🎣 $2 Billion Freight Contract

In today's newsletter:

• What's Cookin' in Freight: Crowley's massive military contract, Torc's autonomous plans, and May's port data.
• Main Story: Fourth of July Cargo Theft Risk Continues
• Around the Freight Web: Freight broker automation debate, Greenscreens carrier spot market insights, and more. 

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🐔 WHAT’S COOKIN’ IN FREIGHT

🇺🇸 Crowley Wins Major Military Logistics Contract. Jacksonville-based logistics company Crowley has been awarded a $2.3 billion, seven-year contract by the U.S. Transportation Command (USTRANSCOM) to provide transportation and logistics services for the U.S. military. This contract, one of the largest under the federal government, includes less than truckload (LTL), full truckload (FTL), expedited, time-definite, and rail services, as well as cross-docking and warehousing across the continental U.S., Alaska, and Canada. Crowley will also continue to utilize small businesses and diverse suppliers, significantly expanding its network to support military logistics needs.

🤖 Torc Robotics Plans Driverless Trucks by 2027. Torc Robotics aims to launch its autonomous trucking technology on a major lane of Interstate 35 in Texas by late 2026, with full-scale deployment expected in 2027. The company, an independent subsidiary of Daimler Truck, has been testing its self-driving trucks in the southwestern U.S. and plans to expand its operations in Texas, Arizona, and New Mexico. Torc's technology integrates pre-programmed parameters and artificial intelligence, and the company has been actively preparing for a scalable market entry.

📊 Mixed Signals at U.S. Ports: Increase in Containers Despite Volume Fluctuations. While major hubs like the Port of Los Angeles and Long Beach saw declines, others experienced significant growth. The Port of Oakland and Port Houston reported increases in container volumes, with the Northwest Seaport Alliance and Georgia Ports Authority also showing strong performance. These shifts suggest a potential boost in summer activity across various ports. Year-over-year changes and expert predictions point to a promising outlook for the coming months, despite the fluctuations ports are facing. Most port executives express optimism about the future.

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Cargo Theft Risk Continues Beyond July 4

Although the Fourth of July holiday has passed, cargo theft risks remain high. Historical data shows that risk and theft peaks continue on the Friday and weekend after the holiday. 

Based on historical data from CargoNet:

• 174 cargo theft events occurred from July 1 and July 7 over the past five years. 
• Peak Risk Locations: warehouses/distribution centers, and truck stops. 
• Top 3 Targeted States: California, Texas, and Florida
• Total Loss Value: $4,145,393

Q1 2024 saw a 46% year-over-year increase in cargo theft incidents, with 925 documented thefts valued at an estimated $154.6 million. This trend has continued into Q2, with strategic theft further complicating things.

Scott Cornell, transportation lead and crime and theft specialist at Travelers, warns:

"Double-brokering fraud has been around for years, but it's definitely increasing. Strategic cargo theft in general has had massive increases from 2022 to now, and we continue to see that this enables the organized cargo theft ring to be at arm's length from the theft itself,” Cornell tells FreightWaves.

Key Cargo Theft Trends in 2024:

• Strategic Cargo Theft: Rise in complex fraud schemes, including double brokering
  • Strategic theft involving digitally altered paperwork already saw a 430% year-over-year jump in Q3 2023. 
• Geographic Shifts: Increased theft in non-traditional areas like Arizona and Nevada
• Targeted Commodities: Small appliances, liquor, energy drinks, and copper

Recent High-Profile Cases: 

Southeastern Theft Ring: Four individuals sentenced to 2.5-5 years in prison, ordered to pay over $5 million in restitution for thefts exceeding $1.7 million. Notable thefts included $640,000 worth of CDC-bound computers.

Southern California Operation: A multi-agency sting resulted in 51 arrests, recovery of $8 million in stolen cargo, $325,000 in cash, 20 firearms, 20 stolen vehicles, and 425 pounds of methamphetamine.

These cases show the growing complexity and rising cargo theft costs. They also reveal possible connections between cargo theft and other crimes, such as drug trafficking and weapons offenses.

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🌎 AROUND THE FREIGHT WEB

🤖 Automating Freight Brokerage. Last Friday, we hosted our first live FreightCaviar debate on the topic: Will freight brokerage be automated in the near future? Click here to re-listen to hear insights from industry experts.

📉 June 2024 Carrier Spot Rate Trends. Greenscreens.ai reports that last month carrier spot rates showed minor increases in the South and continued softening in the North, with northern markets down by around 5.5% to 6.1% from late 2023 levels.

🚛 FMCSA's Enforcement Struggles. The FMCSA is struggling to clarify its enforcement responsibilities amid rising freight fraud, citing a 2019 ruling as a barrier, though experts argue it still has the authority to impose fines.

🛑 Transportation Capacity Stalls in June. The Logistics Managers Index (LMI) reported no growth in transportation capacity for June.

FREIGHT MEME OF THE DAY

Also, check out:

• 🎧 The FreightCaviar Podcast. Listen to this week's podcast on Spotify & Apple Podcasts.
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