Freightos, a neutral sales platform for international air and ocean shipments, expects to make its first profit in the fourth quarter of 2026, company leadership said Monday after posting an adjusted loss of $19 million for 2023.
The results follow losses of $14.6 million and $12.4 million in 2022 and 2021, respectively. In July, Freightos laid off 13% of its staff, or about 50 people, and implemented other cost controls.
Jerusalem-based Freightos estimated it will narrow losses to about $14.5 million this year on revenue of about $23 million. But officials say growing interest in digital booking by carriers, freight forwarders and shippers, more variety of cargo types available to book, and a huge amount of latent demand will propel the FreightTech company into the future.
CEO and founder Zvi Schreiber said during a briefing for analysts that the total addressable market by value for air, ocean and final-mile shipments transacted on the short-term market is $600 million, with the vast majority of transactions still executed through email and phone calls. Up to $300 million of that shipment value has the potential to be offered on freight marketplaces, which translates to $10 billion in potential revenue for international freight marketplaces. Freightos makes money through a combination of flat fees and taking a small percentage of each transaction.
Freightos (NASDAQ: CRGO) operates a multiparty freight reservation platform where carriers sell their capacity and thousands of freight forwarders conduct real-time rate comparison, book space, make payments and manage shipments for immediate delivery in one place. The electronic booking system also enables forwarders to share pricing and service to their import and export customers through sister site WebCargo, which functions similarly to travel agency intermediaries Amadeus and Sabre in the passenger sector.
The FreightTech company brought in $20.3 million in revenue in 2023, an increase of 6% from the prior year, after breaking the threshold of 1 million transactions. The results were achieved despite a 2% drop in global cargo volumes last year. Most Freightos business is in the air cargo sector as ocean carriers have been slow to adopt e-booking.
from: freight wavse
