EDRAY receives $ 7 million to improve port logistics thanks to flow stacking
EDRAY, a billing platform, seeks to revolutionize the way technology executes port logistics.
The company said on Tuesday that it is looking to accelerate its growth and expand its line of dotting solutions with a recent $ 7 million investment from logistics entrepreneur and investor Andrew Leto.
Leto, founder of GlobalTranz and 10-4 and investor in Emerge, My Carrier and Roadrunner Transportation, now sits on the board of directors of EDRAY.
Related article: Roadrunner’s $ 50 Million Fundraiser Led by GlobalTranz, Founder of Emerge, Leto
Many of the current dumpers’ solutions focus on optimizing certain elements of managing dummy shipments, often focusing on capacity adequacy or visibility only. EDRAY takes a collaborative approach among a number of senders to coordinate inbound port pickups through a process called flow stacking.
EDRAY works first with inbound container ships to block the stowage of its customers’ containers, a method in which all cargo is stowed with other cargo going to the same location. From there, the company’s flow stacks its carriers to remove these containers together, eliminating the need for holdbacks and demurrage refunds.
Leto explained in an interview with FreightWaves that the collaboration also gives shippers a market to offer their shipments to a handful of dump carriers available in these port areas.
“It’s really two things: it’s a market and a destination management system,” he said. “Each shipper is siled and done on their own, trying to manage it with their own team and the five dump carriers they work with. EDRAY combines the freight from all of these companies and entices billers to come and bid on that freight as a whole, reducing costs to the shipper.
Leto explained that once these containers are empty, they are not immediately returned empty to port like many dumpster transactions. Instead, EDRAY is coordinating with the port’s regional exporters to bring the full container back, ready to be reloaded on the ship.
These process improvements have resulted in a 40% increase in dotting productivity, five times fewer rework and 25% lower emissions, according to the business.
Leto explained that the digitization of an untapped mode of transportation is what drew him and the company’s new chief commercial officer, Brett Parker, co-founder and chairman of Cargomatic, to space.
“Dilling is one of the biggest issues for shippers right now,” Leto said. “They obviously face the costs of containers overseas, and the drafts add a lot of time to the mess. With our solutions, customers can now outsource their port logistics to us or they can keep their teams in place and use our technology to optimize it themselves.
Reade Kidd, chairman of EDRAY, said he was delighted to be working with Leto.
“We are delighted to have the strategic and financial support of Andrew Leto to strengthen our position as we continue to develop the EDRAY platform,” he said. “The industry has been plagued with congestion in ports which has a negative impact on the movement of freight and results in significant costs. EDRAY brings relief to shippers through collaborative and innovative solutions, real-time visibility data and increased capacity of our Dutch market to accelerate inbound and outbound containers.
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