WiseTech Global has introduced a new pricing model for its CargoWise logistics software, prompting criticism from forwarders who say the change will raise their costs by 20 to 50 per cent, reported New York's Journal of Commerce.
WiseTech Global has introduced a new pricing model for its CargoWise logistics software, prompting criticism from forwarders who say the change will raise their costs by 20 to 50 per cent, reported New York's Journal of Commerce.
The Value Pack Community Pricing model, launched on December 1, replaces per-user fees with transaction-based charges. Managing a full import container with an inland leg now costs US$19.95, while a standalone customs entry is $9.95. WiseTech said the move simplifies pricing and encourages broader use of its products.
CEO Zubin Appoo described the shift as a new commercial model rather than a price increase. He said the pass-through costs would take time to be accepted but would eventually be viewed like other disbursements such as customs or port fees.
Forwarders warned the change could cut margins unless costs are passed on to shippers, who may resist technology charges in a competitive market. Some criticised the rollout over the Thanksgiving holiday, saying it disrupted year-end accounting and forecasts.
One forwarder said its annual technology costs, usually projected to rise 10 per cent, could now increase 25 to 35 per cent. Others described the rollout as chaotic, with customers receiving pricing details only days before implementation.
Mr Appoo argued the new model democratises access to CargoWise by reducing per-seat costs for smaller firms and enabling larger customers to scale investments in artificial intelligence. He said AI will reduce labour needs and requires ongoing investment in upgrades.
Industry figures remain sceptical. Robert Petti, CEO of Prompt, said shippers are unlikely to accept new fees in a price-sensitive market. Another technology executive compared the change to being charged a fee for using SAP at a fast-food chain. Despite criticism, Mr Appoo insisted the industry will adapt and see long-term value in WiseTech's new approach.
