- Freight Technologies, a technology company developing solutions to optimize and automate the supply chain process, has developed a B2B cross-border shipping freight matching platform through its subsidiary Freight App Inc. (“Fr8App”)
- The freight matching platform, known as Fr8App, supports several solutions, including Fr8Fleet, which enables shippers to secure freight capacity over time rather than on a trip-by-trip basis
- Fr8Fleet solves multiple problems faced by carriers and shippers, and has gained traction since its release in 2022
- Most recently, Fr8App announced a partnership with Majoba Logistics, a leading transportation company in Mexico, to increase the volume of trucks available for Fr8Fleet
For a long time, the road freight industry has had a big problem: thousands of trucks driving along interstate highways and freeways are completely empty. In fact, 35% of all miles driven by truck drivers are empty, according to a 2022 study, with this eating into the carriers’ profitability and growth (https://ibn.fm/aLMuy).
The so-called ‘deadhead’ distances result from, among others, carriers lacking two committed customers, one for the outward journey and another for the return. “But, as well as needing a shipment for the return journey, they also need a truck that matches their load, with equipment such as refrigeration or a vehicle with a fork-lift attached,” a CNBC article reads (https://ibn.fm/taEtL).
And as some observers note, the problem is also caused by the lack of coordination between shippers and carriers, meaning the proverbial willing-buyer-willing-seller rarely occurs, as both parties do not easily find each other. As a result, the outcome manifests itself in underutilized carrier assets, which negatively impacts profitability, and high prices on the part of the shippers as the carriers end up charging the empty miles to cushion against losses (https://ibn.fm/e4V8k). But there is a silver lining.
“At Fr8App, we create technology solutions that contribute to our customers’ success by improving their efficiency and profitability,” conveyed Javier Selgas, CEO of Fr8App, a subsidiary of technology company Freight Technologies (NASDAQ: FRGT) (“Fr8Tech”), in a February 2022 news release announcing the unveiling of the Fr8Fleet product (https://ibn.fm/eMqGH). “We are thrilled to unveil our latest offering, Fr8Fleet, which matches carriers with the capacity to provide certain amounts of carriage services over time rather than on a trip-by-trip basis.”
Fr8App designed Fr8Fleet, which operates on its eponymous AI-powered freight matching platform for B2B cross-border shipping, to solve the myriad issues affecting both carriers and shippers. For instance, by enabling shippers to secure freight capacity over time, the solution helps them avoid empty-mile surcharges that may come with trip-by-trip contracts. At the same time, it guarantees participating carriers a steady stream of revenue by affording them committed capacity planning. It also allows them to track the progress of their loads. To put it simply, Fr8Fleet enables carriers to coordinate and schedule loads from different shippers, in what reduces or eliminates deadhead distances.
Since its launch, Fr8Fleet has gained traction, attracting both new and existing Fr8App clients. Most recently, Freight Technologies announced a partnership with Majoba Logistics, a leading transportation company in Mexico, to increase the volume of trucks available for Fr8Fleet. As part of the partnership, Majoba Logistics will provide high-quality and dedicated logistics services, aligning perfectly with Fr8App’s mission of revolutionizing the transportation industry (https://ibn.fm/jrHle).
The alliance, Majoba Logistics CEO Aarón Elizondo explained, is set to provide Fr8App customers additional options for their transportation needs in addition to enabling the transportation company to expand its reach and, through technology, offer safer, more efficient, and cost-effective logistics services.
“We started offering our Fr8Fleet product last year and look forward to more than doubling its size this year. We are elated to have one of the leading innovative freight companies in Mexico join our platform with the view to helping grow the traffic in our Fr8Fleet offering,” said Selgas of the alliance.
The new partnership comes a few months after the Fr8App announced receipt of a two-year commitment from Kimberly Clark de Mexico, S.A.B. de C.V. (“KCM”), a leading Mexican company in consumer products for both care and hygiene (https://ibn.fm/y0TpP). Through its commitment, KCM is set to extend a contract entered early last year, which made it the first shipper client of the Fr8Fleet product.
Fr8Tech is a technology company developing solutions to optimize and automate the supply chain process. Through Fr8App, the company has developed a b2B cross-border shipping freight matching platform that focuses on making shipping transparent and efficient by providing carriers with increased growth opportunities and shippers with flexibility, visibility, and simplicity for the once-complex process of international over-the-road (“OTR”) shipping.
For more information, visit the company’s website at www.Fr8Technologies.com.
NOTE TO INVESTORS: The latest news and updates relating to FRGT are available in the company’s newsroom at https://ibn.fm/FRGT
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