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Startup Gurucargo aims to cut out middleman from forwarding

GURUCARGO, an online freight platform from Uruguay, is launching in September its "lean forwarding" model in the United States that will connect airlines with importers and exporters, potentially eating into legacy freight forwarders' market share.

"We're saving our customers hundreds of thousands of dollars," said Gurucargo's co-founder Andres Israel, adding that the company's model reduces shipping costs by up to 30 per cent, reported New York's Air Cargo World.

By connecting shippers directly with carriers, Gurucargo's model locks in prices for shippers that used to only be available to forwarders. The site publishes prices provided by carriers and books them rather than buying space in advance. It then resells capacity at a premium or loss depending on market movements.

Gurucargo said that its model is catching on fast in Latin America, where the company was launched. The freight platform has teamed up with airlines such as LATAM Cargo, and just added shipping giant CMA CGM. Currently, Gurucargo handles 1.5 million transactions per month, and is adding 600 new companies per month, which translates into a 15 per cent month-over-month growth in users.

In a market where legacy forwarders, such as Panalpina, are warning shippers to book early to lock in low rates to avoid peak-season congestion, startups like Gurucargo face an uphill battle breaking into the market.

Mr Israel says that Gurucargo's edge is its ability to lock in freight rates in advance, enabling shippers to settle their supply chain costs farther out without paying a premium for pricing security.

For the other steps, such as warehousing, customs clearance or last-mile, Gurucargo outsources the services and its customers can select which services they want to add to their shipment.