The shipping industry is set for a dramatic improvement in efficiency, a reduction in unnecessary emissions, and improved utilisation for carriers and rates for shippers, according to new research from logistics technology provider Freightos.The report, titled More Connected Than Ever: Global Carrier Digital Connectivity Report 2022, shows that ocean carriers have made the biggest leaps in developing their own sophisticated digital portals and application programming interfaces (APIs), while airlines have gravitated toward third-party platforms for digital reach.One explanation for this, according to the research, may be that growing ocean carrier leverage due to capacity constraints may be pushing them toward control over the digital customer relationship. In a fragmented air cargo market, on the other hand, airlines are eager for low-touch ways to extend their reach – even at the expense of easier price and service comparisons with other airlines.Freightos research, based on a survey of seven of the top 11 ocean carriers and 24 air cargo carriers, found that in the last two years enough airlines have leveraged the opportunities created by third-party platforms to make nearly 40% of global capacity available online, shifting air cargo eBooking from vision to reality. Nearly three quarters of the top 11 ocean carriers surveyed were found to now offer instant rate searches on their websites, while 45% offer eBooking, compared to only 20% each in 2019.“Because global freight is deeply dependent on connectivity between parties, API progress that bridges those gaps will be transformative when information can be shared end-to-end digitally and automatically. This type of connectivity will enable zero-latency pricing, ref lecting real-time capacity, which in turn will power eBookings for guaranteed space on a specific vessel. The result is dramatic improvements in efficiency – an end-to-end f low of data will provide higher reliability and more predictable revenue – not to mention actionable updates and predictive capabilities to avoid supply chain snarls.”While it has taken ocean carriers in particular longer to move online compared to many other industries, a robust digital presence has become the standard in recent years.The report notes, however, that no ocean liners offer consolidation or loose cargo booking yet via API. “This is natural given the nascent stage of API deployment, but also proof that convergence with full end-customer ownership is still quite far away.”While the research focused on carrier APIs, it did find that several forwarders were also developing APIs to improve efficiency and customer experience.
