Two bills just dropped in the Senate that could reshape trucking faster than anything since deregulation. Plus: Russian hackers targeted your load board, flatbed rejection rates just hit 40%, and a robot is taking the Houston-Dallas overnight run.
This week: The Dalilah Law, a trucking bankruptcy that wiped out thousands overnight, a FreightGuard civil war on Reddit, and the payroll data that's predicting Q4 capacity.
Indiana pulled the trigger on carriers employing illegal CDL holders. Plus: tariff ruling could flood LA with imports, DC finally moves on double brokers, spot rates are outrunning contract, and more.
Plus, over 9,000 trucking companies closed down in Q2, Texas truck driver sentenced in cocaine smuggling, and more.
Good Monday morning. What an insane weekend it's been... our newsletter won't be that crazy, but we do have some interesting developments in that freight heist story that you don't want to miss.
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🐔 WHAT’S COOKIN’ IN FREIGHT
📊 Trucking's Gradual Capacity Crunch. The trucking industry's capacity attrition slowed in Q2 2024, but challenges drag on. Federal data shows about 9,000 businesses exited in April, with slower rates in May and June. Despite this, exits still outpaced new entries. Industry expert Avery Vise notes the decline is "still highly negative in historical terms." With over 93,000 more carriers than in February 2020, the market remains saturated. Favorable conditions aren't expected until 2025 at the earliest.
🚔 Trucker's Cocaine Conspiracy Crumbles. Texas truck driver Javier Robledo Perez, 39, has been sentenced in Massachusetts for his involvement in a major cocaine trafficking operation. Perez received 49 1/2 months in prison (time served) plus two years of supervised release for transporting about 30 kilograms of cocaine across state lines. The operation, run by a Mexico and Texas-based drug trafficking organization, was busted in May 2020 when law enforcement stopped Perez's semi-truck entering Massachusetts. They seized 30 vacuum-sealed bricks of cocaine. This case was part of a larger Organized Crime Drug Enforcement Task Forces operation.
💸 Trucking Costs Hit New High in 2023. Trucking expenses hit a new record in 2023, reaching $2.27 per mile, according to the American Transportation Research Institute. The increase was minimal, thanks to lower fuel costs offsetting rises elsewhere. Driver wages grew 7.6%, while insurance premiums surged 12.5% and equipment costs rose 8.8%. The LTL sector saw the biggest jump at 15.6%, partly due to driver competition after Yellow Corp's closure. Looking ahead, experts predict slower wage increases, continued insurance premium hikes, lower fuel costs, and rising equipment expenses.
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The plot thickens in the ongoing investigation of the Agility Express freight heist that we broke the story on last week. New information has come to light, revealing a complex web of connections and potential accomplices.
Additional MCs at 1850 Arthur Ave. Findings from CarrierOK have uncovered more Motor Carrier (MC) numbers linked to the now-infamous address in Elk Grove Village, IL. This location appears to be a hub for potentially fraudulent activities.
BTX Express and Steel Dragon Co Connection. BTX Express (MC637942), formerly based at the Arthur Ave address, has gone inactive. However, it may now be operating under Steel Dragon Co (MC369194), a company with a questionable reputation in the industry.
Interconnected Entities. Several companies mentioned in our previous report show multiple affiliations:
Potential Ownership Changes. Steel Dragon Co appears to have changed ownership in late 2023, based on contact history changes. This timing could be significant in the context of the ongoing investigation.
Ryan Petersen, CEO of Flexport, Speaks Out. Petersen expressed disbelief at the scale of shipment ransoms and disappearances in 2024, drawing parallels to the train robberies in New Mexico last year.
Craig Fuller, CEO of FreightWaves, Adds Perspective. Fuller echoed Petersen's concerns, describing the situation as "the biggest crime spree in supply chain history." He says that outdated load board platforms, the rise of offshoring, and higher value targets have compounded the issue.
Veteran Trucker Raises Alarm. @SuperTrucker pointed to a concerning trend of fraudsters with "Eastern European and Russian gangster" ties.
Our team continues to investigate these new leads and connections. We urge anyone with additional information to contact us at info@freightcaviar.com.
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🌎 AROUND THE FREIGHT WEB
📈 Universal Logistics Winning 2024. Universal Logistics reported a 12.5% increase in Q1 revenue to $491.9 million, significantly outperforming expectations.
🚛 Chicago Semi Truck Robberies. Police issue alert after multiple thefts targeting parked trucks, advise increased security measures.
🚇 Japan's Underground Freight Belt. Proposal for 500km conveyor to move freight aims to address labor shortage and reduce CO2 emissions.
📉 Post-Holiday Freight Slowdown. July sees softer freight volumes after Fourth of July, spot rates exceed contract rates in some areas.
😮💨 Container Spot Rates Stabilize Amid Peak Season. Spot freight rates on major east-west container trades remained flat this week as the peak season progresses.
💰 TruckSmarter Secures Funding. Digital trucking platform obtains $50M debt facility from CoVenture, with option to expand to $100M for financial services growth.
🎣 FREIGHT CAVIAR CORNER
In this week's episode, we sat down with Rob Liss, Vice President at MAKA Logistics. Rob shares his journey into logistics, reflecting on the many significant changes he's witnessed over the past decade. He recounts his early days at Command Transportation (later bought by Echo Global Logistics in April 2015) and shares his views on the cultural differences between the two companies. Rob also updates us on the construction of the Guadalajara-Dallas rail line.
You can catch the episode on our YouTube, Spotify, or Apple Podcasts channels.
FREIGHT MEME OF THE DAY
Also, check out:
Two bills just dropped in the Senate that could reshape trucking faster than anything since deregulation. Plus: Russian hackers targeted your load board, flatbed rejection rates just hit 40%, and a robot is taking the Houston-Dallas overnight run.
This week: The Dalilah Law, a trucking bankruptcy that wiped out thousands overnight, a FreightGuard civil war on Reddit, and the payroll data that's predicting Q4 capacity.
Indiana pulled the trigger on carriers employing illegal CDL holders. Plus: tariff ruling could flood LA with imports, DC finally moves on double brokers, spot rates are outrunning contract, and more.
The Supreme Court ruled Trump's tariffs illegal. Plus: an Illinois official took $300K and handed out illegal CDLs, cartel violence may affect your Mexico freight, 550 CDL schools just got shut down, and more.
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