Trivia of the Day: Which Chattanooga-based freight brokerage was acquired by Coyote Logistics in 2014 for $125 million, leading to many of its former employees opening their own freight companies in Chattanooga? Scroll to the bottom to find out.
Good Monday morning. Freight memes on X (formerly Twitter) are taking over as Craig Fuller announces free passes to F3 next year if you post a freight meme every day. More details are at the bottom of our newsletter. In today's newsletter, we highlight CargoNet's Q3 2023 Cargo Theft Trend Analysis. We also cover the record-low Global Supply Chain Index, industry-shifting Trucker Overtime legislation, and Hyliion's strategic shift away from electric powertrains. Plus, we touch on the resurgence of U.S. goods spending and MightyFly's giant cargo drones being used by the Air Force.
Trivia of the Day: Which Chattanooga-based freight brokerage was acquired by Coyote Logistics in 2014 for $125 million, leading to many of its former employees opening their own freight companies in Chattanooga?Scroll to the bottom to find out.
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In today's email:
Three Freight Headlines: Supply chain relief and what it means for trucking, new trucker overtime rights bill, and Hyliion's shift from Class 8 Electric Powertrains.
Cargo Theft in the U.S. and Canada Continues to Climb
Around the Freight Web: Spending on goods rises, JB Hunt & BNSF unveil a service for timely deliveries, and trucking anticipates a robust holiday season.
Freight Meme of the Day
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🐔 WHAT’S COOKIN’ IN FREIGHT
This chart illustrates the Global Supply Chain Pressure Index from 1997 to October 2023. The sharp dip in 2023 indicates the lowest supply chain pressures in 26 years.
⛓️ GSCPI: Supply Chain Relief. With the NY Fed's Supply Chain Index at a record 26-year low, truckers and freight brokers face a paradox. The dip suggests smooth sailing for global trade and last-minute holiday shipping. Yet, for the trucking industry, brimming with COVID-induced capacity, it's a double-edged sword: less congestion but potentially less work. For Truckers: A smoother chain means lower demand, risking income. For Brokers: Lower rates could hurt, but there's a chance to fortify business ties.
⚖️ Overtime Rights for Truckers. A new bipartisan bill could transform trucking compensation in the U.S. Named the "Guaranteeing Overtime for Truckers Act," it aims to scrap a decades-old law exempting truckers from overtime pay. The move, supported by industry advocates, targets reducing driver turnover and enhancing supply chain stability. Opponents, however, fear it could disrupt logistics and inflate costs. This proposal promises fairer wages for over 2 million truckers.
⚡ Hyliion Shifts from Electric Powertrains to Karno Generator, Cuts Jobs. Hyliion Holdings Corp., often featured on FreightWaves' 'What The Truck?!?', is exiting the Class 8 electric powertrain business—the key component that powers electric vehicles—to concentrate on its Karno generator. This shift, as CEO Thomas Healy notes, is due to adoption challenges and financial pressures, resulting in the loss of 175 jobs. Plans are underway for a new R&D facility, with anticipated Karno revenues by late 2024, though shares have dipped following the announcement.
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Cargo Theft in the U.S. and Canada Continues to Climb
Earlier this year, we reported on Q2 2023 cargo theft incidents which were up 57% YoY. The upward trend continues.
Staggering Increase in Theft Incidents
Recorded Events: There were 692 cargo theft events in Q3 2023, marking a 59% increase compared to the third quarter of 2022.
Monetary Loss: The total value of stolen shipments surpassed $31.1 million.
Dominant Types of Theft
One of the primary contributors to this rise is the increase in shipment misdirection attacks. These strategic thefts involve using stolen identities to divert freight from its intended recipient. This method has seen a particularly sharp rise, reflecting the sophistication and planning behind modern cargo thefts.
Last month, Overhaul detected this strategy in Southern California. Thieves simply donned safety vests and clipboards and posed as receiving facility workers, redirecting drivers to a separate zone. Once parked, accomplices arrived to steal goods from the truck, loading them into vans or box trucks before taking off.
Hotspots for Cargo Theft
The most common states for cargo thefts are California, Texas, Florida, Georgia, and Illinois. Each of these states reported a significant number of incidents, underscoring the need for targeted security measures in these regions.
Future Outlook
There is no indication that cargo theft activity will slow down, especially in the U.S. The industry is cautioned to remain vigilant, particularly around holiday periods when thefts tend to spike.
Broadening Targets
Strategic cargo theft groups are now targeting a wider range of commodities, including:
Metals such ascopper, brass, and aluminum
Officially licensed sports apparel
Personal care and beauty products
Evolving Theft Strategies
These groups are continuously developing new methods to bypass security measures. They are increasingly targeting small motor carriers or owner/operators, exploiting vulnerabilities in the logistics chain.
FBI's Observations: "Since the onset of the pandemic in 2020, the FBI observed an uptick in strategic cargo theft and fictitious freight cases." The FBI has established seven Major Theft Task Forces across the United States to combat this increase in activity.
Today's newsletter is also brought to you in collaboration with ISO, the industry leader in delivering unparalleled transparency and reliability in logistics performance through their one-of-a-kind scoring system.
AROUND THE FREIGHT WEB
U.S. consumers are spending more on goods, with the inventory-to-sales ratio for items like furniture and electronics above the 2019 average, reflecting a shift in spending habits post-pandemic. Image Source: WSJ
📈 Spending Shift to Goods. Americans are spending more on goods than in 2019, signaling a shift from services.
🚂 New Service by JB Hunt & BNSF. Aiming to shift just-in-time shipments to intermodal, JB Hunt and BNSF launch a new premium service, promising up to 95% on-time delivery.
🎄 Holiday Season Uncertainty. The trucking industry enters a strong yet uncertain holiday season, and a survey shows 73% of merchants expect higher sales.
💃 TikTok's Logistics Expansion. TikTok boosts its U.S. sales efforts by enhancing its outsourced logistics operations, taking strategies from Amazon's playbook.
🛣️ Revival Attempt for Yellow. A last-minute bid seeks to revive the collapsed carrier Yellow.
🚁 Cargo Drones for the Air Force. MightyFly's giant cargo drones are set to aid the U.S. Air Force in delivery missions.
🏗️ $650M Port Improvement Investment. The U.S. Department of Transportation announces a $650 million investment in port improvement projects.
FREIGHT CONFERENCES WE'RE ATTENDING
Many enterprise shippers will be attending Manifest this February in Las Vegas. Use our link for a $200 discount.
Feb. 5th-7th, 2024: 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
Meme Context: Craig Fuller, the CEO & Founder of FreightWaves, announced that if you post a freight meme every day for the next year on X (formerly Twitter), you will receive a free pass to the next F3: Future of Freight Conference in Chattanooga. If you aren't yet on X, join today and start posting. Use the hashtag #F3Memes. Also, make sure to follow Craig Fuller, Reed Loustalot, and Freight Caviar.
Answer: The Chattanooga-based freight brokerage acquired by Coyote Logistics in 2014 for $125 million was Access America Transport. Its co-founder and former CEO, Ted Alling, is a notable entrepreneur. Following the success with Access America, Alling co-founded Lamp Post Group, a venture capital firm and tech incubator, significantly contributing to Chattanooga's entrepreneurial scene. He also co-founded Dynamo, a venture capital fund focused on revolutionizing the logistics industry. Apart from his business ventures, Alling is dedicated to social causes, exemplified by his involvement in establishing Chattanooga Preparatory School, an all-boys public charter school in the city.Ted was kind enough to give us a tour of Chattanooga last Tuesday. We'll have a video of our time spent with him on YouTube soon, so stay tuned.
Also, check out:
🎧 The FreightCaviar Podcast. Listen to this week's podcast on Spotify & Apple Podcasts. ☕️ FreightCaviar Fall Essentials: purchase a FreightCaviar sticker, hoodie, long-sleeve, or mug by clicking here. Interested in sponsoring some of our content or learning more about our marketing services? Send Paul, our founder, an email at pbj@freightcaviar.com.
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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