Freight Technologies Inc. (NASDAQ: FRGT)
Freight Technologies Inc. (NASDAQ: FRGT) ("Fr8Tech") is a technology company developing solutions to optimize and automate the supply chain process, providing a platform for B2B cross-border shipping in the NAFTA region. The company's mission is to revolutionize cross-border shipping by providing carriers with increased growth opportunities and shippers with flexibility, visibility and simplicity for the once-complex process of international over-the-road shipping.
Freight Technologies, formerly known as Hudson Capital Inc., assumed its current name and ticker symbol on May 27, 2022. Its primary operating subsidiary and its marketplace are known as Fr8App, and it conducts operations throughout North America under the names of Fr8App and/or Freight App. The company is headquartered in Houston, Texas, with multiple locations across the U.S. and Mexico.
The Fr8Tech Solutions Suite
Fr8Tech leverages artificial intelligence to provide cloud-based platforms aimed at automating the over-the-road transportation process, effectively reducing human touch points and expediting load booking times. The company's suite of solutions includes:
- Fr8app – A B2B marketplace powered by AI and Machine Learning offering a real-time broker portal to connect shippers with qualified carriers
- Fr8Radar – A tracking solution providing shippers and carriers real-time locational data via Fr8app's mobile solution or through integration with third-party GPS alternatives
- Fr8TMS – A transportation management system designed to help shippers manage their freight and all of the documents involved in shipping transactions, including invoices, customs documents, confirmation rates and proof of deliveries
- Fr8FMS – A fleet management system allowing transportation companies to better manage their fleets, reduce operational costs and provide better service to their customers
- Fr8Data – A data solution offering real-time dashboards and reports to shippers and carriers in an effort to increase visibility and control while supporting better business decisions
- Fr8Fleet – A platform that provides private fleet management, enabling large corporate shippers to purchase dedicated capacity secured by Fr8app in exchange for a fixed fee
Commitment to the Environment
Through its core focus on technology, Fr8Tech seeks to reduce the carbon footprint of the logistics industry. Its solutions aim to minimize empty miles for transportation firms and reduce overall paper consumption.
Fr8University is an educational program offering classroom and on-the-job training for Fr8Tech team members. Through the program, employees learn in-depth business fundamentals and applications along the truckload freight industry value chain.
Led by corporate educator Mario Mena, Fr8University is designed as an investment in the company's human capital, providing an opportunity to communicate Fr8Tech's corporate culture while accelerating operational growth.
Fr8Tech's established foothold in Mexico is key to its current efforts to promote sustainable growth in the cross-border shipping industry. Ongoing disruption in U.S.-Chinese trade relations have strengthened Mexico's status as the largest trading partner of the U.S., with cross-border annual freight spending estimated at $385 billion according to data from the U.S. Department of Transportation. Annual domestic shipping in Mexico is estimated at $34 billion, while annual domestic shipping in the U.S. is estimated to total $732 billion.
Despite the size of this industry, fragmentation and inefficiencies prevail in the space. Thousands of legacy brokers, tens of thousands of shippers and hundreds of thousands of carriers still rely on outdated systems to arrange transport, spending hours on the phone negotiating pricing, waiting days to find trucks and drivers, preparing and printing forms, and operating without tracking or visibility. Add in cross-border complexity relating to customs and additional paperwork, and you have an industry ripe for technological disruption.
Fr8Tech's recent revenue growth trends have highlighted the company's efforts to capitalize on this opportunity. In 2021, Fr8Tech achieved revenues of $21.5 million, marking a year-over-year increase of 134%. The company issued revenue guidance for fiscal 2022 of $40 million in a February 9, 2022, press release, which would account for a further 86% year-over-year increase.
Javier Selgas is CEO and a Director of Freight Technologies Inc. and Freight App Inc. He brings to the company over 15 years of experience developing technology and digital marketing strategies, including serving as Country Manager for Osigu, Spain, and as head of AJEgroup's IT division for the Asia-Pacific region. Prior to joining Fr8Tech, Mr. Selgas founded digital marketing agency Lanzadera Online. He has also served as an IT consultant to major corporations, including Endesa and Ibermatica.
Mike Flinker is President of Fr8Tech. He has over four decades of experience in the transportation industry, with 30+ years focused on cross-border logistics. Prior to joining Fr8Tech, Mr. Flinker founded FLS Transportation, the largest cross-border logistics company in Canada. He also previously held positions with Clarke Transport Inc., Canadian Pacific and Reimer Express Inc. (a division of Roadway Express).
Paul Freudenthaler is the company's CFO and Secretary to the company Board. He has over 30 years of financial expertise, having previously served as CFO for several leading companies across multiple countries, including Macquarie in Mexico, Old Mutual in Latin America and Ascentium Capital in the U.S. Mr. Freudenthaler's experience include leadership roles from which he guided IPOs and M&A transactions.
Luisa Lopez is COO of Fr8Tech. She brings to the company 25+ years of management experience in logistics, supply chain, operations and customer service. Ms. Lopez previously served as a Director of Landstar, where she was responsible for commercial and client development strategies in the Mexican market. Additionally, she managed more than 2,000 transport units specialized in staff and school mobility while with Traxion in Mexico.