🎣 DOT Blitz Week

Good Monday morning. Are you ready for DOT Blitz Week? It starts tomorrow and lasts until the end of Thursday. Prepare for increased spot rates and driver fall-offs. Learn more about Blitz Week and its impact in our deep dive today.

🤔 Question of the Day: 61% of all cargo thefts in the first quarter of 2024 occurred in these three states: California, Illinois, and _______. Find the answer in our What's Cookin' in Freight section.

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🐔 WHAT’S COOKIN’ IN FREIGHT

🚚 Cargo Theft Hits High Gear in 2024. The first quarter of 2024 has seen a significant uptick in cargo theft. CargoNet's analysis reveals 925 incidents, a 46% increase from the previous year, culminating in an estimated total loss (reported and unreported) of $154.6 million. Notable increases were recorded in Illinois with a 126% rise, California at 72%, and *Texas up by 22%. Targeted items include small appliances, liquor, energy drinks, and copper, chosen for their market value. There continues to be a rise in sophisticated fraud schemes, leaving the industry on high alert.

🤖 Freight Tech: AI-Driven Startups Raise $93M. We're feeling more optimistic about AI and freight tech startups as funding flows in. Overhaul secured a total of $73M in funding to enhance freight security through AI-driven alerts and performance monitoring. Simultaneously, Paxafe has raised $9M in a Series A round, deploying AI to optimize the cold chain market by minimizing waste and cutting costs. FleetPulse, now an independent entity after spinning off from Great Dane, has gathered $11M to enhance trailer telematics with AI-enhanced safety and efficiency solutions. Adding to the industry's tech advancements, C.H. Robinson is going all in on the use of AI to automate daily email interactions, processing thousands of transactions and significantly reducing response times.

⚖️ Ohio Trucking Company Owner Dodges $1.2M in Taxes. Alice F. Martin, the owner of Martin Logistics in Ohio, has been indicted on seven counts of tax evasion, accused of ducking out on $1.2 million in taxes. The feds claim she hid $3.5 million in income from 2013 to 2018, earned from defense department contracts. Martin allegedly funneled these funds through a web of companies to evade the IRS. She faces up to five years in prison and a $100,000 fine if convicted. This case could result in higher scrutiny when it comes to carriers handling government contracts.

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DOT Blitz Week Has Truckers on Their Toes or Off the Roads

Every spring, the transportation industry braces for the Commercial Vehicle Safety Alliance's (CVSA) International Roadcheck, also known as DOT Blitz Week. This intensive 72-hour event sees thousands of inspections across North America to ensure compliance with Department of Transportation safety standards.

Scheduled from Tuesday, May 14th to Thursday, May 16th across the U.S., Canada, and Mexico, this period typically impacts freight rates as many drivers opt to park rather than risk hefty fines and cargo delays.

What Exactly Happens During DOT Blitz Week?

• Intense Inspections: Inspectors conduct a 37-step procedure focusing on vehicle functionality and driver compliance, including brakes, lights, cargo securement, and driver licensing.
• Why Now? With an average of 15 inspections per minute, this massive effort aims to ensure everyone is playing by the rules. It's a massive effort to catch those dodging regulations and take them off the roads.

Check out this snapshot of how spot rates for dry van and refrigerated freight tend to dance around during DOT Blitz Week (that shaded area on the chart). Notice how rates for 2024 (green line) compare to those from previous years (2023 in orange, 2022 in grey), and the five-year average (dotted line).

• Dry van rates exhibit a slight increase leading up to and during the DOT Blitz Week, reflecting a trend consistent across previous years.
• Conversely, refrigerated rates show more pronounced variability, spiking sharply as the Roadcheck period approaches.

Social Media Observations

• Not Just a Week: Folks commented on the fact that the real wave happens in the weeks before and after DOT Blitz. The publicized week is a way to throw truckers off.
• Overhyped?: Some truckers joke about the overhyped nature of the week, saying it hasn't been a true BLITZ week in a while.

Predictions and Player Strategies

• Economic Impact: With current overcapacity and sagging spot market rates, this year’s Blitz could tighten things up a bit, making a visible dent in available capacity and nudging rates upward, if only temporarily.
• The Wise Will Navigate: Experience suggests a mixed bag of reactions—some will park their rigs to avoid the hassle, while others might seize the chance to capitalize on the higher rates due to reduced competition.

What’s the Takeaway?

DOT Blitz Week is a reminder of the constant push and pull between regulation and reality in the freight industry. While it’s pegged as a safety sprint, it seems more like an annual regulatory marathon with a touch of theater.

Moving forward, some hope for less theatrics and more consistency. Because after all, shouldn’t every week be a focus on safety?

TEXTLOCATE: YOUR "SUPERPOWER" FOR VISIBILITY

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🌎 AROUND THE FREIGHT WEB

🚚 LTL Market Shift. Following Yellow's closure, only a fraction of their 300 terminals were purchased by other LTL carriers. This has left about 97% of Yellow's terminals unused, significantly impacting market dynamics and pricing power.

🥳 Covenant CSR Goes Viral. A Covenant Logistics employee went viral on TikTok after his family threw him a surprise birthday party at Costco.

📦 Surging Imports. Despite global disruptions, U.S. containerized imports in April 2024 increased significantly, up 9.3% YoY.

🚚 NJ Insurance Hike. Starting July, New Jersey mandates a substantial increase in liability insurance for heavy-duty trucks, requiring a minimum of $1.5 million in liability insurance for each truck.

🛑 EV Mandate Opposition. Former President Trump pledges to rollback Biden’s electric vehicle mandates on day one if elected, adding to the ongoing debate in the trucking industry over EV policies.

⚡️ 100% Tariffs on Chinese EVs. The Biden administration is raising tariffs to protect U.S. industries from cheaper Chinese imports and to support domestic production.

🎣 THE FREIGHT CAVIAR PODCAST

Listen to this week's episode of The FreightCaviar Podcast on Apple Podcasts, Spotify, or YouTube.

This week's episode is brought to you by Dynamic Logistix.

FREIGHT MEME OF THE DAY

Also, check out:

• 🎧 The FreightCaviar Podcast. Listen to this week's podcast on Spotify & Apple Podcasts.
• Want to get your brand noticed by freight brokers? FreightCaviar can help. Work with us to get your services featured in our newsletter, podcast, and more. Plus, we write great articles about what you do. Get in touch with Paul at pbj@freightcaviar.com to learn more.