PYMNTS MonitorEdge May 2024

Flexport Expands Trucking Marketplace to Connect Brokers, Carriers

Flexport, shipping, freight

Flexport has expanded its Convoy Platform to connect brokers and carriers.

With this artificial intelligence (AI)-powered marketplace, brokers can access thousands of carriers across the country, Flexport said in a Monday (June 3) press release.

“With today’s launch, brokers using the Convoy Platform will be able to level up their operations and focus on strengthening core customer relationships and growing their businesses,” Bill Driegert, executive vice president and head of trucking at Flexport, said in the release.

The Convoy Platform helps brokers efficiently partner with small carriers who have shifted to app-centric operations and load management, the release said.

This capability solves a common pain point for brokers in a trucking market that includes about 30,000 brokers and 750,000 carriers, 90% of whom operate fewer than 10 trucks, the release said.

The Convoy Platform also helps owner-operators book and manage freight to keep their trucks moving, per the release.

“The U.S. trucking market has undergone a massive transformation since the pandemic,” Driegert said in the release. “Technology has empowered a new wave of small carriers who manage their business through their phone. We see a tremendous opportunity to connect that capacity to brokers, simplifying operations and lowering costs, while expanding opportunities for small carriers.”

Flexport acquired the technology of Convoy, a trucking startup, in November after Convoy announced the closure of its business due to financial difficulties amid a decline in freight demand and a contraction in capital markets.

With this acquisition, Flexport strengthened its position in the digital freight industry by enhancing its end-to-end logistics solutions and providing customers with a comprehensive and efficient freight management experience.

In February, Flexport launched the Convoy Platform, saying it is designed to offer shippers and brokers near real-time visibility, exceptional on-time performance and competitive rates, allowing them to efficiently manage their capacity needs.

PYMNTS Intelligence has found that logistics, shipping and transportation companies are investing in innovations to modernize their business and are prioritizing solutions that will improve their relationships with their vendors.

For example, 83% of these companies said they plan to innovate their accounts payable (AP) systems to strengthen their B2B relationships, according to “Accounts Payable Automation: Transportation Companies Innovate to Drive Growth,” a PYMNTS Intelligence and Routable collaboration.

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