Plus, USPS gives non-domiciled CDL carriers an 11-day deadline, the spot-to-contract spread starts squeezing 3PLs, Knight-Swift trims its Q1 guide but stays bullish, and more.
Plus, Super Ego fires back at 60 Minutes, China tells Maersk and MSC to exit Panama ports, New York loses $73.5 million over non-domiciled CDLs — and more in today's newsletter.
Plus, diesel's rising price streak finally snaps, a 13-year shipper relationship ends in a $726K lawsuit, Congress takes a real swing at cargo theft, and more in today's newsletter.
Mykola Datkun, a 33-year-old trucking company owner from Port Barrington, Illinois, is at the center of a cheating operation aimed at getting around the CDL testing process.
Happy National Pistachio Day. We're bringing you a nutty case of a CDL cheating scam, the latest in a long history of widespread CDL fraud. Plus, Walmart's intermodal deal with J.B. Hunt, the largest-ever meth bust at a U.S. entry point, and the takedown of a massive retail theft ring.
🤔 Question of the Day: What country leads the world in pistachio production and export, accounting for nearly 51% of global output? Scroll to the bottom of today's newsletter to find out.
In today's email:
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🐔 WHAT’S COOKIN’ IN FREIGHT
🤝 Walmart's Intermodal Handoff to J.B. Hunt. Walmart hands over its intermodal transportation reins to J.B. Hunt to streamline its supply chain. This move, part of a multiyear agreement, sees J.B. Hunt acquiring Walmart's container and chassis fleets as the retail giant exits from the intermodal sector. The partnership builds on a history of collaboration, aiming to enhance efficiency and reduce carbon emissions. The deal adds 14,100 53-foot containers to J.B. Hunt's intermodal fleet, bringing the company closer to its 150,000-container goal by 2027.
👀 Record Meth Seizure of 6.5 Tons at Eagle Pass Port. U.S. Customs and Border Protection officers at Eagle Pass Port of Entry seized six and a half tons of methamphetamine valued at over $117 million, marking the largest ever methamphetamine seizure at a port of entry. This operation, carried out on February 18, involved a tractor-trailer supposedly carrying a drying agent for piglets but was found to contain nearly 13,101 pounds of methamphetamine after a canine and non-intrusive inspection. The effort highlights the ongoing battle against drug trafficking and CBP's commitment to securing the border and preventing the influx of narcotics into the country.
📺 $1.5M in Stolen Goods Recovered. In Riverside County, CA, a massive retail theft ring was busted, recovering $1.5 million in stolen goods stashed in a Hemet retail store warehouse. The operation, led by 24-year-olds Amritpal Singh and Jagdeep Singh, came crashing down on February 16. Authorities uncovered 200 pallets loaded with everything from flat-screen TVs to baby essentials. Additionally, a stolen semi-truck and trailer were recovered, painting the scale of the scheme. The duo now faces grand theft and possession charges.
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Mykola Datkun, a 33-year-old trucking company owner from Port Barrington, Illinois, is at the center of a cheating operation aimed at getting around the commercial driver's license (CDL) testing process.
From 2019 through December 2022, Datkun's scheme at his Island Lake testing facility (Maximum Services) involved using hidden microphones and earpieces, allowing CDL applicants to receive answers in real-time as they sat for their exams.
Prosecutors allege that Datkun, along with some unnamed co-conspirators, linked earpieces to the applicants' phones, which were then connected to microphones hidden near their shirt collars. So, the transmission of answers was seamless, enabling applicants to cheat successfully on the written portion of the exam.
There are parallels between this case and a 25-year-old case that led to the downfall of former Governor George Ryan in the 1990s.
In 1994, a tragic accident caused by debris from a truck killed six children of Scott and Janet Willis. The truck driver, Ricardo Guzman, had an Illinois CDL despite apparent language comprehension issues, raising questions about the CDL issuance process.
George Ryan, then Secretary of State of Illinois, was implicated in the scandal because it occurred under his administration. Allowing the oral tests and translators violated federal requirements, leading to widespread corruption and cheating. On September 6, 2006, Ryan was sentenced to six and a half years in prison.
In Massachusetts, a CDL bribery and cheating scandal involved four current and former Massachusetts State Police troopers, along with two civilians.
A case that finally ended in 2022 targeted a network that issued CDLs to hundreds of unqualified drivers.
The length and widespread reach of these cases drive home the heightened risk on our highways. How much have these unqualified drivers impacted public safety?
Some of these cases have been linked to accidents and tragic fatalities, but the true height of the threat is hard to pin down. So, while the details of mini mics and high-end snow blowers are comical, the consequences of these actions can be devastating.
ISO PRESENTS: TOP 50 CARRIERS FOR 2023
What's a good OTD%? Who are the best carriers into Walmart? How do my service levels stack up to competitors?
Join ISO live TOMORROW, February 27th for the answers as we present the Top 50 Carriers for 2023. Sign up here.
AROUND THE FREIGHT WEB
📉 Terrible Freight Week. According to Ken Adamo, the Chief of Analytics at DAT, last week had the 2nd lowest number of reefer loads posted for the 7th week of the calendar year in the past decade or so.
🚢 Jones Act Settlement. Two Alaska seafood shipping companies have agreed to a $9.5M settlement with the U.S. for violating the Jones Act. The companies improperly used foreign-flagged vessels for transport, bypassing requirements by exploiting a loophole with Canadian rail.
📦 UPS Workforce Cuts. UPS has reduced its workforce by 43,000 positions over three years, with more layoffs expected in 2024. With the company anticipating a $1 billion benefit from these reductions this year, experts say there's more to it than declining demand.
📈 LTL Expansion Frenzy. In the wake of Yellow's collapse, Saia announces a $1bn capex for 2024, including the purchase of 17 Yellow terminals and leases on another 11. Saia says the move accommodates a 20% surge in demand, with significant investments in real estate, equipment, and technology to enhance operations and security.
🤝 Berkshire's Big Buy. Berkshire Hathaway revealed it paid the Haslam family $2.6 billion for its remaining stake in Pilot Travel Centers, bringing its total investment to approximately $13.6 billion.
🎣 FREIGHT CAVIAR CORNER
Last Friday, Bill Driegert, EVP & Head of Trucking at Flexport, joined us on Freight Gong Friday. Bill was employee number 4 at Coyote and served as their Chief Innovation Officer before moving on to Co-Founding Uber Freight. Currently, he is the EVP & Head of Trucking at Flexport. This episode is a must-listen for anyone looking to understand more about the industry and its evolution.
You can also listen to this episode on Apple Podcasts or Spotify.
FREIGHT MEME OF THE DAY
Also, check out:
Answer: The U.S. is the leading producer and exporter of pistachios, followed by Turkey and Iran.
Plus, USPS gives non-domiciled CDL carriers an 11-day deadline, the spot-to-contract spread starts squeezing 3PLs, Knight-Swift trims its Q1 guide but stays bullish, and more.
Plus, Super Ego fires back at 60 Minutes, China tells Maersk and MSC to exit Panama ports, New York loses $73.5 million over non-domiciled CDLs — and more in today's newsletter.
Plus, diesel's rising price streak finally snaps, a 13-year shipper relationship ends in a $726K lawsuit, Congress takes a real swing at cargo theft, and more in today's newsletter.
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