Forward Air focuses on integration, revenue opportunities after Omni merger

Forward Air said it remains focused on the integration of Omni Logistics and the revenue synergies it can achieve as it is now operating a platform that includes freight forwarding and contract logistics along with its legacy expedited less-than-truckload and intermodal offerings.

The Greeneville, Tennessee-based company closed on the merger with Omni in January following a lengthy courtship as the deal was contested by shareholders and Forward itself searched for an exit path.

On its second-quarter call Wednesday, management said it was focused on a “holistic” approach to its service offerings and the way it approaches the market. It vowed to keep its ground LTL network out of the integration, saying it will continue to interact with shippers through third parties (forwarders) and not through direct selling as some of its customers had feared.

Forward’s forwarding customers initially had concerns that the acquisition would cut them out of the equation as Omni is a freight forwarder and their direct competitor. Management said it has begun implementing nondisclosure agreements with its forwarding customers to ensure it doesn’t impose on their shipper relationships.

Source: freightwaves.com