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Convoy unlocks freight network for 3rd-party brokers

Carriers can access third-party loads through company app

Convoy rolls out a new program, Convoy for Brokers. (Photo: Jim Allen/FreightWaves)

Digital freight network Convoy announced on Thursday it has added a program to its suite of tools called Convoy for Brokers, enabling freight brokers to leverage its existing carrier network to cover their loads.

“Convoy’s mission is to transport the world with endless capacity and zero waste. The only way to achieve that mission is by partnering with other freight companies and sharing the benefits of a digital freight network,” said Dan Lewis, Convoy co-founder and CEO.

“With today’s announcement, we’re providing brokers with a new source of elastic capacity and the opportunity to build out their carrier base, while also expanding opportunities for carriers — providing more loads in the Convoy app so that they can fill their schedules, earn more money and reduce empty miles.” 

The company disclosed that over the past year it has been working with logistics providers USA Truck and AFS Logistics to design the program and understand the challenges that come with this type of platform and to ensure that brokers and carriers receive full value of its new program, particularly as brokers see historic levels of capacity demand from their shippers.

“There’s a lot of waste in the freight industry, and we believe much of it can be avoided with new approaches to capacity sourcing and shipment automation,” said George Henry, senior vice president at USA Truck Inc. 

“While there are some areas where we compete with Convoy, there’s more opportunity for both of us when we work together. Convoy for Brokers complements our existing truckload offering — it’s helped us support additional growth in our load volume and increase the productivity of our team by making it easier to access trucks through Convoy’s digital freight network.” 

According to the company, brokers will now have access to an online platform or can set up TMS integrations into the platform, where brokers will receive all-in rates for each load they are managing. These rates will include a fee from Convoy as it matches a load to the best-available carrier.

(Photo: Convoy)

On the carrier side, as they search for loads within the Convoy app, they will now see loads from Convoy or from third-party brokers, giving them full transparency of the providers they will be working with directly.

Once a carrier accepts that load, the carrier will be directed to the third-party broker, who will maintain the broker of record on that shipment until it is fully delivered. After delivery, Convoy will invoice the broker, allowing the carrier to leverage Convoy Quickpay.

The third-party brokers utilizing Convoy’s platform will also be able to take advantage of Convoy’s growing, vetted carrier network. They also will be able to manage all load paperwork and gain insight from Convoy’s real-time tracking technology.

For carriers joining or already part of Convoy’s network, this offers them an expanding source for loads, competitive to load boards that lack value-added tools for scaling transportation businesses.

“There isn’t another company that comes close to matching Convoy’s service quality and commitment to carriers,” said owner-operator Robert Key of Bizzyb Transport in Thursday’s announcement. “With third-party loads now coming through the app, I have even more flexibility to drive my favorite lanes all while maintaining my Convoy experience.” 

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    1. Brooks McMahon

      I understand the concern, however the brokerages that use this new program will remain the broker of record, maintaining the direct relationship with shipper and carrier, and responsibility for all aspects of the customer relationship and shipment fulfillment.

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Grace Sharkey

Grace Sharkey is a professional in the logistics and transportation industry with experience in journalism, digital content creation and decision-making roles in the third-party logistics space. Prior to joining FreightWaves, Grace led a startup brokerage to more than $80 million in revenue, holding roles of increasing responsibility, including director of sales, vice president of business development and chief strategy officer. She is currently a staff writer, podcast producer and SiriusXM radio host for FreightWaves, a leading provider of news, data and analytics for the logistics industry. She holds a bachelor’s degree in international relations from Michigan State University. You can contact her at [email protected].