Flexport at $2.1B revenue
Jan-Erik Asplund
TL;DR: Mexican tariffs and Houthi rebel attacks in the Red Sea are proving to be powerful tailwinds for Flexport as it re-accelerates from its steep contraction in 2023. Sacra estimates that Flexport generated $2.1 billion in revenue in 2024, up 30% from $1.6 billion in 2023, with the company now projecting that it will be profitable in 2025. For more, check out our full report and dataset on Flexport.
We first covered Flexport at $3.3B revenue in 2021, growing 146% YoY, when its Uber/Postmates-style order tracking platform for global shippers recorded its first profitable year (20% gross margin, 1% net margin).
Here's our Flexport update with key points via Sacra AI:
- After revenue peaked in 2022 at an estimated $4.1B during post-COVID supply chain bottlenecks that spiked freight rates, Flexport’s revenue dropped to $1.6B in 2023 as freight rates reverted to pre-COVID levels and higher interest rates dampened consumer demand—now, Sacra estimates that Flexport has rebounded to $2.1B in revenue in 2024, up 31%.
- As a macro-sensitive business exposed to global events, freight forwarding has seen COVID & post-COVID drive massive growth for Flexport, post-ZIRP correction killing trucking-centric forwarder Convoy ($828M raised, $320M revenue in 2023) and now Houthi rebel attacks in the Red Sea in 2024 kickstarting Flexport’s re-acceleration by tripling Asia-Europe shipping rates to over $5,500 per container.
- With its acquisition of Shopify’s ecommerce fulfillment arm in 2023, Flexport gains a hedge against tariffs as a drag on global shipping—doubling in revenue as a line of business and driving warehouse utilization from below 50% to 75% as Mexico announced 15-35% apparel tariffs in December and ecommerce brands started relocating warehouses to the U.S.
For more, check out this other research from our platform:
- Flexport (dataset)
- Flexport at $3.3B revenue
- Sean Frank, CEO of Ridge, on the state of ecommerce post-COVID
- Shein vs Trump
- Shipbob (dataset)
- Klaviyo: the $665M/year HubSpot for ecommerce
- Tyler Scriven, CEO of Saltbox, on co-warehousing and D2C ecommerce
- Brian Whalley, Co-Founder of Wonderment, on Klaviyo's product-market fit
- Jordan Gal, CEO of Rally, on building the Switzerland of checkout
- Maju Kuruvilla, CEO of Bolt, on the NASCARification of checkout
- C-suite at creator economy company on the competitive dynamics of checkout
- Peter Zhou, CEO of Rutter, on building the Plaid for ecommerce
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