Hub Group

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.

Oak Brook, Ill.-based freight transportation and logistics services provider Hub Group took steps to expand its final mile service portfolio, announcing it has acquired Forward Air Final Mile (FAFM), a subsidiary of Greenville, Tenn.-based asset-light freight and logistics services provider Forward Air.

Established in 2006, TAGG Logistics has more than 4 million square-feet (SF) of warehousing space throughout the U.S., which Hub officials said allow for best-in-class and responsive e-commerce and B2B fulfillment capabilities. TAGG is on track to generate approximately $200 million of annual revenue in 2022. The company has approximately 800 employees at its 18 facilities.

Hub Group officials said that the purchase price was $130 million and was funded by cash on hand, adding that Hub Group has granted contingent compensation to Choptank’s owners and senior management “to incentivize their retention and drive continued growth of the business.” And they added that, for 2021, Choptank is expected to generate more than $450 million in revenue.

Insider Q&A with Chris Hoffmeister, Hub Group’s Executive Vice President of Account Management. He discusses shippers’ challenges in today’s transportation environment, the value of becoming a “shipper of choice,” and what happens when companies are in sync with their logistics providers.

Hub said that the primary driver for this building, which is set to open in September 2020, is to accommodate increasing staffing levels while it scales up to meet the growing needs of its customers.

Hub Group has announced it will acquire non-asset based logistics provider CaseStack, Inc., offering retailer-driven collaborative consolidation programs and freight brokerage services; adding scale and enhances solutions for their customers.

Earlier today, freight transportation services provider Hub Group announced it plans to acquire CaseStack for $225 million in cash. Established in 1999, Santa Monica, Calif.-based CaseStack has two primary business units. One unit, CaseStack Logistics Services, provides consolidation services for consumer packaged goods (CPG) companies that sell into the North American retail market. And its other unit, CaseStack Technology Services functions as a technology-enabled truck brokerage serving the LTL (less-than-truckload) market.

Hub officials said this sale represents the byproduct of an exploration of strategic alternatives for Mode that was undertaken by the Hub Group Board of Directors, which they said is part of an ongoing review of alternatives for creating shareholder value that it announced in August.

Oak Brook, Ill.-based freight freight transportation services provider Hub Group Inc. said yesterday its subsidiary, Hub Group Trucking Inc., has entered into an agreement to acquire Estenson Logistics LLC, a Mesa, Az.-based provider of dedicated freight transportation services, for roughly $306 million.

Intermodal, highway and logistics services provider Hub Group Inc. said this week that it is lowering its expected earnings per share for the third quarter to be between $0.48-$0.51, down from previous Wall Street expectations ranging from $0.52-$0.57. And it also lowered full-year 2013 earnings to $1.85-$1.95 from $2.02.

Switching to a 3PL will allow you to minimize expenses associated with added technology and staff to oversee the supply chain. Find out what other factors contribute to companies outsourcing to 3PLs.

The larger your drayage network, the more scalable it can be. Download this paper to see how else you can benefit from using a large drayage network.

Intermodal shipping has been growing at unprecedented speed over the course of the last several decades. Whether your goal is to cut costs or improve efficiency in your supply chain, Intermodal could be the answer.

Freight transportation and logistics services provider Hub Group Inc. said this week that its Comtrak Logistics Inc. subsidiary, which offers national drayage and truckload services, has acquired certain assets of Newark, New Jersey-based intermodal drayage carrier Challenge Transportation.