China Southern to list air cargo capacity on Freightos market

China Southern to list air cargo capacity on Freightos market

China Southern Airlines, the largest cargo airline in China and 10th largest in the world by volume, has begun allowing freight forwarders to book shipments and make payments on WebCargo, a Freightos marketplace connecting air and ocean carriers with logistics companies that arrange freight transportation.

The partnership with China Southern Airlines’ air logistics arm marks Freightos’ entry into the large China market, which represents 11% of global air cargo trade, according to figures from the International Air Transport Association. China Southern Air Logistics is the first airline in China to participate in a digital freight marketplace. 

Freightos announced its expansion with China Southern, which initially is limited to imports into China, on Tuesday. 

Multiparty booking platforms for air and ocean shipments are rapidly gaining traction, simplifying the customer experience and saving huge amounts of time by replacing manual checks with real-time electronic connections.

A China Southern Cargo 777 freighter takes off from Stansted airport in the U.K. in October 2020. (Photo: Flickr/Steve Knight CC BY 2.0)

Freightos, which this year announced plans for a public stock offering in 2023 to fund growth as it tries to turn a profit, is one of the primary technology companies enabling buyers to shop for freight transportation and see real-time rates from multiple suppliers in one display. Businesses book freight with intermediaries on the Freightos website, while forwarders use WebCargo to connect with carriers’ reservation systems. Last summer, Freightos established its first foothold in Latin America when Latam Cargo, the largest cargo carrier in the region, joined WebCargo.Forwarders use WebCargo for instant rate quotes and real-time price comparisons before booking, and to make digital payments.The advantage of automatically connecting the forwarders’ transportation management systems with airline reservation systems is more predictable, transparent pricing and capacity information that can be confirmed instantly, as passengers are used to when booking tickets. Until recently, much of the online pricing was still static, with rates typically coming off an Excel  spreadsheet and requiring a human to manually confirm the price and booking in the system. In many cases, phone calls and emails are also required to finalize a booking.

“The return on investment is clear. I mean, number one, it’s giving a better service to the customer. Especially with younger people coming into the industry, they expect instant service, and the average time for a forwarder who doesn’t have the right tools to do a simple price quote is three days,” Freightos CEO and founder Zvi Schreiber said in an interview last summer. “Second of all, the accuracy of the quote. Because rates are changing so quickly, if you don’t have the right tools, you quote the wrong price. If it’s too low, you lose money. If it’s too high, you don’t get the business. 

“And then third of all, it’s the internal cost, you know, there’s a shortage of staff in the industry. So I think it’s clearly becoming a competitive necessity, both from a customer perspective and from a cost perspective, to have automation tools.”

Experts also say the move to digital booking was prompted by capacity shortages during the pandemic and the need to reserve space quickly or risk losing it to a competitor.

More than 3,500 freight forwarders using the Freightos system now have access to China Southern’s capacity.More than 30 airlines, representing more than 50% of global airfreight capacity, list their capacity on WebCargo, giving them another sales channel beyond their branded websites. Most of the airlines have joined the platform in the past two years.
“Digital transformation has become key to staying ahead. We are happy to embrace e-solutions to optimize our sales, and believe our cooperation with WebCargo will bring considerable added value to our customers. Aiming to become a competitive global integrated logistics provider, China Southern Air Logistics will devote great efforts to enhance our digital capabilities,” said Executive Vice President Chengqing Tao in a news release.

China Southern Airlines is a large passenger airline and also operates a fleet of 14 Boeing 777 freighters that fly 60 times per week from Guangzhou, Shanghai, Shenzhen and Chongqing to Amsterdam, London, Chicago and Frankfurt, Germany. In 2019 it spun off its cargo division into a separate company, China Southern Air Logistics. which also manages the belly cargo carried by its sister company.  Officials say they plan to expand the freighter fleet and launch more international routes.

freightwaves.com-Eric Kulisch

Ý kiến bạn đọc
Chủ đề liên quan
Có thể bạn sẽ quan tâm

CNL Handled a MAIN TANK about 64 tons to Taiwan.

In November 2022, CNL's Hanoi branch handled a consignment including a MAIN TANK without oil weighing approximately 64 tons. Because this cargo is extremely huge, it is challenging to transport and load the vessel. Besides that, it had shipped 2 containers of OIL LIBRA. The shipment was delivered from a shipper in Hanoi, Vietnam to be consigned to Taiwan on CIF terms. The commodities were loaded on board the vessel from Hai Phong, Vietnam to Kaohsiung seaport, Taiwan.

Efficiency advances in logistics only accessible with digitalisation

With Vietnam’s logistics industry estimated at $80 billion and with an increase of 14-16 per cent annually, the adoption of digital transformation and automation is expected to drive more efficiency in the sector.

8 Golden rules when loading and transporting goods by container

PRINCIPLE 1: CLEAN THE CONTAINER, DEODORIZE BEFORE LOADING THE CONTAINER There are many items that are smelly, and a lot...

CNL delivered Pet Chip to the USA via two breakbulk vessels.

In april of this year 2022, with trust from customers, CNL Transport handled two shipments of Pet Chip for delivery to the United States.

Ministry of Industry and Trade organizes Vietnam Logistics Forum 2022

Vietnam Logistics Forum is an annual event organized by the Ministry of Industry and Trade in collaboration with relevant agencies since 2013. This is an important event of Vietnam's logistics industry with the goal of promoting the development of logistics services, creating a cohesive link between logistics and manufacturing and import and export industries, and also a place for dialogue and updating information on important issues, the urgency of logistics services in Vietnam and the world.

Global shipping growth at risk from economic gloom, UNCTAD says

Synopsis The slowdown is expected to impact shipping, which transports more than 80% of global trade, although tanker freight rates could stay high.

FM Logistic to manage warehouse operations for gro24/7

Third-party logistics provider FM Logistic recently announced a partnership with gro24/7, one of the largest B2B e-commerce platforms in Việt Nam, to provide warehousing and urban logistics services.

Vietnamese logistics increases competitiveness, reduces costs

TTO - Lack of professionalism, low automation, productivity of service implementation has not reached advanced countries, the application of information technology and the level of digitalization is not high, leading to reduced competitiveness compared to the international market.

Global logistics activities in 2022 and implications for Vietnam

In the first months of 2022, the global logistics market continues to recover and enters a new phase with the expectation of bringing significant growth for both 2022 and the next period. However, in the face of risks from the Russian-Ukrainian war tensions, the outbreak of the disease in China... is raising the risk of global supply chain disruptions, affecting logistics activities. In the face of complicated developments on a global scale, there are still many difficulties in the short term, requiring logistics businesses and shippers to continue to adjust supply chain and logistics models.

Increase the competitiveness of goods from logistics services

The Mekong Delta is the rice, fishery and fruit bowl of the whole country. Therefore, developing a worthy logistics system and improving the competitiveness of key goods of the region in the direction of efficiency and sustainability is essential.