International freight movements in the second quarter grew at unexpectedly high rates, surprising experts who had expected lower transaction volume tied to the ongoing Red Sea crisis, online shipping marketplace Freightos said.
Freightos Transaction Volume
Freightos said in a statement that it had expected transaction volume to grow between 27% and 29% to a range of 303,000 and 309,000 transactions. It also said the Q2 growth rate of 32% outpaced its long-term targeted growth rate range of 20-30%.
“This significant transaction growth highlights the growing adoption of digital solutions in the freight industry,” Freightos said. Freightos added that steady freight prices resulted in corresponding increases in its Q2 gross booking value. It also exceeded expectations by growing 31% to $203.4 million. Freightos had expected Q2 booking value would rise only 15%-18% to a range of $178 million to $182 million.
Expanding Buyer Base
Despite its prior slower-growth expectations, Freightos prepared in Q2 for more long-term growth by expanding its air and ocean carrier network by 38% to 51 from 37 carriers. In addition, its number of unique “buyer users” in Q2 increased 16% to approximately 19,000.
Freightos notes that its buyer organizations range from small and midsized businesses to large multinational organizations. Its number of buyer users includes all the individuals placing bookings on its platform. A spokesman adds that Freightos has an average of more than 5,000 bookings per workday.
Handling Spot Freight Market
Freightos also attributed its growth to its ability to serve the spot freight market, or freight shipments handled outside of long-term contracts.
“This momentum represents the continued digitalization of the spot freight market, estimated to comprise 30%-50% of the total air and ocean freight market,” the marketplace company said.
As part of its carrier network expansion, Freightos in June announced agreements with Thai Airlines and Coyne Airways, carriers on Freightos.com that will use the WebCargo by Freightos digital booking and payment platform to manage freight services across areas including Asia, Africa, and the Persian Gulf and Caspian regions.
Did you subscribe to our daily Newsletter?
It’s Free! Click here to Subscribe
Source: DigitalCommerce360
