🎣 480 Drivers Laid Off

Good morning. Today's feature breaks down reports that postal giant MTI is shutting down, leaving 480 drivers jobless. Industry players speculate on what's driving the change in this once-lucrative field. We're also covering Mexico's hijacking crisis, which is making companies wary.

TOP LANE MOVERS POWERED BY GREENSCREENS.AI

*Greenscreens.ai, forecasts real-time truckload buy prices that are suited to each freight brokerage's purchasing power using AI and machine learning. Its engine takes into account over 130 attributes and data points in each rate forecast.

🐔 WHAT’S COOKIN’ IN FREIGHT

🚛 Mexico’s Booming Trade Facing Hijacking Crisis. Mexico's U.S. trade is thriving, surpassing China with $500B in imports in 2023. However, organized crime is exploiting the surge, making Mexico the top hotspot for cargo truck hijackings globally. The increase in truck crossings has attracted major companies like Walmart and Tesla, but rampant crime—averaging 50* truck hijackings per day and nearly 150 driver murders annually—poses a serious threat to the country’s growth. Southern Mexico suffers from weak law enforcement, deterring investments. While President-elect Sheinbaum promises reforms, businesses are rethinking logistics amid the increasing dangers.

🚨 FTC Halts RivX Trucking Scam. The FTC and Florida have shut down RivX, a fraudulent trucking automation company, for scamming consumers out of millions. RivX, led by Antonio Rivodo, falsely promised passive income from truck investments, charging $75,000+ for nonexistent trucks. Victims never saw returns, losing their savings. The court has frozen RivX’s assets and halted operations, exposing the company's unlawful practices, including silencing complaints. The legal case continues, with consumers left empty-handed and the fraudulent trucking dream parked indefinitely.

⚡ Tesla Ramps Up Electric Semi Production. Tesla is making strides in electric semi-truck production near its Gigafactory. With 26 new semis spotted, production is ramping up ahead of the new dedicated electric semi-truck factory's 2025 launch. Tesla has partnered with BZI, utilizing innovative construction technologies like MezzMaster and SkyBrace to enhance the build's speed and precision. The factory's completion will significantly increase Tesla’s capacity to produce electric semis and meet orders from companies like PepsiCo, Walmart, UPS, and others.

TOGETHER WITH TRINITY LOGISTICS

A large amount, and growing, of Mexico’s exports are shipped to the United States.  At Trinity Logistics, our Freight Agents have the ability to arrange shipments for their customers in and out of Mexico. We have relationships in place with carriers and Agents on the ground in Mexico and at the border to help navigate and understand the differences in shipping. 

If you are currently turning away shipments or only arrange shipments to and from the border for your customers, reach out today to see how you can partner your Freight Agency with Trinity Logistics.

USPS Contract Carrier Shuts Down: 480 Drivers Laid Off

Midwest Transport Inc. (MC#454765), an Illinois-based trucking company, has hit the brakes on its operations, reports say. This closure will affect over 650 employees, including 480 drivers.

The Big Picture:

• Midwest Transport Inc. (MTI) was a major U.S. Postal Service contractor
• Company ceased operations on Thursday, September 5, 2024
• Sources say drivers were notified by phone calls from regional managers
• MTI has not issued an official statement as of writing

Key Stats:

• 480 drivers affected
• 428 power units idled
• 5 key terminals shut down

MTI's safety record was a mixed bag:

• 27% out-of-service rate for trucks (national average: 22%)
• 3% out-of-service rate for drivers (below 7% national average)
• 21 injuries and 42 tow-aways in past 24 months

Industry Reaction:

Craig Fuller, CEO of FreightWaves, sparked a lively discussion on X (Twitter) about the changing landscape of postal trucking:

"Postal trucking used to be a license to print money. That's changed over the past decade. Postal truckers continue to fail."

Fuller's comments ignited a flurry of responses and speculation:

1. USPS Restructuring: Fuller explained: "[Louis] DeJoy, the Post Master is doing everything in his power to reform the post office to push it towards profitability. It's a painful transition."

This led to debate about U.S. Postmaster DeJoy's motives and methods:

• Some users questioned if changes benefited DeJoy's former company, XPO Logistics
• Fuller countered: "DeJoy sold his company to XPO over a decade ago..."

2. Market Forces:

• One user asked if this was "more of the [A]mazon effect on shipping [than] a reflection of the freight market."
• Fuller responded: "It's more of a restructuring of postal contracts."

3. Industry-wide Impact: The conversation expanded to broader logistics concerns:

• Users speculated on which logistics companies might thrive in this new environment
• Fuller's top picks (with "unlimited money"): "FedEx, UPS, CPKC, ODFL, or Prologis"

4. Historical Context: Some users provided historical perspective:

• "Used to be everyone got to dip bread in gravy. Now hedgefunds at the requisite of the uniparty no one gets anything."
• Another user noted: "Last few years it changed radically."

The X thread revealed a mix of industry insider knowledge, speculation about political motivations, and concerns about the future of postal logistics. It's clear that MTI's closure is seen as part of a larger trend, with many in the industry bracing for further changes and potential consolidation in the postal trucking sector.

TEXTLOCATE: YOUR "SUPERPOWER" FOR VISIBILITY

TextLocate makes it easy for brokers to communicate directly with drivers via SMS-based text messaging—no app to download—without having to use personal communication devices.

Features like 2-way text chat, one-time location updates, and image capture (think BOLs and PODs) all inside a simple dashboard give brokers the quick updates they need to make better decisions about freight.

Instead of wasting time calling drivers, brokers simply automate the process through TextLocate and save hours at very little cost investment.

🌎 AROUND THE FREIGHT WEB

📱 Carrier Info Breach. In August 2024, over 3,100 carriers had phone numbers altered, while 1,100 had emails changed due to a significant security breach.

🚛 Trump & Trucking Recovery? Craig Fuller tweeted that a Trump presidency could drive the fastest trucking market recovery due to various economic policies.

🚢 Port of LA Takes Lead. In July 2024, the Port of LA overtook Laredo, Texas, as the top US trade gateway, with an increase of 24% YoY to $30 billion dollars.

🚛 Labor Day Trucking Slump. A lackluster Labor Day in 2024 offered no boost to the struggling trucking market.

⚖️ Wabash National Verdict. A Missouri jury awarded $462 million against Wabash National in a case involving a fatal truck crash, raising concerns over stricter trailer safety standards.

💼 Big Lots' Financial Struggles. Discount retailer Big Lots is reportedly filing for Chapter 11 bankruptcy protection and has agreed to sell its business to private equity firm Nexus Capital due to struggling to manage mounting debt and declining sales.

🎣 THE FREIGHT CAVIAR PODCAST

Freight Broker (W2) vs. Freight Agent (1099)

In this week's FreightCaviar podcast, we interviewed Brian AuBuchon, VP of Logistics at TAB LLC, to dive into:

1. The key differences between being a freight broker and a freight agent.
2. The pros and cons of each role.
3. The benefits of selling to shippers with an asset-backed brokerage. TAB is part of Artur Express, which operates over 800 trucks and 3,000+ trailers.

Watch on YouTube or listen on Apple Podcasts and Spotify.

FREIGHT MEME OF THE DAY