European transportation start-up Cargonexx runs on artificial intelligence
Supply Chain - The Hamburg-based start-up Cargonexx has developed an innovative technology that turns the complicated truck business into an easy-to-use application.
Apr 03, 2017: The Hamburg-based start-up Cargonexx has developed an innovative technology that turns the complicated truck business into an easy-to-use application. The core of the technology is a self-learning artificial neural network (AI) that predicts spot market prices for individual loadings within milliseconds.
A dispatcher inserts the basic parameters of a loading, immediately gets an actual market price and can confirm it with a single click. Cargonexx takes over as a responsible contractor and matches the tour automatically within its network of carriers.
Over 1,700 carriers have registered within the first four months of operation. More than 100 new transportation companies join the network every week. The service is free of charge because Cargonexx earns a margin between buying and selling a tour.
Rolf-Dieter Lafrenz, CEO and co-founder, Cargonexx, said, “Our target group are not the small shippers, but the middle-sized and big freight forwarders. Cargonexx makes their life much easier and cheaper. This is why they want us to grow.”
The founders of Cargonexx believe that data intelligence is the future of transportation. The neural network is learning from historic and current freight data and improves its accuracy every day. Soon it will not only be able to predict prices, but also transportation volumes, regional peaks and shortages.
Andreas Karanas, second founder, Cargonexx, said, “The spot market is only the first step. 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, which makes up 25 percent of the European transportation market. Poland, Austria and the Netherlands are next on the list of countries Cargonexx wants to conquer.
“We are the first transportation company with an artificial intelligence technology in Europe and we are willing to extend this competitive advantage as fast as possible,” Lafrenz added.