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June 25 2018

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June 25 2018 | The Journal of Commerce 15 www.joc.com International Maritime believed is a result of political noise on potential tariff hikes, a reduction in costs on Asia-US trade lanes, and the cost control of importers trying to reduce inventory. "Typically, the supply chain will reach a break point on cost control and optimization of containers. There are many container freight stations or consolidators now in place globally for LCL cargo, and in the main they are a reliable and effective way of moving products," he told The Journal of Commerce. Sanne Manders, chief operating officer at Flexport, said he believed LCL demand is being driven by e-commerce and what he called the "democratization of trade," and that the growing number of smaller com - panies and individuals are benefiting from buying and selling overseas. "As long as you have a mobile phone and connection to the internet, you will be a trader," he said. But Manders said another trend at the large company end of the spectrum is the constant pressure to lower working capital. "LCL can be a great tool for doing that by splitting larger loads that get dispatched once every week into smaller loads that get dispatched once a day. You save on working capital and get equal flow in your supply chain." Heger said there is very little market data around LCL. He said DHL transported more than 2 million cubic meters (2.6 million cubic yards) of LCL cargo per year and roughly the same amount of buyer or seller consolidation that mixes LCL on one side and full containerload (FCL) on the other. "With this, we are, by a large quan- tum, the market leader in LCL trans- portation over all other forwarders," he said. "We transport over two-thirds of the volume in our own NVOCC [non-vessel-operating common carrier] network where our LCL containers contain only cargo of DHL customers and where we fully control the routing. The rest of the cargo is loaded with co-loaders, and we do this in cases where we know a co-loader has a direct intact box between two port pairs that we cannot offer." LCL is not for every shipper, warned Sri Laxmana, vice president for global ocean product at C.H. Robinson, in a blog post. "Consolida - tion only works well if your service provider has enough scale or a large enough customer base to consolidate products in your lane," he said. JOC email: greg.knowler@ihsmarkit.com twitter: @greg_knowler TMS software veteran Ken Pehanick, sells predominantly to US freight brokerages. In addition to providing TMS, it also sells indi- vidual functionalities to companies needing specific tools to complement their own existing systems. The product will help Wise- Tech customers — the company says 7,000 logistics providers globally use its solutions — manage LTL shipments in the US alongside other modes in a more cohesive manner. SaaS Transportation connects to numer- ous national and regional LTL carriers, includ- ing FedEx Freight, Con-way Freight/XPO Logistics, Day & Ross Freight, Old Dominion Freight Line, UPS Freight, and YRC Freight. Its customers include R2 Logistics, NFI, Red- wood Logistics, Cardinal Logistics Manage- ment, Sunteck/TTS, and Pepsi Logistics. The company is part of a recent wave of cloud-deployed, browser-based TMS networks designed to make carrier selection, shipment execution, audit, payment, and tracking simpler and accessible to a broader market of potential users than the heavier-duty TMS traditionally reached in the past. "Where they play is in providing a slick web interface, and it automates tendering," a brokerage customer told The Journal of Com- merce. "If you're a small or midsize provider, it can help you manage your LTL for the day." SaaS Transportation also has been a proponent of application programming interfaces (APIs) for system connectivity. For instance, their system pulls rates from LTL carriers to provide them to a broker via a clean interface. "They have powerful functionality in grouping and unifying LTL rates via API connectivity," said Andy Ashbaugh, chief technology officer at Chicago-based Redwood Logistics, a SaaS Transportation customer. "We use them as an aggregator of LTL rating, not for their core TMS product." Redwood, which offers brokerage and broader supply chain management services, manages a few transportation management systems for its various customers, includ- ing MercuryGate and its own proprietary system, and "didn't have a rate engine built in for LTL." Ashbaugh pointed to SaaS Transpor- tation's API-led approach as effective in developing a varied group of users. "If you can isolate functionality through APIs, it broadens your customer base," he said. Discussions about how the SaaS Trans- portation system will be integrated in the broader CargoWise One platform are still at an early stage, Pehanick told The Journal of Commerce. "For now, it's business as usual for us and for our customers," he said. "We'll be looking at ways to outline the integration with CargoWise. We have big picture ideas from both sides but haven't sharpened the pencil on those yet." He said the companies found their cul- tures meshed well and that WiseTech liked that SaaS Transportation knew its niche and focused intently on that. JOC email: eric.johnson@ihsmarkit.com twitter: @LogTechEric 180,000 185,000 190,000 195,000 200,000 205,000 210,000 215,000 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 US less-than-containerload shipments jump Source: IHS Markit © 2018 IHS Markit Total volume of US LCL imports with year-over-year change -1.2% -1.1% -1.3% +9.7%

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