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.
Optimize freight broker operations by fixing payment workflows in Q1. Streamline carrier pay before capacity shifts compress your margins.
Tucker Carlson’s nicotine brand loses 378,000 tins in a cargo theft. Plus: produce rates reset, diesel climbs, and a bill that could pull hundreds of thousands of drivers off the road.
Plus, what is the true breakeven cost for a semi-truck? Find out below.
Good morning. Today's newsletter has a slightly different format than typically on a Friday. We have two feature stories:
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🐔 WHAT’S COOKIN’ IN FREIGHT
Trucking Costs Infographic Sparks Debate
It's not often that an infographic sparks a debate, but the one above, claiming a breakeven cost of $2.72 per mile for a truck, certainly did. The figure includes 99 cents per mile in driver pay, which accounts for 37% of the total cost.
Many of our Instagram followers were surprised by that number, with one commenting: "What companies are paying drivers $0.99 per mile?"
Some of the comments left on our Instagram Post:
Adam Wingfield, Founder of Innovative Logistics Group, weighed in on LinkedIn, breaking down the costs he sees and stating,
"A per truck breakeven with these calculations presumptively on the high side, results in a range between $2.03-$2.17. $2.72 is not your breakeven point… if it was, you wouldn’t be operating right now."
Ken Adamo of DAT also shared his thoughts on X, posting a graph with what he believes is the true breakeven point for a carrier.
Ken pointed to 2021 and wrote:
"This extraordinary period of profitability is why so many small carriers are able to withstand higher operating costs and lower rates. Also explains why capacity is much slower to exit this market cycle."
It just goes to show, don't believe every infographic you see, even if it looks nice.
TOGETHER WITH TRINITY LOGISTICS
Instead of just stealing cargo out of trailers, thieves are now stealing identities and hacking profiles. Fraud has always been an issue, and while there is more attention to it now, the tools to combat fraud are still in the hands of Brokers and Shippers.
From vetting tools, a known carrier base, and a compliance team checking into every carrier with whom you work – being a part of a company that supports your business in this way is imperative.
If you've ever worried that your role as a carrier sales rep might be replaced by AI, those concerns are slowly becoming reality.
Fleetworks, a freight tech company specializing in automating calls for freight brokerages, has just launched its "End-to-End" booking system, which fully automates the carrier booking process.
In a recent example, a load from Sioux Falls, SD, to Cudahy, WI, was booked with a 28% margin for Capstone Logistics.
The AI, named Fred, vetted the carrier via Highway’s API, negotiated the rate, confirmed the carrier's ability to meet the pickup, and assigned the carrier in McLeod. Rate confirmations were sent automatically and all call details were logged.
Previously, Fleetworks would transfer calls to carrier sales reps for final steps. Now, AI manages the entire process, minimizing the need for manual input.
This upcoming Monday, October 14th, we’re releasing our interview with Paul Singer, CEO & Co-Founder of Fleetworks. Tune in on Apple Podcasts, Spotify, or YouTube to hear his thoughts on the future of AI in the industry.
Below you can watch the entire interaction between the AI and dispatcher:
TOGETHER WITH EPAY MANAGER
Epay Manager Powered by OTR Solutions is a back-office automation solution that enables teams to easily collect PODs and process carrier invoices, manage disputes, schedule carrier payments, and bill customers in one centralized platform for AR and AP teams.
Epay's platform is designed to virtually eliminate operational reliance on email and the need to audit carrier invoices for rate and delivery information thanks to its Audit Proof Invoicing feature. Backed by the power of OTR Solutions, Epay Manager now offers integrated AI-driven NLP automation and working capital solutions. See what Epay can do for you:
🌎 AROUND THE FREIGHT WEB
🌪️ Some Ports Reopen After Hurricane. Key ports in Florida, Georgia, and South Carolina have reopened after Hurricane Milton, though some Florida ports remain closed.
🤖 $3.3M For Brokerage Automation. Cartage, part of Y Combinator’s Class of 2024, secured $3.3 million to develop automation solutions aimed at supporting both shippers and carriers, working to eliminate the outdated freight tendering process.
💼 Investors Push Forward Air Sale. Investors are urging Forward Air to consider a sale after its merger with Omni Logistics, citing concerns over the company's value and leadership credibility.
🚛 OOIDA & Truckstop Partnership. OOIDA has partnered with Truckstop, making its load board the group's exclusive provider, with the primary goal of teaming up to fight fraud.
🌍 Freight Movement Increases in Ohio. The state's freight movement by weight is projected to increase by 56%, with an astonishing 99% growth by 2040.
⚖️ Convicted Truck Driver Killer. Miguel Ibarguren has been found guilty of murdering his co-driver, whose body was discovered in a ditch along I-65. His sentencing is scheduled for next month.
🎣 THE FREIGHT CAVIAR CORNER
FREIGHT MEME OF THE DAY
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.
Tucker Carlson’s nicotine brand loses 378,000 tins in a cargo theft. Plus: produce rates reset, diesel climbs, and a bill that could pull hundreds of thousands of drivers off the road.
The Middle East crisis is already hitting carriers. Plus: Florida lost $3B in crops, flatbed rates posted a fifth straight weekly increase, a $5B brokerage was just acquired, and more.
Plus: autonomous trucking just raised $113M, California is fighting to keep 20,000 drivers, Arrive's 2026 truckload freight forecast, and more.
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