200,000 drivers didn’t disappear overnight. Plus: Dalilah’s Law targets foreign dispatch, a broker ran a $1M USPS scam, the dashcam war escalates, and more.
B1 visa drivers and illegal operators are not the same thing. Here's the difference and why conflating them is hurting the industry.
If you had invested $10,000 in Yellow shares on Monday morning, by Tuesday afternoon your investment would have been worth ...
Happy Hump Day. Yellow has stopped operations, yet its share price surged by 387.5%. Meanwhile, Taylor Swift rewarded her truckers with $100k each. In other news, Tesla is seeking $100M for a TX-CA semi-truck charging route, and Schneider National and Titanium Transportation are expanding their reach with new acquisitions.
In today's email:
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🐔 WHAT’S COOKIN’ IN FREIGHT
📈 Yellow's Share Price Surges 387.5% Despite Ceasing Operations. Yellow, the US's fifth-largest trucking company, ceased operations on Sunday. Surprisingly, its share price skyrocketed, with an 80-cent value on Monday morning, soaring to $3.90 by Tuesday's close. This represents a 387.5% increase in just one day. Therefore, if you had invested $10,000 in Yellow's shares on Monday morning, it would have ballooned to $48,750 by Tuesday's close. It's a shocking development for a company that has stopped operations. Timothy Dooner gave some insight into this, saying, “A bankruptcy loan is in the works, and I've just learned that a 'whale' made a significant purchase, which explains some of the activity." It will be fascinating to watch how this situation unfolds.
🎤 Taylor Swift Gifts $100K Bonuses to Eras Tour Truckers. Taylor Swift has reportedly gifted $100,000 bonuses to each of the truckers working on her Eras Tour. The bonuses, which total about $5 million for roughly 50 truckers, were given as an "end of the tour" gift before her show in Santa Clara, CA. Swift's tour, which has generated $1 billion in sales, is nearing the end of its US leg. Aside from truckers, the pop superstar has also given bonuses to her band members, dancers, lighting and sound technicians, caterers, and others.
🔋 Tesla Seeks $100M for TX-CA Semi-Truck Charging Route. Tesla aims to create nine electric semi-truck charging stations from Texas to California and is seeking $100 million from the U.S. government to fund the project. This initiative is part of Tesla's application for federal grants from a new bipartisan infrastructure program. With a personal contribution of $24 million from Tesla, the project could greatly reduce greenhouse gas emissions from commercial trucks.
TOGETHER WITH RAPIDO
Rapido is a top nearshore staffing company providing logistics and supply chain talent to companies in the United States. Based in Guadalajara, Mexico, Rapido offers a unique combination of cost savings and access to a skilled workforce, making it an attractive option for American logistics businesses.
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The Mergers and Acquisitions (M&A) landscape in the transportation and logistics sector has undergone a considerable shift in 2023. Numerous factors such as compressed spot rates, elevated inventories, slower consumer spending, and the Federal Reserve's decision to hike the target federal funds rate are molding the current M&A activity. These dynamics are influencing M&A deal terms, leading buyers to lean more towards "buyer-friendly" strategies to navigate the more expensive acquisition landscape and the reduced return on investment (ROI).
Despite these challenges, the industry continues to see promising activity. Just this week, two significant acquisitions were announced.
Schneider National has made a strategic move to expand its transportation capabilities through the acquisition of M&M Transport Services. Although the financial details of the deal remain undisclosed, the acquisition marks a significant expansion of Schneider's service range. M&M's fleet of 500 trucks and 1,900 trailers are now added to Schneider's resources, thereby enhancing their ability to serve the retail and manufacturing sectors more extensively.
In a first for the Canadian logistics provider, Titanium Transportation Group, the company has ventured into the U.S. market with the acquisition of Georgia-based truckload carrier Crane Transport. Valued at $59 million, the acquisition includes the carrier's real estate and adds a fleet of 200 trucks and over 600 diverse units to Titanium's arsenal. This move not only marks Titanium's debut in the U.S., but it also significantly boosts its existing operations in the Southeast.
Sources: Tenney Group, Commercial Carrier Journal, & FreightWaves.
LOGIFLEX: YOUR DRAYAGE & HAZMAT CARRIER
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AROUND THE FREIGHT WEB
🧢 Flock Freight, Please Advise. Reed Loustalot humorously criticizes Flock Freight's claim of being the sole provider of 'shared truckload' services.
💸 Uber Freight Is Still Losing Money. Despite a widening year-on-year EBITDA loss, Uber Freight's Q2 loss has shown improvement from Q1 due to rigorous cost management, amidst declining revenues.
🎙️ How to Succeed As A Freight Broker. Dennis Brown, a successful freight brokerage veteran and founder of Freight Broker Boot Camp, shares his journey in a new FreightCaviar podcast episode.
📈 Diesel Is Almost At $4.20. Diesel prices have experienced a significant surge, reaching $4.127 per gallon, marking the largest consecutive weekly increase since January 2022.
✅ UPS Teamsters Back $30bn Deal. UPS Teamsters overwhelmingly endorse a five-year, $30 billion contract that promises wage increases, the end of the two-tier wage system, and enhanced benefits.
📉 TFI and Heartland Express Hit by Q2 Weakness. TFI International and Heartland Express reported weakened Q2 financial results, with both companies experiencing declines in revenue and earnings.
🚚 Impact of Yellow's Shutdown. Gabe Pankonin reported significant missed pickups by multiple LTL trucking companies yesterday, predicting the trend will continue in the coming weeks.
FREIGHT MEME OF THE DAY
200,000 drivers didn’t disappear overnight. Plus: Dalilah’s Law targets foreign dispatch, a broker ran a $1M USPS scam, the dashcam war escalates, and more.
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.
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