Technology

CargoSphere and Drewry Release Report on the Magnitude and Burden of Rate Management

CargoSphere and Drewry Release Report on the Magnitude and Burden of Rate Management
Danny Gill

CargoSphere have announced findings from an original research project commissioned from Drewry Supply Chain Advisors, which quantifies an annual cost burden of $500 million for freight forwarders (FFs) to find and manage ever-changing ocean carrier rates. The $500 million expense represents costs incurred by only one ocean shipping business segment. It does not include the inefficiencies and costs incurred by the rate originators, ocean carriers, or BCO (beneficial cargo owner) shippers. Furthermore, it also does not include the cost of system investments to support or reduce labor costs.

Drewry first defined the size and makeup of the global freight forwarding industry, estimate the total number around 50,000. They conducted the primary research with a sampling of small, medium and large FFs. It was determined that the global FF industry annually spends 24.4 million hours doing buy-rate management including inputting rate data into their company’s internal systems. This time and effort adds up to an overall annual cost of $500 million to the global FF community.

“The cost burden of global ocean freight rate processing is a huge weight on the industry as a whole. One that is not sustainable for global FFs, carriers or BCO shippers. This exorbitant cost underscores the need to focus on digitizing all aspects of rate management, networking and distribution, as it is an extremely important business enabler for global ocean shipping. After all, what company today has the luxury of ignoring technology solutions that can improve productivity, competitive position, and customer satisfaction!” said Neil Barni, president of CargoSphere. “Our vision has always been to align our technology with the needs of the industry to improve business performance, rather than promoting disintermediation or a race to the bottom for carriers and forwarders.”

The study concluded that the bulk of the industry cost from this problem is at the small forwarder level. The size of these small businesses makes the process of receiving and processing carrier buy-rate information about twice as burdensome as for medium size forwarders; therefore, this segment would likely benefit the most from a platform which consolidates and updates buy rates.

For breaking news sent to your LINE application, click on the button below to add us on LINE at @logisticsmanager (also include the ‘@’ symbol)

เพิ่มเพื่อน

Technology
Danny Gill

Danny is currently a Contributing Writer for Airfreight Logistics and Logistics Manager (LM) and is quite the foodie. He’s always on the hunt for new and exciting dishes to sample, and is never one to back down from a spicy challenge. His travels have taken him around the world, and he’s been able to experience many different cultures (and food).

More in Technology

DSV Cleaning Robots Tested at Roskilde Pharma Warehouse

DSV Cleaning Robots Tested at Roskilde Pharma Warehouse

Logistics ManagerMarch 14, 2019
TRUE Store ICONSIAM Implements Swisslog AutoStore Technology

TRUE Store ICONSIAM Implements Swisslog AutoStore Technology

Logistics ManagerMarch 11, 2019
Kerry Logistics Introduces IoT Smart Sensor Solution

Kerry Logistics Introduces IoT Smart Sensor Solution

Danny GillFebruary 26, 2019

TRAXENS by APL to Optimize End-to-End Supply Chain

Danny GillFebruary 18, 2019
One of the world’s biggest logistics companies, Kuwait headquartered Agility, recently announced a major new investment of $100 million over three years to develop and launch Shipa.com. The new digital platform will allow businesses, entrepreneurs and consumers to manage their freight, e-commerce, and urban deliveries online. Chairwoman for Agility, Henadi Al-Saleh said, “Shipa.com makes life easier through technology, whether you are a small business running your supply chain with a few clicks, or a consumer getting your shopping delivered with a few taps on your phone, Shipa.com makes logistics convenient, jargon-free, trackable, accountable and accessible.” Shipa.com will provide the following services: Shipa Freight that will allow small businesses to get instant and transparent freight quotes along with the ability to book, pay and track ocean and air shipments around the world on any mobile or another digital device. Shipa E-commerce enables online merchant’s access to the world’s most complex and fastest growing e-commerce networks. The service will integrate freight, fulfilment, delivery and returns solutions throughout the Arabian Gulf, along with additional reach in Africa and Europe planned for the future. Shipa Delivery will provide businesses and consumers with on-demand same-day, next-day or cross-border delivery across the whole region of Arabian Gulf. Al-Saleh added, “Logistics is the backbone of commerce. But it’s complex, and that complexity is disproportionately difficult for small businesses to navigate. Small businesses often lack access to the logistics resources, tools and solutions that larger businesses have,” “No wonder then, that we interviewed 800 small and medium-sized businesses around the world, we found that 78% wanted to see their logistics move online. Shipa helps close that gap, empowering small businesses to take advantage of the opportunities being created by the global digital economy.” Considered by Al-Saleh as the innovation arm of Agility, Shipa.com will hasten the introduction of technology, development of new digital products. Al-Saleh concluded, “Shipa.com is the marriage of Agility’s logistics expertise and resources and the digital-first capabilities of the Shipa platform. It offers enormous value for our customers and brings new value to our company.”

Agility Invest $100M to Develop and Launch Shipa Digital Platform

Logistics ManagerDecember 13, 2018
E2open Acquire INTTRA to Create a Unified Network

E2open Acquire INTTRA to Create a Unified Network

Logistics ManagerOctober 30, 2018
KPMG Thailand Partners UiPath to Provide Customers Robotic Process Automation (RPA)

KPMG Thailand Partners UiPath to Provide Customers Robotic Process Automation

Logistics ManagerOctober 5, 2018
XPO Logistics to Install 5,000 Intelligent Robots in North America and Europe

XPO Logistics to Install 5,000 Intelligent Robots in North America and Europe

Logistics ManagerOctober 5, 2018
HHLA and MAN begin Hamburg TruckPilot Project

HHLA and MAN Begin Hamburg TruckPilot Project

Logistics ManagerOctober 5, 2018
LM is the leading source of logistics and cargo news within ASEAN and is regarded as one of the most authoritative sources of information. Our subscribers keep up to date with the latest logistics news, views, features and events within ASEAN and beyond.
AFL Real Logo

Airfreight Logistics is the air cargo professional’s number one provider of news and information in ASEAN and around the World. To keep abreast of all the latest news and for in-depth features visit our website www.airfreight-logistics.com

UpMedio

Subscribe to our newsletter!

© 2015 Logistics Manager | About Us | Advertise | Subscribe | Contact | thai Thai Version