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International Cargo Shippers Form Internet Marketplace
Nine container-shipping companies are launching an Internet venture in cooperation with a Silicon Valley technology firm.
Aimed at enabling traders worldwide to simplify the process of containerized transportation at a significant time and savings, the group, together with Tradiant, the technology firm, plans to launch a new initiative early next year, currently code-named Global Transportation Network or GTN.
US-based APL, one of the group and a member of the Singaporean Neptune Orient Lines, said Monday, December 4, that negotiations are underway with other transportation providers that also may join as founding partners. In addition to APL, venture participants are from Japan, South Korea, Germany, Israel, as well as Taiwan.
The initiative is the most recent example of a traditional industry melding its older ways of conducting business with the faster speeds of the Internet. A number of companies in traditional industries including railroad and steel have created similar Internet services aimed at cutting purchasing costs and eliminating paperwork involved in procurement by moving the process online.
GTN will fundamentally change the process of getting goods around the world, said APL, adding that the objective is "to leverage this Internet platform and drive superior customer service and lower transactions costs for both customers and providers."
The Internet exchange will leverage Tradiant's proven e-commerce platform, which already includes such transactional capabilities as booking, track and trace, and scheduling. Other functions will include rate and contract management, cargo forecasting and allocation.
According to APL, founding carriers will have a significant equity stake in the new venture, but not a majority stake, and Tradiant will hold the rest, thereby creating the "trusted third party" to ensure neutrality and security.
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