Global freight forwarding and logistics giant UPS has acquired UK-based Freightex for an undisclosed sum. The acquisition gives UPS a presence in the UK and European third-party logistics (3PL) road transport brokerage market.
Freightex provides brokerage for truckload, less-than-truckload, specialised and refrigerated road transport services.
In August 2015, UPS acquired North American truckload brokerage provider, Coyote Logistics. The company plans to “align Freightex with Coyote for greater efficiency and continue to invest for further growth”, according to chief commercial officer, Alan Gershenhorn.
Freighter CEO, Tim Philips, said the company would improve its efficiency with Coyote’s technology and by using the UPS network.
“UPS and Coyote have industry-leading technology, a no-excuses customer service culture, and a proven record of success,” said Philips, who will be staying with the company.
According to research cited by UPS, the European 3PL market was forecast to reach $174 billion by the end of 2016.
Freight brokerage is said to be growing at a faster rate than the total market and is expected to be further boosted as shippers and carriers continue to adopt the model.
UPS said more than half a million road freight carriers currently operated in Europe, presenting significant opportunities to expand the company’s carrier base and create more value for customers and carriers from the advantages of higher equipment and staff utilisation.
Freightex has eight sites around the UK and mainland Europe.