GlobalTranz Acquires AFN Logistics

GlobalTranz Acquires AFN Logistics

Combined company to drive expanded technology and market leadership

PHOENIX and CHICAGO (September 13, 2018)  GlobalTranz Enterprises, Inc., a leading technology-driven third-party logistics (3PL) solutions provider, today announced that it has signed a definitive agreement to acquire AFN Logistics, an award-winning leader in freight brokerage, 3PL logistics, and transportation management services. The acquisition further solidifies GlobalTranz’s position as a top freight brokerage firm and significantly increases its market share in 3PL services.  The transaction is expected to close within 45 days.

“I am excited to write the next chapter in AFN’s evolution with GlobalTranz,” said Owen Schnaper, chief executive officer of AFN. “Since Ryan Daube founded the business 15 years ago, AFN has focused on driving high value for its customers through unparalleled service with trusted freight carriers providing high-quality, consistent capacity. By combining with GlobalTranz, AFN can continue this history on a bigger platform with differentiated technology.  I know this combination will be attractive and beneficial to our clients and partners alike.”

“AFN Logistics is one of the fastest growing and most exciting companies in the 3PL space,” said Bob Farrell, chairman and chief executive officer of GlobalTranz.  “AFN has leveraged people, processes and technology to create unique solutions for its customers and develop strong carrier partnerships. Combining GlobalTranz’s and AFN’s network and technology along with the best talent in the industry creates a company that will exceed $1.5 billion in revenue and will further accelerate our growth and market leadership in the 3PL industry.”

GlobalTranz recently announced The Jordan Company, L.P. (TJC) as its new equity partner. “We are pleased to support the acquisition of AFN by GlobalTranz,” said Brian Higgins, senior partner, TJC. Higgins added, “GlobalTranz is executing on its strategy to drive market leadership by strong organic and acquired growth. AFN is a strong fit with this strategy.”

“Our unique hybrid combination of the best independent freight agents in the industry with our strong direct channels is a clear differentiator. AFN will further enhance our channels to market,” added Farrell.

Ranked the 10th largest freight brokerage in the US by Transport Topics and voted an Inbound Logistics Top 10 3PL for 2018, GlobalTranz is driving strong growth with 25,000+ customers through technology innovation, a network of 34,000+ carriers, transformative M&A, creative products and superior customer service delivered by the best people in the industry.

For more information, visit www.globaltranz.com and follow us on LinkedIn and Twitter @globaltranz.

 

About GlobalTranz

GlobalTranz is a technology-driven freight brokerage company specializing in LTL, full truckload, third-party logistics and expedited shipping services. GlobalTranz is leading the market in innovative logistics technology that optimizes the efficiency of freight movement and matches shipper demand and carrier capacity in near real-time. Leveraging its extensive freight agent network, GlobalTranz has emerged as a fast-growing market leader with a customer base of over 25,000 shippers. In 2018, Transport Topics ranked GlobalTranz as the 10th largest freight brokerage firm in the U.S.

 

About AFN Logistics

AFN is an award-winning leader in freight brokerage, third-party logistics, and transportation management services that has served the needs of major manufacturers, top-20 retailers, and best-in-class carriers in North America since 2003. Known for its commitment to client service, AFN has a robust suite of people-first, technology-enabled solutions — from truckload, LTL, managed transportation and consolidation services to risk management, carrier compliance, cargo security and surveillance, and more.

 

About The Jordan Company, L.P.

TJC (www.thejordancompany.com), founded in 1982, is a middle-market private equity firm that has managed funds with original capital commitments in excess of $11 billion since 1987 and a 35-year track record of investing in and contributing to the growth of many businesses across a wide range of industries including Industrials, Transportation and Logistics, Healthcare and Consumer, and Telecom, Technology and Utility. The senior investment team has been investing together for over 20 years and is supported by the Operations Management Group, which was established in 1988 to initiate and support operational improvements in portfolio companies. Headquartered in New York, New York, TJC also has an office in Chicago, Illinois.

 

MEDIA CONTACT:
Annie Graupner 612-229–4040
communications@globaltranz.com

“Truckers’ toll: Delayed deliveries, higher prices forecast as industry struggles with driver shortage”

 

The shortage of truck drivers is no longer an issue that is relevant only to those directly involved in the logistics and supply chain industry. In fact, as transportation costs rise and are increasingly passed on to consumers, the driver shortage and the resulting capacity constraints are becoming “a nationwide topic of conversation,” says Matt Witten, carrier sales manager at AFN.

In this recent article from The Daily Herald, Matt shares his thoughts on how shippers are rethinking “how their supply chains are constructed” and why many are turning to 3PLs for solutions.

 

Photo credit: MarkWelsh@dailyherald.com

Heads-up! Operation Safe Driver Week Is July 15-21

Heads-up! Operation Safe Driver Week Is July 15-21

Just a heads-up to our friends in trucking: for the entirety of next week, July 15th – 21st, the Commercial Vehicle Safety Alliance (CVSA) is holding Operation Safe Driver Week to help improve the safety of America’s roadways and work towards the goal of zero vehicle-related deaths. Any unsafe driving behaviors exhibited by commercial motor vehicle drivers and drivers of passenger vehicles will be targeted by traffic safety personnel next week.

What is an example of an “unsafe driving behavior?”

  • Speeding
  • Distracted driving
  • Texting while driving
  • Not wearing a seatbelt while operating a vehicle or in a passenger vehicle
  • Following too closely
  • Improper lane changes
  • Failure to obey traffic control devices
  • Etc.

From everyone here at AFN, stay safe out on the roads!

 

Essential tips to prepare for CVSA Roadcheck

On June 5-7th, the Commercial Vehicle Safety Alliance (CVSA) is holding its annual 37-point roadcheck inspections. In 2017 during this 72-hour period, more than 62,000 inspections took place to identify violating trucks, trailers, and drivers to place them out of service. 23 percent of inspected vehicles and 4.2 percent of drivers were placed out of service during inspections last year. Because of the multitude of trucks inspected and the increased risk to receive violations, many carriers choose to park their truck and avoid inspection altogether.

Roadchecks however can be an opportunistic time for drivers if they have adequately prepared for the event.  Because of the decreased number of trucks on the road, drivers often have the opportunity to haul freight at a premium during roadchecks. By successfully completing the Level I check, drivers can potentially lower their ISS score and reduce the likelihood of inspections in the future.

How can you remain on the road yet minimize your chances of being cited for a violation?

Know the Focus

Each year, CVSA inspectors have a particular area of focus for the inspection, and are often more likely to place vehicles or drivers out of service if they are violating the focus category. For instance, in 2017 when the focus was cargo securement, the percentage of vehicle violations of this subcategory jumped from 6.1 percent in 2016 to 15.7 percent in 2017.

This year the CVSA is focusing on driver Hours of Service (HOS) violations. In 2017 alone, the top driver-related out of service violation was HOS at 32.3 percent. With Electronic Logging Device (ELD) implementation and strict enforcement already in effect, it won’t be a surprise if the number of drivers placed out of service for HOS violations increases.

Perform a practice check

Identify potential violations before official inspections begin by performing a practice check. Roadcheck is broken down into two categories: Inspection of the vehicle and inspection of the driver. Use the 37-point CVSA Level I Inspection checklist as a guideline to see if you, your tractor and/or your trailer are potentially in violation. This will allow you to identify problem areas, provide time to fix the issue, and reduce the likelihood of infractions.

Know your ELD

Now is the perfect time to refresh your drivers’ knowledge with regards to the use and operation of their ELD. Simply ensuring that your drivers are using the ELD properly and verifying that it is functioning properly are easy ways to reduce violations. Will your ELD print or email HOS logs as expected? Do your drivers know how to do so? Better to find out ahead of time than when your driver is pulled over for an impromptu inspection.

There are over 180 different ELD devices from over 130 different companies registered with the FMCSA. While your drivers have likely had extensive training on their ELD’s, inspectors may be unfamiliar with the particular ELD you and your team are using. In the event that an error occurs or a malfunction happens, make sure the driver has a manual handy.

During roadcheck week, your drivers might even want to have a printout of the prior 7 days of their ELD log in the truck to help bolster their case if they find themselves in a situation where the ELD is functional but the inspector and driver are, for whatever reason, unable to retrieve the HOS data from the device. This is a simple proactive and precautionary measure that can save time and mitigate violations.

Plan for delays

Roadcheck inspections take time. What could be a routine transit on a typical week will take additional time from June 5-7th. Before accepting loads, make sure you are factoring in the extra time for inspections. This will help you avoid missed appointments and costly fines.

Expect the inevitable

If you are out on the roads on June 5-7th, expect that you will be stopped and inspected. The CVSA Roadchecks are “the largest targeted enforcement program on commercial vehicles in the world, with nearly 15 trucks or buses inspected on average every minute during a 72 hr. period.”  Keeping this top of mind will encourage you and your drivers to prepare ahead of time.

 

With the necessary preparation and practice checks, you can reduce or mitigate the likelihood of violations and reap the benefits of being on the road during roadcheck week. Upon successfully completing inspections, an official CVSA Roadcheck decal will be provided to drivers to display on their vehicle.  Happy hauling!

 

To learn about working with AFN, please visit our carrier page or call us at 1-877-562-3236.

Thanksgiving Holiday Cargo Theft Trends Infographic and Security Tips

Thanksgiving weekend is historically prone to heightened cargo security risks. Don’t miss this handy holiday cargo theft trends infographic from CargoNet that outlines current trends, security tips, and best practices to keep your cargo safe! Thanksgiving cargo theft infographic

Thanksgiving Theft Trends Infographic and Security tips 2017

Click Here to download Thanksgiving Cargo Theft Trends Infographic and Security Tips

 

Please contact AFN with additional questions at info@afnww.com

 

Potential Impacts of the California Diesel Tax Increase

A recently passed piece of legislation which raises diesel fuel taxes is going into effect tomorrow in California. What impact will it have on carriers and shippers?

As of November, 1, 2017, the California Road Repair and Accountability Act of 2017 imposes these increases within the State:

  • The excise tax for diesel fuel increases 20 cents (from 16 to 36 cents per gallon).
  • The additional sales tax for diesel fuel will increase from 1.75% to 5.75%, on top of the average base sales tax of 8.44%.

Because this law will increase carriers’ operating costs, shippers should consider the potential impact to their transportation budgets for the remainder of 2017 and for 2018.  Likely, those moving freight mostly in California will be disproportionately affected. But, because the California hike will affect the national fuel scale, all will be forced to grapple with its effects.  

Whether shipper or carrier, your specific geographic freight mix will likely dictate the overall impact.  That is, a shipper or carrier with more intra-California, outbound, and inbound California freight will probably be more affected.  

Some, however, are hoping that it will all balance out in the end.  For example, we have learned that at least one national retailer has informed carriers of their intention to not accept higher fuel surcharges for California freight on the assumption that costs there will be offset (or more) by benefits elsewhere (where an increase to the national fuel scale will outpace costs in other states, allowing carriers to recoup costs or profit on the whole).  Yet, this assumes a uniformity that probably doesn’t exist, in either, or both, the shipper and carrier network.  We expect shippers and carriers to find some friction as each tries to account for this inefficient distribution of costs and benefits.

As with any new legislation, “time will tell” the true impact of this tax increase. For now, please do not hesitate to reach out to us at AFN at info@afnww.com.

 

Labor Day Weekend Cargo Theft Trends and Security Tips

Over the last 5 years, CargoNet has seen an increase in reported cargo thefts over the Labor Day Weekend. Learn more about cargo theft and security efforts YOU can put into place to keep your cargo safe with this handy infographic.

 

ELD Delay Proposed in House

A bill has been introduced in the U.S. House of Representatives that would provide for a 2-year delay of implementation of the Electronic Logging Device (ELD) rule.  If passed, motor carriers authorized by the Federal Motor Carrier Safety Administration (FMCSA) would have until December 2019 to install ELDs on all of their trucks. The legislation is now being considered by the Transportation and Infrastructure Committee of the House.

Bill introduced to U.S. House of Representative may delay implementation of ELD Rule Click To Tweet

For more details, please read the press release from U.S. Rep. Brian Babin (TX).

Is the Tide Turning for Small Trucking Companies?

As industry capacity shrinks and the Trump administration proposes to roll back regulations, small motor carriers may get some much needed breathing room.

There’s been enormous bottom-line pressure applied to small- to medium-sized trucking companies — those operating anywhere from three on up to 150 trucks — in recent years. Yet that pressure may be set to ease significantly in 2017 if capacity cuts and a proposed “regulatory rollback” occur as expected.

“They are actually in a pretty good position now,” Dan Pedowitz, vice president of LTL for third party logistics (3PL) and freight brokerage firm AFN, told Fleet Owner.

Learn more about 2017 capacity and the impact on small carriers in Sean Kilcarr‘s latest Fleet Owner’s online exclusive including his interview with AFN’s own Dan Pedowitz, Vice-President of LTL.

 

FourKites and AFN Enter Strategic Agreement

FourKites and AFN Enter Strategic Agreement to Enhance Tracking and Transparency for Supply Chain Stakeholders

Initiative facilitates advanced, real-time tracking for greater shipment visibility and driver safety

CHICAGO, IL–(Marketwired – Dec 8, 2016) – The Windy City continues to bolster its reputation as a global logistics hub and incubator for supply chain innovation. Case in point: the new initiative announced today between two fast-growing Chicagoland logistics industry leaders, FourKites and AFN Logistics..@fourkites & @afnlogistics enter strategic agreement #RealTimeTracking #CargoTracking Click To Tweet

In association with FourKites, AFN — a dynamic third-party logistics provider serving major retailers and manufacturers — will work with key carriers to track their fleets with the latest real-time tracking technology. By end of year, a significant number of these key carriers will be utilizing FourKites Comprehensive Real-Time Tracking Platform, providing a new level of clarity for shippers and assurance for carriers and receivers.

“Technology is core to our mission to provide exceptional service to the customers and carriers we serve,” said Rob Levy, AFN’s CFO. “Through FourKites’ solution, we can provide shippers with real-time updates and ETAs, while making life easier — and safer — for drivers. Having location data readily accessible allows drivers to focus on navigation and driving safely, instead of answering status calls and emails. In addition, FourKites’ technology leverages the ELD technology which carriers are already investing in to meet their compliance obligations. Everybody wins..

Obtaining a clear, real-time picture of cargo in the field is more important now than ever. And it can also be more challenging. Consumers expect on-demand delivery, and retailers likewise have imposed more demanding delivery schedules. Investing in advanced tracking systems that provide a deep level of always-on visibility is key for logistics providers and the carriers they work with to meet and exceed these heightened expectations.

Providing this increased clarity also reduces total landed costs and builds long-term strategic relationships — creating the flexibility to meet customer demand. By implementing best-in-class solutions like FourKites, customizing platforms for clients and consolidating technology channels, AFN delivers more efficient and transparent service, and identifies opportunities for continuous improvement. FourKites will enable AFN to deliver on each of these promises.

“A common goal of FourKites and AFN is adding value to our customers’ supply chains,” said Mathew Elenjickal, FourKites CEO. “AFN has expanded the benefits of their logistics services by increasing supply chain visibility and is solidifying trust from their customers with greater transparency into their loads — all through the addition of real-time tracking.”

About AFN
AFN is an award-winning leader in freight brokerage, third party logistics and transportation management services that has served the needs of major manufacturers, top-20 retailers and best-in-class carriers in North America since 2003. Known for its commitment to client service, AFN has a robust suite of people-first, technology-enabled solutions — from truckload, LTL and consolidation services to risk management, carrier compliance, cargo security and surveillance and more. To learn more about AFN, please visit https://www.loadafn.com or call 877-562-3236.