🎣 $55M Raised to Fight Cargo Theft

Good Monday morning. Cargo theft is on the rise, and Overhaul just raised $55M to fight it. With organized crime targeting high-value goods and cross-border trade increasing, Overhaul’s AI-powered platform aims to protect supply chains and prevent costly losses.

Plus:

• 🏛 3PL Liability Protection Strengthened
• 🚓 Massive Cocaine Bust on I-40
• ⚖ Aurora Sues FMCSA Over Safety Rules
• & more...

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🐔 WHAT’S COOKIN’ IN FREIGHT

🏛 Court Reaffirms 3PL Liability Protection in Broker Case. A federal appellate court upheld a ruling that C.H. Robinson had no agency relationship with carrier Caribe Transport, shielding the broker from liability after a 2017 accident involving a Caribe Transport truck. The court reinforced distinctions between brokers and agents, emphasizing control over delivery as a critical factor. This decision, alongside earlier cases like Ye vs. GlobalTranz, strengthens protections for brokers under the Federal Aviation Administration Authorization Act. Meanwhile, the Supreme Court may soon decide whether to review similar liability issues, prompted by a joint petition in Gauthier vs. TQL.

🚓 Massive Cocaine Bust in Arizona. On Monday, Jan. 6, 2025, Arizona DPS troopers seized drugs during a traffic stop on Interstate 40 near Holbrook for “civil violations.” Authorities discovered 553.8 pounds of cocaine concealed within a produce shipment, with an estimated street value of up to $22.1 million. The truck, en route from Salinas and Los Angeles, California, to Canada, raised suspicion due to indicators of possible criminal activity. After searching the trailer, troopers uncovered the hidden drugs. The driver, 31-year-old Amarjeet Singh Matharu, was arrested and booked in Navajo County on multiple charges, including possession and transportation of narcotic drugs for sale.

⚖ Aurora Sues FMCSA Over Warning Device Ruling. Aurora, featured last week for its partnership with Nvidia and Continental, is suing the FMCSA after its request to replace roadside triangles with cab-mounted warning beacons (CMWBs) on driverless trucks was denied. FMCSA cited a lack of safety evidence, despite studies supporting CMWBs' effectiveness. Aurora called the decision “arbitrary and capricious.” FMCSA has since proposed a study on warning devices, hinting at possible regulatory updates. Aurora's president stressed that modern safety tech should influence trucking regulations.

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$55M Raised: Overhaul’s Mission to Fight Cargo Theft

Cargo theft is skyrocketing, but Overhaul isn’t sitting idle. The Austin-based logistics security company just secured $55M in fresh funding, bringing its total to $150M, to tackle supply chain risks for giants like Microsoft and Dyson. Here’s how Overhaul is making an impact—and what this means for freight.

Cargo Theft by the Numbers

Cargo theft is a growing issue, with 14% more thefts in Q3 2024 compared to the previous year. The total value of stolen goods in the U.S. and Canada exceeded $39M in just three months, according to CargoNet.

Organized crime groups have shifted tactics, targeting electronics, pharmaceuticals, and parcel services, with weekend thefts now making up 23% of incidents.

Overhaul’s Role in the Fight

Founded in 2016 by Barry Conlon and David Broe, Overhaul is the brainchild of two logistics veterans, both originally from Ireland.

After selling their previous company, FreightWatch, they aimed higher, creating a platform that tracks goods, and also prevents theft and ensures compliance.

Their AI-powered software detects at-risk cargo and alerts their Global Security Operations Center (GSOC), connecting with law enforcement in real time.

Overhaul has been on the front lines. For example, in November 2024, their sensors and GSOC team stopped a rail heist in Southern California, catching thieves mid-theft.

What the $55M Means for Freight

Overhaul’s latest raise comes at a critical time when:

• Funding in supply chain tech is shrinking: $7.1B was invested in 2024 through Q3, compared to $63.7B in 2021 according to Pitchbook.
• Security is more critical than ever: Rising theft rates and compliance mandates mean companies can’t afford gaps in visibility or security.

The funding will go toward:

• Expanding Overhaul’s 600-person team.
• Building out tools for cold chain management, cargo insurance, and real-time theft prevention.
• Making strategic acquisitions to strengthen their offerings in a crowded market.

Implications for the Industry

Overhaul's story is one part of the story of growing challenges in freight. With cargo theft becoming more sophisticated and widespread, companies are being forced to adopt proactive security measures. From AI to real-time tracking, the tools being developed now will shape the next decade of freight.

Not to mention the added layer of complexity as cross-border trade with Mexico reaches new heights.

• Rising Cargo Theft in Mexico: In October 2024, cargo theft in Mexico increased by 6.25% year-over-year, with the State of Mexico, Puebla, and Oaxaca being the most affected states.
• Surge in U.S.-Mexico Trade: From January through October 2024, U.S.-Mexico trade totaled $706.9 billion, a 5% year-over-year increase compared to the same period last year

As cross-border trade continues to flourish and cargo theft becomes more multi-faceted, the ability to anticipate and prevent crime before it happens will become a key differentiator in the freight industry.

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🌎 AROUND THE FREIGHT WEB

💨 Powerful Winds. Severe winds in California toppled over a dozen semi-trucks, tragically killing one driver. Authorities are reminding all “high profile vehicles” to be careful. The high wind warning remains until 6pm Wednesday.

❄️ A Slippery Slope. Alabama authorities are warning drivers of hazardous conditions across the state, declaring "every bridge impassable” and “every road a risk” due to the snow and ice covering a majority of the roadways.

☃️ Snowball Showdown. Truck drivers stuck on I-30 during the snowstorm decided to lighten the mood by having a snowball fight across the highway.

📈 4PL on the Rise. The market for 4PL services due to increasing use of automotive, pharmaceuticals and consumer products, is projected to exceed $104 billion by 2030, thanks to a compound annual growth rate of 8.39%.

👕 Tariffs Impact. US apparel importers are scrambling to adapt after Mexico imposed tariffs. “No one knows what to do. Everyone is exploring options right now,” says Ryan Martin, President of Distribution & Fulfillment at ITS Logistics.

🎣 THE FREIGHT CAVIAR CORNER

• FreightCaviar Serbia Documentary: Last March, we traveled to Serbia for an exclusive behind-the-scenes look at the country’s outsourced freight environment. Catch it now on YouTube!
• Conferences: Join 350+ top speakers across 150+ sessions and start planning your ultimate Manifest experience - the future of supply chain & logistics is waiting! Save $200 on the current registration rate ($600 off on-site) here.
• Find Shippers Fast: Looking for customers? Check out Shipper CRM, the world's largest shipper database, and apply for access here.

FREIGHT MEME OF THE DAY