CargoSphere: Forwarders hungry for direct carrier feeds

The rate management software provider surveyed global forwarders and NVOs in June and found more than 90 percent want real-time online rate information.    The cloud-based freight rate management software provider CargoSphere said the vast majority of freight forwarders and non-vessel-operating common carriers it surveyed in late June believe they would benefit from a direct online pricing feed from ocean carriers.
   CargoSphere surveyed global forwarders and NVOs in 13 countries that collectively account for 6.5 million TEUs of container volume annually. When asked whether a direct data feed from their carriers with their confidential ocean pricing be a competitive service advantage, 92 percent answered affirmatively, according to CargoSphere, which announced the results of its research Monday.
   Fifty-eight percent of those surveyed said such a link would be very valuable to invaluable. More than 90 percent said such a direct feed would be at least moderately valuable.
   CargoSphere last year set up the first direct feed between an ocean carrier (UASC, which has since been acquired by Hapag-Lloyd) and forwarder (SEKO Logistics) through its Rate Mesh netwrok. The company later set up another feed between UASC and the forwarder Dascher.
   CargoSphere founder and chief executive officer, Neil Barni, called the connection a goal ever since he started his company more than 15 years ago. Direct online pricing feeds from carriers allows forwarders and NVOs to more accurately present rates to their shipper customers, accounting for real-time amendments or negotiated base rates.
   The survey in June also asked respondents about the efficiency gains of such a connection.
   More than 90 percent said a feed would save time for sales and operations staff, 70 percent said data accuracy of buy rates would improve, 67 percent said such a connection would give global offices access to accurate and timely rates, and 52 percent said it would result in faster reconciliation of carrier invoices.
   From a sales perspective, 89 percent of respondents said a direct feed from carriers would enable faster quoting to customers, 67 percent said it would increase customer satisfaction, and 66 percent said it would help optimize carrier booking carrier as well as provide the ability to share rates in real-time with agent partners.
   More than 70 percent of companies surveyed have operations in Asia, North America and Eruope, while nearly half also focus on South America. Seventy-seven percent said they had forwarding operartions, while 59 percent are NVOs. Nearly half are medium-sized businesses, which, according to CargoSphere, is a company with 10 to 99 employees. Forty-one percent are large (more than 100 employees) and the remainder have fewer than 10 employees.