🎣 Freight Broker Starter Pack

Happy Hump Day. Speaking of humps, the spot market has been quite bumpy these past few weeks. Due to Blitz Week, spot rate prices jumped 11 cents per mile. On top of that, inbound volumes at the top 10 ports have risen for seven straight months.

In our main story, we dissect the TransBorder Freight Annual Report for 2023.

🤔 Question of the Day: By what percentage did truck freight value grow between the US, Canada, and Mexico in 2023 compared to 2022? Find the answer in our main story.

TOP LANE MOVERS POWERED BY GREENSCREENS.AI

Today’s top lane movers are from flatbed data.

*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

🚢 Container Rates Triple. Global trade is bouncing back, pushing up shipping rates and straining capacity. Container rates have tripled this year, with costs for a 40-foot container to the US West Coast from Asia jumping 13.4% last week. Ports in Asia face delays, while US container imports have risen for seven straight months. Experts note that shippers have learned from the past "COVID-19 Chaos" and are moving shipments earlier to avoid peak season congestion.

📈 Spot Rates Up, But Are They Here to Stay? Data shows spot rates are 11 cents higher than at the start of May. This is most likely driven by temporary factors like Roadcheck, produce season, recent weather, and Memorial Day. While this is good news, it's important to note that these increases may not last. Rates and loads increased due to decreased driver availability and higher demand. However, rates are still down year-over-year. For example, dry van spot rates are up another 4 cents (after increasing 7.5 cents the week ending May 17), but down 2% year-over-year and 9% below the five-year average.

📉 Two Major Agencies Downgrade Forward Air's Debt Rating. Forward Air’s stock has plummeted 91% since July 2023. Moody’s and Fitch downgraded its debt ratings, citing high leverage and industry softness. Leadership changes and legal battles have further destabilized the company. Fitch expects some improvement, but challenges remain. Interestingly, Forward Air’s stock jumped 21.65% yesterday after Irenic Capital Management purchased just under 5% of shares.

TOGETHER WITH TEXTLOCATE

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Transborder Freight: Trucks Move $948 Billion of $1.57 Trillion Trade

The Bureau of Transportation Statistics (BTS) recently released its TransBorder Freight Annual Report for 2023. The report provides a detailed look at the movement of goods between the United States, Canada, and Mexico.

Despite a year marked by various economic challenges, the transborder freight sector has stayed strong and adaptable.

Key Points

• Total Trade Value: In 2023, U.S. freight flows with Canada and Mexico totaled $1.57 trillion.
• Freight Weight: The total weight of goods traded was 2,484.7 million tons, marking an 8.8% increase from 2022.
• Top Commodities: Major commodities included autos, electronics, oil, and agricultural goods.

Growth and Trends

1. Truck Freight Dominance: Truck freight continued to be the dominant mode of transportation, with $948.0 billion worth of goods moved. From 2021 to 2022, truck freight value grew by 14.5%.
2. Rail Freight: Rail freight also saw growth, transporting $210.2 billion worth of goods, a 12.7% increase from the previous year.
3. Pipeline and Waterborne: Pipelines carried $149.2 billion (mostly energy products), while waterborne vessels transported $138.8 billion of freight.

Comparative Insights

• Canada vs. Mexico: While freight value with Mexico has often surpassed that with Canada since 2015, Canada continues to exceed Mexico in terms of the weight of goods transported. This trend highlights the different types of goods traded—Canada typically exports heavier commodities like timber and oil, whereas Mexico's exports often have a higher value-to-weight ratio, such as auto parts and electronics.
• Canada Declines: Jason Miller, a supply chain professor, shared his insights on the declining southbound truck crossings from Canada to the USA: “Truck crossings are down roughly 100,000 a quarter from where they were in 2017 and 2018, at roughly 1.4 million per quarter from 1.5 million before COVID-19." He attributes this decline to factors such as slower housing starts, shifts in motor vehicle production, and competition from China.

Challenges and Opportunities

The report underscores several ongoing challenges:

• Economic Volatility: The freight sector faced significant volatility due to fluctuating economic conditions, impacting trade volumes and values.
• Infrastructure and Efficiency: Continued investments in transportation infrastructure are needed to handle the growing volumes and ensure efficient cross-border trade.

Key Transborder Ports:

• U.S.- Canada Data Points:
  • Top Truck Ports: Detroit, Buffalo, Port Huron
  • Top Rail Connection Ports: Detroit, Port Huron, International Falls
• U.S.- Mexico Data Points:
  • Top Truck Ports: Laredo, Ysleta, Otay Mesa
  • Top Rail Connection Ports: Laredo, Eagle Pass, El Paso

TOGETHER WITH DYNAMIC LOGISTIX

Rapid, hassle-free matching of shipments to your desired locations and destinations. With DLX, we’ll be in constant communication to provide important updates, book new loads, and answer any questions you have throughout the pickup and delivery process.

DLX is here to better the carrier experience with every single shipment. Find out more.

🌎 AROUND THE FREIGHT WEB

👏 90-Year-Old Truck Driver Sets Record. Doyle Archer, 90, from Phillipsburg, sets Guinness World Record as the oldest truck driver, having driven over 5.5 million miles with no plans to retire.

🚚 Trucking Trouble. BMO's earnings reveal significant deterioration in its trucking-heavy transportation loans.

💨 Faster Responses=More Freight. Levity.ai highlights that speed in response times is crucial in winning more freight and shows how AI can help small- to mid-sized brokers do just that.

🌀 Hurricane Season Centers Texas. With an above-average hurricane season predicting up to 25 storms, Texas ports maintain a state of readiness to handle potential disruptions.

📈 Rising LTL Prices. Gabe Pankonin discusses the sharp increase in LTL pricing, suggesting that continuous hikes may push shippers towards alternative freight solutions.

🚢 Orca AI's Funding Boost. Orca AI secures $23M to enhance its autonomous shipping solutions, with plans to expand fully autonomous ship technology by 2025.

🎣 FREIGHT CAVIAR CORNER

🇷🇸 Dispatching US Trucks from Serbia. In March of this year, we traveled to Serbia, known as a dispatching outsourcing hub. During our visit, we interviewed Aleks Bates, who shared his journey of moving from Canada to Serbia during the pandemic and starting his career dispatching US trucks. Recently, Aleks transitioned from being a dispatcher to a freight broker and now serves as VP of Carrier Sales at Hammer Logistics. He also hosts a freight podcast called PODcast Asset Based, all while being based in Serbia.

P.S. Stay tuned for our upcoming documentary about our visit to Serbia!

Watch on YouTube or listen on Apple Podcasts or Spotify.

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.