Freightos Unifies Air & Ocean Freight, Aiming to Bridge a $2 Trillion Logistics Gap

Barcelona, Spain – Freightos Limited (NASDAQ: CRGO) has launched WebCargo Rate & Quote Ocean, a platform aiming to digitally connect the often-disparate worlds of air and ocean freight. The move signifies a major step towards unifying global logistics, a sector traditionally plagued by fragmented systems and opaque pricing. While the promise of digital transformation in freight isn't new, Freightos’ approach – building a truly multimodal platform – could prove pivotal, though challenges remain.

For decades, freight forwarders have juggled separate systems for air and ocean shipments, leading to inefficiencies, delays, and higher costs. “The disconnect between air and ocean has been a long-standing pain point,” notes one industry analyst. “Forwarders are forced to re-key data, reconcile different rate formats, and often rely on manual processes. This impacts their ability to respond quickly to customer requests and compete effectively.”

Freightos claims its new platform solves this issue by integrating air and ocean pricing, quoting, and booking into a single system. Early adopters report a 75% reduction in ocean freight quoting time, a significant improvement in a sector where generating accurate quotes can take hours, even days. The platform processes over 1.6 million transactions annually and currently integrates with major carriers including Maersk, MSC, and CMA CGM.

A $2 Trillion Opportunity
The global freight market is a massive $2 trillion industry. While digital adoption has been slower than in other sectors, the pandemic accelerated the need for resilient and transparent supply chains. According to Armstrong & Associates, the digital freight platform market is expected to reach $12.4 billion by 2027, growing at a CAGR of 14.5%. Freightos currently holds an estimated 15-20% share of this burgeoning market.

“The potential is enormous,” explains a senior logistics consultant. “Digital platforms can unlock significant efficiencies, reduce costs, and improve visibility. However, success depends on widespread adoption and seamless integration with existing systems.”

Beyond Speed: Transparency and Control
The new platform isn’t just about faster quotes. It aims to provide greater transparency into freight rates and capacity. Historically, ocean freight pricing has been notoriously opaque, with rates fluctuating wildly based on supply and demand. Freightos’ platform provides access to real-time data, empowering forwarders to negotiate better rates and provide more accurate pricing to their customers.

“Transparency is key,” says a freight forwarder based in Europe. “Previously, it was difficult to compare rates across different carriers and regions. Now, we have a clear view of the market, which allows us to make informed decisions.”

Competition Heats Up
Freightos isn’t alone in its pursuit of digital freight transformation. Competitors such as Xeneta, Shifl, Flexport, and Forto are all vying for market share. However, Freightos differentiates itself through its multimodal capabilities and extensive carrier network.

“There are a lot of players in this space, but Freightos has a unique advantage,” explains a technology analyst. “They’ve built a truly comprehensive platform that covers both air and ocean freight, which gives them a broader reach and more opportunities for growth.”

While Xeneta focuses on rate benchmarking and analytics, and Shifl offers a simple interface for spot market bookings, Freightos provides a more comprehensive solution that encompasses the entire booking process. Flexport and Forto offer similar functionalities, but Freightos’ established network and broader carrier integrations give it an edge.

Challenges Remain
Despite the potential benefits, challenges remain. Integration with legacy systems can be complex and costly. Widespread adoption requires buy-in from carriers, forwarders, and shippers. And maintaining data accuracy and security is paramount.

“The biggest hurdle is changing established behaviors,” notes a supply chain executive. “Many forwarders are reluctant to adopt new technologies, especially if it requires significant investment or training.”

Another challenge is the ongoing volatility in the global supply chain. Port congestion, geopolitical instability, and fluctuating fuel prices continue to disrupt freight movements and impact pricing. Digital platforms can help mitigate these risks by providing greater visibility and flexibility, but they can’t eliminate them entirely.

Looking Ahead
Freightos’ WebCargo Rate & Quote Ocean represents a significant step towards a more connected and efficient global logistics ecosystem. While challenges remain, the company’s commitment to innovation and its focus on building a truly multimodal platform position it well for future growth.

The success of Freightos’ platform will ultimately depend on its ability to deliver tangible value to its customers and drive widespread adoption across the industry. If it can do that, it could fundamentally reshape the way freight is moved around the world.