Trucking-Futures Exchange Startup TransVix Sets up Shop in Chattanooga
Image: TransVix
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Image: TransVix
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TransVix LLC, a startup aimed at launching the first futures exchange based on trucking capacity, has moved its headquarters from Fort Worth to Chattanooga, Tenn., to leverage the city’s emerging reputation as an entrepreneurial hive and transportation hub.
According to the company, its game plan is to create a trucking-capacity futures exchange to address rate volatility, which it regards as “one of the most significant challenges in freight transportation today.”
As TransVix sees it, currently shippers, carriers and freight brokers have no effective way to protect their market exposure on the volatility of trucking spot market pricing. But by leveraging advanced technology to create an exchange to help mitigate the pricing risks associated with the $726B trucking industry, TransVix will “enhance the way participants currently buy and sell trucking capacity.”
The company noted that freight futures have been traded in the maritime market and listed on exchanges around the world in London, Shanghai, and Singapore. TransVix would be the first exchange in the world to focus on trucking freight.
Given that the U.S. trucking and logistics market accounts for 81.5% of all freight transportation spend, per TransVix, the futures contract market potential is “an estimated 4x multiple of the underlying market revenue, creating a $2.8-trillion market opportunity for U.S. trucking futures.”
TransVix CEO Craig Fuller said the move to Chattanooga was driven by the firm’s significant growth and desire to capitalize on the strengths “Gig City” offers. “Over the past decade Chattanooga has transformed into an entrepreneurial hotspot and the city is on its way to becoming the nation’s capital of supply chain, logistics and transportation technology,” he said.
“Talking with business leaders, both here and across the country, it’s clear that assets like our fiber-optic Gig infrastructure and Innovation District make Chattanooga a leader and global competitor in …Read the rest of this story
