Convoy, A prominent digital brokerage leader is about to undergo a significant transformation in its structure, although the exact nature of this change remains uncertain.
A significant change is imminent at Convoy Logistics, a digital brokerage firm. Recent reports suggest that within the next day or two, all loads at Convoy are being canceled.
Convoy has communicated with its customers through a message obtained by FreightWaves, explaining that the company is making necessary preparations for a transition. More information about this transition will be shared within the next 48 hours. Unfortunately, they are currently unable to answer additional questions.
A spokesperson from Convoy also issued a brief statement to FreightWaves, hinting at potential developments in the next 24 to 48 hours without providing further details.
According to their communication, all shipments from the Convoy marketplace have been canceled. Convoy has mentioned that shippers can opt to work directly with the carriers who were initially booked for these canceled shipments. They have also provided an email address ([email protected]) for customers in need of extra support.
FreightWaves has confirmed that the Convoy load board was empty on Wednesday. Despite rumors of bankruptcy circulating, there is no evidence of a bankruptcy filing by Convoy in public records.
In April 2022, Convoy was valued at $3.8 billion after a $260 million investment in a Series E capital raise. This funding came from existing investors, including Baillie Gifford, T. Rowe Price, and a $100 million venture debt investment from Hercules Capital Inc.
The potential for a major change at Convoy is not surprising, given the challenges faced by most brokerage companies in the current freight market. Additionally, in August, Convoy enlisted the services of an investment bank, reportedly Goldman Sachs, to explore future ownership and capitalization options. Rumored potential suitors have included C.H. Robinson, Walmart, Amazon, and Maersk.
Aside from these recent developments, there have been significant internal changes at Convoy in recent months. In June, Grant Goodalle, Convoy’s co-founder and chief experience officer, announced his departure from the company. In February, Convoy had previously announced a restructuring and undisclosed layoffs, which has been a common theme in the brokerage industry this year.
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