Digital Freight Marketplace - How it Aids Capacity via Aggregation

Updated on July 01, 2024

One of the most significant challenges ocean freight administrators and logisticians face is container capacity procurement. Securing space with ready-to-be-loaded containers for imports and exports is essential for ocean freight transportation in order to facilitate international trade. With technology continuing to reshape the face of shipping, the ways in which shippers find capacity have also evolved. Whatever you call it, whether digitally powered marketplace or managed capacity procurement, the meaning is the same.

It is a digital freight marketplace that matches shippers with freight to the carriers that have capacity. That streamlines the process for both parties and creates a more effective strategy for managing international shipments. In short, digital freight marketplaces help shippers locate container capacity quickly and easily with an innovative approach to procurement--aggregation. 

What Is a Digital Freight Marketplace

A digital freight network uses machine learning, automation, and other software services to bring shippers and carriers together to secure container capacity. For shippers, a digital freight connection helps find container capacity despite market fluctuations. For carriers, a digital freight marketplace helps find high-quality loads, those that produce the most revenue and have the easiest loading and handling requirements. 

With a strong focus on technology and innovation, the concept of a digital freight marketplace revolutionizes the ocean freight transportation industry—and for good reason. In the purview of ocean transport, this amounts to faster scheduling and bookings, which helps with container capacity procurement.

How a Digital Freight Marketplace Aids Capacity Via Aggregation

In a perfect world, freight shipments could be linked to capacity in advance of actual activities and set on a schedule. Everything involved with shipping and capacity access would be scheduled in advance to ensure all processes run across the ocean and back again more smoothly. 

In the real world, however, ocean freight transportation is dynamic and constantly changing. Shifting weather patterns, traffic congestion, loading bottlenecks at docks, vessel and equipment breakdowns, varying hours of service, and unpredictable loading schedules all contribute to a certain degree of uncertainty that always surrounds ocean freight capacity. A delay at one facility can lead to missing cargo when a ship sets sail.

In other cases, misunderstandings over carriage may arise from poor comprehension of Incoterm Rules and regulations. Having a range of carriers and service providers can help shippers find capacity more efficiently and quickly, reducing stress of the procurement process.

Leveraging a digital freight marketplace, as highlighted by Transport Topics, “can also take the burden of having to vet and onboard new partners for shippers and carriers. Imagine trying to grow your network, vetting new partners, and building those new relationships while managing your existing network. It’s a lot to juggle. [These companies] handle the vetting process, authorizing and approving only users that meet specific standards.”

A digital freight marketplace levels the playing field for shippers and makes it easier to find capacity despite disruptions, such as a backlog of empty containers at the destination or rising per diem rates. It is this ability to connect shippers to a wider range of service providers that can effectively increase access to container capacity. 

Additional Benefits of Working With a Marketplace to Find and Manage Ocean Transport

A digital marketplace provides solutions to re-optimize freight networks and adapts to disruptions and changes in tight markets. Because a marketplace displays available capacity in real-time, it is synchronized to unforeseen events and changing conditions - maximizing efficiency and preventing wasted time, finances, labor resources, and capacity. 

A freight marketplace automatically adjusts results and recommendations based on changing conditions and unforeseen events as they occur. In addition to making capacity procurement easier, digital marketplaces can provide these benefits:

• Operational support. 24/7 access to customer support to find capacity or answer questions as they arise.
• Increased visibility into shipment status. Real-time tracking and notifications make it easy to watch for delays and improve visibility.
• LCL to FCL consolidation opportunities. Up-to-date notifications and digital agreement processes speed up the entire process.
• Increased working capital with integrated international trade finance options. A stronger track record of effective ocean freight management means better finance opportunities.
• Embedded digital document management. Streamlined processes with instant, integrated access to digital documents, including bills of lading and customs clearance documentation. 

Improve Ocean Shipping Efficiency With FreightMango

A digital freight marketplace helps shippers and carriers achieve resilience in a world where they face constant disruption. Improve your ocean shipping efficiency and quickly secure ocean container capacity with access to the best digital freight marketplace: FreightMango. Contact FreightMango today to get started.