Air cargo booking site gets Bessemer funds, plans US foray

Cargo.one, which operates an online system for air-freight booking, raised $42m from investors including Bessemer Venture Partners after the Covid-19 crisis helped to drive new business. The Berlin-based start-up lets shipping firms such as freight forwarders book air cargo in a way similar to how websites like Skyscanner sell airplane tickets. It plans to use the money -- its second funding round this year -- to expand in the US and Asia, it said Thursday. Air-cargo costs have skyrocketed in the past year as the Covid-19 crisis kept planes on the ground, limiting the space available in the holds of passenger jetliners. A surge in online shopping and port congestion has also contributed to the squeeze, leading to a four-fold increase in Cargo.one’s user base and an eight-fold rise in bookings, according to managing director Moritz Claussen. “Most airlines have a manual system where freight forwarders call around the various booking offices for a quote and then go back to the lowest one to confirm the booking,” Claussen said. “When the pandemic hit, booking offices were suddenly working from home and the phones went unanswered. And that’s when our business really took off.” Cargo.one said it has processed about 45,000 tons of cargo in Europe through its 15 airline partners, which include the air-freight units of Lufthansa, Finnair, Etihad Airways and ANA.<br/>