UPS Acquires Freightex Ltd. To Accelerate Expansion Of U.K. And European Truckload Brokerage Business
January 09 2017 - 7:00AM
Transaction Highlights
- Immediately establishes UPS truckload brokerage
presence in the U.K. and Europe with a proven customer and carrier
network
- Speeds UPS truckload brokerage business entry into U.K.
and European markets versus growing organically
- Freightex to gain access to Coyote technology, building
further efficiency and automation into its complementary business
model
UPS (NYSE: UPS) today announced the purchase of Freightex, a
U.K.-based asset-light provider of truckload, less-than-truckload,
specialized and refrigerated over-the-road services. The
acquisition immediately establishes UPS’s presence in the growing
U.K. and European third-party logistics (3PL) over-the-road
brokerage transportation market and launches a new global and
regional UPS growth platform from an established base of customers
and carriers.
The transaction follows UPS’s acquisition of Coyote Logistics in
August 2015. Coyote is a leading truckload brokerage provider
in North America. Coyote and Freightex business models are
complementary and UPS expects to share the best system
technologies, business processes, as well as leverage customers and
carriers across the two units. Terms of the January 3rd, 2017
transaction were not disclosed.
“The U.K. and Europe are strategic 3PL freight brokerage growth
markets for UPS and there is significant cross border opportunity,”
said Alan Gershenhorn, UPS Chief Commercial Officer. “This
acquisition provides UPS customers an immediate, knowledgeable and
competitive U.K. and European presence. We intend to align
Freightex with Coyote for greater efficiency and continue to invest
for further growth.”
The European 3PL market was forecast to reach $174 billion by
the end of 20161. The freight brokerage portion of the U.K. and
total European 3PL market is growing at a faster rate than the
total market and is expected to further expand as shippers and
carriers further adopt the brokerage model2. Brokered
shipping services often provide greater efficiency brought about by
higher fleet asset utilization when compared to operating dedicated
fleets.
More than one-half million road freight carriers currently
operate in Europe, presenting significant opportunities to expand
UPS’s existing carrier base to create more value for customers and
carriers from the advantages of higher equipment and staff
utilization.
Shippers of all sizes and industries today rely on Freightex for
the efficient movement and visibility of goods across the U.K. and
Europe every day. Freightex also routinely handles freight
from shippers who require temperature-controlled, specialized, and
other types of customized equipment. The company has eight
locations across the U.K. and Europe and uses an asset-light model
to match customers’ outgoing freight shipments with available
trucking capacity in its network of carriers.
UPS is among the largest multi-modal transportation companies in
the world with extensive global airlines, trucking and package
delivery networks. The company has operated in Europe for
more than 40 years and is committed to continued expansion
throughout Europe. By gaining access to UPS’s global network,
Freightex customers will gain the benefits of scale, reach, and
access to a broad integrated portfolio of shipping solutions for
all their supply chain management and shipping needs. In
turn, Freightex operations will provide UPS customers a turn-key
U.K. and European solution where brokered freight movements provide
the most competitive option.
“We are excited to join the UPS organization and Coyote
brokerage operations,” said Tim Phillips, Freightex’s Chief
Executive Officer. “UPS and Coyote have industry-leading
technology, a no-excuses customer service culture, and a proven
record of success. We will improve our efficiency through
Coyote’s technology and use of the UPS network, while continuing to
out-service the competition and provide results that customers
count on us to deliver.”
Phillips will continue to lead the Freightex business, which
will operate as a wholly-owned subsidiary of UPS.
“UPS has many existing customers who will benefit from U.K. and
European transportation brokerage capabilities. We will
provide added value, helping customers and carriers streamline
operations and have simplified visibility through the same Coyote
system that they use in North America,” Gershenhorn said.
“Freightex’s proven expertise and strong regional network, combined
with Coyote’s technology, people, processes, and service reputation
will present a best-in-class solution for customers.”
About UPS
UPS (NYSE: UPS) is a global leader in logistics, offering a
broad range of solutions including transporting packages and
freight; facilitating international trade, and deploying advanced
technology to more efficiently manage the world of business.
Headquartered in Atlanta, UPS serves more than 220 countries and
territories worldwide. The company can be found on the web at
ups.com® and its corporate blog can be found at longitudes.ups.com.
To get UPS news direct, visit pressroom.ups.com/RSS or follow
@UPS_News on Twitter.
About COYOTE
Founded in 2006 and headquartered in Chicago, Coyote Logistics
LLC, a UPS company, is a leading third-party logistics (3PL)
service provider in North America. Coyote
provides truckload, less-than-truckload, intermodal and transportation
management services to more than 14,000 shippers of various
sizes and industries. Coyote became a UPS company in August
2015.
About FREIGHTEX
Freightex, founded in 2001 and headquartered in Dover, U.K., has
a wide range of customers across Europe and is focused on high
levels of service and efficient transport solutions for truckload,
less-than-truckload and specialized over-the-road transportation.
Freightex specializes in European cross-border routes via a team of
experienced freight professionals who provide customers with
excellent prices and excellent service levels. The Freightex
carrier network, which includes a dedicated fleet, helps provide
customers with a full range of vehicle types. Freightex embraces
technology to optimize traffic flows and to ensure that it uses
available truck capacity to maximum effect.
It is a member of the British International Freight Association
(Bifa) and the Chartered Institute of Logistics (CILT). Visit
www.Freightex.com for more information.
# # #
1, 2 Third Party Logistics (3PL) Market Analysis By Service
(Dedicated Contract Carriage, Domestic Transportation Management,
International Transportation Management, Warehousing And
Distribution, Software) And Segment Forecasts To 2020; Grand View
Research; 2016
Steve Gaut
UPS Public Relations
(404) 828-8787
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