The domino effects are just starting to hit. Plus: FedEx dethroned UPS, Mexico truck production plunges, another $26M AI supply chain raise, and more.
Freight margins are razor-thin. The brokerages surviving it built nearshore teams that actually work.
Flatbed rejections hit a record 48.7%, broker numbers stop falling, and diesel jumps 30 cents overnight.
The Chattanooga-based freight brokerage grew from a bold idea into a $500 million enterprise, eventually merging with Coyote Logistics in 2014. Coyote was subsequently acquired by UPS in 2015 for almost $2 billion.
Good Wednesday Morning. Today's feature takes a close look at Ted Alling's journey from Access America to shaping Chattanooga's youth. We'll also cover Uber Freight's workforce reduction, NTG's large-scale hiring, and the severe weather's impact on trucking routes. Plus, will the Red Sea tensions lead to inflation in the US?
In today's email:
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🐔 WHAT’S COOKIN’ IN FREIGHT
💼 Uber Freight Layoffs Garner Criticism. Uber Freight, a key player in digital freight brokerage, just reduced its workforce by 40 to 50 employees, impacting both its team and those from the newly acquired Transplace. The company calls the move a strategy for sustainable growth. However, the layoffs, communicated via one-on-one Zoom calls after a misstep with early email notifications, have caused concern among staff and generated some heated commentary. Critics question the company's ethics, wondering if Uber calling the premature emails an "error in the system" was a made-up story.
👔 NTG: Bold Start to 2024. Nolan Transportation Group (NTG) started 2024 with a bang, bringing on 126 new sales reps. This bold move by the freight brokerage company has stirred mixed reactions in the industry. Social media comments ranged from skeptical humor about long-term retention to applauding NTG's growth amid challenging times. This large-scale recruitment sparked debates over sustainability and employment stability not only for NTG, but the sector as a whole.
🌪️ Storms Wreak Havoc on Key Trucking Lanes. Severe storms across the U.S. are impacting major trucking lanes this week. Data from WeatherOptics quantifies the risk to drivers (scale of 0-10) and freight (percentage delay from normal). In four of the top five most affected lanes, Chicago is a common thread. These include the Chicago to Memphis and Chicago to Cleveland lanes, both experiencing a 66% shipment delay and high driver risk. The Buffalo to Boston lane also faces a 62% delay due to heavy rainfall and winds. Additionally, lanes from Denver to Chicago and Minneapolis to Chicago both see a 67% delay.
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The FreightCaviar YouTube channel recently dropped a different kind of video: A tour of Chattanooga's rich logistics heritage and its future alongside freight serial founder Ted Alling. Ted's story is one of true entrepreneurial spirit, harnessing success to uplift and create meaningful change in his community.
With his friends Barry Large and Allan Davis, Ted co-founded Access America Transport in 2002. The Chattanooga-based freight brokerage grew from a bold idea into a $500 million enterprise, eventually merging with Coyote Logistics in 2014. Coyote was subsequently acquired by UPS in 2015 for almost $2 billion.
Writing for CityScope Magazine, Ted recalls, "Building Access America with Barry and Allan was a wild adventure. It was never about trucks, trailers, or freight, but a journey with people who cared and loved each other." The trio's unique approach to business — prioritizing a positive workplace culture, cost-saving measures, and a deep camaraderie — set a new standard in the industry. Their leadership philosophy was unconventional yet effective, with none of them being the highest-paid employees in the company, a rarity in corporate America.
After selling Access America, Ted and his wife, Kelly, decided to take a year-long sabbatical and move to London while thinking about what they should do with their newfound gift. After returning to Chattanooga, they opened Chattanooga Preparatory School, a public charter school for the economically disadvantaged.
They are breaking generational curses and ensuring that all students of Chattanooga Prep graduate from a four-year university.
"We wanted to invest in the youth," Ted shares, "to change the trajectory of life for these young men." Chattanooga Prep, founded by the Allings in 2018, provides private-school quality learning free of charge for all students and aims to break the cycle of poverty through education.
The school, focusing on personal finance, entrepreneurship, and ownership, strives to instill in its students the skills necessary to create generational change. "Our goal is to get the kids to own equity in things, to own their own companies," explains Ted.
Kelly Alling emphasizes the community's need for such an institution: "We're waitlisted every year. There's such a demand for what we offer to the young men of our community."
The school, now serving 480 young men, offers a range of activities, including sports, chess, and more, fostering a holistic educational experience.
Ted touches on the importance of emotional support at Chattanooga Prep: "We have full-time counselors for the students and teachers, as there's a lot of trauma that gets absorbed." the school's values of joy, courage, and service permeate its culture, encouraging students to make right decisions and serve others.
Outside of Chattanooga Prep, Ted has been involved in multiple ventures.
During the FreightCaviar tour, Mayor Weston Wamp highlighted Chattanooga's longstanding logistics history, drawing parallels between the city's past and present, enhanced by Ted's ventures. "The logistics ecosystem here is defined by centuries of trade and commerce," said Mayor Wamp. "From the Great Indian Trading Path to becoming a hub of river and interstate commerce, Chattanooga's history is deeply intertwined with logistics, a legacy that Ted and others have built upon."
Ted's journey is a practical model for current and future leaders, showing that business success can be a powerful vehicle for broader societal benefits.
Check out our YouTube video for the full tour of Ted's ventures and their impact on the Chattanooga community.
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AROUND THE FREIGHT WEB
🤔 Could the Red Sea Tensions Escalate Inflation? Rising container shipping rates due to the Red Sea tensions are highlighted by Benjamin Gordon as a potential catalyst for increased inflation.
📖 FreightWebster.com Update. A new open-source freight dictionary led by GateGo.io founder Adrian Garcia has been updated to allow requests for your favorite freight terms.
👨💻 Balancing Tech & Touch. Patrick Noonan, Founder of MAP Transit, joined The Bootstrapper's Guide to Logistics Podcast to talk about his journey as an early-stage freight brokerage founder. Read the article for the main takeaways, by clicking here.
🚢 Major Maritime Attack Thwarted. In the Red Sea, Operation Prosperity Guardian forces repelled the largest Houthi-led attack yet on merchant vessels, securing the safety of around 50 ships.
🚚 PS Logistics Expands Through Acquisition. PS Logistics bolsters its Southeastern U.S. presence, acquiring flatbed specialist Buddy Moore Trucking, and adding over 500 power units to its fleet.
✈️ FedEx Anticipates Postal Service Cutback. FedEx faces a 50% reduction in its air contract with the U.S. Postal Service, pivoting towards ground transportation and impacting pilot jobs.
CARRIER OF THE WEEK PRESENTED BY LOSTFR8.COM
D.A.M. Hot Shot Transportation, hailing from Knoxville, TN, stands out as this week's featured carrier. Led by Rulen, who began his journey in 1998 as a courier in Arizona, the company has evolved to specialize in expedited and final-mile freight. Since joining LOST FR8, Rulen and his team have made significant strides, showcasing dedication and customer satisfaction. Named after the founders Danny, April, and Morris, D.A.M Hot Shot exemplifies growth and personalized service in the logistics industry. For dependable expedited freight services west of I35, they're the ones to call. Check out their profile on LOSTFR8.
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.
FREIGHT MEME OF THE DAY
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