The recent shutdown of Convoy, a prominent digital freight network, has created a real sense of uncertainty for carriers looking for compensation for the loads handled through the network.
Carriers, who already face tough financial terms with delayed payment, have another layer of stress without freight factoring and freight lanes that were previously serviced by Convoy. These lanes provided a reliable source of income for carriers. Instead, their sudden disappearance leaves many carriers wondering how they’ll fill this gap and maintain operations without reliable cash flow.
Other Industry Impacts from the Convoy Shutdown
The impact of Convoy’s sudden shutdown extends beyond individual carriers and freight lanes – it affects the entire industry. The repercussions are likely to be felt across various segments, from shippers who relied on Convoy’s services to competitors who now face an altered competitive landscape.
Above all, industry players need to quickly adapt and provide alternative solutions to minimize disruption to carriers, shippers and transportation services across the country.
While it’s easy to assign blame or seek out who is responsible for Convoy’s shutdown, it’s essential to recognize that complex situations are just that: complex. Stakeholders are evaluating the financial challenges, strategic decisions and unforeseen circumstances that could have led to this outcome.
How can carriers actively pursue compensation from the Convoy shutdown?
Direct Communication
Carriers can directly contact the customer associated with the load. Consider issuing an invoice for the amount that was initially tendered by Convoy. To bolster your claims, carriers should provide relevant documents like the rate confirmation and a copy of the Bill of Lading (BOL). This approach significantly increases the likelihood of carriers recovering the full freight charges. A less reliable option is filing claims on the Surety Bond, which may not cover the entire amount.
Reach Out to Other Freight Brokers
Now is a good time to reach out to your broker connections. Transportation brokers are expected to play a crucial role in absorbing carriers who relied on Convoy. These brokers may step in to help carriers find new opportunities for freight factoring and ensure a smooth transition during this tumultuous time.
Get Paid with Transcap Freight Factoring, Even Through Industry Uncertainty
Carriers can find support, expertise and fast funding from our dedicated team. Transcap is a reliable partner that goes above and beyond the role of a traditional factoring company. Our US-based team of finance professionals have over 50 years of experience navigating the complexities of the transportation industry and unforeseen economic turns. We have weathered numerous industry changes and can offer invaluable insights and strategies to keep your operations on the road.
Transcap’s depth of knowledge and understanding of the trucking industry uniquely positions us to support carriers through these uncertain times. We can ensure carriers receive the funding they need, when they need it, often within 24 hours. Reach out to the Transcap team for expert advice or apply for fast funding below.
