The speed of digitization around the world is increasing, with the industry being more connected in almost real-time.
As ocean container freight rates have dropped to levels similar to 2009, rate changes are increasingly difficult for all parties to manage. It is also more challenging to manage global shipment performance as disruptions happen everywhere. Meanwhile, over the next five years, the industry will undergo a digital transformation. Ocean carriers will be required to find new ways to serve their customers, partners, vendors and shareholders.
Carriers must go beyond building very large vessels, running their own terminal networks, or partnering with rail operators for survival. We see carriers evolving their IT systems beyond conventional EDI system integration, which is no longer up to speed for supporting operations.
Another key change that we are seeing is the evolution of ways for shippers and forwarders to manage their ocean shipments. We are seeing online marketplaces emerging that are based on new business models and leverage cloud computing. The new companies allow shippers to easily find the services and rates that meet their needs, and they allow NVOCCs and freight forwarders to offer competitive pricing and services to customers.
The market demands greater visibility to fluctuating market rates and available services to improve efficiency. The new global marketplaces fulfill this need by providing platforms for shippers and forwarders to quickly source rates among multiple vendors and to match their service needs with the available coverage within their networks.
As the marketplaces grow, we see opportunities for the platforms to expand the data and intelligence they provide to their customers. Expanded services will further streamline the online shipment management process and cost savings. Data providers as well as freight service providers are collaborating to enable shippers and forwarders to manage their cargo more efficiently.