Truckload Brokerage

While this week’s fourth quarter earnings call, for Atlanta-based global freight transportation and logistics services provider UPS, was replete with interesting information and data, including nearly 8% revenue decline and 12,000 layoffs, another interesting takeaway was related to its truckload brokerage business, Coyote, which it acquired in 2015.

The Federal Motor Carrier Safety Administration (FMCSA) late last month published a final rule titled "Broker and Freight Forwarder Financial Responsibility," which establishes procedures and requirements for the immediate suspension of broker and freight forwarder operating authority registration if the available financial security falls below $75,000.

Logistics Management Group News Editor Jeff Berman recently spoke with Jared Weisfeld, Chief Strategy Officer, for Charlotte-based RXO, the fourth-largest full truckload broker in the United States, and asset-light transportation services provider. Weisfeld provided Berman with a broad overview of how RXO views current market trends, including inventories, what may be in store for Peak Season, and capacity management, among others. Their conversation follows below. 

Ryder officials said that adding these new locations are part of its strategy to grow its broader transportation service offerings, which include freight brokerage, transportation management, and dedicated transportation. Ryder now has freight brokerage offices in Nashville, Novi, Mich., and Forth Worth, Texas.

Quarterly revenue—at $3.4 billion—increased 14% annually and was up 30% compared to 2010, representing the fourth straight quarter XPO’s revenue has set a new record, topping Wall Street estimates, of $3.269 billion. Adjusted earnings per share also set a new company record, at $1.34, and adjusted EBITDA, at $323 million, represented its highest fourth quarter level in company history, while posting a 15% annual gain, beating analysts’ estimates of $302 million, and setting a quarterly EBITDA record for the sixth quarter in a row.

Fort Smith, Arkansas-based ArcBest, a full-service supply chain logistics provider, said late yesterday that it has entered into a definitive agreement to acquire Chicago-based truckload freight brokerage MoLo Solutions LLC. ArcBest said that this transaction is comprised of a cash payment at closing of $235 million from available funds and subject to post-closing adjustments and is expected to close in the fourth quarter.

Chicago-based transportation and logistics management and truckload freight brokerage services provider Coyote Logistics, a subsidiary of freight transportation and logistics services bellwether UPS, recently marked its 15-year anniversary. The company's CEO Jonathan Sisler recently penned a blog covering the company’s history and growth over the last 15 years and subsequently provided Logistics Management Group News Editor Jeff Berman with an in-depth look at the truckload freight brokerage sector, how the company has become part of the UPS family, and lessons...

Logistics Management Group News Editor Jeff Berman recently spoke with Doug Waggoner, CEO of Chicago-based Echo Global Logistics about various topics, including: the state of the freight economy, a look back at Peak Season, the ongoing impact of the COVID-19 pandemic, and the trucking market, among others.

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Uber Freight, and other similar freight services, really has the potential to serve as a true disruptive influence sector in the world of truckload brokerage, creating a ripple effect of sorts.

With the help of three experts in the freight transportation and logistics markets, we take a closer look at the current dynamics of the truckload brokerage business.