Cover Story
Visible results
Shippers test 3PLs , software providers for actionable visibility
By Eric Johnson
Ocean visibility providers are navigating a market that has , in many respects , returned to its prepandemic ways . Despite a seemingly never-ending stream of global disruptions — from attacks in the Red Sea to the Baltimore bridge collapse — shippers have once again become measured about their direct investment into visibility data tools .
Part of the challenge for providers is determining the best path to serve the market , with shippers indicating to the Journal of Commerce that they generally favor accurate data feeds over fancy applications . Shippers also often prefer visibility data to be bundled into a third-party logistics provider ’ s ( 3PL ) broader service offering or integrated within a transportation management system ( TMS ) they already use , over having a separate relationship with standalone visibility providers .
Those dynamics are not universal . Some shippers still want a direct relationship with a visibility provider and even want an application to better utilize that data . But the way ocean visibility specialists have targeted commercial relationships with 3PLs is an indication of the way the market is trending .
Cost and accuracy
Paul Brashier , vice president of drayage and intermodal at nationwide provider ITS Logistics , said two complaints shippers generally have about visibility data are a lack of accuracy and cost . ITS in late 2023 released a visibility product called ContainerAI that it bundles with freight services or offers as a standalone product to shippers .
“ On the one side you have large , sophisticated shippers with resources allocated for this ,” Brashier said . “ They want data , and accurate data they can hold people accountable for . And they want it for the least cost possible .”
On the other side are smaller shippers using 3PLs as a service provider and data platform .
“ It ’ s not just about [ container ] volume , but ones that don ’ t have the proficiency in place because they ’ re used to booking ‘ door ,’” Brashier said , referring to shipments in which the carrier or 3PL manages the drayage move on behalf of the shipper . “ You have a movement underway where they want to control that freight and want to hold folks accountable , so they don ’ t end up in the same place [ they were during pandemic-induced congestion ].”
Brashier said ContainerAI is an attempt to address those issues because it relies on data that ’ s used operationally by ITS .
“ The standalone providers are not testing the data in the same way [ as a 3PL ] because they ’ re not operators ,”
10 Journal of Commerce | May 6 , 2024 www . joc . com