One thing was abundantly clear from the record freight levels achieved in North America in the fourth quarter of 2017: equilibrium in freight markets quickly went out the window during that period!  In particular, spot rates for truckload (TL) modes of transportation appreciated much faster than brokerage outfits could adjust their own pricing to carriers.  This freight dynamic is the double-edged sword of brokerage markets and one of the reasons managers of freight endure some sleepless nights.    

Internet of Things (IoT) technology is fundamentally changing the Transportation & Logistics (T&L) industry by creating transparency in the shipping process. With IoT connectivity, everything from marine containers to the pallets placed on trucks can be monitored through sensors. This has allowed for more sophisticated inventory attention including instantaneous temperature control for heat-sensitive cargo and in-depth supply chain intelligence for companies.

Recently, Schneider National Inc. filed its expected S-1 with the Securities and Exchange Commission. The same day, blank-check company Hennessy Capital Acquisition Corp. II (NASDAQ: HCAC) (“HCAC”) announced it would be merging with Daseke, Inc., a leading consolidator in the flatbed market, in exchange for $626 million of initial consideration, which translates as 7.1 times Daseke’s 2016 estimated adjusted EBITDA.

Companies that provide or facilitate the movement of goods by land, water and air continue to be attractive targets for mergers and acquisitions through Q3 2016. Year-to-date, 95 deals have been announced or completed compared to 107 over the same period last year.