March's freight market update. Plus: Elon's $25B chip factory in Texas, UNFI closing a Wisconsin DC, Chick-fil-A building its own supply chain, and more.
Fuel is up, trucks are parking, and a two-year broker just got his first real market education.
LA rejections just doubled, flatbed hit $3.74, and 9,500 drivers are off the road. Plus: SoCal theft ring busted, C.H. Robinson cuts headcount, UP CEO fires back, and more.
Plus: Landstar and Schneider report Q4 earnings, an update on Freight Essentials' legal battle with WWEX, Trump approves tariffs against Mexico and Canada, and more.
Happy Friday. January’s wrapping up, but before we call it a month, let’s talk C.H. Robinson’s Q4 earnings. We're breaking down the hits, misses, and their 2025 game plan in today's feature.
Plus:
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🐔 WHAT’S COOKIN’ IN FREIGHT
📈 Landstar & Schneider Navigate Shifting Cycles After Decent Q4. Landstar and Schneider reported mixed Q4 earnings. Landstar’s revenue rose to $1.175 billion, missing the $1.19 billion consensus. Truckloads and revenue per load remain volatile, but management sees early signs of recovery. CEO Frank Lonegro shared "positive" vibes among agents and customers. Schneider met Q4 expectations, achieving earnings growth across all segments for the first time since 2022. CEO Mark Rourke noted seasonal freight market improvements, with demand aligning with expectations. The company anticipates better truckload and intermodal pricing in 2025, supported by its Cowan Systems acquisition. Both companies expect continued freight market stabilization despite shifting rates and regulatory changes.
🤐 Freight Essentials vs WWEX: The Battle of Secrets. Freight Essentials is challenging efforts by GlobalTranz, Worldwide Express, and WWEX to seal court records in an ongoing lawsuit. Freight Essentials alleges the defendants engaged in deceptive fees, anti-competitive tactics, and retaliation, violating RICO and FTC regulations. Freight Essentials' CEO, Dylan Admire, insists the public has a right to transparency stating, “The public has a right to know the full extent of the wrongdoing.” Under Texas law, court records are presumed open, and advocates can oppose the sealing motion at a February 7 hearing. Legal counsel warns that granting secrecy could set a dangerous precedent. If you would like more information on this case, you can hear it from Dylan Admire himself on this weeks episode of The FreightCaviar Podcast on YouTube, Spotify or Apple Podcasts.
🛑 Trump’s Tariff Plan Set To Go Into Effect. President Donald Trump confirmed that 25% tariffs on imports from Canada and Mexico will take effect on Feb. 1, with a possible expansion to include oil from these regions. Trump has previously emphasized these tariffs as leverage to curb illegal immigration. The administration has invoked national security powers to justify the measures, which could face legal and legislative challenges. Trade experts warn of economic repercussions, though exemptions may be possible, particularly for goods already in transport or due to contract terms – per Alexander Schaefer. Meanwhile, the 10% tariff on Chinese goods is still in the works, with a broader trade review raising concerns about further tariff expansions.
TOGETHER WITH HAPPYROBOT
HappyRobot helps your team scale by handling the thousands of calls, emails, & messages that keep your business running.
You can think of an AI worker as a gatekeeper to your reps, managing the day-to-day & passing off interesting prospects or urgent updates when needed.
Go to happyrobot.ai to book a demo to chat with our AI (& also a human) about how we're helping businesses operate more efficiently.
C.H. Robinson, the largest freight broker in the nation, reported Q4 2024 net income of $149.3 million, marking a 382.1% year-over-year increase.
This impressive gain was achieved despite a slight 0.9% dip in total revenue, which settled at $4.18 billion, mainly due to decreased truckload volumes and pricing.
Key Highlights:
CEO Dave Bozeman emphasized that the company’s "Robinson Operating Model" is at the heart of its financial turnaround. The model prioritizes disciplined execution, productivity improvements, and technology-driven efficiencies to thrive in a prolonged freight recession.
"Our people are embracing the discipline needed to generate higher highs and higher lows across market cycles, resulting in a higher quality of volume, greater productivity, and an expansion of our gross profit and operating profit margins." – Dave Bozeman, CEO, C.H. Robinson
Key elements of this strategy include:
The company stressed that headcount growth is now decoupled from volume growth, meaning the company aims to scale profitably without bloating its workforce—a key shift in how it approaches market fluctuations.
C.H. Robinson’s stock is down 6.9% since yesterday morning.
The culprit appears to be the still sluggish freight market. Michael Castagnetto, NAST president, pointed to rising linehaul costs and shrinking industry capacity as ongoing challenges.
Despite a big jump in net income, the market wasn’t buying into the optimism, reacting instead to the broader freight recession and cautious outlook.
TOGETHER WITH TRUENORTH
Frustrated with outdated load booking methods that look too much like Craigslist-for-freight? TrueNorth offers brokers a modern solution:
🌎 AROUND THE FREIGHT WEB
🚚 Anti-Fraud is Back. Lawmakers have reintroduced legislation to give FMCSA “explicit authority” to combat fraudulent brokers and trucking companies are exploiting regulatory gaps within the freight industry.
🚛 Duffy Confirmed. Sean Duffy is confirmed as U.S. Transportation Secretary to oversee infrastructure and safety.
🏈 SB LIX Preparations. Logistical planning for a Super Bowl involves extensive coordination among the NFL, host city, vendors, and transportation providers. This year is no different with new tech and companies in the fold to ensure a successful event.
📄 MyCarrier’s Open Letter. Michael Bookout, CEO of MyCarrier, shares his perspective on the ongoing legal dispute with project44, emphasizing the importance of transparency and the company’s dedication to all customers and employees impacted by the litigation with project44.
📉 Cross-Border Freight YoY. In November 2024, the value of cross-border freight between the US, Canada, and Mexico remained stagnant, totaling out at $131 billion from November 2023. This total is in spite of all the tariffs.
⚖️ Meth Driver's Trial. Lincoln Smith appeared in court Tuesday for a 2023 I-5 crash that killed seven. Prosecutors allege his meth use was a major contributor to the accident, while his defense claims he was fatigued and had used meth a day earlier.
🛣️ CargoNet's RouteScore. CargoNet's new RouteScore model assesses theft risk along specific routes all in real-time, with the aim of aiding supply chain and insurance companies in mitigating cargo theft.
🚨 CBP Seizes Meth at WTB. US Customs and Border Protection officers at the World Trade Bridge, Laredo Port of Entry, intercepted meth valued over $8.1 million hidden within a commercial shipment of industrial machinery.
🎣 THE FREIGHT CAVIAR CORNER
FREIGHT MEME OF THE DAY
March's freight market update. Plus: Elon's $25B chip factory in Texas, UNFI closing a Wisconsin DC, Chick-fil-A building its own supply chain, and more.
Fuel is up, trucks are parking, and a two-year broker just got his first real market education.
LA rejections just doubled, flatbed hit $3.74, and 9,500 drivers are off the road. Plus: SoCal theft ring busted, C.H. Robinson cuts headcount, UP CEO fires back, and more.
“Strong Solo Sergey” is catching heat on X. Plus: $5 diesel hits truckers, autonomous trucks in Texas, and attorneys go to jail.
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