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.