Convoy cancels all shipments, load board is empty, announcement upcoming

no surprise it was just all double brokered tql and the crappy ups spill over loads. Account managers here were only are looking for accounts 1 million plus a year in shipping gross . they didnt care about margin lol

what a joke of a company
 
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Interesting on the TQL front... a few of my customers use TQL and they got hit with a bunch of give backs today...
 
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The amount of money involved is staggering.

"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."

786 people work there according to LinkedIn, I checked some of their backgrounds, I did not see a lot of transportation or brokerage experience in my small sample. Mostly tech people with backgrounds at other tech firms .... Amazon and Uber plus the occasional pizza restaurant

Just to give an idea of wages for people other than programmers or data scientists -- currently hiring Senior Program Manager, Fleet Management for $128,700 - $200,700 per year

They are a tech company trying to take over transportation, it will happen eventually but not today
 
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Got pulled into a meeting as I was leaving the office last night.

Unless a buyer emerges at the final hour, they are done.

They didn't do much xborder or Canada, so don't think many if any will be affected here directly. But the trickle down effect in the US will definitely be felt. This could be the death blow for a lot of small carriers, depending on what they were owed.
 
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Shakey said:
www.freightwaves.com

Freight brokerage bubble bursting as freight markets face long winter

Industry could see more freight brokerage closures amid a changing financial climate.
www.freightwaves.com www.freightwaves.com
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I guess there is still something to be said for staying on the smaller side and funding your growth or expansion in-house as opposed to using the bank or other sources of money. Using your receivables as collateral is a risky game at the best of times, let alone when both volumes and revenue are decreasing. Add in the effects of increased borrowing costs and wow….we will see additional failures. Personally, I like to be referred to as a member of the “cottage” industry. Small, manageable and most importantly, profitable.
 
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JACKBURTON said:
Rare footage of the Convoy CEO right now
View attachment 1599
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I'm sure he's fine they always get their money out...........................that's all their carriers/clients and staff unfortunately

Added note, no severance for any of the employees just benefits until the end of the month.....
 
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Their model would really appeal to the 'low and slow' shippers out there, I think. When carrying costs of money are much higher and there are more defaults, harder to raise money etc., it isn't completely shocking.

The race to the bottom is never a great thing to be in.
 
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Rob said:
Just seen freightwaves email that said they are done closing the doors. The scary part was read another article that said 2-3 more of the biggest brokers are in the same boat and that does not sound good. Watch your AR folks may have to start cutting guys off a little sooner for the next bit if the cheque is slow.
Click to expand...
that would be prudent in these times

It's going to be a very interesting winter for sure.
 
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theman said:
Their model would really appeal to the 'low and slow' shippers out there, I think. When carrying costs of money are much higher and there are more defaults, harder to raise money etc., it isn't completely shocking.

The race to the bottom is never a great thing to be in.
Click to expand...
Convoy as I understand it focussed on the big shippers who offered at least a million a year in sales. It is very hard to grow volumes fast with little shippers who ship one or two loads per week. But those little shippers, in the end, are the ones who are easiest to work with and who are less susceptible to the rate cutters. My little shippers have always carried me through the hard times...so glad I have them.
 
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Shakey said:
Added note, no severance for any of the employees just benefits until the end of the month.....
Click to expand...
Have to assume if any of the employees have 2 brain cells to rub together they'd realize this day was swiftly approaching, and made a plan.
 
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Its a sign of the times. Venture Capitalists (VC) have a pile of money and are always looking for the next best thing to increase their pile of money instead of sitting in an interest-bearing investment. Now with interest rates going up the spread between an interest-bearing investment and a 'brick and mortar' investment is diminishing. The risk appetite is not there anymore.
To exasperate the issue most VC's have no clue in the business they are investing in. Their eyes pop based on balance sheets, earnings per share and PE sheets - that is all they know. All it takes is a good CEO salesman who can easily convince the VC that the company they run is a good investment but when the CEO leaves the VC is left holding the bag looking for a CEO to run the ship.
I have heard a number of VC's have purchased trucking companies in Ontario and I would bet that there soon will be an exodus of those VC's in the near future bankrupting those trucking companies.
 
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