Did you notice the API revolution in the freight forwarding industry?
The freight forwarding industry is using APIs. This article answers questions like why APIs are valuable to freight forwarders and can APIs put freight forwarders or their partners at risk.
APIs have been a boon to the freight forwarding industry, helping stitch digital systems together for even the most massive entities with the largest number of disparate software and solutions running across geographies.
APIs — or application programming interfaces — help one application connect with another, irrespective of who developed the system, who runs it, and what operating system they run on.
Let’s take an easy example. When a report on Microsoft Excel needs data from Facebook, it does so using APIs. When that report needs data from your company’s air freight pricing engine, it again uses APIs.
Therefore, whether it is an internal or external application, APIs can connect everything.
Why is API valuable to freight forwarders?
Industry insiders know that irrespective of what company or department you talk about, there are several dozens of computer software and systems that are used.
It’s what makes answering customer queries a tad more challenging in this industry as compared to any other.
However, in the past year or so, freight forwarders have started using APIs extensively. Not just to tie together their own systems but also to liaise directly with the systems and software of shipping lines, transporters, and everyone else involved with their processes.
Now, it’s important to highlight that freight forwarders aren’t all doing this independently. They’re working with solutions providers as well — but at the end of the day, it’s the relationships that freight forwarders have that will ultimately facilitate their API access quota.
Can APIs put freight forwarders or their partners at risk?
Well, there’s a risk to anything digital, but with APIs, that risk is significantly lower. In fact, there’s a lower chance of a virus infecting a system via an API as compared to via an email.
Further, the very basis of APIs is to help companies provide access to only certain kinds of data — ensuring that no other data stream is touched by the API.
This is critical not only for inter-company transfer of data but also for regulatory requirements when sharing information within the business.
At the end of the day, APIs are simple and efficient “linkages” that bring together the complex world of freight forwarding, bridging the gap with all its stakeholders and partners.
In fact, more and more shipping lines and air freight operators are opening up APIs. Air France-KLM for example just launched an API that will be used for its MyCargo online freight booking system, providing live online quotes and booking capabilities for freight forwarders.
It seems as though APIs will be the future — and the transition is already underway.
Kuehne+Nagel acquires South African freight forwarder Morgan Cargo. Image: Kuehne+Nagel
Listen to the story (FreightComms AudioPost)
Kuehne+Nagel signed an agreement to acquire Morgan Cargo, a leading South African, UK and Kenyan freight forwarder specialised in the transport and handling of perishable goods. During 2022 the company handled more than 40,000 tonnes of air freight and more than 20,000 TEU of sea freight globally, managed by approximately 450 logistics experts.
The acquisition of Morgan Cargo ideally complements Kuehne+Nagel’s perishables logistics service offering, while improving connectivity for customers to and from South Africa, the UK and Kenya, which includes state-of-the-art cold chain facilities.
Yngve Ruud, Member of the Management Board of Kuehne+Nagel, responsible for Air Logistics, commented: “With Morgan Cargo, we acquire a reliable logistics service provider for the benefit of our customers. Expansion in high-growth markets such as Africa clearly ties into our Roadmap 2026 and reinforces our commitment to the Middle East and Africa Region. We have been active in Africa for many years, but this acquisition is an ideal addition to our regional presence.”
Schalk Bruwer, CEO of Morgan Cargo, added: “We wanted to expand our successful family-owned business and took the opportunity to become part of one of the world leaders in logistics. This new development will provide greater opportunities for our customers in terms of global reach and allow our team to advance their careers beyond the realm that was previously possible. Morgan Cargo is extremely excited to become part of Kuehne+Nagel.”
Closing of the transaction is expected during the third quarter of 2023 and is subject to customary closing conditions, including clearance by the competent merger control authorities.
Yusen Logistics partners with Toyota Motor to accelerate decarbonization. Image: Yusen Logistics
Listen to the story (FreightComms AudioPost)
Following on from last week’s press release Toyota to decarbonise its logistics activities in Europe, Yusen Logistics Europe partners with Toyota Motor Europe in this proactive approach to alternative powertrain development.
Together with VDL Special Vehicles, Yusen Logistics is honored to be part of the team to help accelerate the decarbonization of Toyota’s logistics network with the use of hydrogen fuel cell trucks. Using Toyota’s fuel cell modules VDL will convert an existing vehicle into a zero-emission truck for Yusen Logistics to operate within Toyota Motor Europe’s logistics network.
The innovative technology project is a significant step towards reducing both companies’ overall carbon footprint and aligns with Yusen Logistics’ wider commitment to working together with our partners and communities towards a more sustainable future.
cargo-partner becomes part of Nippon Express Group. Image: Cargo Partner
Listen to the story (FreightComms AudioPost)
As cargo-partner is celebrating its 40th anniversary, company owner and founder Stefan Krauter has decided to sell the Austrian global logistics player to Japanese stock-listed Nippon Express Holdings, which is also the parent company of Nippon Express, APC, Franco Vago and others. Having started operations in 1983 with only five employees at Vienna Airport and having developed the company almost completely organically to now 4,000 employees in 40 countries around the globe, Stefan Krauter had already passed on the baton to his management and now has also passed over ownership to his “ideal successor” NX.
After exceeding the billion euro mark in global turnover for the first time in 2020, cargo-partner’s turnover increased by 72%, reaching over 1.8 billion euro in 2021, and further increased to 2.06 billion euro in 2022.
“Leadership by agile founders bears some considerable advantages, but from a certain stage on, highly professional and long-term stable ownership is the bigger asset. It is the founders’ challenge and responsibility to decide about both management and ownership succession at the right time. Not too early to be able to build a stable internal management succession but, for sure, also not too late,” Krauter says. “That is why, together with the Corporate Executive Board, we started evaluating different options for the future of cargo-partner.”
Stefan Krauter continues to explain: “It would also have been a good option for the management and employees to continue going completely alone, but since the ideal new strategic owner was found in NX Group, we were ultimately convinced that this was the right way to go forward. Following the integration policy we have seen from NX Group so far, cargo-partner will remain cargo-partner in regard to both organization and branding – and it will become the strongest cargo-partner ever!”
The deal was signed on May 12, 2023 and will come into effect subject to the usual regulatory (anti-trust and FDI) approvals in an estimated four to seven months along with the subsequent closing.
“Both organizations will benefit from considerable synergies in global office coverage, an expanded service portfolio, strengthened regional, product and IT know-how, increased scale and others. NX Group will benefit from our strong and extensive network in Central and Eastern Europe that complements NX’s existing network in an ideal way, and cargo-partner will jump several leagues in the Intra-Asian and Trans-Pacific trade lanes,” Stefan Krauter states. He adds: “cargo-partner will also continue to work with its current global agents’ network, strive to expand this section of its business and support it in future with its upgraded platform which is presently under development.”
“I will personally continue to support the transition in my new role on the Corporate Supervisory Board and in my advisory function to the Corporate Executive Board. I will be focusing on smart partial integration with the new owners as well as on other matters regarding strategy, M&A and ESG. What an interesting and rewarding challenge at the end of my career!” Krauter says.
The sellers have been advised by J.P. Morgan (financial), ValueAdd (financial), BCG (commercial), Schönherr (legal), and Deloitte (accounting and tax) on the transaction.
