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How the rates of ocean freights are calculated and can be made transparent?

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One cannot scurry up the internet and find the rates of the ocean freights as this topic is quite complex on its own. One needs to understand that the majority of the shipping companies still follows the age-old methods and traditions and their view to change and adopt to the new technology may be half a decade down the line but not soon. There are many things that needs to be considered before straight up calculating the rates such as pre-carriage fees, carriage fees and on-carriage fees. As there are many service providers who provide low custom rates to their loyal customers as compared to those who are new in the market. This not only makes it difficult for the new comers to compete in the market but may make an end to their survival. Though this may be the case, companies like Freightos is adapting to the change and believes in the new world of internet. Internet provides more transparency, which will help in fairer negotiations and more stability in the market.


The main difficulty that comes while shipping huge amount of raw materials, manufactured goods, expensive pieces of equipment, bulk orders of products or anything is to find the cost. The issue is with the pricing of the service that is being provided by the shipping and containers companies. One can find estimated rates on the internet but it can't be taken into account because like stock market prices the prices also change in the freight industry but not as volatile as the stock market. So most of the companies do their pricing behind closed doors, because of which it becomes difficult for any new company or a start-up to compete against this giants. So it is of utmost urgency to have the ocean freights rate out in the open, it can be made possible by using the Internet. But this rates might also be controlled by an organization or a company. What we need is the transparency, immutable changes, clear and concise information, no possibility of alteration of rates and prices which can be achieved by using "BLOCKCHAIN". This technology not only provides all the above features but is also a chain of blocks/ledgers which can't be changed and all the users/parties involved have the same ledgers, which also resolves the conflict of trust issues.


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