JPMorgan forms new logistics alliance

JPMorgan has formed an alliance with global transportation management company Trax Technologies to offer a range of logistical and financial services, including supply chain financing solutions for Trax's customers. Trax offers freight cost management services to major transport companies.

With financing provided in addition to outsourced freight services that automate and manage a carrier's billing process, the combined offering allows carriers and their customers to maximise the use of their working capital and cash flow.

"Combining JPMorgan’s financial expertise with Trax’s proven success in freight cost management will help our customers further improve their financial supply chain operations,” says J Scott Nelson, CEO of Trax Technologies.  “Carriers and their customers gain a valuable tool for managing cash and information flow along the entire financial value chain, while reducing costs.”

Trax’s outsourced freight invoicing service automates and manages the billing and accounts receivables process. By adding JPMorgan’s supply chain financing solution, Trax can extend the shipper’s payment terms while enabling the carrier to discount its receivables for cash.  
Michael Quinn, managing director of product development, JPMorgan global trade services, adds: “By integrating our solutions, carriers and their customers will benefit from streamlined access to financing options, as well as increased visibility into invoice status and payment information.”

With JPMorgan supply chain financing, carriers can automatically or manually select receivables to discount and decide how and when they want to receive payment.  Carriers have the option to sell to JPMorgan, the confirmed invoices meeting eligibility criteria, or to select some invoices to be sold to JPMorgan.  Carriers receive payment from JPMorgan of a discounted price for the invoices purchased, along with comprehensive remittance data.  At maturity, the shipper will settle all confirmed invoices delivered to JPMorgan’s platform.