Logistics information services provider GT Nexus and financial services company TradeCard
said today they have merged their operations to provide global businesses with a single-sourced
package for logistics visibility and access to capital.
The transaction was billed as a merger of equals, with no clear determination of which firm was
being acquired. The private equity unit of Warburg Pincus and another private equity firm, Primerica,
were instrumental in bringing together the two companies, according to Bryan Nella, TradeCard's director of
marketing communications. Financial terms were not disclosed. The deal is expected to close in early 2013.
The company will be headquartered in Oakland, Calif., where GT Nexus is based. TradeCard CEO Sean Feeney will be
chief executive officer of the merged company, GT Nexus CEO Aaron Sasson will be chairman of the board, and TradeCard
Founder Kurt Cavano will be vice chairman.
Specifics about the company name and leadership structure will be announced when the deal is done,
the companies said.
Oakland-based GT Nexus is a leader in "cloud-based" technology that connects the physical order,
shipping, and distribution functions of multiple global partners across a web-based platform. New York-based
TradeCard has access to billions of dollars in capital through its relationships with lenders of various stripes.
The two companies are complementary as TradeCard essentially uses the Web to simplify the letters of credit that
facilitate the payment terms between Western importers and Asian producers and most of GTNexus' technology helps with
trade compliance.
Prior to the merger announcement, each company had begun to encroach on the other's specialty. GT Nexus began offering
financial services to augment its physical distribution capabilities, while TradeCard had begun making inroads in the
logistics arena.
According to Nella, a transaction involving the merged entity would work something like this: An overseas supplier
receives a purchase order across the GTNexus system from a major U.S. retailer to produce 100,000 pairs of shoes. The
supplier, needing fast access to capital to ramp up production, can click a website link and activate TradeCard's services.
After addressing the legal framework and assuring the buyer's ability to pay, TradeCard provides funds to the supplier within
a few days, Nella said.
As production proceeds, the retailer and lender can leverage GTNexus' visibility strengths to manage the process in
real-time, Nella said. The retailer knows his order is on track to be completed, and the lender knows it is one or two
steps closer to being repaid, according to Nella.
The companies boast that together they will become the world's biggest cloud information utility with a global network of
over 20,000 businesses spanning virtually all of the major industry groups. The companies said they will manage more than
$100 billion in direct supply chain trade.
"The strengths of each company are highly complementary and will offer customers a complete solution, covering the entire
supply chain execution lifecycle, from sourcing of goods to final delivery and payment," said Feeney.
The number of container ships waiting outside U.S. East and Gulf Coast ports has swelled from just three vessels on Sunday to 54 on Thursday as a dockworker strike has swiftly halted bustling container traffic at some of the nation’s business facilities, according to analysis by Everstream Analytics.
As of Thursday morning, the two ports with the biggest traffic jams are Savannah (15 ships) and New York (14), followed by single-digit numbers at Mobile, Charleston, Houston, Philadelphia, Norfolk, Baltimore, and Miami, Everstream said.
The impact of that clogged flow of goods will depend on how long the strike lasts, analysts with Moody’s said. The firm’s Moody’s Analytics division estimates the strike will cause a daily hit to the U.S. economy of at least $500 million in the coming days. But that impact will jump to $2 billion per day if the strike persists for several weeks.
The immediate cost of the strike can be seen in rising surcharges and rerouting delays, which can be absorbed by most enterprise-scale companies but hit small and medium-sized businesses particularly hard, a report from Container xChange says.
“The timing of this strike is especially challenging as we are in our traditional peak season. While many pulled forward shipments earlier this year to mitigate risks, stockpiled inventories will only cushion businesses for so long. If the strike continues for an extended period, we could see significant strain on container availability and shipping schedules,” Christian Roeloffs, cofounder and CEO of Container xChange, said in a release.
“For small and medium-sized container traders, this could result in skyrocketing logistics costs and delays, making it harder to secure containers. The longer the disruption lasts, the more difficult it will be for these businesses to keep pace with market demands,” Roeloffs said.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
National nonprofit Wreaths Across America (WAA) kicked off its 2024 season this week with a call for volunteers. The group, which honors U.S. military veterans through a range of civic outreach programs, is seeking trucking companies and professional drivers to help deliver wreaths to cemeteries across the country for its annual wreath-laying ceremony, December 14.
“Wreaths Across America relies on the transportation industry to move the mission. The Honor Fleet, composed of dedicated carriers, professional drivers, and other transportation partners, guarantees the delivery of millions of sponsored veterans’ wreaths to their destination each year,” Courtney George, WAA’s director of trucking and industry relations, said in a statement Tuesday. “Transportation partners benefit from driver retention and recruitment, employee engagement, positive brand exposure, and the opportunity to give back to their community’s veterans and military families.”
WAA delivers wreaths to more than 4,500 locations nationwide, and as of this week had added more than 20 loads to be delivered this season. The wreaths are donated by sponsors from across the country, delivered by truckers, and laid at the graves of veterans by WAA volunteers.
Wreaths Across America
Transportation companies interested in joining the Honor Fleet can visit the WAA website to find an open lane or contact the WAA transportation team at trucking@wreathsacrossamerica.org for more information.