UPS has bought into the European truckload brokerage sector with purchase of Freightex, a U.K.-based provider of truckload, less-than-truckload, specialized and refrigerated over-the-road services. With the purchase, Freightex will add extensive cross-border routes and a carrier network, which includes a dedicated fleet, to UPS’s portfolio. The acquisition also gives UPS access to the European 3PL sector, which is expected to reach US$174 billion by the end of 2016.
The news comes about a year after UPS bought Coyote Logistics in August 2015, a truckload brokerage in the North American market. The 2015 acquisition gave UPS greater control over the transportation chain, and increased its customer base and utilization of its trucks. Freightex will gain access to Coyote’s technology and vice versa, the company announced.
The freight brokerage portion of the U.K. and total European 3PL market is growing at a faster rate than the total market, and is expected to further expand as shippers and carriers further adopt the brokerage model.
“The U.K. and Europe are strategic 3PL freight brokerage growth markets for UPS and there is significant cross-border opportunity,” explained Alan Gershenhorn, COO for UPS. “This acquisition provides UPS customers an immediate, knowledgeable and competitive U.K. and European presence.”
Freightex said it will continue to operate as a wholly-owned subsidiary of UPS.