Moving Ahead with Forward Air

The ground transport specialists double down on meeting complex shipping and logistics needs

The transport industry sector in the U.S. has been on a pretty rocky road of late, but industry insiders see better times ahead. The number of trucks needed to answer the pandemic-induced capacity demands of 2021-22 has declined, but according to NTT Data, “Market softness will steadily dissipate, and shippers should get ready for the market to turn, likely in the second half of the year.”

Despite that continued volatility, the multimodal, asset-light transport specialists of Forward Air (NASDAQ: FWRD) remain a formidable presence in the less-than-truckload (LTL) sector. With estimated revenues at the $2.3 billion-plus mark, Forward ranked 31st on Transport Topics’ 2024 Top 100, ahead of FedEx Logistics, Knight-Swift Transportation, and a host of others. With a reported 98% on-time service rate and a cargo claims ratio of 0.09% as of Q4 last year, it’s easy to see why.

LTL is designed to move freight that doesn’t fill a trailer, and typically carries goods weighing between 150 to 1,500 pounds. Forward’s end-to-end LTL services include shipment consolidation, local pickup and delivery, warehousing, and customs brokerage. They also deliver expedited linehaul services for truckload and LTL, intermodal drayage, specialized temperature-controlled logistics services as well as pool distribution (carrying shipments from different sources and bringing them to their destination). Known for their superior customer service, the company creates fully customized solutions for their clients.

The Greeneville, Tenn.-based firm offers expedited LTL, truckload, intermodal, and brokerage service, and specializes in customized freight solutions for businesses of all sizes. Forward’s growth strategy includes organic and inorganic investments, including acquisitions of complementary businesses.

Edgmon Trucking, LLC, an intermodal drayage provider with annual revenues hovering around $22 million, is one such investment. The 2022 purchase of the Washington company broadened Forward’s reach to the West Coast, which was a key expansion in its strategic growth plan. Edgmon services the Port of Seattle and the Port of Tacoma with a fleet of about 70 trucks that are owned and operated by independent contractors.

In that same year, Forward completed the expansion of their Columbus Support Center, centralizing support teams from multiple facilities in the area. The build out supports Forward’s mission to deliver its hallmark customer service. The Support Center improves onboarding experience for independent contractor drivers as well as expanded parking and storage. The Support Center is also the home for the company’s Safety and Recruiting Teams.

Forward motion

With the successful acquisition of Dallas-based Omni Logistics, which closed in January of this year, they’ve set their sights on growing the LTL business, positioning themselves as the go-to for mission critical freight transport needs, particularly for high-value customers.

The Omni acquisition was turbulent, marked by litigation and other disputes, but its completion brought Forward an estimated $17 million in new LTL business, and over 7,000 customers, 70% of which ship high-value freight. “The transaction will allow Forward to continue to expand into more diversified end markets levered toward high-growth, high-value sectors including aerospace, medical equipment, technology, events, industrial goods, and automotive,” the company said.

The asset-light, high-touch logistics and supply chain management company offers domestic and international freight forwarding, fulfillment services, customs brokerage, distribution, and value-added services for time-sensitive freight to U.S.-based customers operating both domestically and internationally. The deal extended Forward’s domestic footprint with a full portfolio of essential logistics services, multimodal operations, and supply chain services. “In turn, Omni’s customer base will benefit from Forward’s Precision Execution, which provides customers with the fastest transit times, best on-time performance, and lowest claims rates in the industry,” the company added.

Of course, the union boosts Forward’s bench strength, integrating Omni’s sales, solutions, marketing, and procurement teams. As the company put it, “Omni’s cross-functional teams have a record of delivering award-winning operations and gaining significant volume through their hub and spoke model. Likewise, Omni’s data and analytical strength will increase new business wins and gain expanded sales opportunities.”

According to Trucking Dive, merging the Forward’s transportation networks with those of the multimodal provider of international and domestic logistics and supply chain solutions will “deliver cost savings and boost(s) Forward’s position to work with Omni’s customers with international operations that need domestic transportation services.”

The sweeping range of Forward’s ground transportation service portfolio enables them to provide a reliable, cost-effective alternative to air shipping. Third- and fourth-party logistics (3PLs/4PLs) firms, including non-traditional shippers, freight forwarders, and integrated air cargo carriers, look to Forward as a single-source provider for premium ground transportation services. With over 200 locations in the U.S., Canada, and Mexico, the company handles over 15,300 LTL shipments every day as well as more than 1,200 daily intermodal shipments.

Their fleet features over 6,700 trailers and over 850 power units. Forward’s partnerships with over 1,100 truck owner-operators, as well as other over-the-road providers, are key to their cost efficiency. Forward also continues to target opening 30 new terminals in North America over the next five years.

In late April of this year, former CEVA Logistics executive Shawn Stewart took the reins as CEO, replacing interim CEO Michael Hance, who will continue with his tenure as Forward’s Chief Legal Officer and Secretary. “As president and managing director North America for CEVA Logistics, Stewart led growth efforts and oversaw the company’s extensive operations across the U.S., Canada, Mexico, and the Caribbean with more than 15,000 employees,” Forward announced.

“Together, Forward and Omni have created an industry leader with a clear dedication to delivering world-class service to customers – a quality I share,” said Stewart. “I have been impressed by the resilience both teams have demonstrated in a challenging market and during a protracted transition period. I’m proud to take the baton from Michael and excited for the opportunity to work with these talented teams to achieve outstanding results.”

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Forward Air Corporation (NASDAQ: FWRD) is a leading asset-light freight and logistics company that provides services across the United States and Canada. We provide expedited less-than-truckload (“LTL”) services, including local pick-up and delivery, shipment consolidation/deconsolidation, warehousing, and customs brokerage by utilizing a comprehensive national network of terminals.

In addition, we offer final mile services, including delivery of heavy-bulky freight, truckload brokerage services, including dedicated fleet services; and intermodal, first-and last-mile, high-value drayage services, both to and from seaports and railheads, dedicated contract and Container Freight Station warehouse and handling services. We are more than a transportation company. As a single resource for your shipping needs, Forward is your supply chain partner. For more information, visit our website at www.forwardaircorp.com.

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Corporate Office

1915 Snapps Ferry Road

Bldg N

Greeneville, TN 37745

Phone Number: 800.726.6654

Homepage Link: https://www.forwardair.com/

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