---
title: The Convoy Shutdown and How Customodal Can Help
description: With Convoy shutting down and the logistics industry facing a major recession, Customodal offers stability and reliability for businesses navigating uncertain times.
image: https://blog.customodal.com/hubfs/Imported_Blog_Media/convoy-shutdown-helpjpg.jpg
---

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# The Convoy Shutdown and How Customodal Can Help

TAGS:

- [Blog](https://blog.customodal.com/tag/blog)
- [3pl](https://blog.customodal.com/tag/3pl)
- [Logistics](https://blog.customodal.com/tag/logistics)
- [Freight Brokerage](https://blog.customodal.com/tag/freight-brokerage)
- [Inbound Freight](https://blog.customodal.com/tag/inbound-freight)
- [Digital Freight Management](https://blog.customodal.com/tag/digital-freight-management)
- [Shipping](https://blog.customodal.com/tag/shipping)
- [supply chain](https://blog.customodal.com/tag/supply-chain)
- [Freight Costs](https://blog.customodal.com/tag/freight-costs)
- [Outbound Freight](https://blog.customodal.com/tag/outbound-freight)
- [Specialized Freight Management](https://blog.customodal.com/tag/specialized-freight-management)
- [Technology](https://blog.customodal.com/tag/technology)
- [Freight Forwarding](https://blog.customodal.com/tag/freight-forwarding)
- [TMS](https://blog.customodal.com/tag/tms)
- [LTL](https://blog.customodal.com/tag/ltl)
- [freight](https://blog.customodal.com/tag/freight)
- [Featured](https://blog.customodal.com/tag/featured)
- [Freight Savings](https://blog.customodal.com/tag/freight-savings)
- [Logistics Planning](https://blog.customodal.com/tag/logistics-planning)
- [Controlling Costs](https://blog.customodal.com/tag/controlling-costs)
- [Digital Freight Brokering](https://blog.customodal.com/tag/digital-freight-brokering)
- [supply chain challenges](https://blog.customodal.com/tag/supply-chain-challenges)
- [avoid extra fees](https://blog.customodal.com/tag/avoid-extra-fees)
- [Inbound-Outbound Freight](https://blog.customodal.com/tag/inbound-outbound-freight)
- [Strategic Logistics](https://blog.customodal.com/tag/strategic-logistics)
- [manufacturing](https://blog.customodal.com/tag/manufacturing)
- [outbound](https://blog.customodal.com/tag/outbound)
- [Critical Infrastructure](https://blog.customodal.com/tag/critical-infrastructure)
- [FLEX Outbound Freight](https://blog.customodal.com/tag/flex-outbound-freight)
- [Tracking](https://blog.customodal.com/tag/tracking)
- [import](https://blog.customodal.com/tag/import)
- [sustainability](https://blog.customodal.com/tag/sustainability)
- [visibility](https://blog.customodal.com/tag/visibility)
- [API](https://blog.customodal.com/tag/api)
- [Compliance](https://blog.customodal.com/tag/compliance)
- [EXACT Inbound](https://blog.customodal.com/tag/exact-inbound)
- [EXACT Inbound Freight](https://blog.customodal.com/tag/exact-inbound-freight)
- [Freight Cost Tracking](https://blog.customodal.com/tag/freight-cost-tracking)
- [Outbound Freight Savings](https://blog.customodal.com/tag/outbound-freight-savings)
- [Precision ROI](https://blog.customodal.com/tag/precision-roi)
- [Project-based Logistics](https://blog.customodal.com/tag/project-based-logistics)
- [Vendor Performance](https://blog.customodal.com/tag/vendor-performance)
- [documentation](https://blog.customodal.com/tag/documentation)
- [export](https://blog.customodal.com/tag/export)
- [freight claim](https://blog.customodal.com/tag/freight-claim)
- [freight management](https://blog.customodal.com/tag/freight-management)
- [inbound freight costs](https://blog.customodal.com/tag/inbound-freight-costs)
- [incoterms](https://blog.customodal.com/tag/incoterms)
- [meet the team](https://blog.customodal.com/tag/meet-the-team)
- [ocean freight](https://blog.customodal.com/tag/ocean-freight)
- [parcel](https://blog.customodal.com/tag/parcel)
- [save money](https://blog.customodal.com/tag/save-money)
- [supplychain](https://blog.customodal.com/tag/supplychain)
- [Carrier Selection](https://blog.customodal.com/tag/carrier-selection)
- [Critical Freight](https://blog.customodal.com/tag/critical-freight)
- [Data Driven](https://blog.customodal.com/tag/data-driven)
- [Freight Claims](https://blog.customodal.com/tag/freight-claims)
- [Risk Mitigation](https://blog.customodal.com/tag/risk-mitigation)
- [Turnaround Logistics](https://blog.customodal.com/tag/turnaround-logistics)
- [Uptime](https://blog.customodal.com/tag/uptime)
- [current events](https://blog.customodal.com/tag/current-events)
- [inbound](https://blog.customodal.com/tag/inbound)
- [priority1](https://blog.customodal.com/tag/priority1)
- [recession](https://blog.customodal.com/tag/recession)
- [shipping delay](https://blog.customodal.com/tag/shipping-delay)
- [4pl](https://blog.customodal.com/tag/4pl)
- [Analytics](https://blog.customodal.com/tag/analytics)
- [Customs](https://blog.customodal.com/tag/customs)
- [Dock Management](https://blog.customodal.com/tag/dock-management)
- [Downtime](https://blog.customodal.com/tag/downtime)
- [FLEX Freight Control](https://blog.customodal.com/tag/flex-freight-control)
- [Heavy Haul](https://blog.customodal.com/tag/heavy-haul)
- [International](https://blog.customodal.com/tag/international)
- [SDK](https://blog.customodal.com/tag/sdk)
- [Strategic Outsourcing](https://blog.customodal.com/tag/strategic-outsourcing)
- [book review](https://blog.customodal.com/tag/book-review)
- [canada](https://blog.customodal.com/tag/canada)
- [covid 19](https://blog.customodal.com/tag/covid-19)
- [customodal way](https://blog.customodal.com/tag/customodal-way)
- [delivery](https://blog.customodal.com/tag/delivery)
- [digital freight broking](https://blog.customodal.com/tag/digital-freight-broking)
- [exports](https://blog.customodal.com/tag/exports)
- [freight broker](https://blog.customodal.com/tag/freight-broker)
- [ftl](https://blog.customodal.com/tag/ftl)
- [holidays](https://blog.customodal.com/tag/holidays)
- [in the news](https://blog.customodal.com/tag/in-the-news)
- [logisitics](https://blog.customodal.com/tag/logisitics)
- [mike eberl](https://blog.customodal.com/tag/mike-eberl)
- [news](https://blog.customodal.com/tag/news)
- [oceanfreight](https://blog.customodal.com/tag/oceanfreight)
- [packaging](https://blog.customodal.com/tag/packaging)
- [rates](https://blog.customodal.com/tag/rates)
- [save on freight](https://blog.customodal.com/tag/save-on-freight)
- [save on shipping](https://blog.customodal.com/tag/save-on-shipping)
- [shipping news](https://blog.customodal.com/tag/shipping-news)
- [shipping solutions](https://blog.customodal.com/tag/shipping-solutions)
- [small parcel audit](https://blog.customodal.com/tag/small-parcel-audit)
- [small parcel refunds](https://blog.customodal.com/tag/small-parcel-refunds)
- [truckload](https://blog.customodal.com/tag/truckload)
- [update](https://blog.customodal.com/tag/update)
- [2022](https://blog.customodal.com/tag/2022)
- [2022 shipping expectations](https://blog.customodal.com/tag/2022-shipping-expectations)
- [Alaska](https://blog.customodal.com/tag/alaska)
- [Carbon Accounting](https://blog.customodal.com/tag/carbon-accounting)
- [Cold Chain](https://blog.customodal.com/tag/cold-chain)
- [Customs Broker](https://blog.customodal.com/tag/customs-broker)
- [EXACT](https://blog.customodal.com/tag/exact)
- [Electrical Utilities](https://blog.customodal.com/tag/electrical-utilities)
- [Freight Control](https://blog.customodal.com/tag/freight-control)
- [Green Logistics](https://blog.customodal.com/tag/green-logistics)
- [Hawaii](https://blog.customodal.com/tag/hawaii)
- [Hazmat](https://blog.customodal.com/tag/hazmat)
- [In-House Fleet vs Virtual Fleet](https://blog.customodal.com/tag/in-house-fleet-vs-virtual-fleet)
- [Inbound Shipping Skills](https://blog.customodal.com/tag/inbound-shipping-skills)
- [Inventory Management](https://blog.customodal.com/tag/inventory-management)
- [JIT](https://blog.customodal.com/tag/jit)
- [Jones Act](https://blog.customodal.com/tag/jones-act)
- [LCL](https://blog.customodal.com/tag/lcl)
- [Maintenance Logistics](https://blog.customodal.com/tag/maintenance-logistics)
- [Midwest](https://blog.customodal.com/tag/midwest)
- [Oversized](https://blog.customodal.com/tag/oversized)
- [Puerto Rico](https://blog.customodal.com/tag/puerto-rico)
- [Reverse Logistics](https://blog.customodal.com/tag/reverse-logistics)
- [air freight](https://blog.customodal.com/tag/air-freight)
- [all risk shippers protection](https://blog.customodal.com/tag/all-risk-shippers-protection)
- [asset based](https://blog.customodal.com/tag/asset-based)
- [automated audits](https://blog.customodal.com/tag/automated-audits)
- [automated refunds](https://blog.customodal.com/tag/automated-refunds)
- [benjamin lorr](https://blog.customodal.com/tag/benjamin-lorr)
- [broker](https://blog.customodal.com/tag/broker)
- [bullwhip](https://blog.customodal.com/tag/bullwhip)
- [carmack](https://blog.customodal.com/tag/carmack)
- [central wisconsin manufacturing](https://blog.customodal.com/tag/central-wisconsin-manufacturing)
- [cheap logistics](https://blog.customodal.com/tag/cheap-logistics)
- [china](https://blog.customodal.com/tag/china)
- [choose local](https://blog.customodal.com/tag/choose-local)
- [cip](https://blog.customodal.com/tag/cip)
- [coronavirus](https://blog.customodal.com/tag/coronavirus)
- [covid19](https://blog.customodal.com/tag/covid19)
- [cpt](https://blog.customodal.com/tag/cpt)
- [ctb](https://blog.customodal.com/tag/ctb)
- [cybersecurity](https://blog.customodal.com/tag/cybersecurity)
- [dan hendrickson](https://blog.customodal.com/tag/dan-hendrickson)
- [dap](https://blog.customodal.com/tag/dap)
- [dayton freight](https://blog.customodal.com/tag/dayton-freight)
- [ddu](https://blog.customodal.com/tag/ddu)
- [diy shipping](https://blog.customodal.com/tag/diy-shipping)
- [double brokering](https://blog.customodal.com/tag/double-brokering)
- [e-commerce](https://blog.customodal.com/tag/e-commerce)
- [ebol](https://blog.customodal.com/tag/ebol)
- [exporting](https://blog.customodal.com/tag/exporting)
- [factoring](https://blog.customodal.com/tag/factoring)
- [freight damage](https://blog.customodal.com/tag/freight-damage)
- [freight jobs](https://blog.customodal.com/tag/freight-jobs)
- [freightforwarding](https://blog.customodal.com/tag/freightforwarding)
- [from the forest](https://blog.customodal.com/tag/from-the-forest)
- [fuel surcharge](https://blog.customodal.com/tag/fuel-surcharge)
- [fulltruckload](https://blog.customodal.com/tag/fulltruckload)
- [glossary](https://blog.customodal.com/tag/glossary)
- [holiday shipping](https://blog.customodal.com/tag/holiday-shipping)
- [how to switch ltl](https://blog.customodal.com/tag/how-to-switch-ltl)
- [importing](https://blog.customodal.com/tag/importing)
- [inboundfreight](https://blog.customodal.com/tag/inboundfreight)
- [industry 4.0](https://blog.customodal.com/tag/industry-4-0)
- [insurance](https://blog.customodal.com/tag/insurance)
- [insurance claim](https://blog.customodal.com/tag/insurance-claim)
- [last mile](https://blog.customodal.com/tag/last-mile)
- [location](https://blog.customodal.com/tag/location)
- [logistics coordinator](https://blog.customodal.com/tag/logistics-coordinator)
- [low cost shipping](https://blog.customodal.com/tag/low-cost-shipping)
- [maritimeshipping](https://blog.customodal.com/tag/maritimeshipping)
- [michael standley](https://blog.customodal.com/tag/michael-standley)
- [mycarrier](https://blog.customodal.com/tag/mycarrier)
- [newsletter](https://blog.customodal.com/tag/newsletter)
- [non-performance refunds](https://blog.customodal.com/tag/non-performance-refunds)
- [ocean shipping](https://blog.customodal.com/tag/ocean-shipping)
- [onboarding](https://blog.customodal.com/tag/onboarding)
- [our values](https://blog.customodal.com/tag/our-values)
- [outboundfreight](https://blog.customodal.com/tag/outboundfreight)
- [outsource](https://blog.customodal.com/tag/outsource)
- [overview](https://blog.customodal.com/tag/overview)
- [pallet](https://blog.customodal.com/tag/pallet)
- [pandemic](https://blog.customodal.com/tag/pandemic)
- [parcel audit](https://blog.customodal.com/tag/parcel-audit)
- [parcel refunds](https://blog.customodal.com/tag/parcel-refunds)
- [parcel shipping](https://blog.customodal.com/tag/parcel-shipping)
- [partnership](https://blog.customodal.com/tag/partnership)
- [permits](https://blog.customodal.com/tag/permits)
- [predications](https://blog.customodal.com/tag/predications)
- [purchasing management](https://blog.customodal.com/tag/purchasing-management)
- [questions](https://blog.customodal.com/tag/questions)
- [reshoring](https://blog.customodal.com/tag/reshoring)
- [risk management](https://blog.customodal.com/tag/risk-management)
- [rose george](https://blog.customodal.com/tag/rose-george)
- [routing guide](https://blog.customodal.com/tag/routing-guide)
- [save time](https://blog.customodal.com/tag/save-time)
- [sea freight](https://blog.customodal.com/tag/sea-freight)
- [seafreight](https://blog.customodal.com/tag/seafreight)
- [shipment](https://blog.customodal.com/tag/shipment)
- [shipping 101](https://blog.customodal.com/tag/shipping-101)
- [shipping clerk](https://blog.customodal.com/tag/shipping-clerk)
- [shipping costs](https://blog.customodal.com/tag/shipping-costs)
- [skid](https://blog.customodal.com/tag/skid)
- [staff](https://blog.customodal.com/tag/staff)
- [standley](https://blog.customodal.com/tag/standley)
- [supply chain resilience](https://blog.customodal.com/tag/supply-chain-resilience)
- [team](https://blog.customodal.com/tag/team)
- [testimonial](https://blog.customodal.com/tag/testimonial)
- [trade show shipping](https://blog.customodal.com/tag/trade-show-shipping)
- [transportation](https://blog.customodal.com/tag/transportation)
- [transportation management](https://blog.customodal.com/tag/transportation-management)
- [truck broker](https://blog.customodal.com/tag/truck-broker)
- [truckload specialist](https://blog.customodal.com/tag/truckload-specialist)
- [ups shipping](https://blog.customodal.com/tag/ups-shipping)
- [yellow](https://blog.customodal.com/tag/yellow)

#### Recent Articles

[ How Manufacturers Can Lower LTL Costs Without Hurting Service ](https://blog.customodal.com/how-manufacturers-can-lower-ltl-costs-without-hurting-service)

[ When Should Manufacturers Rebid Freight Contracts? ](https://blog.customodal.com/when-should-manufacturers-rebid-freight-contracts)

[ LTL vs Truckload: Which Is More Cost-Effective for Manufacturers? ](https://blog.customodal.com/ltl-vs-truckload-which-is-more-cost-effective-for-manufacturers)

[ How to Audit Your Freight Spend in 30 Days ](https://blog.customodal.com/how-to-audit-your-freight-spend-in-30-days)

[ Contract Freight vs Spot Freight for Manufacturers ](https://blog.customodal.com/contract-freight-vs-spot-freight-for-manufacturers)

[** PREVIOUS ARTICLE ](https://blog.customodal.com/insiders-guide-to-ltl-shipping-item-class-weight-and-density-demystified)

[ NEXT ARTICLE ** ](https://blog.customodal.com/q3-logistics-update-from-customodal-ceo-mike-eberl)

[Mike Eberl](https://blog.customodal.com/author/mike-eberl) October 20, 2023

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![The Convoy Shutdown and How Customodal Can Help](https://blog.customodal.com/hubfs/Imported_Blog_Media/convoy-shutdown-helpjpg.jpg)

## Navigating Chaos: How Customodal Offers Stability in a Turbulent Transportation and Logistics Landscape

Earlier this week, Convoy [announced it would be shutting down operations](https://www.geekwire.com/2023/convoy-collapse-read-ceos-memo-detailing-sudden-shutdown-of-seattle-trucking-startup/). The Seattle company closed its core business, leaving many companies stranded. As the industry faces one of its most profound recessions in decades and a shift in investor sentiment from risk to unit economics, it’s crucial for businesses to find stability amid the chaos. Customodal, as a seasoned player in the logistics sector, presents a beacon of hope for those concerned about the financial fragility of some brokers. [**Customodal can be a lifeline for businesses in the midst of these turbulent times.**](https://customodal.com/our-mission/)

A freight brokers’ job is to connect trucking companies with businesses that need their goods transported. There are many challenges and problems facing the industry. Customodal is here to help.

### Here’s a breakdown of what’s happening:

1. **Convoy’s Shutdown**: Convoy, a well-known freight brokerage company, is shutting down. This is surprising because it’s rare for freight brokers to suddenly close their business.
2. **Changing Industry**: The trucking and freight industry is currently facing a tough period with a lot of competition and a recession, which means less business. Investors who were previously willing to invest money in these companies are now being more cautious and looking for safer investments.
3. **Financing Problems**: Many freight brokerages have grown with the help of loans and investments. However, the conditions for getting these loans are changing, making it more difficult for them to get the money they need.
4. **Using Loans for Growth**: Some of these brokerages borrowed money and used it to grow their business. However, the amount of money they make from each deal has dropped, which means they can’t pay back their loans as easily.
5. **Financial Trouble**: Some midsize freight brokers are in financial trouble because they can’t meet the conditions of their loans, and this is causing concern for banks that lent them money.
6. **Worsening Conditions**: The situation is expected to get worse because the rates these brokers can charge for their services are under pressure, and the difference between what they make from regular contracts and one-time deals is shrinking. This means they’re making less money.
7. **Bankruptcies**: As a result, it’s expected that some of these companies may go bankrupt, which is unusual for freight brokers but more common for the trucking companies themselves.

In summary, the trucking and freight brokerage industry is going through a tough time. Many companies borrowed money to grow, but they’re struggling to pay it back due to worsening market conditions. This may lead to some of them going bankrupt. **BUT there is hope amidst the chaos.** Enter Customodal…

**Customodal’s Resilience:** In this environment, Customodal’s decades-long presence and conservative approach prove to be invaluable. While the industry may see a surge in deals and even bankruptcies for brokerage firms facing financial stress, Customodal’s stability serves as a model for resilience.

“Our ability to adapt to changing market conditions without relying on debt financing sets us apart as a beacon of stability in these turbulent times,” said [Mike Eberl](https://customodal.com/team/mike-eberl/), Customodal CEO.

The transportation and logistics industry is currently navigating a chaotic and unstable period, with major players facing the risk of closure. Amidst these challenges, Customodal’s steadfast commitment to financial stability and conservatism stands out. For businesses concerned about the industry’s volatile landscape, reaching out to Customodal can provide a lifeline of stability and reliability in these tumultuous times. [Contact our team today!](https://customodal.com/contact/)

 

## Related Articles

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## [Parcel Auditing 101: Who’s Guarding the Hen House?](https://blog.customodal.com/automated-small-parcel-audit)

 Automated Small Parcel Audit Holds Vendors Accountable. There are three distinct challenges senders face when working with small parcel delivery...

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[![The Direct Buying Savings Myth: How Buying Direct Concedes Control and Wastes Resources](https://blog.customodal.com/hubfs/Imported_Blog_Media/shutterstock_1432430447-1.jpg) ](https://blog.customodal.com/control-ltl-costs-direct-buying-myth-buy-direct-concedes-control-wastes-resources)

## [The Direct Buying Savings Myth: How Buying Direct Concedes Control and Wastes Resources](https://blog.customodal.com/control-ltl-costs-direct-buying-myth-buy-direct-concedes-control-wastes-resources)

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[![Manufacturing Growth Continues in 2022](https://blog.customodal.com/hubfs/Imported_Blog_Media/manufacturing-growth-continues-in-2022-e1692987092546.jpg) ](https://blog.customodal.com/manufacturing-growth-continues-in-2022)

## [Manufacturing Growth Continues in 2022](https://blog.customodal.com/manufacturing-growth-continues-in-2022)

 Manufacturing growth continues in 2022. Economic activity in the manufacturing sector continued to grow in May 2022, with the overall manufacturing...

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[Customodaladmin](https://blog.customodal.com/author/customodaladmin)

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