ShipStation adds LTL freight to parcel platform, eyes TMS expansion

What does ShipStation's LTL integration mean for small fleets?

ShipStation, the largest multi-carrier parcel shipping software in North America, began facilitating less-than-truckload freight shipping this week in the same workflow customers use for parcel. CEO Tom Madine told FreightWaves the platform will add truckload freight and final-mile delivery next, expanding beyond e-commerce into industrial and medical manufacturers.

The LTL capability came from private equity owner Thoma Bravo's summer acquisition of Worldwide Express Group and its freight brokerage portfolio. Thoma Bravo merged ShipStation and sister companies Stamps.com, Metapack and Packlink with WWEX Group in early June, renaming the holding company ShipStation Global.

How ShipStation's platform works for freight

ShipStation provides digital workflow tools that import shopping cart orders from multiple e-commerce stores into a single virtual inventory management system. The system automatically organizes, processes, fulfills and ships orders from multiple distributors, shopping for carriers that meet pre-set requirements for price, delivery time and other factors.

Businesses manage carrier selection, scheduling, tracking and label generation in one spot without manually connecting to multiple carrier websites. The service appeals to businesses that lack the resources, scale or expertise to negotiate discounted rates with carriers.

"ShipStation has allowed us a one stop shop platform so that we don't have to spend hours every day" managing parcel shipments, said Ned Woodward, director of logistics and fulfillment at Spiceology. "Everything's integrated from our ERP into ShipStation, and we've got labels at our fingertips."

The platform now applies the same logic to LTL freight. Madine said the company powers the platform with intelligence to help people make better decisions about how to ship parcels and freight.

Where ShipStation plans to expand

ShipStation currently operates in Canada, the United Kingdom, Italy, Spain and Australia. In Europe, its biggest users are large enterprises and micro-businesses that use the platform to compare and select parcel carriers. London-based subsidiary Metapack provides delivery management technology to e-tailers.

"Our grand plan is to build out those geographies. There's a big area of opportunity for us with small-and-medium businesses, in the middle market. That's sort of our next growth lever," Madine said Sept. 1 during a live interview at the company's Austin, Texas headquarters. "There's really not a global player for shipping software. ShipStation has the opportunity to be that."

Expansion could come through acquisitions or partnerships, similar to current carrier relationships under which ShipStation pre-negotiates rates and plugs into carrier booking sites.

"The reason a lot of these mega brands use us in Europe is we manage over 400 [software] connections to parcel carriers around the globe. Supply chain is different in every country, but at least in the top 15 to 20 e-commerce markets, we think there's a real opportunity for there to be a global leader," Madine said.

Competition in multi-modal shipping platforms

Few parcel shipping marketplaces also offer LTL. A smaller brand called Shipio says its technology coordinates parcel, LTL and truckload movement across 90 carriers and multiple fulfillment locations.

ShipStation's move into LTL and planned truckload integration puts it in the same territory as transportation management system platforms that already handle multi-modal freight, though ShipStation's strength remains its pre-negotiated carrier rates and simplified workflow for businesses without dedicated logistics staff.

What this means for owner-operators

ShipStation's expansion into LTL and truckload freight opens another channel for capacity. The platform's automated carrier selection means shippers will book freight based on pre-set price and delivery requirements, not broker relationships. Owner-operators and small fleets that want access to ShipStation's shipper base will need to connect through the platform's carrier network or through WWEX Group's brokerage portfolio.

Madine said businesses in sectors outside e-commerce, such as industrial and medical manufacturers, can benefit from ShipStation's tools to better manage their supply chain. That broadens the shipper pool beyond retail parcel shippers into heavier freight categories where owner-operators typically compete.