Digital Freight Forwarder Vs. Digital Freight Marketplace
Due to its mass appeal, the term ‘digital’ is often thrown around by a lot of businesses to describe and market their offerings. In most digitally mature industries, such misnomers may not make much of a difference as pretty much every player has comparable digital capabilities. However, in the ocean-based freight forwarding industry where digitization hasn’t been as pervasive, the word ‘digital’ may mislead international shippers while they’re looking for a reliable shipping partner.
Shippers may be, understandably, misled to believe that a digital freight forwarder is not very different from a digital freight marketplace or platform. And this confusion can lead to them missing out on the significant advantages offered by a truly digital freight forwarder and can potentially be the difference between rapid growth and stagnation. It, therefore, becomes necessary for international shippers to understand the difference between a digital freight forwarder and a digital freight marketplace before they ship their consignments with one.
Digital forwarder Vs marketplace: Understanding the difference
A digital freight forwarder combines cutting-edge digital technology, a global network of shipping and logistics partners, and a dedicated team of shipping experts to offer error-free, end-to-end freight forwarding service. On the other hand, a platform or freight marketplace is simply an interface that links shippers to freight forwarders and carriers.
A digital freight marketplace only digitizes the matchmaking or quote-finding part of the shipping process, whereas a digital forwarder digitizes the entire shipping process from booking to documentation to invoicing. In addition to this, digital freight forwarders like Freightwalla also offer a web-based digital dashboard that shippers can use to manage their workflows online and gain visibility over the entire shipping process. So, to benefit from fully digitized shipping processes, it makes more sense to partner with a digital freight forwarder than to simply use a freight marketplace.
Despite this difference, it is not uncommon for newly emerging freight marketplaces to call themselves digital freight forwarders even if they outsource everything after booking to other freight forwarders. This not only prevents international shippers from the benefits of digitization but also complicates the shipping process by fragmenting the accountability for managing shipments.
Digital forwarder Vs marketplace: Accountability
A digital platform or marketplace is only accountable for booking and finding the right freight forwarder or carrier and is mostly not accountable for anything else. This leads to a lot of ambiguity in terms of who is responsible for the security and timely delivery of the consignment at different stages of the shipping process. For instance, digital freight marketplaces often shun responsibility once the consignment is booked. Neither do they ensure that a consignment is loaded on the vessel on time by ensuring the correct documentation and customs procedures, nor do they communicate with vessel operators to provide accurate tracking information to shippers. As a result, international shippers lose visibility and control over their shipments.
A digital forwarder, on the other hand, ensures that all the activities involved in the shipping process, such as booking, ground transport, warehousing, customs, are taken care of by the different participants. A digital freight forwarder such as Freightwalla combines the use of its global team and technology to ensure that any problems that arise in the shipping process are promptly dealt with. Its digital platform serves as an excellent risk mitigation tool by minimizing errors in the documentation process. Additionally, the platform also notifies shippers regarding the status of their shipments in real-time, thereby giving the shippers enough time to respond and avoid massive losses.
Digital forwarder v/s marketplace: Control
A digital freight forwarder allows shippers to collaboratively complete their documentation on an online platform, ridding them of the hassle of performing physical paperwork as well as the errors associated with manual processes.
By offering complete control and visibility over shipments, digital freight forwarders enable shippers to take appropriate actions so that the delays in delivery are well accounted for and losses are minimized. For instance, shippers can notify their customers of any potential delays so that they can then replan their operations accordingly.
In contrast, digital freight marketplaces only connect you to offline freight forwarders who manage their operations using traditional, non-digital means. As a result, these processes are still as error-prone, inefficient, and inconvenient for international shippers as the traditional methods that they are so tired of already.
These are just a few of the many differences between digital freight forwarders and digital freight marketplaces. It is up to the shippers to be mindful of these differences and verify how ‘digital’ their shipping partners are.
