UASC's new freight rate system transforming shipping
UASC has expanded its partnership with CargoSphere and is now giving customers freight rates in real-time through select 3PLs, resulting in faster quoting for shippers and more business wins.
“UASC is able to get freight rates in front of customers faster and more efficiently by electronically distributing confidential freight rates in real-time directly into Dachser Logistics' rate database, powered by CargoSphere,” said a spokesperson for the shipping line.
Dachser is a global 3PL, ranked number eight in the world according to turnover. Once UASC releases their rates, they're ready for Dachser to use for immediate quoting to customers. Faster quoting is known to result in more business wins in freight forwarding.
The Middle East’s largest shipping line is able to do this through its partnership with CargoSphere, the leading provider of frictionless rate distribution and cloud-based global freight rate management.
UASC has implemented its second CargoSphere Rate-Mesh connection with Dachser Logistics, a global third party logistics service provider (LSP). The first connection of this kind was with SEKO Logistics.
Initially, Dachser is receiving Asia-Europe freight rates and Asia-Mediterranean rates are coming soon.
“I only see positive commercial results coming from CargoSphere’s frictionless rate technology,” said Eric B. Williams, vice president, Global Head of Sales & Marketing at UASC.
Carrier rate volatility has accelerated, putting pressure on carriers and ocean transportation buyers to manage continuous rate updates efficiently and in a timely manner. Effective rate management is important for both ocean transportation buyers and sellers.
Carriers need to get competitive rate updates into buyers’ hands quickly to stimulate business, and LSP buyers need timely access to accurate bottom-line costs for quoting to customers. Relentless rate adjustments are costly for all global shipping industry participants.
The established process is outdated and does not lend itself to winning business and commercial success.
“We’ve been looking for ways to work with ocean carriers to address the burden of ocean rate complexity and time-consuming updates,” explains Guenther Laumann, head of global ocean freight at Dachser. “In 2014, we implemented CargoSphere’s contract and rate management technology to systematize rate management. It is rewarding to connect our CargoSphere rate technology platform with UASC’s private, neutral CargoSphere application to receive rates in real-time directly into our system.”
Laumann added that through the new system Dachser Logistics is able to save on processing time by cutting out many steps involved in finding out the latest freight rates from a given carrier. “If all our carriers were doing this we’d achieve meaningful time and cost savings. The industry is finally reaching a new level of simplified rate distribution that has been a long time coming,” he said.