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Good morning. Hurricane Milton could be the most destructive hurricane to Florida in the last 100 years. Here's what you need to know about its strength, path, and potential impact on the supply chain.

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🐔 WHAT’S COOKIN’ IN FREIGHT

🚢 US Port Strike: The Aftermath and the Future. Nearly 50,000 dockworkers from the International Longshoremen’s Association (ILA) launched a strike on October 1, 2024, halting operations at 14 East and Gulf Coast US ports. The strike jeopardized $34.3 billion in goods on 147 vessels, affecting major companies' TEUs, including Walmart (47.7K), IKEA (42.9K), and Samsung (33.8K). Although a tentative deal resolved wage disputes, automation remains a contentious issue, with labor leaders opposing technological advancements. With a January 15, 2025 deadline looming, unresolved automation negotiations could trigger another strike, putting global supply chains at risk once again.

💡 Dave Clark Unveils Auger; $100M Funding Secured. Former Amazon and Flexport executive Dave Clark has launched Auger, a Bellevue-based logistics startup focused on supply chain management using AI. Backed by $100 million from Oak HC/FT, Auger seeks to streamline operations by unifying data sources and providing real-time insights. Clark told The Information his software targets midsize and large businesses that “often lack the resources to manage complex supply chains effectively.” Auger does not have any customers yet, but Clark will update the industry soon as production development progresses.

🚚 3 New Freight Broker Tech Updates. Highway has launched Load Lock, a tool that provides freight brokers with real-time fraud prevention, compliance monitoring, and carrier identity verification to secure shipments from tender to delivery. Levity introduced Control Tower, an AI-powered solution offering insights into email inboxes, helping freight businesses make smarter decisions and eliminate blind spots. And, ShipperCRM, founded by FreightCaviar, released Team Workspaces, allowing users to assign shipper ownership, set up collaborative or isolated workspaces, and manage outreach more easily.

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Milton Could Slam Florida's Supply Chain

What’s Happening

Hurricane Milton is about to hit Florida and could be the worst storm the state has seen in 100 years.

Currently a Category 5 storm with winds of 160 mph, it's expected to make landfall near Tampa by Wednesday night. The storm could weaken to a Category 3 or 4, but it’s still a major threat to both residents and supply chains.

Where Will It Hit?

Milton's path is shifting, but it’s likely to hit just south of Tampa. A storm surge of 10-15 feet and up to 1.5 feet of rain are expected.

Tim Higham, CEO of AscendTMS, who is based out of the Tampa region wrote on LinkedIn:

If you're on the left of Hurricane Milton - you live and have a home. On the right, you DIE and you lose everything. THIS, my friends, is why we're all biting our nails on the West Coast of Florida. Every wobble matters!

Tampa’s Mayor has warned people in evacuation zones to leave immediately:

"If you choose to stay in one of those evacuation areas, you are going to die."

The storm is also growing in size, so even areas far from the center will feel its impact. Evacuations are already underway, and major highways like I-4 are expected to be affected.

How It Could Disrupt the Supply Chain

Milton could create major disruptions in Florida’s supply chain, particularly along the I-4 corridor between Tampa and Orlando—a key route for goods.

• Port of Tampa Closed: This port handles imports like fuel, steel, and food. Its closure will cause delays, and congestion at other Gulf and East Coast ports is likely.
• Trucking and Warehousing at Risk: Many warehouses along the I-4 corridor could be hit hard, with carriers relocating drivers for safety. Trucking operations across the state are being paused or diverted.
• Freight Demand Surge: After the storm, expect a huge spike in demand for trucks to move relief supplies. Craig Fuller from FreightWaves predicts freight rates will rise sharply, just like they did after Hurricane Irma in 2017.

Expert Thoughts

Here’s what industry leaders are saying:

• Kathy Fulton (ALAN): “The biggest concern is the damage to warehousing and relocating drivers to safer areas.”
• Craig Fuller (FreightWaves): “Freight demand will soar once recovery starts. There’s going to be a rush to move goods fast, and freight rates will spike.”

Bigger Picture & Historical Context

Milton won’t just affect Florida. The storm will ripple across global supply chains. Delays at ports, rerouted cargo ships, and damaged infrastructure will drive up costs and extend delivery times. Bart De Muynck says on FreightWaves these disruptions could last for weeks.

Historical Context: Hurricanes have historically led to significant increases in freight rates. For instance, after Hurricane Irma hit in 2017, spot market rates for truckloads spiked as demand for freight increased due to relief and rebuilding efforts.

Van Spot Rates Following Hurricane Irma (2017)*

Rates on these lanes soared as inbound rates accounted for potential deadhead miles on the roundtrip due to less freight leaving Florida than usual.

*Source: DAT

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🌎 AROUND THE FREIGHT WEB

📉 Robots & Warehouses in Decline. U.S. factories and warehouses are cutting back on robot purchases and construction, with robots losing demand due to slowing production and warehouses seeing rising vacancy rates as the pandemic boom fades.

📈 Cargo Theft Conference Notes. At last week's Verisk Travelers Cargo Theft & Transportation Summit, experts revealed a staggering 1,475% rise in strategic cargo theft since Q1 2022.

🚚 Cargomatic Ordered to Stop Intimidating Drivers. The US Department of Labor issued an injunction against Cargomatic for intimidating drivers in a wage lawsuit, despite the company's settlement and denial of wrongdoing.

🚛 Simplified Hazmat Rules. A new proposal by the DOT aims to simplify hazardous material shipping for truck drivers.

🎣 THE FREIGHT CAVIAR CORNER

• Conferences We Are Attending: F3 Future of Freight Festival in Chattanooga, November 19-21.
• Latest Freight Jobs: See all the latest freight job listings by clicking here.
• The FreightCaviar Podcast: Ari Levy joins us on the latest episode, where he discusses his experiences as a broker at Coyote & MoLo Solutions, his role at FreightCaviar, and starting his new recruiting company, Landing Talent. Tune in on Spotify, YouTube, or Apple Podcasts.
• ShipperCRM, founded by FreightCaviar, released Team Workspaces, allowing users to assign shipper ownership, set up collaborative or isolated workspaces, and manage outreach more easily.

FREIGHT MEME OF THE DAY