There were several interesting venture capital deals in logistics and freight tech in the first half of 2019. Venture capital cash is still pouring into the industry, so expect even more deals in the second half of the year.
Here are four of the most interesting funding deals we've seen so far in 2019. Scoop: It includes one start-up raising $1 billion in funding in a single round.
Conditions are ripe for a spike in trucking company failures in 2019. Margins are being squeezed by plunging contract and spot rates along with an increase in operational costs.
Seth Holm and I discuss our latest research at FreightWaves which pinpoints the two most statistically significant conditions for trucking company failures.
One of the first questions we are asked at CarrierLists is what type of fleets are listed in our database. This includes fleet sizes, trailer types, and specializations, along with where they are headquartered. The following graphs should answer all of these questions. But let's look at how many trucking companies are really out there operating. The following table is from a research project we did with FreightWaves and Michigan State University. You can read more about it he
Carrier expectations for increases in load volume have plunged over the past nine months.
It's been quite a turn in the market. According to SONAR, Q2 2019 load volumes (OTVI.USA) were down 4.5% off the Q2 2018 highs. Even more problematic for carriers is the 75% drop in rejection rates (OTRI.USA) that tells us capacity is far looser than we all experienced in 2018.
In the following FreightWaves Now video we discuss carrier expectations, and where we go from here. You
This is the question we answered in our latest FreightWaves Freight Intel research. For fleets running 5 to 200 trucks, we found that the smaller and larger fleets sourced the most freight directly from shippers. This leaves a sweet spot in the middle that most freight brokers overlook. You can learn how you can find this hidden capacity here: FreightWaves - Who’s really hauling spot market freight?
There were over 150 M&A deals in trucking, logistics, and freight tech in the first half of 2019. Expect more of the same for the second half of the year.
Below is a segment we shot for FreightWaves Now detailing the most interesting acquisitions we've seen so far in 2019. You can view all FreightWaves Now videos here.
Here is the June CarrierLists/Michigan State University FTL Contract Forecast. The solid black line in the center is the base case contract rate forecast for the remainder of 2019 based on Michigan State University's proprietary model. Sources: Producer Price Index Long Distance Truckload Price Index.
This seems very reasonable based on the latest round of investment banking research reports that dropped last week. UBS and KeyBanc both downgraded the trucking sector, base