Freightos’ Growth Underscores Freight Sector’s Digital Embrace

Freightos, freight as a service, digital shift

For freight-forwarding platforms, the world is their oyster.

That’s because the emergence of digital platforms and innovative technologies is profoundly transforming the global logistics and transportation industry’s traditional and legacy workflows.

“The opportunity to take all of the offline freight and digitize it is so massive that the macro environment doesn’t have much of an impact,” said Zvi Schreiber, CEO of Freightos, on his company’s Monday (May 20) earnings call for the quarter ended March 31, 2024.

After all, by enhancing efficiency, improving coordination and transparency, elevating customer experiences, enabling scalability, and strengthening risk management, today’s cutting edge and digitally driven advancements are not only streamlining operations but also opening up new opportunities for growth and innovation in the freight industry.

“We are pleased with the strong first quarter of the year, which highlights the robustness and growing acceptance of our platform, and the strides we are making in digitalizing international freight, bringing efficiency and transparency to this crucial sector,” said Schreiber.

“We pursued several initiatives to increase not only the number but also the value of the transactions, including investing in Asia, and an emphasis on high value shipments such as pharma. Looking ahead, we remain focused on the opportunities in the massive air and ocean freight markets, driving continued growth and innovation in the quarters to come,” the CEO added.

Read more: Freightos Earnings Show Digital Transformation Driving Traditional Industries

Innovating the Movement of Goods Worldwide

Per its results, Freightos achieved a record 295,600 transactions in the first quarter of 2024, up 29% year over year — and the company’s 17th consecutive quarter of record transactions.

Executives on Monday’s call emphasized that the platform’s growth significantly outpaced market growth, which saw global air cargo volumes grow 13% year on year and global ocean shipping volumes grow 9%.

“The first quarter results exceeded our expectations in every metric: the number of transactions, Gross Booking Value, revenue, and profitability,” Freightos CFO Ran Shalev said. “We remain on track to achieve our 2024 guidance, as well as our long-term goals for growth, profitability, and cash generation.”

The results underscore the fact that the freight marketplace is embracing more and more digital platforms bringing transparency, efficiency, and automation to the traditionally complex and opaque process of shipping goods globally. Taking a data-driven approach allows businesses to make informed decisions, identify inefficiencies, and optimize their logistics strategies.

Scaling logistics operations globally also involves significant logistical challenges and resource investments, but digital providers like Freightos digitize documentation, allowing for electronic submission and management of all necessary paperwork. This reduces the risk of errors, speeds up processing times, and ensures compliance with international trade regulations.

Read also: Freightos Expands Reach With Virgin Atlantic Cargo Partnership

All those digitally driven benefits were reflected in the results Freightos shared Monday.

The number of unique buyer users digitally booking freight services across the Freightos Platform grew by 11% compared to the first quarter of 2023, reaching 18,000; while Total Platform revenue in the first quarter was $1.9 million, up 12% from the first quarter of 2023, and Solutions revenue was $3.5 million, up 10% year over year.

The company’s gross booking value (GBV) was $192.4 million in the first quarter, up 14% compared to the first quarter of 2023, and significantly above management’s expectations. This outperformance stems mostly from recovery in freight rates during the first quarter, primarily as a result of the Red Sea crisis and the subsequent modal shift to air cargo.

The company also highlighted to investors on the call the recent carrier additions of Virgin Atlantic Cargo and Delta Cargo to the platform.

The company’s success comes during a tough time for the logistics sector, which has seen a number of recent layoffs as freight volumes drop.