Logistics And Frieght Forwarding

Logistics startup Freightos lands $25 million in funding from GE Ventures

Freightos[1], a startup that wants to digitize more of the international logistics process, announced today that it has raised a £25 million Series B extension round led by GE Ventures, General Electrics’ venture capital arm. This brings the total funding raised by Freightos, which was founded in 2012 and is based in Hong Kong, to £50 million. Its initial Series B of £14 million closed[2] in 2015.

Founder and CEO Zvi Schreiber says Freightos added GE Ventures to the round because one of his previous companies, Lightech, was acquired by the conglomerate in 2011[3]. Schreiber wanted to continue working with GE, which he describes as an important strategic investor for Freightos. “GE is such a big industrial company and it is helpful to us because it gives us insight into the world’s biggest shippers,” he told TechCrunch. “They are potentially a big customer for Freightos.”

The startup’s new capital will be used to launch Freightos Marketplace, which Schreiber describes as “booking.com, but for international shipping,” into more countries. The
service[4] lets customers compare freight forwarding quotes and book online and is currently available in China, Hong Kong, Taiwan and the U.S. Freightos’ goal is to expand it to the rest of Asia and Europe.

Freightos’ other flagship product is software-as-a-service called AcceleRate that lets carriers and freight forwarders automatically calculate and manage rates. The startup says its SaaS is already used by over 1,000 logistics providers and global supply chain companies, including Nippon Express, Hellman Worldwide Logistics and Sysco Foods. In a prepared statement, GE Ventures’ managing director of Israel Jonathan Pulitzer said “Logistics digitization is a strong strategic complement for General Electric’s role as the world’s leading digital industrial company.

In just five years, Freightos technology has helped a thousand logistics providers operate more efficiently, while the Freightos Marketplace has shown fantastic growth and retention indicators.” Managing international cargo shipments is a tedious process that still involves a lot of paperwork and Freightos is just one of a fleet of logistics startups[5] that have attracted venture capitalists over the last couple of years. Amazon also recently began providing freight forwarding services[6] for some of its partners in China, opening the possibility that more e-commerce companies may start insourcing more of their logistics to save money and speed up deliveries.

Amazon currently doesn’t compete with Freightos, but Schreiber concedes that it may eventually become a more direct threat to logistics startups if it decides to scale up its logistics services.

For now, however, Schreiber says companies like his can help freight forwarders get ready for the future.

“In many ways, Freightos is helping them prepare for that, by helping the biggest freight forwarders in the world become more automated,” he says. “That will make sure they are ready against the threat of competition from companies like Amazon.”

Featured Image: Golf_chalermchai/Shutterstock[7][8]

References

  1. ^ Freightos (Freightos,%20a%20startup%20that%20wants%20to%20digitize%20more%20of%20the%20international%20logistics%20process,%20announced%20today%20that%20it%20has%20raised%20a%20%2425%20million%20Series%20B%20extension%20round%20led%20by%20GE%20Ventures,%20General%20Electrics%20venture%20capital%20arm.%20This%20brings%20the%20total%20funding%20raised%20by%20Freightos,%20which%20was%20founded%20in%202012%20and%20is%20based%20in%20Hong%20Kong,%20to%20%2450%20million.%20Its%20initial%20(https)
  2. ^ initial Series B of £14 million closed (techcrunch.com)
  3. ^ acquired by the conglomerate in 2011 (pressroom.gelighting.com)
  4. ^ service (www.freightos.com)
  5. ^ a fleet of logistics startups (medium.com)
  6. ^ recently began providing freight forwarding services (techcrunch.com)
  7. ^ Golf_chalermchai (www.shutterstock.com)
  8. ^ Shutterstock (www.shutterstock.com)

Drewry: Mega-Ship Demand Finally Slowing

Demand for multipurpose vessels has stabilised in the last year but breakbulk and project cargo sector vessel demand will remain weak through to the end of 2017, according to a new report published by Drewry[1].

Despite low demand, the supply of multipurpose vessels is ‘under control’, with a small orderbook, equal to just 5% of the operating fleet. Shipbuilding orders are expected to slow to just 0.5% in the next three years. Continued oversupply in competing fleets erodes any positive growth in rates for this vessel type.

Drewry believes that improvement in the multipurpose vessel sector is under way, but it is still some way off. While most of the damage is being done by the oversupply of bulk and container vessels, those in the multipurpose shipping community may hold the view that the problem is not theirs to solve. There are over 600 vessels trading that are over 25 years old, which is 20% of the operating fleet in number terms, of which the majority are less than 10,000 dwt.

They compete with most of the world fleet these days as most cargo is in breakbulk trades where they are most active.

Technical paper: 2016 Update: Mega-Alliances Impact[2]

Susan Oatway, the Lead Analyst for Multipurpose Shipping, said: “This competition will impact rates across the sector as high spec project carriers will need to carry any cargo to fulfil their investors’ requirements.” Some believe shippers are through the worst of the low ship rates as traders on March 28, 2016 started to see shipping stocks “soar” and markets rally. Meanwhile, global financial services firm Morgan Stanley[3] upgraded several stocks, more than doubling some price targets, revealing the dry bulk[4] market may have “bottomed” from “cyclical lows” and is now on the upswing, according to MarketWatch.

Improved ratings were seen for Star Bulk Carriers Corp, Golden Ocean Group, Safe Bulkers, and Genco Shipping & Trading.

References

  1. ^ Drewry (www.drewry.co.uk)
  2. ^ Technical paper: 2016 Update: Mega-Alliances Impact (www.porttechnology.org)
  3. ^ Read more port technology news on Morgan Stanley (www.porttechnology.org)
  4. ^ Read more port technology news on dry bulk (www.porttechnology.org)

Drewry: Mega-Ship Demand Finally Slowing

Demand for multipurpose vessels has stabilised in the last year but breakbulk and project cargo sector vessel demand will remain weak through to the end of 2017, according to a new report published by Drewry[1].

Despite low demand, the supply of multipurpose vessels is ‘under control’, with a small orderbook, equal to just 5% of the operating fleet. Shipbuilding orders are expected to slow to just 0.5% in the next three years. Continued oversupply in competing fleets erodes any positive growth in rates for this vessel type.

Drewry believes that improvement in the multipurpose vessel sector is under way, but it is still some way off. While most of the damage is being done by the oversupply of bulk and container vessels, those in the multipurpose shipping community may hold the view that the problem is not theirs to solve. There are over 600 vessels trading that are over 25 years old, which is 20% of the operating fleet in number terms, of which the majority are less than 10,000 dwt.

They compete with most of the world fleet these days as most cargo is in breakbulk trades where they are most active.

Technical paper: 2016 Update: Mega-Alliances Impact[2]

Susan Oatway, the Lead Analyst for Multipurpose Shipping, said: “This competition will impact rates across the sector as high spec project carriers will need to carry any cargo to fulfil their investors’ requirements.” Some believe shippers are through the worst of the low ship rates as traders on March 28, 2016 started to see shipping stocks “soar” and markets rally. Meanwhile, global financial services firm Morgan Stanley[3] upgraded several stocks, more than doubling some price targets, revealing the dry bulk[4] market may have “bottomed” from “cyclical lows” and is now on the upswing, according to MarketWatch.

Improved ratings were seen for Star Bulk Carriers Corp, Golden Ocean Group, Safe Bulkers, and Genco Shipping & Trading.

References

  1. ^ Drewry (www.drewry.co.uk)
  2. ^ Technical paper: 2016 Update: Mega-Alliances Impact (www.porttechnology.org)
  3. ^ Read more port technology news on Morgan Stanley (www.porttechnology.org)
  4. ^ Read more port technology news on dry bulk (www.porttechnology.org)