Most freight AI pilots work. Most enterprise rollouts don't. Here's what's actually breaking down and what production-grade AI infrastructure looks like in freight.
Paul-Bernard Jaroslawski (PBJ), Anthony Fecarotta (Founder & President of Linehaul.ai), and Krystian Gebis after interviewing Anthony last month with a backdrop of Chicago, the freight brokerage capital of the world.
In this week's episode of The FreightCaviar Podcast, we talked about the future of freight brokerage and how/when it will be automated with Anthony Fecarotta (Founder & President of linehaul.ai). Tune in on Apple Podcasts, Spotify, and YouTube.
🤔 Question of the Day: What is the top supply chain disruptor for 2024, according to Everstream.ai's latest Risk Report? Find out in today's main story.
This Newsletter is Brought to You by Trucker Tools.
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
🤯 The Wild Story of "G Face": King of Double Brokers and DEA Informant. Meet Yuri Khatchikyan, aka "G Face," the self-proclaimed "King of Double Brokers." Known for his viral TikToks, G Face boasts about his trucking empire while facing accusations of being a scammer. But here's the kicker: court docs reveal he's been a DEA informant since 2005, providing intel against the Mexican Mafia. Despite his sketchy past, G Face insists he's a legit businessman. With him now behind bars, he's under protective custody for his safety.
☀️ Arrive Logistics: May 2024 Freight Market Update. Arrive Logistics just dropped their latest update, and there’s a lot to unpack. Truckload demand is soft but steady, with spot market activity up nearly 7% year-over-year. Capacity is volatile, showing a 19% decline in truck postings amid ongoing exits. Rates are rising ahead of the 100 Days of Summer, with reefer spot rates jumping $0.07 to $1.89 per mile. Diesel prices are below $4.00 per gallon but may rise with summer demand. Import forecasts call for over two million TEUs monthly, supporting OTR freight demand.
🚢 Why Are Ocean Freight Rates Spiking Again? The Drewry World Container Index shows rates were up 11% last week. From the Far East to the US West Coast, rates jumped 29% in May. Xeneta’s Emily Stausbøll blames record demand and the Red Sea crisis for squeezing capacity. Add in new US tariffs on Chinese imports and potential labor disputes on the US East Coast, and you’ve got a recipe for sky-high prices. Twitter users speculate that shipping lines are "parking" boats to create a supply shortage. Expect continued volatility and higher costs as peak season approaches.
TOGETHER WITH TRUCKER TOOLS
TOMORROW: May 21st at 12pm EST: Join us for the first-ever FreightCaviar LinkedIn Live, sponsored by Trucker Tools. PBJ, Co-Founder of FreightCaviar & ShipperCRM, will sit down with Reed Loustalot, Chief Everything Officer of LostFr8, and Kary Jablonski, CEO of Trucker Tools.
We'll discuss all things related to produce season.
Special Guest: Bill Loupee, COO of Ben B Detroit (a produce shipper).
We will also be hosting a produce meme contest, with the winner receiving Trucker Tools merchandise.
PLUS: Produce Meme Contest. Send us your funniest produce season memes to info@freightcaviar.com. The winner will receive Trucker Tools merch.
From agricultural shortages to extreme weather, Everstream.ai's 2024 Risk Report highlighted the top five global supply chain risks for 2024. Let's reflect on these predictions and provide an update on how things are playing out as of May 2024.
Everstream.ai specializes in identifying and mitigating supply chain risks through advanced data analytics and AI-driven insights. Here are the top five issues ranked from the lowest to highest risk percentage.
#5. Suppliers Run Out of Core Agricultural Items
Huy Fong Foods will halt sriracha production until September due to unripe peppers affecting product color, a viral example of agricultural disruption.
Commodity shortages are expected to peak due to high input prices, farm profitability concerns, protectionism, and extreme weather events.
Everstream Risk Score: 72%
Impact: Production halts for sugar, natural rubber, rice, and soy remain a risk. In 2023, India, Thailand, and Pakistan's new export limits on sugar heavily disrupted global markets.
Example: Last week, Huy Fong Foods announced another halt on production for everyone's favorite sriracha brand because the red jalapeno chilis aren't ready for harvest.
U.S. Connection: These shortages could lead to higher costs and reduced availability for U.S. food manufacturers, impacting transportation.
4. Tensions Escalate in Taiwan
Everstream Risk Score: 75%
Impact: Any conflict, such as cyberattacks or a naval blockade, could devastate global supply chains.
Example: Tensions over Taiwan continue to pose a significant risk, with U.S. and China tensions threatening major tech companies like Nvidia and AMD. The U.S. CHIPS and Science Act, aimed at mitigating this risk with $52 billion in subsidies to encourage semiconductor manufacturing relocation, faces challenges.
U.S. Connection: Disruptions in the Taiwan Strait would affect approximately half of all global container ships, increasing shipping times and costs for U.S. imports.
3. Protectionist Measures Block Technology
Trade wars are ramping up, especially between the U.S. and China. Export controls are tightening.
Everstream Risk Score: 85%
Impact: Companies must search for new technology suppliers to avoid disruptions.
Example: U.S. restrictions on special nuclear material and semiconductor production equipment heavily impact technology supply chains. Last Tuesday, Biden codified and escalated tariffs introduced under Trump, symbolically closing out the decades-long trade relationship with China.
U.S. Connection: U.S. companies will need to diversify suppliers beyond China, potentially increasing costs and complexity.
Growing environmental regulations, even for companies with existing ESG policies, are expected to cause significant disruptions.
Impact: New mandates on deforestation, packaging, and chemical use add operational burdens. From 1972–2019, environmental laws increased 38 times.
Example: The U.S. leads in incidents related to environmental violations, accounting for nearly half of such events in 2023.
U.S. Connection: The Biden Administration's Zero Emissions plans face pushback from trucking companies due to high compliance costs and operational changes.
1. Extreme Weather Wrecks Delivery Dates
Extreme weather events were the top logistics disruptor, and they’re only getting worse.
Everstream Risk Score: 100%
Impact: A billion-dollar weather event occurs every three weeks in the U.S.
Example: Recent tornadoes across the Midwest and hurricane-like storms in the Southeast this past month have already disrupted supply chains, causing delays and increased costs.
U.S. Connection: We've already seen the evidence: Abnormal winter storms earlier this year. Thunderstorms causing power outages in Texas. Meanwhile, Tornadoes and tennis-ball-sized hail are still a threat across Central and Midwest regions.
TOGETHER WITH ISO: Watch out! These key markets saw the biggest service drop-offs over the past month across the ISO* network.
*Isometric Technologies' (ISO) Service Index helps brokers scorecard, benchmark, and source by service level performance across their customer and carrier network. ISO Scores are a composite of OTD, OTP, and Bounce Rates.
🌎 AROUND THE FREIGHT WEB
🚂 West Coast Freight Preferences. Despite lower truckload rates, 77% of CNBC survey respondents favor rail over trucking for west-to-east freight, reflecting a continued preference for intermodal transport, even as the impact on 40' and 53' containers remains uncertain.
🤖 Werner Expands AV Truck Pilots. Werner Enterprises plans to double its autonomous truck pilot partnerships this year while gradually evaluating self-driving technology.
🌿 ATA Marijuana Warning. The ATA warns that reclassifying marijuana to Schedule III could impede drug testing for truck drivers, increasing highway safety risks.
🛑 CBP Seizes $5.4M in Meth. CBP officers at Pharr International Bridge seized 606 pounds of methamphetamine worth $5.4 million from a commercial shipment of papayas.
🌉 Key Bridge Recovery Efforts. New footage from the U.S. Army Corps of Engineers shows ongoing recovery efforts at the Francis Scott Key Bridge collapse, with significant obstacles before the Dali cargo ship can be refloated and the channel fully reopened.
🚀 SpaceX Booster Transport. A video captures a truck hauling a massive SpaceX rocket booster.
🚚 Hydrogen Trucks in Action. Talon Logistics posted a video showcasing their Nikola Hydrogen-fueled semis.
🎣 FREIGHT CAVIAR CORNER
In this week’s episode, we sat down with Anthony Fecarotta, Founder & President oflinehaul.ai. Anthony brings us through his road to success, starting at XPO as an Account Manager, later The Grane Companies, Schneider National, Covenant, and Everest. He unveils his future plans for linehaul.ai, and shares his thoughts on the future of AI, the importance of human element in freight, and why he thinks it’s too soon for an AI revolution in logistics.
🎧 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.
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.
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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