Freightos, a prominent player in the air cargo booking sector through its WebCargo platform, has expressed confidence in its growth trajectory despite the challenges posed by recent tariff changes affecting global trade. In its latest first-quarter report, the company revealed a year-on-year revenue surge of 30% to reach $6.9 million, with bookings climbing 25%, totalling 370,900 transactions. This growth reflects the increasing reliance on its extensive network of carriers, forwarders, and importers/exporters. Although Freightos continues to face operational challenges, as evidenced by a loss of $4.5 million for the quarter—slightly down from $4.6 million the previous year—the management remains optimistic.
Chief Executive Zvi Schreiber emphasised that while tariff uncertainties loom large, the company’s digital platform, designed to be vendor-neutral, offers essential advantages for customers navigating this volatile landscape. He stated, “Our vendor-neutral digital platform has become even more valuable in the volatile environment, helping our customers navigate complexity through digitalisation.” Notably, he pointed out that the largest segment of their platform, airline eBookings, has minimal ties to China-US trade flows, indicating that the company is insulated from some of the direct impacts of tariff modifications. Schreiber highlighted that significant portions of international freight bookings still occur offline, presenting a considerable opportunity for Freightos’s digital solutions irrespective of temporary fluctuations driven by trade policy changes.
In contrast to the positive outlook presented for the current quarter, previous reports indicated a different financial picture for Freightos. In Q1 2023, the company faced a staggering net loss of $49.3 million, primarily stemming from a one-time non-cash share listing charge of $46.7 million linked to its merger with Gesher I Acquisition Corp. Although revenues had also increased during this period, reaching $4.8 million—an increase of approximately 10%—the operational setbacks reflect a challenging environment for digital freight solutions.
Adding to the complexity, Freightos’s operational loss was recorded at $58 million, marking a notable increase from losses of $4.2 million in the previous year. However, despite these figures, Schreiber noted that Freightos is witnessing robust demand within its buyer user base, suggesting that the infrastructure and services are gaining traction in the market. With a reported 29% increase in unique buyer users year-on-year, the company is clearly tapping into a growing trend of digital adoption within the freight sector.
With its eye on future profitability, Freightos has indicated an anticipated breakthrough, projecting its first profit by late 2026. This commitment to an extended growth strategy hints at a broader shift in the logistics industry, favouring digitalisation and enhanced operational efficiencies. As Schreiber pointed out, the increasing interest in digital booking processes among carriers, freight forwarders, and shippers indicates a significant potential for revenue growth in this sector, aligning with the ongoing global demand for more efficient logistics solutions.
As the company continues to navigate these challenging waters, its focus remains on leveraging technology to adapt to market demands and improve service delivery. This strategic approach, coupled with a growing digital adoption among industry participants, positions Freightos to capitalise on future opportunities, asserting its relevance in an evolving trade landscape.
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Source: Noah Wire Services
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