The DSDC writes open API standards for trucking so shippers, carriers, 3PLs, and technology providers don’t have to reinvent the wheel. Standards ensure:
- Interoperability (systems talk the same language).
- Faster adoption (plug-and-play vs. custom builds).
- Lower costs (no need for endless one-off integrations).
Q4: Do APIs replace EDI—or do they work together?
In most companies today, APIs complement EDI. APIs can handle real-time workflows (like tracking charges during shipment), while EDI still manages legacy processes. Over time, as API standards gain adoption, APIs will replace more EDI functions.
Q5: What are examples of APIs in trucking today?
The National Motor Freight Traffic Association, Inc.’s (NMFTA)™ Digital LTL Council has already developed API Standards for critical parts of the shipment lifecycle, including:
- eBOL (Electronic Bill of Lading) API: Standardizes digital shipping documents.
- Pickup Request & Visibility API: Simplifies and digitizes pickup scheduling.
- Preliminary Freight Charges (PFC) API: Provides proactive visibility into billing changes—before the invoice is issued.
Q6: How do APIs improve billing accuracy and reduce disputes?
With EDI, shippers often don’t see billing changes (like reweighs, reclassifications, or accessorials) until the invoice arrives weeks later. APIs like the PFC push real-time updates during the shipment lifecycle.
- Shippers can adjust accruals immediately.
- Carriers face fewer disputes and get paid faster.
- 3PLs can keep customers informed proactively.
Q7: Are APIs secure?
Yes. APIs use modern authentication and encryption protocols, often stronger than legacy EDI connections. Access can be controlled by role, ensuring only the right parties see sensitive data.
Q8: What ROI can CIOs and IT managers expect from API adoption?
Benefits include:
- Reduced invoice disputes (carriers save admin time).
- Faster cash flow (quicker payment approvals).
- Improved visibility (shippers avoid surprises).
- Lower integration costs (standards reduce custom IT work).
Q9: How can IT leaders start adopting API standards?
- Identify a high-impact API to start with (e.g., Preliminary Freight Charges).
- Engage with industry councils like the DSDC for adoption roadmaps.
- Pilot with a carrier or shipper partner before rolling out broadly.
- Measure success with KPIs like fewer disputes, faster billing cycles, and improved visibility.
Q10: Where can I learn more?
Visit the Digital Standards Development Council (DSDC) to explore API standards already available for adoption. Learn more at dsdc.nmfta.org.
Download the Preliminary Freight Charges API today and take the first step toward a truly digital freight lifecycle.
Conclusion
The trucking industry doesn’t need to wait weeks for answers that can be delivered in seconds. EDI got us here, but APIs, and more importantly, API standards, are the future. For CIOs, CTOs, and IT leaders, the time to begin the transition is now.
