WiseTech Global operates in the unglamorous yet critical domain of global trade and logistics software. At first glance, their flagship product, CargoWise, might seem like just another enterprise SaaS offering. But beneath the surface lies a much more compelling narrative — one of scale, data, and untapped potential.

With its vast reach, WiseTech has amassed an unrivaled dataset in the logistics industry, creating what can only be described as a “data moat.” This moat will become increasingly difficult for competitors to cross, giving WiseTech an edge not only in improving efficiency for its customers but also in unlocking entirely new business models that can fuel future growth and innovation.

WiseTech’s Data Moat

The concept of a data moat — a competitive advantage born from sheer scale in data collection — is well established in the tech world, with consumer giants like Google and Facebook being prime examples. However, WiseTech is building a similar moat in the B2B realm of global trade.

WiseTech claims that their software touches over 55% of global manufactured trade flows is staggering. As their ambitions grow, so does their data. WiseTech’s goal is to cover 90% of the world’s international manufactured trade flows. Every transaction processed through the CargoWise platform — from shipments to customs entries — feeds into this massive trove of data, providing unparalleled visibility into the global movement of goods.

While individual freight forwarders and logistics providers can track their own operations, WiseTech has a macro-level perspective, one that spans regions, industries, and trade lanes. This type of insight is incredibly difficult for competitors to replicate, especially given WiseTech’s role as a trusted intermediary between so many players across the supply chain.

Monetizing the Data Moat

The real opportunity lies in how WiseTech can monetize this data moat. Hedge funds and traders already buy data from various sectors, using it to gain a competitive edge. Credit card transactions, satellite imagery, and social media sentiment are just a few examples of data types being sold to financial institutions.

Here are a few ways WiseTech could capitalize on this:

Trade Analytics as a Service - WiseTech could offer real-time insights into global trade flows to businesses, governments, and financial institutions. This could be used for everything from economic forecasting to commodity pricing predictions. Imagine central banks using WiseTech’s real-time data to monitor import/export activity as a leading indicator of economic growth or recession.
Macroeconomic Trends - By analyzing global trade flows, financial firms could infer the health of different economies. A surge in exports or imports could signal growth, while slowdowns might suggest an impending contraction.
Commodity Pricing - Tracking which commodities are being transported, and in what volume, could provide insights into future price movements. For instance, spikes in shipments of crude oil or grain might be an early warning sign for price fluctuations in the commodities market.
Supply Chain Risk Management - Given the volatility in global supply chains due to geopolitical tensions, climate change, and pandemics, WiseTech could offer a subscription service to monitor global trade routes, identify potential disruptions, and suggest alternatives. Industries like electronics or pharmaceuticals, which rely heavily on just-in-time supply chains, would find this invaluable.
Freight Rate Benchmarking and Prediction - With their granular data on freight rates across air, sea, and land, WiseTech could develop predictive freight pricing models, helping companies optimize their logistics costs. Knowing when and where to book freight based on expected price movements could become a significant value-add for customers.

Given the scale of global trade, WiseTech could charge a premium for access to this anonymized dataset, creating a lucrative new revenue stream. Hedge funds and institutional investors, accustomed to paying top dollar for high-quality data, could become some of WiseTech’s most valuable customers.

The Flywheel Effect

What makes WiseTech’s data moat so powerful is the potential for a flywheel effect. As more companies use CargoWise, WiseTech’s dataset grows richer. This richer dataset allows WiseTech to build better tools and insights, which in turn attracts more customers and more data, further expanding their data moat. Competitors will find it nearly impossible to replicate this network effect without a similar global footprint, making WiseTech’s position increasingly defensible.

If WiseTech can continue to harness its growing data set while building services that monetize its insights, it could reshape the logistics industry and solidify its place as an essential part of global commerce infrastructure. The next decade of global trade may very well be written by those who not only move goods but understand the complex flows of data that govern them — and WiseTech could be at the helm.