This sound is generated automatically. Let us know if you have any feedback.
Dive Brief:
- Flexport now offers brokers access to the Convoy digital cargo platform, the the company announced Monday.
- The technology, which relaunched in February catering to small trucking companies, offers brokerages 24/7 access to a national group of carriers and real-time cargo tracking.
- EVP and head of trucking Bill Driegert said its technology has empowered a new wave of small carriers that manage their business through their phones. “We see a tremendous opportunity to connect this capability to brokers, simplifying operations and reducing costs while expanding opportunities for small carriers,” Driegert said in the release.
Dive Insight:
Extending the Convoy platform to brokers was part of Flexport’s strategy when it announced the relaunch of the loading table. Flexport acquired Convoy’s technology in November after the digital brokerage closed in October.
Driegert said in an interview in February that connecting brokers with smaller carriers that handle various types of cargo provides more flexibility for shippers.
“You get what you want in the sense, it’s lower cost,” he said. “From the broker’s side, it’s a pool of capacity that is traditionally more difficult to manage directly, so they see a lot of value in managing through the platform.”
There were more than 400,000 users of the Convoy app before Flexport acquired the technology. A spokesman for the company on Monday declined to provide an updated number, but said a significant percentage of cargo was returned to the platform.
Brokers can use the platform to maximize the efficiency of their carrier operations and automate manual tasks such as carrier negotiation, checking, status updates, document management and payment, according to Flexport. This reduces freight sourcing and handling costs for cargo on the platform by up to 90%, while broadening and diversifying national cargo coverage.
Eric Schnirel, CEO of Great Lakes Transport, a New York-based third-party logistics provider, said the technology addresses a common pain point for brokers looking to work with smaller carriers that already use application-centric operations and management tools cargo.
“The Convoy Platform levels the playing field for everyone – technology has transformed our business and made us as digital as any company in our industry,” said Schnirel.
Correction: An earlier version of this story incorrectly reported the number of Convoy users. The story has been updated to clarify the number reported to users before Flexport acquired the technology.