The logistics enterprise software provider’s acquisition spree continues with deals for ocean and air freight rate management solutions providers in United States and Europe.
The enterprise logistics software company WiseTech Global has made acquisitions on two continents to bolster its freight rate management capabilities, said Tuesday.
The deals include the purchase of North Carolina-based CargoSphere, one of the top providers of ocean freight rate management solutions, for a reported $9.2 million and Netherlands-based Cargoguide, a provider of airfreight rate management tools, for $5.5 million.
The acquisitions signal deep interest in tools that empower freight forwarders and 3PLs to better manage the tricky process of quoting quickly and accurately to their customers. CargoSphere specializes in providing its users a closed network of sharable rates. More recently, CargoSphere has been working to directly link ocean carriers and forwarders through its technology to give forwarders access to dynamic rate changes.
CargoSphere competitor Catapult International was acquired in 2015, while another startup competitor, Freightos, has amassed $50 million in venture capital.
CargoSphere founder Neil Barni will remain as managing director. Barni has been a frequent advocate of giving forwarders tools that allow them to manage rates, but not put those rates into a public environment, such as emergent freight rate marketplace technology providers have advocated.
CargoSphere’s customers include Kuehne + Nagel, Dachser, NNR Global Logistics, M+R Spedag, Livingston International, and SEKO Logistics. Cargoguide’s customers include DHL, Expeditors, UPS, DSV, Geodis, Panalpina, Kuehne + Nagel, Schenker, Toll and Yusen. The company also has direct relationships with leading air carriers such as Emirates, Lufthansa, Delta, Air France/KLM, and Qatar Airways.
“Combining their powerful air and ocean freight rate management solutions with the strengths of the WiseTech Global group and our leading integrated global execution platform, CargoWise One, will be a step forward for the freight forwarding industry,” WiseTech Global Chief Executive Officer Richard White said in a statement.
“Both solutions will enhance existing rate management capabilities within CargoWise One, increasing efficiency, accuracy and workflow for our customers worldwide, while our innovation strength and development capacity will further accelerate multi-modal rate management developments. This will ultimately create a pathway to the deeper automation necessary to substantially increase productivity for freight forwarders grappling with exponential increases in volumes and margin pressure.”
Barni said the acquisition will allow his company to “benefit from the global strength and powerful innovation capability of WiseTech and we remain committed to integrating with ocean carriers and with our customers, and to delivering on our vision for fully automated digital rate distribution.”
WiseTech has been on an acquisition spree in recent months, acquiring the Oceania-based road transport company CMS Transport Systems, the Australasian tariff technology specialist Digerati, the Brazilian customs technology provider Bysoft, and the Taiwanese forwarding and customs solutions provider Prolink. It made three other acquisitions earlier in 2017.
Cargoguide and CargoSphere will continue to deliver their solutions independently and direct to their respective worldwide customers, in addition to the 7,000 logistics providers in 125 countries in WiseTech’s customer network.