In a recent announcement, logistics provider FreightVana has partnered with fintech provider AtoB to offer fleets a payment card and platform to manage driver spending while on the road. According to Shannon Breen, co-CEO and co-founder of FreightVana, “The small carriers and owners just don’t have the benefits or purchasing power like their large competitors. We can leverage our brand, our partnerships, and our debt capabilities to reduce costs…. Anything we can do to pass along some savings when everybody in this industry is fighting to survive is significant to us.” This partnership allows carriers to save an average of 47 cents per gallon of fuel through the use of FreightVana’s Visa fuel card, powered by AtoB, while also providing access to FuelMap, an app designed to optimize diesel fuel station routes based on cost efficiency. By focusing on building partnerships, FreightVana aims to avoid being seen or utilized solely as a traditional brokerage.
In addition to this new partnership, FreightVana recently announced plans to purchase dry van trailers to develop a new power-only offering for both carriers and shippers. This service will enable shippers to minimize daily load management, ultimately enhancing operational flexibility and efficiency over time. While the freight market currently remains unfavorable, FreightVana believes that these partnerships will continue to benefit their driver network, especially during times of economic instability. As Shannon Breen explained, “I think FreightVana will be able to survive the current freight market, and when the market shifts, we will be able to keep that capacity on the road and working with us, keeping our shippers happy as well. I think that is special compared to a traditional brokerage model that exists today.”
In other news, SPS Commerce Inc. Completed the acquisition of Traverse Systems, a retail supply chain management firm, which will contribute approximately $600,000 in revenue for the second quarter of 2024 and approximately $2.9 million for the fiscal year. Robotics technology company Symbotic Inc. Reported strong financial performance in Q2 2024, with revenue reaching $424 million and adjusted EBITDA of $22 million. The latest Bloomberg-Truckstop survey revealed improved sentiment among North American carriers in the truckload spot market, despite ongoing concerns. While 33% of carriers expect a rise in freight demand for the next three to six months, 44% remain uncertain regarding their future status, and 9% are contemplating leaving the industry due to elevated interest rates and associated costs.
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