ShipCalm, a Carlsbad-based logistics and e-commerce company, has acquired Pico Rivera-based River Source Logistics. Terms of the deal were not disclosed.

ShipCalm’s acquisition comes at a unique time for the global shipping industry. Right now, the digital-focused e-commerce world is reckoning with complicated logistics and physical labor that makes delivering goods possible.

Brands are increasingly embracing omnichannel shopping strategies, which require them to meet their customers in store, online and through social media in equally frictionless ways.

At the same time, increasing tensions between China and the U.S. are impacting the ports – 90% of all trade with East Asia is facilitated through the Port of Long Beach, per the organization, and China is circumventing tariffs and trade restrictions imposed by the U.S. by doing more business with Mexico. This means goods from China are increasingly reaching the U.S. by land freight rather than ship.

River Source Logistics was founded by former Amazon sellers and works in omnichannel logistics. Businesses can sell directly to consumers or to other businesses. ShipCalm’s platform encompasses many of the touchpoints business owners need to deal with when shipping products. It integrates with e-commerce selling channels like Amazon, Shopify and eBay, as well as provides packing and assembly.

The acquisition will, theoretically, allow ShipCalm to offer lower logistics costs for customers. River Source Logistics has access to cheaper rates from ports. The combined logistics resources will more than double ShipCalm’s customer base.

“This will make life easier for all of our customers, enabling them to grow and expand, particularly their West Coast operations,” ShipCalm Chief Executive Greg Moser said in a statement. “We will now have substantial warehouse and fulfillment centers located centrally – in Indiana and Los Angeles – which poses a very attractive proposition for overseas customers. All four corners of the U.S. are now easily accessible in terms of shipping requirements.” 

ShipCalm will move operations to Los Angeles and gradually discontinue operations from its San Diego warehouse. The Los Angeles-based warehouse will provide three times the capacity of the company’s San Diego haunts.