International freight forwarding marketplace

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Agorafreight is a “digital” freight forwardering start-up, originated in Russia and represents a new type of companies operating on the global freight forwarding market. It is one of the first platforms in the world to launch the service for the online price calculation (including rates for last mile delivery) and ordering the shipping of cargoes (comprising containerized and assorted) by all modes of transport.

CHALLENGE

The challenging idea was to essentially create a marketplace for international and domestic freight shipping which would facilitate and automatize the process of planning routes for shipping a cargo by a few means of transport, calculating the cost of a such a multimodal freight transportation and identifying the optimal time and/or price option to be offered to a client.

Historically r, the work of tipical freight forwarder has been organized as follows: after receiving a client’s request for shipping freight from point A (the consignor’s address) to point B (the consignee’s address), logistics specialist was sending e-mail requests for price quotation to all known carriers in the respective destinations. Having collected their quotes, the best price was chosen, a complete transportation chain was settled and a proposal was sent to the client.

  • on the preparation of proposals logistics departments of freight forwarding companies had to spend up to 70% of the working time;
  • the rates difference quoted by different shipping companies could reach 30% ;
  • air and sea freight rateschanging daily and risks were included into the end-price.

Above is pointed by many independent studies including one conducted by Drewry Shipping Consultants (the leading independent research and consulting agency in the maritime industry) which found that forwarding companies of the world spend annually $500 million on receiving and processing sea freight rates only. Thus any main business optimasation solution can definitelly solve market needs.

SOLUTION

In the majority of cases Excel spreadsheet are still used by logistics departments for planning of a shipping route, with all modes of transport may be used in any combination: air, sea, road, rail, including containerized freight and assorted lading, for both domestic and international transportation.

On the one hand in the logistics services market, there are no standards of submitting price quotes: every carrier specifies its freight rates in its own format with the unique conditions and limitations. Even files have some similarity they still have different sets of columns and tabs as well as dozens of conditions and limitations in the fine print at the bottom of a page. Even those having an API (they are very few) use totally different formats.

Geographic names and especially conditionally defined regions that not always correspond to geographic objects represented another difficulty. For example, the Moscow region often includes Moscow though it is a separate geographic area. Therefore, all this variety of rates and geographic names had to be reduced to a uniform format for further description and usage.

To reduce process complexity and meet the customer’s requirements, Reksoft designed and developed a system for the price calculation of freight transportation services provided by freight forwarding companies and carriersthat aggregates info of transportation services for international freight shipping.

RESULTS

Agorafreight has become the “single window” for working with thousands of the best shippers and freight brokers all over the world. Under a single contract irrespective geographical location and the modes of transport to be used. logistics specialists and freight forwarders do not need any longer spend time on sending price quotation requests to a number of companies in order to find the best option. They only need to input the freight parameters and the system automatically identifies potential routes and estimates time and cost for various freight shipping options. Further Agorafreight takes full responsibility for the cargo.

Today, the online quoting is already implemented for transportation between China, South Korea, Vietnam, EU countries and the Russian Federation, with more territories to be added soon. In all the places where Agorafreight operates, after submitting a request, the client is promptly contacted (within 15 minutes during business hours) by the personal manager who assists in all matters related to cargo transportation, including assorted lading and line-haul trucking within the territory of the Russian Federation.

The agorafreight.com marketplace represents a connecting link between the customer ordering cargo transportation and shipping companies. The functionality of the platform allows preselecting a route, companies, and services as well as estimating the cost of transportation in easy, smooth way in dynamic market conditions.

TECHNOLOGY

  • MongoDB
  • ReactJS

SERVICE

  • Development
  • Testing
  • Integration
  • Commissioning
  • Technical support
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