DHL launches virtual freight marketplace CILLOX

DHL announced the market launch of CILLOX, the online platform that matches full truck load (FTL) and less-than-truckload (LTL) shipments with available transportation providers. The news comes just two months after the express, transport and logistics arm of Deutsche Post DHL Group bought the platform, which has the ability to lock in rates in less than 1.5 hours.

CILLOX, under DHL’s auspices, will provide instant access to suitable transport providers for cargo. The platform, DHL said, is designed to eliminate price negotiations and the hassle of shopping around for deals and services. Pricing information is calculated based on shipment characteristics, availability of trucks and last-booked rates.

Amadou Diallo, CEO of DHL Freight, explained late last year that the digitalization of the logistics industry and disruption the traditional road freight business was already well under way, and that the CILLOX purchase marked DHL’s commitment to the market. Many smaller companies have been pushing similar products for years now, so, as a major player in freight, DHL is seeking to capture this momentum.  Diallo added that, “The launch of the platform is a result of our Strategy 2020 and promotes further growth due to its innovative and agile business model.”

Commenting on the launch, Diallo said that DHL will, “continuously evolve the platform according to user needs and feedback.” He added that he was “confident we will shake up the freight forwarding business, and the digital transformation of our industry will benefit all parties involved.”

DHL launched CILLOX less than two months after its acquisition, suggesting the urgency that larger freight companies are sensing as the market digitalizes. Diallo and his colleagues are up against pretty much every player in the game right now, including Alibaba, UPS (which just bought Freightex for similar purposes) and a slew of smaller, agile players such as Freightos, Cargo42, Globatom and Convoy (backed by Amazon money). The industry money is clearly on the visibility model.

And, as the myriad of passenger-side aviation websites and hotel booking sites consolidated into a few major players about a decade ago, the trend is starting in the freight business as buyout season begins.

Those interested in learning more about the disruptive role of cargo IT should join us at Cargo Facts Asia in Shanghai, 25 – 26 April, where a session will be devoted to the topic.  To register, or for more information, go to CargoFactsAsia.com.