Chemical manufacturer OXEA has selected Uber Freight as its strategic logistics provider across the U.S., Canada, Mexico and Europe as the company moves to consolidate regional transportation operations into a more unified global network.
Houston-based OXEA said Uber Freight will manage day-to-day transportation execution across truckload, rail and ocean freight, using technology, data and logistics services to provide greater visibility across the chemical manufacturer’s supply chain.
The agreement represents Uber Freight’s (NYSE: UBER) first managed transportation engagement designed from the outset to span the U.S., Canada, Mexico and Europe, according to the companies.
OXEA manufactures oxo intermediates and oxo performance chemicals used in products including coatings, lubricants, cosmetics, pharmaceuticals, flavors and fragrances, printing inks and plastics. The company employs more than 1,200 people and sells chemicals in more than 60 countries.
The partnership is intended to replace a more regionally segmented approach to transportation management with an integrated operation connecting OXEA’s plants, carriers and customers.
“Everything starts with the customer,” Scott Farmer, OXEA’s chief supply chain officer, said in a news release. “We want to anticipate issues sooner, respond faster and deliver more consistently for the businesses that depend on us.”
For Uber Freight, the deal expands the scope of its managed transportation business beyond individual regions by tying together freight movements across North America and Europe under one operating model.
The cross-border component includes transportation across the U.S., Mexico and Canada, adding another layer of complexity involving multiple modes, carriers and regulatory environments.
Farmer said OXEA selected Uber Freight because of its combination of technology and logistics expertise and its focus on continuously improving transportation operations.
Managing OXEA’s freight network requires specialized equipment and handling, extensive documentation, safety and regulatory compliance, as well as coordination among manufacturing plants, carriers and customers, according to Uber Freight.
Uber Freight will coordinate those requirements across transportation modes and geographic regions. The companies said having a more connected view of OXEA’s network should allow potential disruptions to be identified sooner while improving on-time performance and communication with customers.
The companies also said more efficient routing and transportation decisions could help OXEA reduce carbon dioxide emissions and advance its sustainability goals.
“OXEA wanted a partner that could do more than manage transportation,” D’Andrae Larry, chief commercial officer at Uber Freight, said in a statement. “We bring technology, data and logistics expertise together to run the operation, identify issues earlier and keep improving how the network performs.”
Why it matters: The agreement gives Uber Freight responsibility for a complex, multimodal chemical logistics network spanning two continents while OXEA moves away from region-by-region transportation management.
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