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October 15 2018

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6 The Journal of Commerce | October 15 2018 www.joc.com Spotlight cap Big bets on US domestic freight tech Digital freight brokers and visibility tools have been the hot commodities in the US domestic market for a few years now, but the pace of investment in these areas is ratcheting up quickly, as evidenced by the infusion of $230 million to two major players. Late last month, Seattle-based digital freight broker Convoy announced a $185 million round of funding (bringing its total to $265.5 million, according to Crunchbase), and Chicago- based application programming interface-led visibility provider project44 said it has received a new $45 million round (bringing its total funding to $90 million). Add Convoy's funding to that of competitors Transfix ($78.5 million) and Loadsmart ($13.1 million), and more than $350 million has been invested by venture capital groups in digital load-matching technology. And that doesn't even count what's been invested in the digital freight brokerage business of Uber, since funding for that unit is not delineated from Uber's broader venture capital exploits. It also doesn't include a handful of other digital brokerage companies that have seen individual investments of $5 million or less. Project44's latest investment is a big bet by investors in the company's ability to separate itself from a pack of other visibility providers in the domestic freight market, namely FourKites, MacroPoint, and 10-4 Systems. Those other three companies have collectively raised more than $109 million in venture capital funding. In addition, MarcoPoint was sold to the logistics soware developer Descartes Systems Group for $107 million in August 2017, while 10-4 was sold to the privately owned freight soware conglomerate Trimble in September 2017 for an undisclosed sum. All these numbers amount to growing expectations from venture capital investors that one or more of these companies will be able to truly transform a fragmented and oen inefficient market. They also represent bets that, in many ways, counter one another. Digital brokers are largely attempting to change the underlying process of freight brokerage and make it more automated for carriers and shippers. Visibility providers such as project44 are soware-as-a-service (SaaS) companies, developing platforms that are scalable in that they are largely the same for all customers. As one technology provider said to The Journal of Commerce, "It isn't possible to be both SaaS tech and brokerage." Executive Editor, The Journal of Commerce and JOC Events: Chris Brooks 609 649 2181, chris.brooks@ihsmarkit.com Executive Editor, The Journal of Commerce and JOC.com: Mark Szakonyi 202 872 1234, mark.szakonyi@ihsmarkit.com Managing Editor: Barbara Wyker 908 507 4802, barbara.wyker@ihsmarkit.com Senior Editors: William B. Cassidy Trucking and Domestic Transportation 202 872 1228, bill.cassidy@ihsmarkit.com Bill Mongelluzzo West Coast 562 428 5999, bill.mongelluzzo@ihsmarkit.com Hugh Morley Northeast, Mexico 646 679 3475, hugh.morley@ihsmarkit.com Eric Johnson Technology 213 444 9326, eric.johnson@ihsmarkit.com Janet Nodar Breakbulk and Heavy Li 251 473 2742, janet.nodar@ihsmarkit.com Greg Knowler Europe +44 7976798770, greg.knowler@ihsmarkit.com Turloch Mooney Global Ports +852 9011 9109, turloch.mooney@ihsmarkit.com Associate Editor: Ari Ashe Southeast Ports, Intermodal Rail 202 548 7895, ari.ashe@ihsmarkit.com Web Editor: Joseph Lazzaro 917 309 0148, joseph.lazzaro@ihsmarkit.com Data Analyst: Dustin Braden 646 679 3450, dustin.braden@ihsmarkit.com Senior Content Editor: Alessandra Gregory Barrett, 860 248 5238 alessandra.barrett@ihsmarkit.com Senior Designer: Sue Abt, 862 371 3534, sue.abt@ihsmarkit.com Designer: Bryan Boyd, 908 910 7849, bryan.boyd@ihsmarkit.com Publisher: Tony Stein, 770 295 8809, tony.stein@ihsmarkit.com Sales: Cindy Cronin, Strategic Account Manager Southeast, Gulf, Canada sales, 954 551 8305 Zachary Gorman, Account Executive Northeast, Illinois sales 646 679 3466 Jean Gibbons, Senior Sales Executive West Coast, Midwest sales, 706 469 7160 Ria Van den Bogaert, Sales Representative Europe, Middle East sales, +32 2 569 8905 Alex Remstein, Associate Sales Specialist Reprints/Classifieds/Copyrights, 646 679 3418 For Magazine Subscription Customer Service: www.joc.com/help 450 West 33rd St., 5th Floor, New York, N.Y. 10001 973 776 8660 • 800 952 3839 Executive Director, Editorial Content, Maritime & Trade, IHS Markit, Peter Tirschwell Executive Director, Media & Events, Maritime & Trade, IHS Markit, Amy Middlebrook Manager, Production, Carmen Verenna Product Manager, JOC, Jesse Case ©2018 The Journal of Commerce — All Rights Reserved For more information, visit our website, www.joc.com. The Journal of Commerce Homan fire spurs stowage changes Maersk Line will not stow certain categories of dangerous cargo next to crew accommodations or anywhere below deck across its fleet following a review of stowage procedures triggered by the deadly fire aboard the Maersk Honam in March. The company does not yet know what caused the blaze that began March 6, killing five crewmembers, and admits the investigation may end up being inconclusive. But it found existing rules regarding the stowage of dangerous goods cargoes, which create their own oxygen and can't be extinguished using standard carbon dioxide-based onboard firefighting equipment, to be inadequate and has implemented new procedures across its fleet. The world's largest container carrier said cargo covered under the International Maritime Dangerous Goods Code will no longer be stowed next to crew accommodations or the main propulsion plant, which is defined as the risk zone with the lowest risk tolerance. "All cargo aboard Maersk Honam was accepted as per the requirements of the International Maritime Dangerous Goods Code and stowed on board the vessel accordingly," said Ole

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