Startup Raises $5M to Bring AI Automation to Ocean Freight Industry

New York-based startup Ship Angel has raised $5 million in a venture funding round to reinvent how the ocean freight industry uses data.

Founded in 2023, the startup offers an AI-powered software platform that automates the processing of freight shipping, optimizing workflows for beneficial cargo owners (BCOs).

Glasswing Ventures and Newark Venture Partners led the round. Bienville Capital, Socii Capital and Plug and Play also participated.

“BCOs are among the most underserved global shipping segments when it comes to modern, high-quality logistics technology,” said Graham Parker, Ship Angel’s co-founder and CEO. “The shipping industry has reached a pivotal moment where complexity, unpredictability and cost have skyrocketed and are unmanageable using spreadsheets. Ship Angel addresses these challenges head-on with innovative AI-native software-as-a-service solutions that deliver significant value in efficiency, supply chain performance and data accuracy.”

The funds will be used to support the expansion of its platform. 

Alongside the funding news, Ship Angel also announced two new AI-powered solutions for its platform: Contract Amendment Guard and Invoice Audit.

Ship Angel’s Amendment Guard automatically records changes to surcharges and transit times. Invoice Auditing, meanwhile, stores bookings and automatically lags inconsistencies.

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The new tools are designed to automate rate management processes. The startup claims that shipping companies still largely process and re-adjust data manually. 

“In today’s volatile market, BCOs experience a higher-than-average 30% error rate on invoices, resulting in millions of dollars lost,” the company said.

“Ship Angel’s best-in-class AI-native software, industry expertise, and focus on delivering an exceptional user experience will set a new standard for the global digital shipping industry,” said Rudina Seseri, Glasswing Ventures’ founder and managing partner. “The team recognizes first-hand the biggest headaches in the industry and has a strong plan for how to leverage AI to positively impact the day-to-day work of BCOs.”

This article first appeared in IoT World Today's sister publication AI Business.