As a large, incredibly complex, and highly fragmented industry, global logistics is in transition, being under enormous and growing pressure to improve its efficiency and performance.
For the container shipping industry, rate complexity and volatility, as well as the inability to quickly and effectively access and share rates have been a growing challenge. The inefficiency of traditional freight rate processing and distribution has been a costly burden for both the buyers and sellers of container shipping services. Global logistics providers, in particular, are faced with inaccurate data and invoices, and the need for additional labor to manage constantly changing rates.
There have been a number of new technology start-ups, backed by venture capital, that have come into the industry with the intent of disrupting the status quo. What is important is that any change should benefit our industry — not simply disrupt it — and bring relief to businesses struggling with low margins and negative bottom lines. And there is so much potential to do this. Digital transformation can enhance freight processing with better and faster container shipping rate processes, and strengthen the important service providers that ensure supply chain execution.
The benefits come from automating and connecting trading partners on a single rate platform that everyone can access. To be competitive, all rate information needs to be in one place and online for real-time rate connectivity. Ultimately, the industry needs to conduct business electronically and seamlessly via a secure connected network that unites trading partners, to accelerate supply chain communication and business performance. The limitations of manual processes, including email, phone, and spreadsheets, as well as individual vendor e-commerce sites, are increasingly obvious. It’s time for freight forwarders and logistics providers, together with ocean carriers, to embrace productivity via a single source of truth, on a single, neutral rate platform that benefits all trading partner