Digitization and internet platforms are the future of freight, logistics, and supply chain.
Freightos filed its F-4 with the Securities and Exchange Commission (SEC) on December 9 in order to list on the public markets.
The filing goes into depth about Freightos’ go-to-market strategy and the potential for moving a notoriously inefficient business into the digital era. As has been widely reported in recent months, the business intends to go public through a combination with Gesher Acquisition, a special purpose acquisition company (SPAC).
Digital Transformation Is Required
Aside from the vagaries of the stock market, the greenfield chance to modernize the global freight sector is crucial when delving into the filing itself.
“Global freight, despite its size and importance, has not yet experienced a thorough digital transformation,” the business stated in the filing. “In contrast to passenger travel, hotels, and retail, cross-border freight services are primarily offline, opaque, and inefficient.”
Freightos went on to say that when goods travel around the world by air or sea, they have several contact points and intermediates. The manual methods that predominate in these exchanges – hundreds of duplicated encounters every day — result in delays, uneven pricing, and other inefficiencies.
The business claimed that its platform division, which links buyers and sellers of freight services to digitize pricing and payments, and its solutions section, which aids in procurement automation, can streamline and accelerate such interactions.
According to the company, the third-party logistics and supply chain management space generated about $1 trillion in revenue in 2020 and is on track to generate up to $1.8 trillion in sales by 2026 within a global trade market worth more than $22.5 trillion, according to data from Global Market Insights.
