Fr8App Awarded Key Routes with Envases Universales
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The strategic partnership between Freight Technologies, Inc. and Envases Universales is a significant development that could influence the company's revenue streams and growth trajectory. The deal, valued at over $5 million, represents a substantial commitment from Envases Universales and reflects confidence in Fr8App's technological capabilities and logistics services. This collaboration is likely to enhance Fr8App's market position within the USMCA region, particularly in cross-border transportation.
From a market perspective, securing dedicated lanes suggests a competitive advantage in terms of capacity and service reliability. For stakeholders, the expected influx of $5 million in revenue over the next year is a positive indicator of Fr8App's financial health and its potential to attract similar contracts in the future. However, it is crucial to monitor Fr8App's operational efficiency in managing the increased load and maintaining service quality, which could impact customer satisfaction and retention.
The announcement of Fr8App's deal with Envases Universales holds potential implications for Fr8Tech's stock performance. Investors should consider the revenue recognition from this contract over the forthcoming 12 months, which may contribute to steady cash flows and possibly enhance earnings reports. The deal's value, however, is contingent upon Envases Universales' production levels, introducing a variable that could affect the financial stability of the agreement.
It is also pertinent to evaluate Fr8Tech's current valuation and how this deal aligns with the company's projected earnings. The partnership could lead to a re-evaluation of the company's growth prospects, particularly if Fr8App successfully leverages this opportunity to secure additional contracts. Nonetheless, investors should remain aware of the risks associated with customer concentration, as reliance on a few large contracts can lead to volatility in earnings if there are any disruptions in those relationships.
The logistics industry, particularly in cross-border shipping within the USMCA region, is highly competitive and demands operational excellence. Fr8App's ability to secure 24 dedicated lanes from Mexico to the United States suggests robust network capabilities and an understanding of the complexities involved in cross-border logistics. The commitment to transport more than 1,600 loads for Envases Universales will test Fr8App's logistical execution and technology-driven approach to ensure timely and secure delivery.
Efficient management of these routes could set a precedent for operational standards and attract additional clients seeking similar reliability. However, it is essential to consider the potential challenges of customs compliance, varying transportation regulations and the need for seamless coordination across borders. The success of this deal could serve as a benchmark for Fr8App's operational proficiency and resilience in the face of logistical hurdles.
Fr8App Secures Strategic Routes with Envases Universales for Logistics Services, Valued at More Than
HOUSTON, Feb. 26, 2024 (GLOBE NEWSWIRE) -- Freight Technologies, Inc. (Nasdaq: FRGT) (“Fr8Tech”), a technology company whose custom-developed, industry-leading Fr8App freight-matching platform offers a real-time portal for B2B cross-border and domestic shipping within the USMCA region, is proud to announce a significant collaboration with Envases Universales, one of the largest packaging companies worldwide. Fr8App was awarded key routes through Envases’ annual 2024 RFQ, underscoring Fr8App’s commitment to delivering exceptional transportation services and its capability to meet the evolving needs of its clients.
Over the next twelve months, the awards are estimated to be valued at more than
“We are thrilled to have been chosen by Envases Universales to help manage their transportation needs over the coming year,” said Fr8App’s CEO, Javier Selgas. “This collaboration not only speaks to our capabilities but also to the trust Envases Universales has in our ability to deliver exceptional service. It also highlights the importance of tactical collaboration between the companies in driving profitable growth and achieving excellence in dependable and efficient logistics execution.”
It is important to note that the value of the awarded routes may be subject to change based on the production levels or needs of Envases Universales. If Envases Universales experiences lower than expected customer demand or production output, the amount of the awarded routes may be adjusted accordingly. We consider this a low-probability outcome given Envases Universales’ market leadership in its industry.
About Freight Technologies Inc.
Freight Technologies (Nasdaq: FRGT) (“Fr8Tech”) is a technology company developing solutions to optimize and automate the supply chain process. Its wholly owned subsidiary, Freight App, Inc. (“Fr8App”), is a B2B cross-border shipping marketplace in the USMCA region powered by AI and machine learning. Focused on making shipping transparent and efficient, Fr8App provides carriers with increased growth opportunities and shippers with flexibility, visibility and simplicity for the once-complex process of international over-the-road (“OTR”) shipping. Fr8App uses its proprietary technology platform to connect carriers and shippers and significantly improve matching and operation efficiency via innovative technologies such as live pricing and real-time tracking, digital freight marketplace, broker, transportation management, fleet management and committed capacity solutions. The company is headquartered in Houston, Texas. For more information, please visit fr8technologies.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Freight Technologies’ and Fr8App’s actual results may differ from their expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements.
These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside Freight Technologies’ and Fr8App’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the impact of the COVID-19 pandemic on Fr8App’s business, if it should recur; (2) the inability to obtain or maintain the listing of Freight Technologies’ ordinary shares on Nasdaq; (3) changes in applicable laws or regulations; (4) the possibility that Freight Technologies or Fr8App may be adversely affected by other economic, business and/or competitive factors; (5) risks relating to the uncertainty of the projected financial information with respect to Fr8App; (6) risks related to the organic and inorganic growth of Fr8App’s business and the timing of expected business milestones; and (7) other risks and uncertainties identified, including those under “Risk Factors,” to be filed in Freight Technologies’ other filings with the SEC. Freight Technologies cautions that the foregoing list of factors is not exclusive. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Freight Technologies and Fr8App caution readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Freight Technologies and Fr8App do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based.
FAQ
What is the value of the strategic routes secured by Fr8App with Envases Universales?
What is the main focus of Fr8App's collaboration with Envases Universales?
How many dedicated lanes are included in the awards from Envases Universales to Fr8App?
Who will be responsible for transporting over 1,600 loads for Envases Universales?
What factors could potentially impact the value of the awarded routes?
