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Issue 6 2015 - Freight Business Journal


E-commerce – forwarder’s friend or foe?


New technologies and means of data analysis are bringing the fate of the traditional freight forwarding model into question, suggests the latest annual Global Freight Forwarding report from Ti.


The report analyses the


trends affecting the global freight forwarding market, including the impact of new IT. It notes that many forwarders are in the midst of upgrading and enhancing their systems; some have been successful, while others have struggled. Some cargo agents are working on new IT systems to provide shippers with visibility/ tracking and report generation/ data analysis – similar in some aspects to what new e-commerce- type marketplaces are now providing. For forwarders, however, it’s not an easy task to take on a global IT system. The 2015 report considers the


impact of the new e-commerce marketplaces that are impacting the role of the conventional cargo agent.


“As forwarders focus on


their IT systems, e-commerce marketplace start-ups that provide shippers (with) the ability to compare rates, book


shipments, track in real-time and perform data analysis on results are on the rise,” the report advises. “These have the possibility of disrupting the freight forwarding market. However, there are always pros and cons depending on a shipper’s needs,” it adds. Ti’s Cathy Roberson, who


authored the report, explains in more detail: “There’s going to be pros and cons when deciding to use either the traditional freight forwarder or to use either one or a combination of e-commerce marketplaces that offer similar services as those of the traditional forwarders. “Traditional forwarders have


established relationships with select carriers and if they are among the top 10 or so largest forwarders, usually are able to negotiate the better rates versus smaller forwarders. In addition, many forwarders also offer additional services and are able to ‘bundle’ these services. However, the drawbacks I’ve heard from folks regarding traditional freight forwarders include pricing and inflexible IT systems. “For the e-commerce marketplaces, they’ve either


listened to customers or were customers themselves of freight forwarders and designed their websites to focus on common complaints such as the lack of transparency in pricing and visibility in shipment movements,” Roberson remarks. “Among their big pros is that these are usually easy to use websites, plus there is the ability to compare rates supplied by carriers and forwarders. In addition, real-time tracking/visibility is provided along with the ability for report generation and data analysis. Some of the drawbacks to using these providers can include the lack of other logistics services (an inability to ‘bundle’) and they may be limited by modes of transportation. But, basically, these marketplaces create a more transparent solution for shippers.” Perhaps as a result: “The


future of the traditional freight forwarding model is indeed in jeopardy thanks to changing demand and enhanced technology,” the report insists. “To survive, forwarders will need to plan, adapt and evolve or run the risk of becoming obsolete,” it warns.


Partners on time Partnerlink, the UK road


freight-sharing network, is working towards offering its customers an anticipated delivery slot time in which they can expect their goods to be delivered. It employs OBS Logistics’ CALIDUS ePOD and TTM software on the driver’s hand-held android device to track and estimate delivery time for any freight partner within the network. It will be much easier to predict the time at which customers can expect their freight to arrive in much the same way as the express services industry does with parcels deliveries. The software alerts the server to the driver’s location and with the help of the driver’s manifest, it can then determine an estimated time of arrival (ETA). “We wanted to be able to


accurately track freight across the network. It could take as many as three or four phone calls to locate the pallet, and the customer would be getting more


Looks like we’ve got us a convoy...


Stand by for the sight of lines of trucks roaring nose-to-tail down the motorway – but rest assured, it will all be perfectly safe, and legal. Interesting headway is being made on a new initiative called Driver-Assistive Truck Platooning (DATP) in the US. While Rubber Duck and Pig


Pen had nothing more than CB Radio to rely on, DATP looks to use vehicle-to-vehicle communications, radar and video technology (such that the second driver has the same visibility as the lead driver) to minimise on-the-road truck headway. Platooning is said by the American Transportation Research Institute (ATRI, a not- for-profit research organisation that forms one of the core team members of the project) to allow up to 10% fuel economy for the trailing truck and up to 5% for the lead vehicle. Companies with large vehicle


fleets hauling either full truckload or less-than-truckload shipments would potentially benefit most from platooning. Based on actual truck movement data contained in ATRI’s truck GPS database, the system is said to be definitely feasible and cost-effective for some operations. Meanwhile, modellers at Auburn University –


the DATP programme leader – are understood to have confirmed that platooning would not affect traffic congestion, and


could


even reduce it if the technology’s penetration of the truck market reached 60%. A report on the phase one funded by a


research stage,


grant from the US Department of Transportation’s Exploratory Advanced Research Program, was recently released by the project’s research team and is available on the ATRI website. According to Daniel Murray, ATRI’s vice president, research (pictured), phase one research primarily modelled the effects of DATP on fuel economy, assessed business and user requirements, and considered the business model for the system. ATRI was involved in much of that phase one’s initial work, including the development and assessment of trucking industry user


IT News in brief Smoother shipping from INTTRA


Ocean shipping electronic marketplace INTTRA is offering a new line of products for freight forwarders and shippers. Marketplace Decision Support includes shipment reliability and booking response dashboards, which organise and analyse information about their previous containerised ocean shipments and help users make more informed decisions based on their own shipping


Qatar rolls out CROAMIS


and more frustrated chasing his consignment,” explains John Davidson, managing director of Partnerlink. “We will have the ability to be


able to see where the freight is within the network without the need to pick up the phone, and to estimate its time of delivery accurately thanks to CALIDUS ePOD


and TTM, keeping


customers much happier.” The system also


allows


partner companies to see the signatures of those who have signed for consignments,


eliminating the need to call up and ask who signed for it when chasing a delivery. “In the not- too-distant future, I’d hope we can provide customers across the network with a delivery time slot that gives them a more exact window of when their freight will arrive – that’s what we’re aiming for,” Davidson concludes. There are 16 partners in the


Partnerlink freight-sharing network, which covers all of the UK and incorporates about 1,700 trucks and 500 trailers.


Qatar Airways has rolled out its new CROAMIS cargo management system. It handles Cargo reservations, operations, accounting and management information system in a single system serving the airline’s entire global cargo network, and has been developed in-house through an innovative co-funded model with global IT services provider


CLX Logistics has chosen Kewill Forwarding to provide supply chain execution soſtware for its freight forwarding services. CLX specialises in the chemicals business and required a single solution that would improve day to day operations and increase visibility, including customs and compliance functionality and robust reporting and track and trace capabilities


Wipro. It enables comprehensive automation of


the airline’s core business functions and supports collaborative operations across the airline’s cargo supply chain. The system incorporates the latest practices in business functions including sales, pricing, cargo ground handling, and ULD management.


Chemical forwarder chooses CLX


The service is supplied as part of the Kewill MOVE on the Cloud for Logistics Service Providers platform, which provides complete control over the order- to-cash process for freight movement, ensuring operating processes and compliance regulations are followed, resulting in the ability to better serve customers.


history, trade lane by trade lane, with help from INTTRA’s own experts. The dashboard performs an analysis of actual vessel events to help assess with a higher degree of confidence shipping options for each region and destination and helps to gauge average time to get a booking confirmed for different shipment options based on historical data.


requirements. It also acted as the project lead for development of the business case for truck platooning. Phase two testing has now begun and that


will involve


both track testing and a limited amount of


road testing (the


latter is not likely to start until the Autumn). While ATRI forms part of the team led by Auburn University (and which also includes other interested parties), another team led by the University of California is also looking into similar technologies (and also working to the US Department of Transportation, or DOT); otherwise, says Murray, DATP has never previously been tested in the US. “The US trucking industry is


always looking for cost savings and improved returns on investment, so they are watching these tests closely,” he suggests. “That said, they are nervous about


the safety, legality and


competitive implications of the system.” What this isn’t is a step down


the road towards driverless ‘road trains’, or an answer to the US driver shortage crisis, Murray confirms. The potential primary benefit at the moment is likely to be seen in fuel savings.


///IT


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