Descartes and GF-X combine to add electronic booking to the Global Logistics Network and create an end-to-end air cargo shipment management service.
Descartes Systems Group, a global ondemand software-as-a-service (SaaS) logistics solutions provider, has acquired Global Freight Exchange Limited (GF-X), a global leader for electronic freight booking in the air cargo industry. The acquisition of U.K-based GF-X adds electronic air freight booking capability to Descartes’ Global Logistics Network (GLN), creating a global network capable of managing the entire air cargo shipment lifecycle.
GF-X’s offering includes a comprehensive, on-line cargo reservation system where air carriers and freight forwarders can complete electronic air cargo bookings. Many of the world’s leading carriers and forwarders use GF-X’s products in major airfreight markets worldwide, including American Airlines, Air France, British Airways, Delta Air Lines, DHL, Kühne + Nagel, Lufthansa, and Panalpina. In support of Descartes’ acquisition of GF-X, several key air cargo carriers and freight forwarders have extended their customer commitments to use GF-X’s products and services.
The combination of GF-X with Descartes’ Global Logistics Network creates a powerful and comprehensive shipment management service for the air cargo industry. Customers can now electronically manage the entire air shipment lifecycle, including bookings; air waybills; house waybills; status messages; and customs filings. Descartes also has tools to help carriers and forwarders manage shipping rates from the initial booking all the way through to invoice presentation, bill of lading rating and audit. The combined service also helps customers comply with customs regulations and leading industry standards, such as the quality management structures of Cargo 2000 and efreight.
Together, GF-X and Descartes create a new, and truly end-to-end, shipment management service. “We’ve previously focused on standardizing and automating back-end shipment management processes to help our customers improve their operational productivity and performance,” says Art Mesher, Descartes’ CEO. “Based on our successes to-date, our customers asked us to expand our focus to include the entire shipment management process. In combining with GF-X, we now have a customer-endorsed, comprehensive shipment management service that standardizes and automates the entire shipment management process and can improve efficiencies for the air freight community.”
“GF-X is our preferred online booking channel,” said Chris Bosworth, General Manager, Commercial Development, British Airways World Cargo. “As both an existing Descartes and GF-X customer, we’re confident that the combination will continue to be a key part of our commitment to automating the shipment management process for the air cargo industry.”
“A unique aspect of the Descartes/GF-X combination is that freight forwarders can have a single solution to manage the shipment process - from the first interaction with the air carrier as part of the booking, through to the auditing of the invoice,” says Robert Frei, Head Corporate Air Freight / Head Corporate Development, Panalpina Management Ltd., Basel. “In addition, forwarders can choose from a wide range of services, including logistics messaging and customs filing, to reduce the number of interfaces required with third-parties. This modular concept to service offerings allows a step-by-step expansion of the relationship with Descartes to help create a truly global logistics network.”
The purchase price for this acquisition included approximately USD 5.4 million in cash; approximately 0.5 million Descartes common shares that were issued to strategic airlines and freight forwarders, each of whom agreed to maintain their investment in Descartes for a minimum period ranging between 11 and 18 months; and up to an additional USD 5.2 million in cash if certain sales and other performance targets are met by GF-X over the next 4 years. In addition, Descartes anticipates that the final purchase price will include transaction and integration costs incurred in connection with the acquisition and an adjustment for net working capital.