Hot Money Monday: WiseTech's $2bn power play, and one small logistics tech stock stirring interest

News.com.au

2 days ago

Cargo ships go smart with AI
WiseTech muscles up with $2.1bn move on US freight kingpin
Yojee's freight-tech play quietly takes aim at the big guys
International shipping has always been the beating heart of global trade.
For centuries, it was sailboats and steamers ferrying spices, silk and silver across oceans.
Then came the age of steel hulls, steam engines, and containerisation ie; Malcolm McLean's game-changing box-on-a-ship idea that made global trade cheap and insanely efficient.
But now, the industry's entering a whole new phase; less grease, more code. The modern cargo ship isn't just floating metal anymore, it's a data machine.
IoT sensors beam back live engine diagnostics and cargo conditions. Ports run on automation and smart cranes.
And while the crew's still onboard (for now), autonomous ships are already being tested.
And that's just the beginning. Blockchain is also making paperwork disappear.
Then there's the green push. With pressure mounting over emissions, shipping giants are rolling out LNG engines, wind-assist tech, and hybrid electric vessels.
WiseTech's $2.1bn play to run global trade
At the centre of this digital shipping revolution is one Australian company powering the pipes of global logistics.
WiseTech Global (ASX:WTC) is the $36 billion Aussie tech powerhouse behind the curtain.
Its flagship platform, CargoWise, is already the cockpit for freight forwarders, customs agents and supply chain operators in more than 170 countries.
If something's moving across borders anywhere in the world, odds are, CargoWise is helping steer it.
But WiseTech doesn't just want to be the brain behind the freight anymore, the company said it's gunning to be the "operating system" of global trade.
To get there, the company made a monster move last week: a $2.1 billion cash deal to snap up US-based E2open, the biggest acquisition in WiseTech's history.
The name might not mean much outside the freight world, but inside it, E2open is serious muscle.
This is a company that connects over half a million businesses and tracks more than 18 billion transactions a year.
What does it bring to WiseTech? The missing puzzle pieces ie; domestic logistics, trade compliance, carrier hookups, and planning smarts.
WiseTech said the two firms fit together with barely any customer overlap.
More importantly, it sets WiseTech up to build something far bigger: a true multi-sided marketplace.
A place where ocean liners, freight brokers, warehouse managers and even small shippers can plug in, trade, and optimise in one unified system.
Founder and chief innovation officer Richard White said, "Acquiring e2open is a strategically significant step in achieving our expanded vision to be the operating system for global trade and logistics.'
'This is a great deal for WiseTech's business and e2open's shareholders, for all our customers, the industry and ultimately the end consumer.'
Yojee's making moves in freight tech, too
Sure, WiseTech is the heavyweight in logistics tech, but it's not the only ASX stock worth watching in this space.
Over the past 12 months, Yojee (ASX:YOJ) 's stock price has surged more than sixfold, a move that's turned a few heads in the small-cap crowd.
While the $85 million-capped company is also in the logistics tech game, its focus is a bit different: freight forwarding.
Freight forwarding isn't exactly known for its slick software. For years, the industry's run on a patchwork of spreadsheets, phone calls, and expensive old-school systems that don't talk to each other.
Yojee is trying to change that by stitching it all together.
The company's flagship software is called Mosaic, a next-gen freight forwarding platform.
It's built to simplify the way forwarders and shippers manage cargo, giving users a single interface to book jobs, track shipments, and connect with partners across the chain.
Mosaic is also designed with open architecture, so it can slot into existing business systems. That includes connections to things like accounting software (like Xero), or SMS services like Twilio.
The platform runs on a 'pay-per-job' model, which means no big up-front licenses or lock-in contracts, making it a flexible alternative in a market that's historically been dominated by costly enterprise software.
There's even an AI assistant called Tess already built in to help automate routine tasks.
Customs is another pain point Yojee's now tackling.
In April, the company launched a joint venture with SmartClear called Smart Yojee, aiming to bring real-time customs messaging and compliance tech into the Mosaic platform.
And while all this is still rolling out, Yojee has already landed a notable pilot customer.
In March, Germany's Röhlig Logistics, a major global freight and logistics firm, signed on to use Yojee's Transport Carrier Management System in Singapore.
The rollout began in May and, if the pilot goes well, could expand further.