Freight Technologies at Chardan’s Virtual Transport Platform Tech Series

B2C consumers have grown accustomed to tracking data from merchants like Amazon (AMZN, NC) to follow detailed, online order delivery information. However, for the B2B import/export operator, the market remains an antiquated, cumbersome, and opaque process. End users face outdated IT platforms, numerous freight forwarders, multiple languages, and navigation through challenging regulatory landscapes. Predictably, import/export operators’ expectations are rising.

The majority of freight is still dependent on the use of ~100k freight forwarders with a typical transaction requiring several days for a price quote. Online marketplaces are gaining traction through more efficient processes of matching shippers with logistic service providers on platform. Major carriers have started using these types of platforms with increasing transaction volume.

The US bought more goods from Mexico vs. China in the prior year, as manufacturers sought ways to reduce supply chain disruptions. From a logistical perspective, Mexico’s goods can reach anywhere in North America within seven days via ground transport. However, while the US-Mexico cross-border trade market is estimated at ~$385bl, cross-boarder has been largely ignored by many US domestic logistics providers as it can add additional complexity (language, cultural, and added security steps on the Mexico side).

Increased global uncertainty, fueled by events including the Russia/Ukraine war, have complicated maritime logistics. Rapidly changing geopolitical restrictions impact compliance and risk management data requirements. Take, for example, EU sanctions to deny port entry to vessels utilizing deceptive shipping tactics, or US-imposed sanctions tied to Russian oil; each have increased the value of data analytics offerings.