Zim Integrated Shipping Services Ltd, the largest cargo shipping company in Israel and one of the top-20 global carriers, recently announced that it has made a significant investment in Ladingo, a technology company that provides cloud-based e-commerce shipping solutions.
The move is a strategic one, as ZIM will benefit greatly as the tech company will lead a global consumer revolution by allowing personal importation of large and bulky items to shoppers purchasing from international online-shops.
Recent figures released show that nearly all B2C e-commerce purchases are shipped via air freight, with an estimated value of 2.5 trillion dollars per year. Air freight shipping is limited by its weight and size limitations which increases the overall cost, this limits the range of products online shops can offer to their customer base.
As a result of the boom in retail logistics, both ZIM and Ladingo worked in conjunction to provide a solution to the sometimes complex world of ocean freight. The goal of their effort was to enable retailers to sell all their products online, including their large and bulky items, with relatively low shipping costs.
ZIM Vice President of Global Customer Service, Assaf Tiran said, “We believe that innovation and creative ideas will define the future of the logistics industry, especially that of maritime shipping. Our support and investment in Ladingo is part of the greater ZIM vision, one of openness and the promotion of technological innovation in all aspects of our operations. We see tremendous potential in Ladingos’ platform, providing a real breakthrough simplifying the complex supply chain process all the way to the end-users’ homes. We believe that developments like Ladingo will lead to a significant change in global trade. ZIM strives to be a leader in the promotion of these processes.”
Ladingo CEO, Hagar Valiano Rips said, “We are proud and pleased that ZIM, a leader standing at the forefront of global logistics, has invested in us. Ladingo will lead to significant change in the world of e-commerce fulfilment.” Rips added that “When it comes to the revolution we are leading, item location, size and weight have no significance, and there is no longer a need for inventory. Looking a couple of years ahead, we will all buy directly from sellers or manufacturers abroad – without any intermediaries. This is the manifestation of a true global e-commerce revolution. ZIM is not only investing in Ladingo’s technology, they are engaging in a fully synergistic investment, one that will lead to a revolution within the B2C world.”