Congress is moving to put driverless 80,000-lb trucks on public roads. Plus: 13,000 California CDLs get cancelled, diesel hits a 32-year record, Florida wants $50K to get your truck back, and more.
Ryan Schreiber breaks down everything about strategy, relationships, mindset, and AI in logistics.
Oil spikes to $120 on Iran news before settling near $106. Plus: another influencer shipment gets stolen, Wyoming can now pull your truck, 24 states sue over tariffs, and more.
Plus: GA trucking company files for bankruptcy, Canada has record-breaking meth seizure and more.
Good Monday morning. We're bringing you an update on the economic impact of the Red Sea Shipping crisis, looking at route share, rates, and freight volume in the region. Also, a victory for L.A. county's cargo theft task force, a 25-year-old trucking company hits hard times, and a historical drug bust for Canada.
🤔 Question of the Day: How many cases of "strategic cargo theft" have been recorded by Verisk since November 2022? Scroll to Around the Freight Web to find out.
In today's email:
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🐔 WHAT’S COOKIN’ IN FREIGHT
🕵️ Massive Cargo Heist Unraveled in Cali. The Los Angeles Major Crimes Bureau Organized Retail Crimes and the Cargo Theft Task Forces achieved a big win by recovering over $5 million in stolen goods, including trailers filled with items ranging from 58" flat-screen TVs to various electronics and essentials. Additionally, over 1.2 million dollars worth of copper and brass, firearms, and big rig tires were seized. The task force says the investigation is still ongoing.
🚚 Georgia Trucking Company Files Bankruptcy. Newsome Trucking, based in Jasper, Georgia, has filed for Chapter 11 bankruptcy amid financial challenges. With 25 years under their belt, the company says they don't plan to stop but are taking a financial detour to get things back on track. The company consists of 60 drivers and a fleet of 33. Despite the challenges, the company maintains impressive operational standards, including a notably low out-of-service rate for its trucks. While they sort out their money matters, their sister company, KRN Logistics, continues operation.
💊 Canada's Record-Breaking Meth Seizure. Canadian authorities made history at the Boissevain port of entry by confiscating approximately 896 pounds of methamphetamine, estimated to be one of the largest seizures in Western Canada's history. The operation in the Prairie Region intercepted a truck from North Dakota, uncovering duffel bags of meth worth over $50.7 million. The driver, Komalpreet Sidhu, faces multiple drug trafficking charges.
TOGETHER WITH TURVO
If you're still running your logistics business on spreadsheets or using outdated transportation management software, this year will be harder than it has to be.
The world has changed, and today's fastest-growing 3PLs and freight brokers are leveraging digital tools to accelerate shipment planning, execution, and settlement. Share a modern TMS with slick screens and collaboration functions that eliminate back-and-forth check calls. Bring together everyone involved in a shipment for 100% visibility and a better customer experience.
Ask for a Demo to learn how Turvo customers achieve a 95% reduction in manual steps per shipment, 3X more revenue per broker, and 5X more shipments per client than the norm.
The Red Sea crisis, driven by Houthi attacks on ships, has emerged as a critical challenge in global trade, disrupting key maritime routes and impacting the trade economy. We're looking at three charts that summarize the impact.
Shares for container ships of the Cape of Good Hope, Panama Canal, and Suez Canal have seen a major shift. As of last week, each route saw a share of:
Commentary from Steve Simonson, CEO of Parsimony, brings up some interesting points:
All of us, both logistics pros and regular folks living their lives, underestimate the value of free flow of goods.
Is this the end of that ERA?
If individual navies have to shepard ships around going forward - that is a precursor to a much changed world. Everyone will push for close production to their target market. (Even more than is happening now.) Deglobalization in manufacturing continues…
Amidst Red Sea tensions, this Drewry WCI chart depicts a surge in freight rates for key trade routes peaking in early January.
In the last month, there has been a steep drop in actual Red Sea freight capacity, diverging sharply from expected levels in January.
With the EU planning to launch a naval mission in the next three weeks and the U.S. continuing its retaliatory strikes, more disruption can be expected as forces attempt to safeguard and stabilize this vital trade route.
TOGETHER WITH RELIANCE PARTNERS
Borderless Coverage powered by Reliance Partners launches the Mexico Cargo Hijacking Data Portal to tackle the high risk of cargo hijackings in Mexico. Providing in-depth analysis, the portal reveals a significant increase in hijackings, particularly in central and southern regions, and underscores the need for enhanced security measures. This tool is vital for businesses to strategize safer operations and navigate Mexico's challenging logistics landscape. Read more about the data portal here, then get in touch with Reliance Partners today at 877.668.1704!
AROUND THE FREIGHT WEB
🔄 Shifting Spending Habits. Consumers are shifting spending from goods to services like dining and travel.
💰 NJ Insurance Hike. New Jersey has raised truck insurance minimums to $1.5M, surpassing most states. The new requirement applies to commercial vehicles over 26,000 pounds.
✍️ Appointments Get Automated. Uber Freight is piloting the Scheduling Standards Consortium's API protocols, automating over 1,500 distribution center appointments.
📈 Saia's Growth Plan. Saia Inc. is investing $1 billion in expanding its less-than-truckload network, opening new terminals acquired from Yellow Corp. This move aims to boost capacity and improve infrastructure.
🚨 Strike Alert. Mexico's truckers are planning a nationwide strike today to protest increasing cargo theft and violence. They demand more protection from the National Guard and tougher penalties against thieves.
📉 United's Cargo Dip. United Airlines reports a 15% drop in Q4 cargo revenue and 31% for FY23, yet the company saw a 17% increase in cargo tonne miles, transporting nearly 313M pounds of cargo.
🛡️ Tech vs. Theft. The trucking industry is trapped in a tech arms race against rising cargo thefts. Verisk Analytics' CargoNet reports over 600 strategic thefts since November 2022.
STARTING & GROWING A FREIGHT BROKERAGE
In the latest FreightCaviar Podcast episode, we visited Critical Brokerage Services (CBS) and interviewed their Co-Founders and Co-CEOs Roman Velychko & Max Nikiforets.
We discussed operations at their freight brokerage in Vancouver, Washington, the city's role as a freight hub, Roman's insurance expertise, their box truck business before launching CBS, and more.
Here are the links to tune in: Apple Podcasts, Spotify, and YouTube (still processing, but should be live shortly).
FREIGHT MEME OF THE DAY
Also, check out:
Congress is moving to put driverless 80,000-lb trucks on public roads. Plus: 13,000 California CDLs get cancelled, diesel hits a 32-year record, Florida wants $50K to get your truck back, and more.
Ryan Schreiber breaks down everything about strategy, relationships, mindset, and AI in logistics.
Oil spikes to $120 on Iran news before settling near $106. Plus: another influencer shipment gets stolen, Wyoming can now pull your truck, 24 states sue over tariffs, and more.
The Supreme Court just heard arguments in the broker liability case we’ve been tracking. Plus: oil shipping costs explode, trucking insurance is stuck in 1980, regulators brace for a carrier crackdown, and more.
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