TGIF. After a week packed with stories of fraud, theft, and other drama in the transportation industry, let’s cap it off with a class action lawsuit against a trucking company in Jacksonville, FL.
🤔 Question of the Day: The Port of Los Angeles, the nation's busiest container hub, reported a 4.5% drop in May imports but an __% increase for the year. Find the answer in our What's Cookin' in Freight section.
Today's Newsletter is Brought To You By Armstrong Transport Group.
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🐔 WHAT’S COOKIN’ IN FREIGHT
📉 Is Trucking Employment Decline a Recession Warning? A chart from Game of Trades on Twitter suggested that declines in trucking employment since 1991 have preceded economic recessions. Craig Fuller replied to the tweet and explained that the recent drop was due to an oversupply of drivers, not a shortage. He noted that employment is a lagging indicator, and the decline showed that trucking companies had stopped hiring. Fuller emphasized that it might reflect current conditions rather than future downturns.
🚢 Supply Chain Storm Brewing on the High Seas. East and Gulf Coast dockworkers are warning of a potential coast-wide strike on October 1st due to heated negotiations over wages and job security. With over 85,000 members, this could significantly impact trade flow. Concurrently, the Port of Los Angeles, the nation's busiest container hub, reported a 4.5% drop in May imports but an 18% increase for the year. Meanwhile, ocean freight rates could soar to $20,000-$30,000 per container. Factors like longer Red Sea routes and canceled sailings are driving up costs. No relief is expected until early 2025, highlighting a challenging period ahead.
💰 CEO of FreightWaves Gets Interviewed on "My First Million." In the latest episode of "My First Million," co-host Sam Parr interviewed Craig Fuller, CEO of FreightWaves. Craig shared how being fired by his father from US Xpress led him to build FreightWaves. He also discusses acquiring FLYING magazine for $3.5M and his real estate ventures. Watch the full interview to see how Craig started FreightWaves and has since grown a media empire.
TOGETHER WITH ARMSTRONG TRANSPORT GROUP
Freight agents, don't wait until after the market heats up – join Armstrong now to build your foundation for financial freedom! Seamlessly transition your book of business while maintaining valuable relationships with your customers and carriers. Apply today and position yourself for unmatched success with Armstrong Transport Group.
Class Action Lawsuit Against Family-Owned Logistics Company
A group of disgruntled truckers take on Fr8 Solutions Inc. based in Jacksonville, FL, in a class action lawsuit alleging underpayment and fraudulent practices.
The Lineup
In one corner, we've got Edin Husidic and a crew of independent contractors who used to haul loads for FR8 Solutions Inc. These truckers claim they were shortchanged by the company's shady tactics.
In the other corner, we've got FR8 Solutions Inc., their CEO Alen Kajdic, and their accountant Azra Begovic. According to the truckers, this trio cooked the books and played dirty to line their own pockets.
The Details
The truckers signed up with FR8 Solutions, expecting to get 88% of the linehaul rate for every load they transported. But, according to the complaint, that's not what happened.
Allegedly, FR8 Solutions:
Provided doctored statements showing lower load prices than what third-party brokers like Ascent On-Demand and Landstar confirmed.
Underpaid the truckers, resulting in financial losses for the drivers.
For example, Edin Husidic was supposedly shortchanged on multiple occasions. In one instance, he got a dispatch for a $2,400 load, but the actual confirmation from Ascent On-Demand showed a $2,500 value. Other truckers like Samir Cajic and Adis Dogic reported similar issues.
But, wait, there's more:
The truckers also claim that CEO Alen Kajdic tried to strong-arm them into keeping quiet about the whole thing.
In one text exchange presented as evidence, Kajdic allegedly threatened physical harm against Husidic if he continued to expose FR8's dirty laundry.
"I realized that big mega carriers were always looking for ways to cheat and take advantage of hard-working drivers, like my dad. From that moment, I knew I had to do something to make it better. Our nation owes a lot to truck drivers, so I wanted to allow them to make the money they deserve, treat them with the respect they deserve, while still meeting the customers’ needs. To do this, I set out open my trucking business with my father. Our main goal was, and still is, to combine the best of both worlds—treat drivers fairly and pay them well while providing excellent service."
However, the truckers' allegations tell a very different story.
The Big Picture
This lawsuit is evidence of a symptom of a bigger issue in the freight industry. With the market in shambles and costs skyrocketing, some companies seem to be resorting to shady tactics to stay afloat. But at what cost?
These truckers are fighting back and demanding actual damages for lost wages, plus punitive damages for alleged fraud and treble damages under RICO (Racketeer Influenced and Corrupt Organizations Act) statutes.
If the allegations are true, it's a prime example of how greed and desperation can lead companies down a slippery slope, with the truckers again getting stiffed.
Keep an eye out for how Case No. 24-cv-4253 in the U.S. District Court for the Northern District of Illinois plays out.
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🚚 Semi Crashes Into Apartment Building. A semi skidded off I-80 in Illinois, smashing into an apartment complex after a suspected mechanical failure, causing significant damage but no injuries.
🌉 Massive Pothole Shuts Down Bridge. A large pothole on a Chattanooga bridge caused a hole to open up, sending a tanker's haul dangling above traffic below. There was a shutdown of I-24 while crews made repairs to the deteriorating infrastructure.
🤑 Trump Favors Tariffs Over Income Tax. Former President Trump sees tariffs as a "revenue source" and is considering raising them on US trading partners if re-elected. Industry speculates what this could mean for customs brokers.
🚔 Stolen Semi Leads to Standoff, $200K Bail. A man with an extensive criminal record stole a semi, rammed police cars, and engaged in a 40-minute standoff before arrest. He's held on $200K bond due to flight risk.
💰 CargoSense Raises $8M for Supply Chain Automation. CargoSense secured $8 million in Series A funding to expand its ecosystem for unifying data sources and driving automation with AI across the supply chain.
🎣 THE FREIGHT CAVIAR PODCAST
In this week’s episode, we sat down with Andrey Drotenko, President of Strategic Relations at Verified Carrier, a vetting platform. Andrey goes behind the scenes of fraud detection. He explains the role of Verified Carrier in preventing fraud, how scammers manipulate current systems, emphasizes the importance of inspections for freight brokers.
🎧 The FreightCaviar Podcast. Listen to this week's podcast on Spotify & Apple Podcasts.
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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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