View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Dashboards
  2. Deals
May 27, 2009updated 04 Apr 2017 4:17pm

Shipping attracts big-name players

The global maritime industry generates freight revenues of about $380 billion annually, estimates the United Nations Conference on Trade and Development, yet relies heavily on outmoded invoice presentation and payments processes This is now changing, with major payments processors turning their attention to this potentially substantial market.Setting the scene, Deutsche Bank and the worlds largest supplier of electronic commerce solutions to the shipping industry, INTTRA, joined forces in April to offer container shipping companies the ability to automate invoicing and payments processes (see EPI 262)

By Stafford Thomas

The global maritime industry generates freight revenues of about $380 billion annually, estimates the United Nations Conference on Trade and Development, yet relies heavily on outmoded invoice presentation and payments processes.

This is now changing, with major payments processors turning their attention to this potentially substantial market.

Setting the scene, Deutsche Bank and the world’s largest supplier of electronic commerce solutions to the shipping industry, INTTRA, joined forces in April to offer container shipping companies the ability to automate invoicing and payments processes (see EPI 262).

Hard on Deutsche Bank’s heels, US payments processor First Data has announced the launch of PayCargo, a service it claims to be the first to global online freight payment system for the maritime shipping industry.

Established in November 2008, PayCargo is a joint venture between First Data and Coihue, a company formed by a group of shipping industry executives.

Commenting during the formal launch of PayCargo, First Data group manager for transportation Chris Courts said: “PayCargo can potentially revolutionise the payment process in the shipping industry by replacing manual processes with technology that reduces time, errors, and ultimately costs associated with making and receiving payments for shipments.”

First Data also announced that among PayCargo’s first adopters is one of the participants in the initial pilot project, US-based Econocaribe Consolidators, one of the world’s largest non-vessel operating common carrier companies.

Indicative of cost saving a more efficient billing and payment system could achieve, research firm Aberdeen Group estimates that shipping companies pay an average of $18 to process an invoice, and some companies pay $40 or more.

Courts noted that disputes can cost up to an additional $15 in personnel expenses, a problem PayCargo addresses directly with an incorporated a dispute management function.

“Disputes are a major issue in this industry,” noted Econocaribe’s president John Abisch.

“Disputes are a major issue in this industry. PayCargo gives people on both sides of a transaction insight into the billing so issues can be addressed and payment can be made efficiently.”

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Electronic Payments International