[Singapore, 10 March 2020] – Cargobase, the platform for on-demand freight reports strong growth in expedited freight volumes and demand of its platform, due to the Coronavirus outbreak. The company has, in response to the growing demand and the immediate need for a solution by shippers, launched “ShipHappens: FastTrack”, a service that gives companies access to the platform in a day, instead of the usual 2 weeks.
Previously, the 2 weeks were necessary for training and to onboard and connect providers. Having grown more dynamic and user-friendly as a platform, which by now has built up a robust network, and in view of the growth in demand, Cargobase is confident to open up this “Fast Track”, in a plug-and-play mode for new users. Now, while shippers can use their own preferred logistics providers, and they can also use providers from the Cargobase directory.
The ongoing supply chain disruptions are especially affecting suppliers in the automotive and electronics industries. About 60% of the shippers using Cargobase are Tier 1 or 2 suppliers to the car manufacturers, who usually use the platform for expedites or tool moves. Now, they use the platform to find solutions in order to avoid potential disruptions of their manufacturing process.
The platform has shown a 55% increase in bookings for On Board Couriers
in comparison to January bookings. On Board Courier is a service where a passenger will bring a commercial shipment along as carry-on or check-in baggage to by-pass the lodging time of cargo at the airport and cargo retrieval times at origin, while still being compliant with customs regulations. An On Board Courier service is often used out of China to expedite exports as the time to request for permits to organise air charters can take over a week.
Cargobase data shows a 100% growth in shipments from China and to China
and also a strong increase in shipments between Europe and North America in both ways. Large part manufacturers are trying to share inventory globally, but also source from alternative suppliers for parts. “ From what we’ve heard, the situation is seriously going to affect manufactures in the next 2 to 4 weeks as they won’t receive any new supplies that usually come in by Ocean Freight. That gap might deplete their inventory leaving them no choice but look at airfreight alternatives,” shares Wiebe Helder, CEO of Cargobase.
Cost avoidance for express air-freight up by 50% for Cargobase customers
Cost avoidance is calculated based on the average quotation received, minus the booked quote. Compared to January’s figures, cost avoidance has significantly increased for the enterprise shippers. While express airfreight rates for the booked solutions may not have increased, this indicates that average quotations received have experienced a surge, possibly due to providers raising rates due to the urging situation.
In response to the growing demand for its platform, Cargobase has launched a service to allow shippers to use the platform within just 24 hours from signing up, slashing the onboarding time. The service, called “ShipHappens: FastTrack” gives shippers quicker access to all its features. Users are now able to establish an online control-tower for its on-demand global freight requirements with both pre-approved or new logistics providers active on Cargobase. It includes the basic: Request For Quote feature, which enables users to source solutions from different logistics providers and freight modes in a single click. This includes a customizable approval flow, tracking dashboard and the much-liked reporting features. “More than ever, Shippers have an urgent need to know what they are shipping and spending on freight caused by the disruption. For some, it is to make business decisions, and for others it is to claim back cost made to suppliers or customers,” Helder shares.
“Our platform has been built to support companies caught in these types of unfortunate situations. Shippers can really make a difference by being well-organized for their on-demand freight to ensure they find the right solutions at the right price. These are the times that the volume of emails increases significantly and people lose track of what is going on, whilst management still needs full transparency. Our platform helps with that. I have experienced dealing with disruptions like the one we had with the Vulcano Eyjafjallajökull, and understand what both shippers and logistics providers are going through,” says Helder.