Complaints from forwarders over WiseTech Global's new CargoWise pricing model show the platform's deep market penetration, reports London's S&P Global.

CargoWise is used by most forwarders for functions ranging from accounting to trade compliance. Estimates put its market share at 70 per cent, giving WiseTech a stronger position in its sector than even its largest customer, DSV, holds in logistics.

WiseTech built its dominance through acquisitions of customs software vendors, giving it direct links to authorities worldwide. This network, combined with core accounting functions, makes switching to other systems difficult, forwarders said.

Competitors from incumbents such as Descartes and Softlink to startups like GoFreight and Clear.ai have failed to slow CargoWise's growth, despite concerns over annual price increases and slow integration of acquisitions.

WiseTech added a new dimension with its $2.1 billion purchase of E2open in May, expanding into shipper-focused products. Customers expect higher costs under the new pricing model, but many have little choice but to continue using CargoWise.

Analysts said if the backlash subsides without major customer losses, it will confirm WiseTech has reached "escape velocity," cementing its role as the forwarding industry's most popular software provider.

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