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In what has been a troubled week, WiseTech Global is seeking to reassure investors over its relationship with DSV, revealing that CargoWise transaction volumes with the world’s largest freight forwarder have increased by some 20% over the past six months.
The announcement follows DSV’s confirmation earlier this year that Tango, developed following its acquisition of DB Schenker, is intended to become its strategic operating platform.
In an Australian Stock Exchange 公告 issued today, the software provider said DSV remained an “active WiseTech customer”, with the increase in transaction volumes following the post-acquisition integration of DB Schenker.
User numbers had increased by about 3% over the same period, while the companies remained committed under an existing contract until September 2028, including a “substantial financial commitment”, it said. The parties were also discussing “potential additional collaboration opportunities”, including beyond 2028.
The announcement is the first time WiseTech has publicly responded to reports that DSV intends to migrate from CargoWise in favour of its in-house platforms, developed following its acquisition of Schenker.
However, rather than addressing DSV’s long-term technology roadmap directly, WiseTech focused on the current commercial relationship.
“During my recent meeting in Denmark with DSV CEO Jens Lund and his leadership team, I reiterated that we deeply value our long-standing relationship with DSV and remain committed to supporting its business and identifying opportunities to deliver additional value over time,” said chief executive Zubin Appoo.
He also argued that CargoWise’s scale and complexity made it difficult to replace.
“CargoWise’s deployment, within our large global freight forwarders, can take between five and seven years to roll out and extract all available synergies,” he said, citing the system’s extensive carrier, customs and port integrations, complex customer interfaces, and broad functional capabilities.
He added: “CargoWise’s efficiency and execution synergies are substantial… making it very sticky and hard to replace… We expect any changes to be long-term and very gradual.”
The increase in transaction volumes appears closely linked to DSV’s integration of Schenker.
In its latest quarterly results, DSV said more than 50 countries had either completed integration or were in the process of being integrated, with Germany – the largest and most complex operation – beginning integration of its Air & Sea business in March. The company also reported air freight volumes up 55% and sea freight volumes up 50% year on year, driven primarily by the contribution from Schenker.
The Danish forwarder added that it was consolidating its air and sea networks with Schenker’s, while continuing to streamline its transport management systems and broader technology landscape.
Taken together, the figures suggest the growth in CargoWise transactions is likely to reflect a greater proportion of the enlarged DSV/Schenker business being processed through the platform during the integration, rather than necessarily signalling a change in DSV’s longer-term strategy.
Mr Appoo also emphasised the long history between the companies, noting that CargoWise had supported DSV since its rollout began in 2007, and that the partnership had evolved over nearly two decades. He said CargoWise had “played an important role in supporting DSV’s world-class operational efficiency and proven acquisition integration capability”, while adding that DSV’s “skillful use of CargoWise has contributed to WiseTech’s own progression as a leading global logistics technology provider”.
WiseTech declined to answer questions from 载星, citing a pre-results “quiet period” – despite issuing an announcement to ASX – just days after co-founder Richard White stepped down as chair, remaining on the board as chief innovation officer.
Mr White said the move was intended to remove the distraction caused by “recent personal media attention”, which he said had the potential to encourage short-selling of the company’s shares. He again “strenuously and unequivocally” denied allegations made against him, while the board said it remained focused on succession planning and governance.
Against that backdrop, today’s statement appears aimed at reassuring investors that one of WiseTech’s largest customer relationships remains intact, even as DSV continues its integration of Schenker and pursues its longer-term technology plans.
DSV has been approached for comment.