Brokerages

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.

A key takeaway of the report highlighted how the GDP Goods Transport Sector reading saw a 6.5% increase, from the second quarter to the third quarter, which snapped a five-quarter stretch of negative or nearly negative sequential quarter growth. And TIA noted that this was in line with the U.S. third quarter advance estimate reading of 4.9%.

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.

Various media reports are indicating that Seattle-based digital freight broker Convoy is taking steps to wind down its business operations.

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. 

TIA’s latest 3PL Market Report shows members have managed to grow business despite challenging conditions.

Omaha, Neb.-based Werner Enterprises, a global freight transportation and logistics services provider and the nation’s seventh-largest truckload carrier, said this week it has acquired Tampa, Fla.-based Reed Transport Services Inc. and RTS-TMS Inc., through the signing of a definitive agreement and closing on the acquisition of 100% of Reed’s stock.

Third quarter earnings for Greenwich, Conn.-based XPO Logistics were very strong, according to results issued earlier today. Quarterly revenue—at $3.04 billion—was down 7% annually but was up 3% when excluding third quarter 2021 revenue from its intermodal business, which was sold in March 2022.

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.

Total quarterly shipments increased 6.8%, from the second quarter to the third quarter, and saw a 10.6% annual gain, and total revenue saw a 10.3% increase, from the second quarter to the third quarter, while seeing a 36.1% annual gain.

XPO Chief Strategy Officer Matt Fassler provided LM Group News Editor Jeff Berman with a detailed overview of how XPO views the LTL and brokerage markets, as well as a look at the 2021 Peak Season, among other topics.

Irvine, Calif.-based ZUUM Transportation Inc. recently announced it has rolled out a new platform for freight brokers, entitled ZUUM Automated Broker, which it said is the most powerful software available focusing on digitizing freight brokerages.

Arrive officials said that this investment is comprised of a combination of primary and secondary equity, with ATL acquiring a significant minority equity stake in Arrive, as well as the company’s largest investor.

While the subject of a truck driver shortage ostensibly never runs out of roadway, data from the Federal Motor Carrier Safety Administration (FMCSA) highlighted what a “tumultuous year for trucking” 2020 was. That was a key theme of a recent blog posted written by Jeff Tucker, president of Haddonfield, N.J.-based Tucker Worldwide, the nation’s oldest freight brokerage.