newsworthy
Cargomatic, based in Venice Beach, Calif., in June launched
truckload and less-than-truckload service across a 150-mile
range in southern California. Using Cargomatic’s app, shippers can find a driver best suited to haul a load and then hire
that driver for a fixed, prearranged price. The service has been
in pilot testing since January, Cargomatic said in a statement.
According to Jonathan Kessler, Cargomatic’s CEO, smaller truckers handle about 80 percent of deliveries in local
markets. Most of those transactions are conducted in a
fragmented, decentralized manner, he said in the statement.
Cargomatic resolves the fragmentation by aggregating these
truckers under one platform, he added.
In an e-mail, Kessler said the company plans to add three or
four markets by the end of year, but would not confirm any
specifics. An industry source, however, says Cargomatic plans
to expand to the New York metro area in August.
Cargomatic gets paid on the spread between the price it
charges shippers and the rates it negotiates with carriers,
Kessler said. The company’s rates are competitive because it is
leveraging underutilized capacity, he said.
Kessler said Cargomatic does not intend to marginalize
freight brokers, who traditionally handle the task of procuring
capacity for shippers. “Cargomatic wants to work with freight
brokers to provide dynamic capacity to meet their shipping
needs,” he said in the e-mail. “We are focused on aggregating
supply rather than disintermediation.”
The company said it has received $2.6 million in venture
capital funding from multiple investors.
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001_ADV_packaging_AW_MHPN.indd 1 24-01-14 13: 32 22 DC VELOCITY JULY 2014 www.dcvelocity.com
Uber-like mobile technology finds
a home in the trucking business
The Los Angeles City Council unanimously confirmed
veteran shipping industry leader Gene Seroka as the
new executive director of the Port of Los Angeles.
… Jervis B. Webb Co., a subsidiary of Daifuku Webb
Holding Co., has promoted Rob Schmit to president.
… Jim McMurphy has joined third-party logistics provider Kane Is Able Inc. as its new senior vice president
of technology. … The Warehousing Education and
Research Council has announced its 2014–15 Board
of Directors, which will be led by President Paul M.
Avampato, who is vice president, customer service &
logistics North America, for Mondelez International.
… Tim Chiocchio has joined Seegrid Corp., a provider
of robotic vision-guided automated guided vehicles, as
the company’s new lean project manager. … Mitsubishi
Caterpillar Forklift America Inc. (MCFA) has named Stacy
Corn as regional sales manager.
newsmakers
