Trivia of the Day: Can you name the Less-Than-Truckload (LTL) shipping company whose stock value has soared by an astonishing 33,000% since its initial public offering back in 1991? Scroll to the bottom to find out.
Happy Hump Day. We're mapping out the coursing veins of America's freight transport network in today's feature. In the headlines: Biden-Harris administration's new freight office and initiatives, Bed Bath & Beyond's hefty lawsuit against MSC and Lineage Logistics' ambitious IPO plans. Plus, insights on global import giants and the suspected drone attack on a box ship.
🤔 Trivia of the Day: Can you name the Less-Than-Truckload (LTL) shipping company whose stock value has soared by an astonishing 33,000% since its initial public offering back in 1991? Scroll to the bottom to find out.
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In today's email:
Three Freight Headlines: Biden unveils new freight office, BBBY sues MSC for $316M, and Lineage Logistics preps for a $30B+ IPO.
America's Freight Transportation Network
Around the Freight Web: U.S. tops import charts, podcast with MoLo Solutions co-founder, and Amazon leads U.S. deliveries.
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🐔 WHAT’S COOKIN’ IN FREIGHT
Image Source: POTUS/X
🏛️ New Freight Office to Revamp U.S. Supply Chains. The Biden-Harris administration launches the Office of Multimodal Freight Infrastructure and Policy to bolster U.S. supply chains via the Freight Logistics Optimization Works (FLOW) program. Amid economic debates and a freight recession, this initiative seeks to unify major ports and retailers, enhancing efficiency and reducing costs. While President Biden touts record-strong supply chains, critics attribute easing congestion to the recession and shrinking capacity. Despite contrasting views, the government forges ahead, dedicating $17 billion to infrastructure, reaffirming its pledge to resilient supply chains.
🚢 BBBY vs MSC: A $316M Maritime Legal Battle. Bed Bath & Beyond's bankruptcy estate has launched a massive$316 million lawsuit against the world's top ocean carrier, MSC. They're claiming huge losses, including over $7.2 million for undelivered cargo and $112.8 million in lost profits, and they want to double that, citing 'retaliatory conduct' from MSC. The retail giant accuses MSC of forcing extra charges and unfair fees during the supply chain crisis, a claim MSC firmly denies. This high-stakes legal showdown could potentially impact future shipper and retailer dealings.
❄️ Lineage Logistics' Cool IPO Ambition. Lineage Logistics is warming up for a hot market debut with a $30B+ IPO slated for early next year. As the world's largest cold storage network with a vast 400-facility operation, Lineage is a giant in the logistics landscape. They've packed a hefty $13 billion capital, aiming to surpass Americold's $8 billion cap. With Morgan Stanley and Goldman Sachs reportedly steering the ship, the logistics community watches to see if Lineage can deliver on its frosty promise.
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The freight transportation network is the backbone of American commerce, ensuring the seamless flow of goods across the nation. We're taking a close look at the roadways, railways, and waterways that are the most critical bearing more than 50 million tons per year and underpinning the vitality of the U.S. economy.
Freight corridors are the veins of America’s economy, channeling essential goods across the nation. Their efficiency shapes the economic landscape, affecting everything from product prices to delivery speeds. For businesses, streamlined freight movement is crucial for meeting market demands and maintaining competitiveness. For consumers, it means affordability and availability of goods. These routes are essential to the health and growth of the U.S.
Analyzing the Freight Network
This map highlights the inbound truck routes and clusters (in green) and the inbound port traffic clusters (in blue) across North America.
Network Matrix: The freight network forms a high-capacity grid, with specific corridors marked for their heavy traffic load.
Criteria for Highlighting:
Corridors are selected based on a threshold traffic flow, with a benchmark of 8,500 trucks daily indicating routes that support 50 million tons or more of freight.
Marked by green circles, you can see the cities where significant truck traffic converges, pinpointing freight hubs.
You can see port traffic in blue, with larger circles for higher volumes and small circles for lower volumes.
These arteries enable the rapid, reliable distribution that modern trade necessitates, from perishable goods to essential industrial components.
This chart lists commodities moved by volume and value by various modes of transport across the US in 2023.
Railways and Waterways
Image Sources: Transport Geography & Grains.Org
The first image shows the major railway corridors in the U.S. Some of the key projects are:
Transcon Corridor (BNSF): North America's premier intermodal route, boasting a $2 billion investment for its extensive use.
Crescent Corridor (NS): With a $2 billion allocation, NS projects the potential to convert up to one million truckloads to rail along this corridor.
Southeast Corridor (CSX): A significant regional link, receiving a $250 million investment to enhance its operations.
The second image highlights the key U.S. waterways, the most commercially viable of which travels along the Mississippi River and its branches.
As we noted in a feature on the history of the Chicago River, the sole inland link between the Great Lakes and the Mississippi River passes through the Chicago Area Waterway System (CAWS).
Where Freight and People Meet
The U.S. freight network's backbone is its heavily trafficked segments, vital for sustaining the nation's logistics. It's also interesting to compare that to population accessibility and how that impacts the flow of the supply chain.
Optimal Midwest: Columbus, Ohio has 47% of the US population accessible within a day of trucking. Most midwest locations have a share of the population above 54%.
Far Away, Cali: Los Angeles/Long Beach, where only 15% of the population is within 500 miles, necessitates long-haul logistics to disperse the high number of inbound goods.
This contrast shows the balancing act between regional service and long-distance freight, requiring efficient supply chain management.
Challenges and Future Outlook
Freight corridors face pressing challenges, including congestion, which slows delivery, maintenance issues that can lead to disruptions, and the need for upgrades to handle increasing volumes.
However, these challenges present opportunities: investing in smart infrastructure can alleviate traffic, proactive upkeep can prevent bottlenecks, and technological innovations can enhance capacity and efficiency, ensuring these arteries of commerce flow smoothly into the future.
Key Projects in the Works:
Some of the biggest infrastructure projects in the works for rail, road, and waterways. Image Source: For Construction Pros
Road Safety: An $800 million investment for over 500 projects through the Safe Streets and Roads for All (SS4A) Grant Program.
Modernization of Inland Waterways: The 2021 Infrastructure Investment and Jobs Act (IIJA) provides billions to further modernize the U.S. inland waterway system.
Boosting Electric Charging Infrastructure: Private companies have pledged more than $16B and the government has recently authorized $100M to repair and replace existing but non-operational charging infrastructure.
AROUND THE FREIGHT WEB
🌍 Global Import Giants. Take a look at some of the top importers by value. The chart crowns the U.S. with a 13.2% import share, followed by China and Germany, which dominate Asia and Europe. Total global imports top $25.6 trillion in value.
🎙️ Cutco to Co-Founder. Will Jenkins of MoLo Solutionsdetails his journey from sales to spearheading a $600M freight powerhouse.
📦 Amazon Leads Delivery Race. Amazon surpasses UPS and FedEx in U.S. home deliveries, expanding its lead in the delivery business.
⚠️ High Seas Caution. Shippers, beware after a suspected drone attack targets a box ship linked to Israeli shipping, amidst Red Sea tensions.
🚚 Freight Forecasting. Freight in 2024: A white paper reveals key strategies and trends for shippers and freight brokers as we move into the 2024 logistics landscape.
📊 Intermodal Insights. JOC senior editor reports a promising rebound in domestic intermodal transport. October saw 745,500 containers moved, surpassing expectations, signaling a recovery, and boosting shipper optimism.
FREIGHT CONFERENCES WE'RE ATTENDING
Manifest Vegas, February 5 - 7, 2024, is the world's largest global supply chain & logistics tech event, bringing together Fortune 500 global supply chain executives, logistics service providers, cutting-edge startups, venture investors, and technology leaders. Join 4,500+ supply chain innovators to foster new strategies and relationships. Receive $200 off your ticket with our exclusive link.
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FREIGHT MEME OF THE DAY
Also, check out:
🎧 The FreightCaviar Podcast. Listen to this week's podcast on Spotify & Apple Podcasts.
☕️ FreightCaviar Fall Essentials. Purchase a FreightCaviar hoodie, long-sleeve, or mug by clicking here.
Want to get your brand noticed by freight brokers? FreightCaviar can help. Work with us to get your services featured in our newsletter, podcast, and more. Plus, we write great articles about what you do. Get in touch with Paul at pbj@freightcaviar.com to learn more.
I’m Adriana, a writer and editor at FreightCaviar. I’ve covered everything from freight tech to industry lawsuits and market shifts, helping scale us to almost 14K subscribers. My goal: to make logistics stories digestible, clear, and fun to read.
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