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By Alex Lennane
Online freight booking platform Freightos has propelled itself to the forefront of the market with the acquisition of air cargo rate provider WebCargoNet.
The deal creates the largest database of freight rates in the world.
Although the companies will continue to operate under separate brands for now, the pair have hundreds of millions of rates and routes, which they claim will boost business for SMEs and forwarders who can now book online with ease.
About one third of US importers are small shippers, according to Freightos CEO Zvi Schreiber, who added that they were hard for forwarders to reach.
“We aggregate small shippers for forwarders – it’s a pot of gold. They can’t approach SMEs to sell to.”
The deal is for an undisclosed amount, but believed to be a multi-million-euro deal, in both cash and shares, and is thought to be one of the first logistics technology mergers in the market.
Freightos last year raised $14m in Series B funding, bringing its total funding up to $23m, after Dr Schreiber used his venture capitalist connections to attract funds to the unknown world of logistics technology.
WebCargoNet, which is headquartered in Spain, has an impressive list of more than 800 forwarders, it claims, using its platform, including Dascher, DSV, CEVA, Kerry, KWE, XPO and Panalpina. It offers several apps, including tracking, maps and a volume converter – as well as instant, up-to-date air cargo rates.
In an interview with The Loadstar last month, Dr Schreiber said that although Freightos wanted to be the market leader, there was room for a several rival companies – and at the moment the more companies educating the market, the better.
Zvi Schreiber
Although he acknowledged that online booking could lead to downward pressure on rates, he also pointed out that it would lower the cost of sale and help eliminate mistakes.
The company currently has a waiting list of forwarders, he added. One 3PL working with Freightos told The Loadstar: “We have been happy with the experience. We can give faster quotes that before. It’s best for simple and transactional shipments – it won’t replace how we do business with larger customers. But it’s a handy, immediate tool.”
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