Subscribe to our free, weekly email newsletter!

Echo Global Logistics acquires Shipper Direct

By Jeff Berman, Group News Editor
July 30, 2012

Echo Global Logistics, a Chicago-area non-asset based freight brokerage and a provider of technology-enabled transportation and supply chain management services, announced last week it has acquired all of the assets of Shipper Direct, a Nashville-based truckload transportation brokerage.

Financial terms were not disclosed, but Echo said that Shipper Direct will immediately become part of Echo.

This follows a June acquisition by Echo of Purple Plum Logistics LLC, a Wakefield, Mass.-based truckload transportation brokerage.

Shipper Direct was established in 1989 by Billy and Angela Suddrath. The company’s primary focus is on non-asset based transportation and truckload services for the southeast and south central regions of the U.S. Echo said that by bringing Shipper Direct into the fold it is able to expand its sales organization and customer and carrier relationships in these regions. The company has hundreds of customers, including several Fortune 100 companies, and it has 12 employees

“We did the deal because we like the owners and they run a good business,” Echo Global Logistics CEO Doug Waggoner told LM. “Their values and work ethic are very similar to ours, and they provide coverage in an area where we didn’t have ‘feet on the street,’” explaining that prior to this deal Echo did not cover or serve these areas with a direct field presence.

He added that Shipper Direct customers will benefit with additional transportation modes and technology that Echo brings to Shipper Direct. Echo customers, he said, will benefit from the strong carrier relationships and local knowledge that Shipper Direct has amassed.

In a previous interview with LM, Waggoner said in regards to the current environment for acquisitions there are a lot of small brokers that are nervous about capacity, and they are finding it more difficult to compete.

“The market is tighter and competition is better, as is technology,” he said. “What we are finding is that these smaller brokers that are having the realization that maybe it is better to be part of something bigger. Ideal candidates are those companies that want to stay in the business and stay involved and keep growing but need more resources.”

On its second quarter earnings call last week, Echo reported total revenue of $185.2 million, which was up 22.3 percent compared to the same period in 2011.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

As was the case a month ago, the Global Port Tracker report from the National Retail Federation (NRF) and maritime consultancy Hackett Associates is calling for annual import cargo volume gains at United States ports, as retailers gear up for the holiday season.

More than nine months after saying it was not for sale, Long Beach Calif.-based non asset-based third-party logistics (3PL) services provider UTi Worldwide has apparently changed its tune, with the company saying it has entered into a definitive agreement to be acquired by Denmark-based global 3PL DSV for $1.35 billion and $7.10 per share.

September carloads—at 1,417,750—were down 4.9 percent—or 72,597 carloads— annually, and intermodal—at 1,365,980 trailers and containers—was up 1.2 percent—or 16,272 trailers and containers.

Slowing global trade and a bloated orderbook of large vessel capacity mean that container shipping is set for another three years of overcapacity and financial pain, according to the latest Container Forecaster report published by global shipping consultancy Drewry.

The NRF is calling for 2015 holiday sales to see a 3.7 percent annual gain to $630.5 billion, which comfortably outpaces the ten-year average of 2.5 percent.


Post a comment
Commenting is not available in this channel entry.

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA