B1 visa drivers and illegal operators are not the same thing. Here's the difference and why conflating them is hurting the industry.
FMCSA cracks down on MC numbers. A $158M trucking Ponzi. Middle East surcharges.
Plus: CH Robinson has lost its moat, Werner believes the freight recession is ending despite a challenging Q1, and more.
Happy 1st Day of May. In today's main story, we are taking a look at the highest-value exports from each state. We also want to welcome our latest sponsor, TAB LLC. If you are exploring freight agent opportunities with an asset-backed company, check out their ad below for more information.
🤔 Question of the Day: North Carolina exports $4.3 billion in _______ to China, more than any other product and one of the most long-distance trade flows of any state. Scroll to the bottom of our main story to find out.
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*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
📉 Freight Rates Still Down YoY in April. Freight rates in April 2024 show mixed signals across regions. Year-over-year, all modes – van, reefer, and flatbed – have seen declines. Flatbeds are beginning to show a seasonal uptick. The Southwest saw a +6.7% year-over-year rise in van rates, while the Northeast fell by -4.5%. Comparing against the 23H2 baseline, some regions show promise of recovery. The second quarter will be key to predicting the market's future.
🚢 Baltimore's Bounce Back. Baltimore International Warehousing and Transportation (BIWT), a trucking company, faced setbacks after the Francis Scott Key Bridge collapse closed the port, causing rerouted shipments and layoffs. They bounced back thanks to a grant that brought all 16 drivers back to work. With the first container ship now arriving at Seagirt Terminal and three temporary channels open, there’s a hint of recovery in the air. Founder Sue Monaghan and her daughter Shannon are hopeful that the reopening of the port’s main channel will restore normalcy.
🚚 Werner's Outlook: Is the Downcycle Ending? Werner Enterprises believes the freight recession is ending despite a challenging Q1. Their net income dropped to $6.3 million, and truckload revenue fell 6% YoY. Despite this, Werner sees potential recovery in H2 2024, projecting $40 million in cost savings for this year. However, skepticism abounds among truckers who claim the freight recession is far from over and analysts’ data doesn't reflect the on-the-ground reality. Despite these concerns, Werner remains optimistic, hoping to capitalize on improving spot rates and cost-saving initiatives.
TOGETHER WITH TAB
TAB-LLC is a wholly owned subsidiary of Artur Express Inc. Our asset-backed model allows our agents to explore opportunities that would otherwise be unavailable.
At TAB, we provide agents with unmatched support, leading technology, staffing options, and unlimited potential to meet their financial goals and keep the wheels turning.
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You're probably aware that the freight market isn't exactly thriving right now. In these uncertain times, it's helpful to keep tabs on America's biggest export trends.
The U.S. shipped out a record high of $2.1 trillion worth of goods in 2022, making up 8.4% of global exports. Even with all the supply chain issues and international trade challenges, there's still a lot of valuable information for brokers in this data. Now is the time to be strategic about how and where you focus your resources. Let's check out some highlights from ondecks report:
The upcoming review of the United States-Mexico-Canada Agreement (USMCA) in 2026 could impact trade flows significantly. There could be changes in rules of origin, customs procedures, and labor provisions that could directly affect freight movement between these countries.
The trade deficit indicates the imbalance between the value of imports and exports. The USMCA has the potential to influence these flows by modifying trade rules and tariffs, which can affect how competitive U.S. goods are in Canada and Mexico.
In Monday's newsletter, we highlighted how the upcoming U.S. elections could affect the supply chain, but Mexico is also gearing up for its 2024 elections.
Mexico's election could influence trade relations with the U.S. with candidates holding varying levels of support regarding established trade agreements.
Adriana Pulley
Each of these states has its own logistics landscape:
Answer to Question of the Day: North Carolina exports $4.3 billion in chemicals to China, more than any other product and one of the most long-distance trade flows of any state.
Sources: Ondeck | The Dialogue | Bureau of Economic Analysis
TOGETHER WITH LEVITY
Levity helps fast-moving 3PLs and freight brokers to do more with less by automating the most time-consuming and repetitive email tasks.
Whether it's spot quoting, load building, or answering track-and-trace requests, Levity connects to your inbox, TMS and other tools like rating engines, extracting the right information no matter the language or format. It performs tasks on your behalf automatically in the background so you can save time and focus on building shipper relationships instead of data entry. Learn more on Levity.ai today.
AROUND THE FREIGHT WEB
🚚 C.H. Robinson Lost Its Moat? A piece from FreightWaves CEO Craig Fuller raises doubts about the freight brokerage giant's long-term stability as its stock plummets and innovation outpaces it.
💥 DSV’s Helicopter Accident. A trucker hauling a Sikorsky helicopter hit an overpass, causing millions in damages. DSV may be on the hook for a $16M bill. Miscommunication and route deviations played a crucial role.
☠️ The 5 Deadliest Highways in the US. Here's a quick reel showcasing the most dangerous highways in the United States.
🤖 Waabi’s Terminal. The company’s new autonomous trucking hub in Lancaster, TX, will boost its presence in the region, supporting future commercial and development operations in the South.
📈 Amazon Q1 Success. Amazon's impressive earnings beat expectations, fueled by growth in logistics, advertising, and cloud computing. The company's Q1 revenue rose 13% YoY. Plus, a forecast of up to $149B for Q2 looks promising.
🚆 Close Call. A semi-truck narrowly avoids disaster, changing lanes just in time as a derailing train crashes into his lane and explodes.
🎣 FREIGHT CAVIAR CORNER
Our most recent Freight Caviar Podcast episode takes us to Berlin, Germany, where we meet up with the Co-Founders of Levity.ai, CEO Gero Keil, and CTO Thilo Huellmann. This episode breaks down the differences between German and American startup cultures, the beginnings of Levity, and the future of AI automation in freight and other industries. Check it out on our blog, Spotify, or YouTube channel.
This week's podcast is brought to you by Dynamic Logistix.
FREIGHT MEME OF THE DAY
Also, check out:
FMCSA cracks down on MC numbers. A $158M trucking Ponzi. Middle East surcharges.
The domino effects are just starting to hit. Plus: FedEx dethroned UPS, Mexico truck production plunges, another $26M AI supply chain raise, and more.
Flatbed rejections hit a record 48.7%, broker numbers stop falling, and diesel jumps 30 cents overnight.
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