Acquisitions in the logistics industry are looking strong, with Digital freight company CDL 100 acquiring its rival, Net Trucking (NEXT). The Wall Street Journal reports the deal “extends consolidation in the struggling, technology-focused business of matching trucks and shipments.”
Chicago headquartered CDL1000 offers a fintech solution to shippers including drayage and intermodal. Its solutions assist companies to improve supply chain efficiencies and reduce waste. Founder and CEO Andrew Sobko says this acquisition positions the business as one of the top three trucking companies in Los Angeles and Long Beach.
NEXT helps cargo move faster
The California-based company was founded in 2015 and offers an end-to-end solution that combines a freight marketplace with company drivers, providing these entities a range of services including drayage and transloading. NEXT has been trusted by brands like HiSense, SHARP, Pioneer, and Hitachi. Since inception, the company has moved an impressive $50 billion in cargo.
In 2018, the company was eyed as one of ‘50 startups to watch’ by Built In LA. In January 2023, reports say NEXT raised $97 million for a port freight plan.
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Acquisitions in the freight and logistics space
An article by Optimum Logistics Solutions, a company specializing in transport and logistics personnel, points to how tech giants are handling the new year 2024.
“During the COVID-19 pandemic, logistics startups experienced a surge in valuations, driven by increased consumer spending and freight volumes. However, with the reduction in consumer spending on goods in 2022, these companies have faced a sharp downturn in freight volumes. This shift has placed many previously thriving companies in a challenging position for survival.”
In November 2023, Locate2uNews closely watched developments happening around Flexport and Convoy. Flexport CEO Ryan Petersen has confirmed they have acquired Convoy’s technology stack.
Besides acquisitions in the logistics space and the challenges being faced in the industry, companies are also being presented with new opportunities. In January 2024, logistics leader Prime Inc. launched a trucking hopper division.
Trucking industry trends for 2024
CloudTrucks says the trucking industry is experiencing an evolution, given the advancements in logistics – technology integration with the use of fleet management software.
The American Journal of Transportation points to artificial intelligence (AI). “Technology is creating safer, faster, and smarter transportation practices and empowering businesses to evolve quickly,” the report reads.
The Business Research Company released its ‘Long-Distance General Freight Trucking Global Market Report – 2024’. It lists some growth areas for long-distance trucking market:
- Rising manufacturing outputs.
- Rise in e-commerce and warehouse facilities.
Financial firm Deloitte points out two strategies will determine trucking success in 2024:
- Focus on the right markets and investments in those markets.
- New business models to open up revenue streams to OEMs.
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About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
