Cargobase Reports 273% Growth as Shippers Navigate COVID-19 Crisis
Singapore-based Cargobase.com has reported soaring quarterly logistics traffic as customers have increased their usage of the platform to automate spot-buy freight, shining the spotlight on how the coronavirus pandemic has fuelled demand for logistics solution equipped to manage ad-hoc cargo.
The pandemic has highlighted the vulnerabilities of global supply chains. Operating on Just-In-Time models and with tight inventories has exacerbated this impact.
As a result, demand for spot-buy freight (anything that falls outside of regular freight agreements between e.g. manufacturer and logistics provider) has surged, along with the need for richer analytics to maintain visibility on cost and performance.
Cargobase said that transactions on its platform have grown 240% and revenue has risen 273% from a year earlier – by far the highest on record ever in its seven years since inception.
Cargobase’s key customers include Fortune500 Companies in Electronics, Automotive Manufacturing, Medical Equipment and Oil & Gas, such as Continental Automotive, Siemens and Bosch, just to name a few.
The surge in activity reflects the central role a platform like Cargobase plays in a logistics crisis, helping to automate manual procurement processes necessary to fulfil global supply chain demands.
Wiebe Helder, CEO & Founder of Cargobase said: “The main reason for this surge is that shippers (e.g. manufacturers, etc.) either can’t get or can’t rely on agreed long-term rates anymore due to the changes in capacity.
"The COVID-19 pandemic has dramatically increased rates and transit times. In May 2020, Cargobase observed airfreight quotes between China and the US fluctuating between $3 and $30 / kilo.
"These disruptions in the supply chain have forced shippers to procure freight services on-the-spot at high cost, whilst keeping an eye out for the next most cost-effective solution – a key feature the Cargobase team has mastered in our platform with our unique quoting mechanism.”
In response, Cargobase launched a new version of its 'Cargobase On The Go!' mobile app, helping shippers and providers to move away from emails and work at a faster pace.
The bulk of the growth is seen in Q3 2020, which doubled from Q2 2020. Cargobase expects the number to grow as the pandemic continues and looks to keep bringing increased cost avoidance and profitability to both shippers and providers.
Above and beyond Freight Procurement, Cargobase provides its users with a suite of dynamic solutions which include freight management, track and trace, invoicing and auditing, rich data, and analytics.