The global freight market has long operated as an opaque system plagued by price inconsistencies, cumbersome processes, and delayed information exchange. Freightos, a digital freight platform founded in 2016, is challenging this status quo by leveraging technology to revolutionize how shipping prices are determined and transactions are conducted. With fresh funding fueling its expansion, can Freightos truly transform this traditional industry?
The Rise of Digital Freight Platforms
Freightos operates a cloud-based marketplace that connects shippers, freight forwarders, and carriers through three core offerings:
- Freightos Marketplace: An online platform where shippers can compare real-time quotes from multiple freight forwarders and book services directly.
- Freightos International Freight Index (FIFI): A weekly published benchmark of ocean freight prices across major trade routes.
- AcceleRate: Cloud-based software helping freight forwarders digitize quoting, operations, and customer management.
Funding and Growth Trajectory
The company recently secured $25 million in Series B funding, bringing its total investment to $50 million. This capital will support platform expansion and advanced pricing tool development. Since launch, Freightos has achieved 100% order growth and counts among its users 20 of the world's top freight forwarders.
Innovations Reshaping the Industry
Freightos distinguishes itself through several key innovations:
- Price transparency: Aggregating real-time quotes eliminates information asymmetry.
- Process automation: Online booking replaces manual workflows.
- Data sharing: Connecting stakeholders improves communication efficiency.
Competitive Landscape and Strategic Partnerships
While facing competition from platforms like Xeneta, Freightos has pursued strategic collaborations, notably with the New York Shipping Exchange (NYSHEX). This partnership aims to standardize freight contracts, addressing reliability concerns through legally binding agreements with penalty clauses for non-compliance.
Future Outlook for Digital Freight
The industry is evolving toward greater transparency, automation, and data-driven decision making. However, challenges remain including:
- Resistance to digital transformation among traditional operators
- Data security concerns
- Lack of process standardization
As the sector navigates these obstacles, platforms like Freightos and NYSHEX demonstrate how digital solutions can create value across global supply chains. The future likely holds space for multiple models serving different market needs.