The multi-airline booking platform cargo.one enters into a global partnership with Russian Volga-Dnepr group member AirBridgeCargo and Stansted, UK-based CargoLogicAir, which is a strategic partner of the V-D group of airlines.
This move is seen as major scoop since both freight carriers operate a large wide-body fleet of Boeing 747Fs, offering ample transport capacity on flights between Asia-Pacific, Europe and North America.
It’s a deal that benefits three parties:
ABC and sister company CLA will increase their load factors by making the main deck capacity of their freighters available for digitally booked shipments via cargo.one’s platform. By doing so, it can be expected that the carrier’s volumes and revenues will further grow.
Forwarding agents are in turn offered real-time bookings at spot market price conditions with instant confirmation. Their often time-consuming search for available transport capacity including rate comparisons becomes superfluous or the effort is minimized thanks to the digital distribution channel. Utilizing cargo.one’s digital service is free of charge for them.
Speaking about money: all partnering carriers pay the Berlin-based start-up a financial gratification for each transaction made, enabling the newcomer to better its service offerings. When asked about the price list, the management keeps tight-lipped.
Robert van de Weg, VP Sales & Marketing for the Volga-Dnepr Group speaks of significant advantages for his group resulting from the partnership with the booking channel: “Offering our capacities on cargo.one enables us to meet growing customers’ demands for digital solutions and to give forwarders of all sizes access to our large global network.”
Mr. van de Weg’s words are backed by Hauke Langert, CEO Airfreight at forwarding agent Skyline Express International, who states: “Gaining faster and more efficient access to freighter capacities is a real game-changer.” He went on to say: “cargo.one now allows us to have 24/7 access to CLA and ABC capacity, enabling us to serve our customers and partners based on real time rates.”
And David Kerr, CEO CargoLogicAir, emphasizes that thanks to the electronic booking portal, many small and medium-sized freight forwarders will significantly expand CLA's and ABC's customer portfolio: “This will help us increase our short-term capacity sales and thus our load factors, to grow even more sustainably,” states Mr Kerr.
Growing airline portfolio
ABC / CLA follow Lufthansa Cargo, Finnair Cargo, Brussels Airlines, Austrian Airlines, and GSA Leisure Cargo. So far it’s these carriers that have decided to make use of cargo.one’s services to digitally book spot market capacities at live rates and with direct booking confirmation. To be activated, forwarders have to sign in by displaying the customer number they are registered with at airlines.
Asked about the advantages his company expects from the upcoming partnership with ABC / CLA, MD Moritz Claussen of cargo.one speaks of a “considerable boost” of his firm’s business. “Thanks to the two new customers, we increase our global network coverage, which further enhances our attractiveness,” he notes.
Further to this he points out that freight carriers tend to market most of their capacity by signing blocked-space agreements with big forwarders. These commitments run over longer periods.
Four more partnerships expected to be inked in 2019
In contrast, small and medium-sized agents are lacking constant volumes which explains their disinterest in signing long-term capacity agreements with carriers. These players greatly benefit from the digital booking platform. “Their number using our digital channel is growing constantly, which explains why capacity providers such as ABC and CLA ultimately decided to join our digital platform,” explains Mr Claussen.
However, it still will take some time until the first shipment booked via cargo.one is loaded on board an ABC or CLA freighter aircraft. “First, we have to integrate our different systems, safeguarding full technical compatibility. This will be finalized in August,” he states.
Having said this, he announces that before this year is over, cargo.one expects to sign global partnerships with four additional freight carriers. Their names he refused to reveal due to ongoing negotiations.