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.
Happy Friday morning. Our feature closely examines freight brokerage employment trends. Also in the headlines: a look at the massive trucking closures in 2023, the finality of Sunset Logistics auction, and another scam alert for carriers.
Happy Friday morning. Our feature closely examines freight brokerage employment trends. Also in the headlines: a look at the massive trucking closures in 2023, the finality of Sunset Logistics auction, and another scam alert for carriers.
In today's email:
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🐔 WHAT’S COOKIN’ IN FREIGHT
🧐 Did 88K Trucking Closed This Year? CarrierOK's data paints a stark picture: 2023 saw an unprecedented 88,000 trucking firms fold. The feasibility of this number is uncertain, and it raises questions about the methodology used to arrive at such a high figure. This trend echoes the previously reported surge in brokerage closures. With historical giants like Yellow Corp. and family-run businesses alike hitting dead ends, we see the impact as the industry corrects itself from pandemic disruption. Still, overcapacity remains an issue going into 2024.
🚚 Auction Ends for Sunset Logistics. Sunset Logistics, once a vital trucking company in Michigan, closed abruptly in October, leaving employees without pay. The recent auction of around 45 late-model trailers, a semi-truck, and other equipment concluded on Wednesday, with one trailer fetching $23,525. The proceeds from the liquidation will go towards settling the company's debts.
🚨 Freight Scam Alert: Impersonators Targeting Carriers. Thanks to tips from our FreightCaviar followers, we're alerting carriers to an emerging scam. In separate instances, fraudsters, posing as Uber Freight and Prosponsive Logistics, used fake emails to sell off falsified freight loads. Carriers should always double-check load details to identify red-flag loads. Brokers need to ensure they steer clear of email links for secure websites like DAT, which can lead to credentials being stolen and false loads created under your entity.
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Overall Growth: According to LinkedIn data analyzed by Brush Pass Research, the largest 1,000 freight brokerages experienced a 7.1% increase in headcount from December 2022 to December 2023. We take this information with a caveat, given that LinkedIn depends on an individual's accurate upkeep.
This includes 327 brokerages with at least 10% growth in headcount. This is surprising, considering the broader context of economic downturns and layoffs.
Notable Layoffs: In contrast, certain companies have had to reduce their workforce.
Experts in the field offer varied perspectives that shed light on these trends:
Flat Freight Market: Freight volumes are expected to remain relatively flat for the rest of 2023, with little to no peak freight shipping season. This trend is also anticipated to continue into the first half of 2024.
Reduced Demand for Goods: The demand for goods has decreased due to various factors, such as economic slowdowns and supply chain disruptions.
Overcapacity: According to RXO, one of the country's largest freight brokers, there is still too much capacity in the trucking industry, which is hindering the industry's recovery. The excess capacity has led to increased competition in the market, with brokers struggling to maintain their margins.
Macroeconomic Factors: Rising interest rates this year have contributed to the slowdown in freight volumes. However, the Federal Reserve's recent decision to halt interest rate hikes and the potential for rate cuts in 2024 might provide a stimulus for an increase in freight volumes.
Source: Kevin Hill / Brush Pass Research / LinkedIn
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AROUND THE FREIGHT WEB
💩 Paid Reviews. Beware: DAT reviews can be faked. Companies now offer five-star review services, compromising trust in the system.
⚖️ A TMS with Legal Support. AscendTMS introduces an industry-first Legal Center, offering on-demand access to specialized transportation lawyers.
🌱 Uber Freight Goes Green. Uber Freight collaborates with Greenlane to develop nationwide electric truck charging stations.
🔍 Social Media's Big Players. Which logistics firms dominate social media? Despite its closure, Convoy led the pack in employee engagement online at 22.24%.
💨 Speed Limiter Debate Heats Up. House Republicans question the ethics behind proposed truck speed limiter regulations.
📊 Retail Location Insights. Interesting chart depicting the correlation between median income and population density, showing preferred retailer locations within a 5-mile radius.
📉 FedEx & UPS’s Tough Year. 2023 was challenging for FedEx and UPS, with market dynamics shifting and package volumes dropping.
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
Also, check out:
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.
FMCSA cracks down on MC numbers. A $158M trucking Ponzi. Middle East surcharges.
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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