UPS 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.
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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.
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