Dive Brief:
- Flexport is now offering brokers access to its Convoy digital load board platform, the company announced Monday.
- The technology, which relaunched in February catering to small trucking companies, offers brokerages 24/7 access to a national pool of carriers and real-time load tracking.
- EVP and Head of Trucking Bill Driegert said its technology has empowered a new wave of small carriers who manage their business through their phones. “We see a tremendous opportunity to connect that capacity to brokers, simplifying operations and lowering costs, while expanding opportunities for small carriers," Driegert said in the announcement.
Dive Insight:
Expanding the Convoy platform to brokers was part of Flexport’s strategy when it announced the load board’s relaunch. Flexport acquired Convoy’s technology in November after the digital brokerage shut down in October.
Driegert said in a February interview that connecting brokers with smaller carriers who handle a variety of freight types provides more flexibility to shippers.
“You do get everything you want in the sense, it’s lower cost,” he said. “On the broker side, it’s a capacity pool that’s traditionally harder to manage directly so they see a lot of value in managing through the platform.”
There were more than 400,000 Convoy app users before Flexport acquired the technology. A company spokesperson on Monday declined to provide an updated number but said a significant percentage of freight has returned to the platform.
Brokers can use the platform to maximize effectiveness of their carrier operations and automate manual tasks, including carrier negotiation, vetting, status updates, document management, and payment, according to Flexport. This lowers carrier procurement and load management costs for loads on the platform by as much as 90%, while expanding and diversifying national load 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 partner with smaller carriers who already use app-centric operations and load management tools.
"The Convoy Platform is leveling the playing field for all – the technology has transformed our operations and made us as digital as any other company in our industry," Schnirel said.
Correction: A previous version of this story inaccurately cited the number of Convoy users. The story has been updated to clarify the number referred to users prior to Flexport's acquisition of the technology.
