Editor’s note: A previous version of this story incorrectly referred to the Seattle-based company as Convoy Logistics. It is, in fact, Convoy Inc. and is not affiliated with Convoy Logistics, a freight brokerage based in Crossett, Arkansas, nor it is affiliated with Convoy Systems out of Kansas City, Kansas.
A change is brewing in the next day or two at Seattle-based digital brokerage Convoy, with reports Wednesday of all loads being canceled.
A communication from Convoy representatives to their customers, obtained by FreightWaves, said the company is “taking several necessary steps to prepare Convoy’s business for a transition that we will have more details on in the next 48 hours.”
The message from Convoy said the company could not “answer any additional questions at this time.”
A Convoy spokeswoman issued a brief statement to FreightWaves, also citing potential developments in the next 24 to 48 hours, without elaborating further.
And with that, according to the communication, “all shipments have been canceled from our marketplace.” Convoy said that shippers could “choose to work with the carriers that were booked on canceled shipments directly.” It did provide an email address — cfbsupport@convoy.com — for customers to use if they needed additional support.
FreightWaves has confirmed that the Convoy load board went blank on Wednesday.
Although the market was filled with rumors of bankruptcy at Convoy Wednesday morning — not surprising when all loads are summarily canceled — there has been no bankruptcy filing by Convoy, according to a check of public records by FreightWaves.
In April 2022, Convoy was valued at $3.8 billion after an investment of $260 million in a Series E capital raise. That money came from existing investors Baillie Gifford and T. Rowe Price and $100 million in venture-debt investment from Hercules Capital Inc.
That a big change might be coming at Convoy is not surprising. Most if not all brokerage companies are struggling in the current freight market. But beyond that, Convoy in August hired an investment bank, reportedly Goldman Sachs, to help it explore possible options for its future ownership and capitalization. The list of potential suitors that might acquire or take a stake in Convoy — according to the rumor mill — has included C.H. Robinson (NASDAQ: CHRW), Walmart (NYSE: WMT), Amazon (NASDAQ: AMZN) and Maersk (DXE: MAERB.C.DX).
Besides that development, there has been significant upheaval at Convoy in the last several months. In June, Grant Goodalle, Convoy’s co-founder and chief experience officer, said he was leaving the firm.
In February, Convoy said it would undertake a restructuring. Along with that, the company made an undisclosed number of layoffs, though that has been a persistent theme in brokerages this year.
JP Hampstead contributed to this report.
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Al-Solo Nyonteh
This is news to my ears. I currently have one of their trailers. No email, text or call. Guess the driver is the last person to know. Thanks to FreightWaves I’m being kept in the loop.
John
Amazon, Walmart maybe not sure why Robinson would spent to see same customer base other than the pressure for a better technology from investors.
I actually love the trucking/brokerage industry more today then when I entered 37 years ago. Just more uninformed people asking misinformed questions!
Randall B.
Really hope that we don’t end up with the old freights bros back in the seat again. There was a glimmer of hope that things were changing for carriers, but maybe I am back to working with CH
Adrian McKnight
W…..T……F!!!!!
Sean
Just goes to show that as bad as truckers claim railroads are, they are still better than trucking companies and 3rd party brokers. Railroads might take longer to get from place to place but they can haul more for lower cost regardless of the price of fuel. That is a fact, not just an opinion.
Freight Dude
When you cancel all loads and scrub your load board it’s either April 1st or you’re handing the keys to the landlord (and it’s not April 1st)
PaperChaser
There goes a few thousand more o/o’s out of business.
sir tt facts man
that is like saying the patient heart stop beating but check back with us in 24-48 hours to see how they are doing.