🎣 Broker Transparency

Good morning. The broker transparency debate heats up, cyberattacks in the transportation sector triple, and a major IT outage disrupts global supply chains. Plus, Alvys TMS secures significant funding, and don’t miss our interview with Kary Jablonski, CEO of Trucker Tools, on The FreightCaviar Podcast.

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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

🫥 Broker Transparency Debate. The debate over enforcing 49 CFR 371.3, which requires brokers to keep transaction records and allow carriers to review rates, is heating up. Small carriers and owner-operators demand this transparency, but large brokers resist. A study by Overdrive found that 75% of owner-operators want brokers to reveal shipper rates. Despite promises, the FMCSA has delayed action on this issue. Broker Jeffrey Tucker argues that full transparency could drive down rates and hurt the market. The FMCSA is expected to review and possibly act on these transparency petitions as early as October, focusing on enforcing existing rules rather than introducing a new bill.

💻 Transportation Sector Cyberattacks Triple in 2023. A recent study using data from the Identity Theft Resource Center revealed that the transportation industry experienced a significant surge in cyberattacks. There were 101 data breaches in 2023—a 181% increase from the previous year, equaling the combined total from 2020 to 2022. The transportation and shipping sectors generated the majority of global ransomware detections, surpassing the combined total of the finance, telecom, media & communications, and healthcare sectors.

🚚 Alvys Hauls in Big Bucks to Rev Up Freight Tech. Alvys, a transportation management software (TMS) provider, has secured $20.5 million in Series A funding, bringing its total funding to $30 million. The company offers load matching, quote generation, and dispatching solutions, aiming to lead in AI-driven logistics. Customers report significant improvements, with Bear Down Logistics reducing load creation times by 12 minutes and PBJ Express saving $120,000 in overhead. On average, Alvys users see a 22% increase in load volume after four months.

TOGETHER WITH ISOMETRIC TECHNOLOGIES (ISO)

Brokers: which carrier do you want your rep choosing?

• Option 1: Bob's Trucking
  • Rate: $600
  • Status: Empty
  • Location: 60 miles from pickup
• Option 2: ABC Trucking
  • Rate: $600
  • Status: Empty
  • Location: 60 miles from pickup

Carrier sales reps often make decisions with just this data on hand, relying on a bit of institutional knowledge to proceed. In a market where demonstrable, superior service levels are the only reason a shipper will switch from their incumbents, making decisions like this isn't good enough. Which toolkit will help you make a lasting impression with a shipper?

Global IT Outage Hits Supply Chains Hard

A massive IT outage on Friday wreaked havoc on global supply chains, impacting everything from ground transport to air cargo shipments and ports. Here’s a breakdown of how it affected the US trucking and freight brokerage sectors:

What Happened?

• When: July 18, with fallout still ongoing.
• The Issue: CrowdStrike, a cybersecurity firm used by more than half of Fortune 500 companies, released a software update that led to widespread IT disruptions.
• The Fix: Though the main fix was as simple as deleting a single file, the damage was done.
• Impact: Approximately 8.5 million Microsoft Windows devices globally.

Impact on Trucking and Freight Brokerages:

• ELD Systems Down: Many Electronic Logging Devices (ELDs) used by truck drivers were hit, causing compliance issues. The Federal Motor Carrier Safety Administration (FMCSA) provided guidelines on what drivers should do if their ELDs were affected.
• Some Freight Brokerages Affected: Some freight brokerage platforms, like Coyote’s load board, experienced downtime, complicating load bookings.

Broader Transport and Logistics Impact:

• Air Cargo Delays: Airlines were hit hard, resulting in grounding flights and causing major delays. American Airlines, Delta, and others reported disruptions.
• Port Operations Disrupted: Major ports reported disruptions, raising fears of a repeat of the NotPetya cyberattack. NotPetya was a major ransomware attack in 2017 that crippled global businesses, causing billions in damages.

Poll Summary

We conducted an Instagram poll asking our followers if they were affected by the IT outage. Thirty-five percent (140 individuals) responded that they were.

Most of our audience seemed unaffected or only experienced minor disruptions, such as Bob Kruz, who runs the popular Instagram page, usa_transportation, and owns a midsize trucking company. When asked about disruptions to his operations on Friday, he said:

Honestly, nothing crazy on our side. I think only Coyote board was down. But booking same was usually.

Implications for the Future

Experts warn that an outage like Friday's is "likely to happen again, and possibly with more serious repercussions, so governments and the private sector need to be ready."

Now's the time to reassess your IT infrastructure and disaster recovery plans.

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

📉 Marten Transport's Q2 Struggle. Despite increased miles driven, truckload carrier sees its operating ratio deteriorate to 98.8%, reflecting weak market conditions despite cost-cutting efforts.

💨 Vape Imports Rising. US trade data reveals 60,000 tonnes of e-cigarette imports by air in past year, equivalent to six hundred 777 freighters full.

🛡️ Uber Freight's Security Win. Uber Freight recognized as 2023 Best in Cargo Security by CargoNet, boasting 60% fraud reduction over past year.

🍌 Massive Cocaine Bust. Ecuadorian authorities seize 6.23 tonnes of cocaine hidden in banana shipment destined for Germany, worth $224 million.

🚁 Walmart's Drone Delivery. Retail giant launches drone delivery service in Dallas, with reports of seamless but noisy operations.

🎣 THE FREIGHT CAVIAR PODCAST

In this week’s episode of The FreightCaviar Podcast, we sat down with Kary Jablonski, CEO of Trucker Tools, a carrier capacity and relationship management platform. Kary takes us through her journey, shares future plans for Trucker Tools, discusses their mobile app, and provides insights on becoming a better leader.

This episode is brought to you by TAB LLC.

Listen on Apple Podcasts or Spotify. Watch on YouTube.

FREIGHT MEME OF THE DAY

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• Receive 3 Months Free of AscendTMS Premium with reference code: RA-FreightCaviar! Click here to learn more.