Berlin Based Start-up Cargo.one receive $18.6 million
Cargo.one is currently backed by global leaders with a great deal of experience in building SaaS (Software as a Service) products and online marketplaces in the air cargo industry. Some of these companies include worldwide venture capital firm, Index Ventures and German owned cargo airline company, Lufthansa Cargo .
The funding will be spent on the start-up aiming to increase the number of airlines signed up, with the expansion into new markets. It currently has 12 airlines signed up to use their platform for booking air freight shipments. Lufthansa Cargo was their first sign up when the start-up first launched 2 years ago. With the accelerated increase in business, Cargo.one plans to increase staff to 70 which is triple their current work team by the end of the year.
Cargo.one’s mission is to simplify and streamline the air freight industry digitally. Oliver T Neumann, Founder and Managing Director says “It takes a forwarder hours to get quotes from airlines, bookings aren't made online, documents aren't digital and communication is asynchronous”. Cargo.one has digitized the supply chain in order to combat these issues and modernise the air cargo industry.
Cargo.one currently provides it’s platform to 300 airports across the globe, covering 120+ countries and has over 1.1 million air freight offers per month.
The company provides a two-sided marketplace that connects airlines with forwarders. The platform provides real-time access to available air freights across different airlines and routes. Allowing for a streamline process that mitigates the need for back and forth emailing and phone calls. The process for freight forwarders is free and Cargo.one receives a commission from the airline companies for selling their air freight capacities on it’s platform.
“At cargo.one we are building a 100% digital solution and enable airlines to transform their business digitally. Over the past years, cargo.one has built tailored technical integrations with airline partners that enable them to distribute their capacity online without the need to overhaul their infrastructure,” says Oliver Neumann.
Over the course of the last 12 months, Cargo.one says it’s gross merchandise volume has increased 10x. With the current global pandemic, it’s only expected to continue it’s fast-paced growth and increase the need for digital adoption in air freight services.
UPS Posts Record Second Quarter with Revenues of $23.4bn
Growth across each of its core segments resulted in record results for UPS in the second quarter, with group revenues climbing 14.5% year on year to $23.4bn.
The global logistics outfit achieved consolidated operating profit of $3.3bn, up 47.3% compared to the same period in 2020. It is the second consecutive quarter of record profit, and a significant rise on Q1’s $2.9bn.
UPS Q2 Revenues in Brief
- Consolidated revenues: $23.4bn (+14.5% yoy)
- Domestic: $14.4bn (+10.2%)
- International: $4.82bn (+30%)
- Supply Chain Solutions: $4.2bn (+14.3%)
The US company’s domestic segment performed steadily with 10.2% revenue growth to $14.4bn. But it was its international and supply chain solutions segments where UPS saw the biggest gains. Strong demand in Europe led an increase in international revenues of 30% to $4.82bn. UPS’ supply chain solutions division saw revenue growth of 14.3% to $4.2bn, driven, the company said, “by strong demand in nearly all businesses”.
UPS’ steady growth throughout the pandemic has been led by the overarching vision of its chief executive Carol Tomé to do “better not bigger”, focussing on efficiency and high margin deliveries through its network over pure scale and volume.
“I want to thank all UPSers for executing our strategy and delivering high service levels, which fuelled record financial results in the second quarter,” she said. “Through our better not bigger framework, we are moving our world forward by delivering what matters.”
UPS Completes Sales of UPS Freight
The second quarter also saw UPS complete the divestiture of UPS Freight in a deal worth $800m - with a surprise result for the division, now called TForce Freight, under new owner TFI International.
“The second quarter was historically significant for TFI International, with the closing of our UPS Freight acquisition and record performance across the board,” said Alain Bédard, chairman, President and Chief Executive Officer, TFI International. “Particularly gratifying is the performance of TForce Freight, which has exceeded our operating ratio targets far ahead of schedule, and we have only just begun our work.”
In it first two months of ownership TFI reported that adjusted operating ratio (OR) was 90.1% for TForce Freight, far outperforming its forecasted OR of 96-97%.
“I wish to thank our entire team for their hard work and remarkable efforts, and officially welcome aboard our new TForce Freight colleagues who have seamlessly come under the TFI umbrella and are already making stronger than expected contributions,” Bédard added.