Ryder Expands Freight Brokerage Business to Build on 175% Year-Over-Year Growth

Rhea-AI Summary

Ryder System, Inc. (NYSE: R) has opened a new office in Nashville, Tennessee, as part of its expansion of freight brokerage operations. This growth strategy aims to enhance its logistics services across key U.S. hubs. Ryder's freight brokerage experienced a significant 175% revenue increase in 2021 compared to 2020. The Nashville location is chosen for its logistics talent pool, with plans for two more offices in 2023. Ryder emphasizes flexibility in service offerings, aiming to assist customers amid market challenges such as high transportation rates and a driver shortage.

Positive

• New office in Nashville supports expansion of freight brokerage operations.
• 175% growth in gross revenue in 2021 compared to 2020.
• Plans for two additional locations in 2023 to enhance service capacity.
• Focus on leveraging technology for better logistics solutions.

Negative

• Market challenges such as high transportation rates and driver shortages persist.

With a newly opened office in Nashville, Tennessee, Ryder rolls out plans to expand its freight brokerage operations in key U.S. logistics hubs

MIAMI--(BUSINESS WIRE)-- Ryder System, Inc. (NYSE: R), a leader in supply chain, dedicated transportation, and fleet management solutions, announces the expansion of its freight brokerage business with a new office in Nashville, Tennessee—a burgeoning U.S. logistics hub—followed by two additional locations planned to open in 2023. The expansion is part of the company’s strategy to grow its broader transportation solution, which offers customers flexibility with several levels of service and capacity, from freight brokerage to transportation management and dedicated transportation.

Ryder announces plans to expand its freight brokerage business as part of its strategy to grow its broader transportation solution. (Photo: Business Wire)

“In freight brokerage, we experienced just over 175% growth in gross revenue in 2021 as compared to 2020. With market fluctuations, sky-high transportation rates, a capacity crunch, and a driver shortage, shippers are turning to our logistics expertise, our asset-based solutions, relationships with vetted carriers, and our buying power to keep their goods moving,” says Kevin Clonch, group director of transportation management at Ryder. “By expanding our freight brokerage operations, we also bolster our broader transportation solution, so we can offer our customers even more flexibility with additional lanes and hard-to-find capacity in tight markets, so they can take advantage of seasonal and market-related volume surges.”

Ryder now has freight brokerage offices in Novi, Michigan and Fort Worth, Texas, as well as the new Nashville location, which opened in April. The company chose Nashville for its third location based on the city’s talent pool as a logistics hub and its ability to draw additional talent as a destination city.

“We want the best in the business—people who are experts in using technology to drive strategy and create added value for customers while also quarterbacking the lifecycle of each load to ensure a smooth experience for both customer and carrier,” adds Clonch. “We focus on service, service, service. Because, even with the best technology and the best laid plans, there will be times when customers and carriers need to pick up the phone—and we answer 24/7/365.”

In addition to investing in people, Ryder’s freight brokerage business invests heavily in technologies that provide real-time visibility and collaboration; digital freight matching and backhaul opportunities; automated load booking; business intelligence and analytics tools that enable better future decision making; as well as making the payment cycle quicker and easier for carriers.

Ryder’s freight brokerage division is part of its transportation management solution, which purchases and/or executes $7.4 billion in freight moves on behalf of its customers annually.

“We do not turn back loads or make excuses. We find smarter solutions. That’s our promise to our customers, and the expansion of our freight brokerage business is part of that promise,” says Clonch.

About Ryder System, Inc.

Ryder System, Inc. (NYSE: R) is a leading logistics and transportation company. It provides supply chain, dedicated transportation, and fleet management solutions, including full service leasing, rental, and maintenance, used vehicle sales, professional drivers, transportation services, freight brokerage, warehousing and distribution, e-commerce fulfillment, and last mile delivery services, to some of the world’s most-recognized brands. Ryder provides services throughout the United States, Mexico, Canada, and the United Kingdom. In addition, Ryder manages nearly 239,000 commercial vehicles and operates more than 330 warehouses, encompassing more than 80 million square feet. Ryder is regularly recognized for its industry-leading practices in third-party logistics, technology-driven innovations, commercial vehicle maintenance, environmentally friendly solutions, corporate social responsibility, world-class safety and security programs, military veteran recruitment initiatives, and the hiring of a diverse workforce. www.ryder.com

Note Regarding Forward-Looking Statements: Certain statements and information included in this news release are "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. These forward-looking statements, including our expectations with respect to expanding our transportation solutions business and the capabilities of the technology used in our freight brokerage business, are based on our current plans and expectations and are subject to risks, uncertainties and assumptions. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties that could cause actual results and events to differ materially from those in the forward-looking statements including those risks set forth in our periodic filings with the Securities and Exchange Commission. New risks emerge from time to time. It is not possible for management to predict all such risk factors or to assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20220616005002/en/

Anne Hendricks

(305) 500-4547

amhendricks@ryder.com

Amy Federman

(305) 500-4989

afederman@ryder.com

Source: Ryder System, Inc.

FAQ

What is the significance of Ryder's new Nashville office?

Ryder's Nashville office enhances its freight brokerage operations, part of a broader strategy to improve logistics services in key U.S. hubs.

What growth did Ryder experience in freight brokerage revenue?

Ryder's freight brokerage saw over 175% growth in gross revenue in 2021 compared to 2020.

How many new locations is Ryder planning to open in 2023?

Ryder plans to open two additional freight brokerage locations in 2023, following the Nashville office.

What challenges is Ryder facing in the logistics market?

Ryder is facing challenges such as high transportation rates and a shortage of drivers in the logistics market.