Northbound, a startup slashing demurrage and detention charges via optimised container logistics, has successfully closed a pre-seed financing round of €1.3 million to expand its software-as-a-service solution. The round was led by Apex Black and included participation from id4 ventures, IBB Ventures, Schenker Ventures, MVP Factory and several prominent business angels.
The funding will be used to expand the platform’s AI capabilities, grow the team with key hires in go-to-market and software engineering and acquire additional customers.
The company is developing a SaaS platform to streamline operational control within the container supply chain. In that sense, Northbound optimises the flow of goods from the port to the warehouse, considering penalty fees (e.g. demurrage and detention, “D&D”), capacities, and delivery promises. The solution protects companies from inefficiencies and errors, such as multi-million-euro container D&D charges and late deliveries that frustrate customers.
Up to 40 percent of containers remain in port terminals or storage locations for too long, resulting in up to multiple thousand euros in penalty costs per container. Northbound offers businesses an intuitive dashboard that provides real-time data on the location, status and impending D&D charges of containers. This enables prioritized and coordinated control of container shipments, optimized flows of goods and fulfilled delivery promises.
Northbound was founded in 2023 by Andreas Canel and Rahul Yadav and received initial backing and acceleration from global logistics service provider DB Schenker and MVP Factory.
“International importers frequently incur millions in D&D penalties without having real control over them. Major shipping lines profit from these fees and have little incentive to change. Our vision is to empower importers to independently prevent these fees through active control and automated optimization of container flows,” explained Andreas Canel, co-founder and CEO of Northbound.
Northbound has already successfully validated its software with various pilot customers, including a leading German sporting goods manufacturer. It was proven that over 90 percent of D&D costs within a two-month period could have been avoided through the increased cost transparency and optimized control that Northbound’s AI solution offers. Northbound’s AI algorithm automatically flags incorrect invoices, enabling disputes on up to 20 percent of all invoices and preventing unjustified payments.
According to DB Schenker and numerous customer interviews, oftentime the majority of D&D fees can be avoided. Without a solution, these costs are commonly caused by a lack of awareness and suboptimal planning.
“Northbound’s innovative approach to optimizing the container supply chain, including the reduction of demurrage and detention charges, addresses a critical need in the market. The technology empowers importers with real-time cost transparency and intelligence, enabling precise and timely decision-making and significant cost savings,” added Rani Saad, Founding Partner at Apex Black.
Read the orginal article: https://www.eu-startups.com/2024/07/berlin-based-northbound-gets-e1-3-million-to-optimise-container-flows-from-the-port-to-the-warehouse/
