Loaded and Rolling: Flexport acquires Convoy tech stack

Truckers solicit FMCSA on broker detention pay; U.S. Bank reports fifth consecutive quarter of freight spend and volume declines

Flexport acquires Convoy tech stack for undisclosed sum

(Photo: Jim Allen/FreightWaves)

The Convoy saga has taken another turn as venture-backed freight forwarder Flexport announced Wednesday that it has acquired Convoy’s technology stack for an undisclosed sum. This comes after Convoy, which was valued at $3.8 billion from its final funding round 18 months ago, shuttered operations on Oct. 19.

Flexport CEO and founder Ryan Petersen wrote in an email to his team that in the coming weeks Flexport customers will be able to regain access to Convoy’s trucking network, which they had been able to access since 2021. The Convoy network is estimated to be around 400,000 truck drivers among 80,000 carriers, per the email. 

“Flexport’s strategy will be to offer a full range of trucking services to our customers who value us as a one-stop-shop for global logistics. We’ll offer expanded trucking services, including FTL, LTL, drayage (ocean) trucking, cartage (airport) trucking, and eventually intermodal (rail) trucking services to customers of our international freight forwarding services,” Peterson wrote.

Truckers solicit FMCSA on broker detention pay

(Photo: Jim Allen/FreightWaves)

A group representing small fleets and owner-operators is soliciting the Federal Motor Carrier Safety Administration regarding broker detention pay as the agency plans a study on the impacts of driver detention and road safety. The comments come in the form of an information collection request (ICR) that the FMCSA must then submit to the Office of Management and Budget for approval. Proponents of the rule change include the Owner-Operator Independent Drivers Association. A 2018 U.S. DOT OIG report concluded detention increases the likelihood of truck crashes that involve death and serious injury.


Opponents to possible changes include the Transportation Intermediaries Association (TIA) and the American Trucking Associations (ATA), which argue regulating detention time is an economic issue to be worked out between carriers and their customers. The ATA said in the ICR, “While there has been no end of speculation that excessive waiting times provide incentives for unsafe behaviors, numerous studies have failed to substantiate even a statistically rigorous correlation between detention time and crash risk, much less a causal link.”

Some comments to the ICR pointed out shippers and receivers as a culprit. FreightWaves’ John Gallagher cited one commenter who “asserted that although brokers know where and when a truck is heading for a pickup or delivery, ‘we get there and still have to sit for hours and hours while our clock’s ticking. As soon as we arrive, we should all start being paid on the clock.’” The commenter hopes this would speed up the loading and unloading process.

Market update: U.S. Bank reports fifth consecutive quarter of freight spend and volume declines

(Source: U.S. Bank)

On Wednesday payments provider U.S. Bank released its Q3 Freight Payment Index, which saw freight spend and volume drop for the fifth consecutive quarter. Shipments fell 10% year over year (y/y) nationwide, with the Western region seeing the largest y/y decline at 23%. Freight spending fell 12.5% y/y, with the Midwest region seeing the largest decline at 17.9% y/y. 

One headwind impacting freight volumes is housing, with higher Fed rates slowing home construction. The report said, “When housing slows, it also reduces consumption of items needed to fill a home (e.g., furniture and appliances), all of which reduces truck freight. As shipment volumes contract, available capacity increases, which typically results in falling freight rates. The combination of declining rates and shipments leads to less shipper spend, which is what happened in the third quarter.”


Nearshoring appears to be having an impact on West Coast freight volumes, which fell 10% y/y. The report added, “Mexico has supplanted China as the United States’ largest trading partner, which is helping truck freight volumes on the Mexican border, meaning lower import volumes arriving at the West Coast seaports.”

FreightWaves SONAR spotlight: October outbound tender volumes no tricks or treats

(Chart: FreightWaves SONAR)

Summary: The rally in outbound tender volumes that began in mid-July appears to have run its course as tender volumes declined and remained muted at the end of October. Outbound tender volumes nationwide remained relatively flat, increasing 90.73 points or 0.83% from 10,955.69 on Oct. 23 to 11,046.42 points. Over the past 30 days, outbound tender volumes fell 410.87 points or 3.59% from 11,457.29 points to 11,046.42.

Overabundance of truckload capacity continues to create favorable conditions for shippers while threatening to further erode truckload carriers’ margins during the traditional peak season. In spite of falling volumes, the end of October brought a small bump to spot market rates, with the National Truckload Index 7-Day average (NTI) rising 2 cents per mile week over week from $2.22 per mile on Oct. 23 to $2.24 per mile all-in. For the month, spot rates fell 5 cents per mile from $2.29 to $2.24.

Looking at the seasonal view for historical outbound tender volumes, there is a risk of further volume declines in November before last-minute truckload replenishment orders arrive for Black Friday then another fall during Thanksgiving. It remains to be seen whether shippers will adjust and focus on more last-minute ad hoc loads to take advantage of lower spot rates and abundant capacity.

Increased consumer spending not enough to end jaw-dropping trucking bloodbath (FreightWaves)

What war? Diesel, crude give up most of their gains since attack on Israel (FreightWaves)

‘Fraud, theft and abuse’ force Texas freight brokerage to shut down (FreightWaves)

CRST, back in the acquisition game, buys Larkin’s BCB Transport (FreightWaves)


What the ‘Great Trucking Recession’ is warning us about the economy (Washington Examiner)


Werner’s Q3 light of expectations (FreightWaves)

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