200,000 drivers didn’t disappear overnight. Plus: Dalilah’s Law targets foreign dispatch, a broker ran a $1M USPS scam, the dashcam war escalates, and more.
B1 visa drivers and illegal operators are not the same thing. Here's the difference and why conflating them is hurting the industry.
UPS acquired Coyote Logistics in 2015 for $1.8 billion, marking it as the most expensive acquisition in UPS history at the time.
Good Monday morning. Today, we're covering UPS post-earnings report maneuvers: From 12K in job cuts to possibly selling its Coyote brokerage unit. Plus, explore truck volume trends, beefed-up cargo thefts in Philly, and the sustained strength of U.S. cross-border freight. The world's most famous double broker is also back.
🤔 Question of the Day: What is the best freight city in the US? Scroll to the main story in Around the Freight Web to cast your vote.
In today's email:
TOP LANE MOVERS POWERED BY GREENSCREENS.AI
*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
📊 Truck Volume Data Signals Freight Market Improvement. GenLogs data from AI-powered highway sensors have detected an unexpected surge in U.S. truck volumes post-holidays, surpassing seasonal peaks. This upward trend, hinting at more than just recovery – suggests a more robust economic and freight market. GenLogs also captured data from specific trucking companies. The data showed that Penske saw a large increase in volume, Walmart saw a dip, and Knight-Swift fluctuated.
🥩 Philly Thieves Snatch $20K Meat Haul. Philadelphia is witnessing an alarming increase in cargo theft, the latest being a $20K heist of frozen meat from trucks parked overnight. Cargo thefts in Philly have escalated from 100 in 2019 to 257 in 2023. Amidst this increase, the recent theft by three unidentified males is the city’s tenth this year. This marks another addition to a series of food-related thefts, including a previous incident involving $73K worth of crab clusters.
📈 U.S. Cross Border Freight: 33 Months Strong. U.S. cross-border truck freight alone topped $82 billion in November. Despite a slight seasonal dip, there's a 5% year-over-year surge, part of an impressive 33-month growth spell. The northern border's truck freight is up by over 5%, while the south reports nearly a 4% rise. Overall, cross-border freight for all modes exceeded $131 billion, with a solid 4% annual increase.
TOGETHER WITH RAPIDO
Rapido is a top nearshore staffing company providing logistics and supply chain talent to companies in the United States. Based in Guadalajara, Mexico, Rapido offers a unique combination of cost savings and access to a skilled workforce, making it an attractive option for American logistics businesses.
See what makes nearshoring to Mexico an attractive option for scaling a logistics company and how partnering with Rapido Solutions Group simplifies the whole process.
United Parcel Service (UPS), a delivery giant, recently announced its Q4 2023 earnings report. The numbers paint a vivid picture of a company navigating challenging economic times. We're looking at the company's latest earnings report, the consequential layoffs, and the impact on its Coyote brokerage unit.
The Q4 earnings report from UPS has turned quite a few heads. Here's a quick rundown:
In response to the financial downturn, UPS announced a significant workforce reduction:
UPS acquired Coyote Logistics in 2015 for $1.8 billion, marking it as the most expensive acquisition in UPS history at the time.
This move was strategized to expand UPS's portfolio, particularly granting them significant access to the truckload market, which was a gap in their service offerings. Coyote was perceived as a successful entity, having risen from a startup freight broker to a major acquisition target within a decade, generating about $2 billion in annual revenue at the time of acquisition. In 2022, Coyote was reported to have had done $5.2 billion in revenue.
Despite the optimistic start, Coyote faced several challenges post-acquisition:
The cyclical nature of Coyote's business also posed challenges. While the company saw a significant increase in revenue during the pandemic, reaching nearly double its pre-pandemic levels, it faced a substantial drop in revenue afterward.
This volatility was a concern for UPS management, leading to the consideration of strategic alternatives for Coyote, including a possible sale.
Overall, the acquisition of Coyote initially brought strategic advantages to UPS, particularly in terms of technological capabilities and expansion into new market segments. However, post-acquisition challenges reveal the complexities of integrating a dynamic and cyclical business like freight brokerage into a larger, more established corporation like UPS.
Time will tell if UPS decides to sell Coyote. It will be interesting to see if it does so, who will buy the logistics giant, and for how much. We'll make sure to stay on top of the story as it unfolds.
TOGETHER WITH RELIANCE PARTNERS
Borderless Coverage powered by Reliance Partners launches the Mexico Cargo Hijacking Data Portal to tackle the high risk of cargo hijackings in Mexico. Providing in-depth analysis, the portal reveals a significant increase in hijackings, particularly in central and southern regions, and underscores the need for enhanced security measures. This tool is vital for businesses to strategize safer operations and navigate Mexico's challenging logistics landscape. Read more about the data portal here, then get in touch with Reliance Partners today at 877.668.1704!
AROUND THE FREIGHT WEB
🤔 Best Freight City? Matt Silver, the CEO & Co-Founder of Cargado, is asking his X audience to vote on the best freight city in the US. We think it's Chicago. What about you? Comment on his tweet if you believe it is a city not listed.
😑 The World's Most Famous Double Broker Is Back. Check out this video where he explains the "genius" behind his methods.
🚚 Jumbo Shake-up in Texas. Jumbo Beverages is laying off 109 workers in Texas. The abrupt end to a brief and brisk journey leaves questions.
🔍 Insights on FourKites v. Project44. Samantha Jones scrutinizes FourKites amid allegations that came to light.
🤖 Pallet Picking Revolution? An innovative approach to pallet handling by Tuskrobots: handling pallets from the ground with only forks. Check out the video here.
🚂 U.S.-Mexico Rail Link Accelerates. The new intermodal service, launched January 1, slashes transit times, boosting U.S.-Mexico logistics, backed by a J.B. Hunt, BNSF, and GMXT alliance, racing to meet North America's nearshoring demands.
HOW TO LAND SHIPPERS
In our most recent FreightCaviar Podcast episode, we sat down to interview Marco Vargas-Avala of Dole Sunshine (a large shipper) and Anthony Fecarotta of linehaul.ai (a new brokerage).
If you're interested to hear what a shipper has to say about prospecting, make sure to tune in above.
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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200,000 drivers didn’t disappear overnight. Plus: Dalilah’s Law targets foreign dispatch, a broker ran a $1M USPS scam, the dashcam war escalates, and more.
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The domino effects are just starting to hit. Plus: FedEx dethroned UPS, Mexico truck production plunges, another $26M AI supply chain raise, and more.
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