Hamburg-based start-up Cargonexx has developed a self-learning artificial neural network (AI) that predicts spot market prices for individual shipments. A dispatcher inserts the basic parameters of a shipment, immediately gets an actual market price and can confirm it with a single click. Cargonexx automatically matches the request with its network of carriers.
The company reports that over 1,700 carriers have registered within its first four months of operation, with more than 100 new transportation companies joining the network every week. The service is free of charge because Cargonexx earns a margin between buying and selling a shipment.
“Our target group are not the small shippers, but the middle-sized and big freight forwarders,” explains Rolf-Dieter Lafrenz, CEO and co-founder. “Cargonexx makes their life much easier and cheaper. This is why they want us to grow.”
The neural network predicting spot prices learns from historic and current freight data to improve its results over time, and Cargonexx states this will allow it to also predict transportation volumes, regional peaks and shortages“The spot market is only the first step,” explains Andreas Karanas, the second co-founder of Cargonexx. “With our data intelligence, we will be able to offer many new smart services to shippers, freight forwarders and carriers.”
Cargonexx has started its service in Germany, but the potential for the company to incorporate cross-border transport into its solution mean that expansions to Poland, Austria and the Netherlands are next on the company’s list. The founders are optimistic: “We are the first transportation company with an artificial intelligence technology in Europe,” confirms Lafrenz, “and we are willing to extend this competitive advantage as fast as possible.”