Congress is moving to put driverless 80,000-lb trucks on public roads. Plus: 13,000 California CDLs get cancelled, diesel hits a 32-year record, Florida wants $50K to get your truck back, and more.
Ryan Schreiber breaks down everything about strategy, relationships, mindset, and AI in logistics.
Oil spikes to $120 on Iran news before settling near $106. Plus: another influencer shipment gets stolen, Wyoming can now pull your truck, 24 states sue over tariffs, and more.
Plus, uncover the sudden shutdown of a 150-fleet trucking company & get the scoop on the Chicago warehouse hoarding $5M in stolen shoes.
Happy Hump Day. In today's feature story, we unpack J.B. Hunt's Q3 2023 earnings report and speculate on its broader market implications. Also in the newsletter: the unexpected shutdown of Twin Express, the discovery of a $5 million shoe heist in Chicago, and don't miss our blurb on the 2024 recession forecasts by top executives.
In today's email:
TOP LANE MOVERS POWERED BY GREENSCREENS.AI
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🐔 WHAT'S COOKIN' IN FREIGHT
🚚 Rogers, MN-Based Twin Express, Shuts Down. Twin Express a trucking company with over 150 tractors, recently ceased operations without much notice. Whispers of this quiet shutdown began circulating in forums as early as September, yet no official statement has emerged. The closure is made evident by their now-unreachable website and a clear "Permanently Closed" banner on Google. While trucking closures make the news, it's important to note how many companies close without hitting the headlines.
👟 $5 Million in Stolen Shoes Uncovered. Chicago police have cracked a major theft ring at a warehouse in the Austin neighborhood where nearly $5 million worth of high-end shoes, including Nikes and Yeezys, were stashed. Thieves targeted freight trains, swiping goods from rail cars across the country. The sophisticated operation involved re-labeling and reselling stolen merchandise, often at a 100% markup. Two individuals have been charged, with more under investigation. The surge in cargo theft is a significant concern nationwide, costing retail and transport companies billions.
📉 2024 Recession Warnings: CEOs Speak Out, Trucking's Potential Immunity. Several top executives, including the CEOs of JPMorgan, Citibank, Wells Fargo, PNC, and BLC, anticipate a mild recession in 2024 due to aggressive Federal Reserve interest rate hikes. However, Bob Costello, the Chief Economist of the American Trucking Association, believes the trucking industry will likely remain unaffected, having already undergone a downturn from late 2022 to 2023. As U.S. trade shifts favorably towards Mexico and Canada, the overall economy faces challenges with fluctuating inflation rates and consumer spending.
TOGETHER WITH RAPIDO
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See what makes nearshoring to Mexico an attractive option for scaling a logistics company and how partnering with Rapido Solutions Group simplifies the whole process.
J.B. Hunt's operating income is derived from five business segments: JBI (Intermodal), Dedicated Contract Services (DCS), ICS (Integrated Capacity Solutions), FMS (Final Mile Services), and JBT (Truckload).
Let's take a look at some key segment highlights.
J.B. Hunt's brokerage segment faced significant challenges this quarter. It was the only business segment to report an operating income loss. Key data points reveal:
A segment grappling with revenue declines despite volume upticks.
J.B. Hunt's strongest business segment is Intermodal. It is the largest fleet in North America. 53% of their operating income comes from this intermodal division.
In conclusion, J.B. Hunt's Q3 2023 earnings report showed notable challenges across its business segments. The company witnessed an overall revenue decline of 18%, reaching $3.16 billion. While some sectors like Intermodal observed slight volume growth, they faced setbacks in revenue and operational costs. The Integrated Capacity Solutions and Truckload segments saw significant downturns in both revenue and operating income.
If you'd like to read their entire report, which also delves into their DCS (Dedicated Contract Services) and FMS (Final Mile Services), click here.
Prologis, the San Francisco-based logistics real estate operator, reported strong Q3 results, with an occupancy rate of 97.1% and a massive increase in net effective rent change to 84%. While leasing decreased by 9% y/y, the current freight market shows retailers building inventory for the holiday season, leading to packed warehouses and increased rents. Despite these highs, Prologis observed a slowing demand, hinting at market normalization, and an unexpected persistence in capacity, keeping freight rates lower for an extended period.
JUST TEXT LOCATE IT
TextLocate makes it easy for brokers to communicate directly with drivers via SMS-based text messaging—no app to download—without having to use personal communication devices. Features like 2-way text chat, one-time location updates, and image capture (think BOLs and PODs) all inside a simple dashboard give brokers the quick updates they need to make better decisions about freight. Instead of wasting time calling drivers, brokers simply automate the process through TextLocate and save hours at very little cost investment.
AROUND THE FREIGHT WEB
👎 Q4 Freight Momentum Fades. Craig Fuller (@freightalley) tweeted that the hopeful Q4 freight market momentum has waned due to excess capacity.
⛽ Diesel Price Trend. Retail diesel prices appear to be dropping, even as global events hinted at potential increases.
🦾 CEVA's Robotic Future. CEVA Logistics integrates Boston Dynamics’ Stretch robot to boost transload facility speed in LA.
🚂 Colorado Train Derailment. A tragic BNSF coal train derailment in Colorado resulted in a fatality and major interstate disruptions.
🚚 Volvo's Efficiency Triumph. Volvo Trucks unveils SuperTruck 2, achieving a 134% boost in freight efficiency, surpassing set goals.
🤖 AI in Truck Insurance. Nirvana raises $57M to integrate AI into commercial trucking insurance, highlighting the tech's potential industry shift.
FREIGHT CONFERENCES WE'RE ATTENDING
FREIGHT MEME OF THE DAY
CARRIER OF THE WEEK PRESENTED BY LOSTFR8.COM
Founded by former Marine, TJ O’Doan, in 2004, SBF boasts a fleet of 70 tractors and reefers, specializing in wine transportation with terminals in CA and TX. The company, which also runs Pacific Coast Transport brokerage, offers diverse LTL services across the southern U.S. and is eyeing expansion into Las Vegas and Saint Louis. Reed, who met TJ via Twitter, praises SBF's unique operations and TJ's journey from a driver to building a cross-country operation in 20 years.
Check out Santa Barbara Freight’s lostfr8.com profile.
Also, check out:
Congress is moving to put driverless 80,000-lb trucks on public roads. Plus: 13,000 California CDLs get cancelled, diesel hits a 32-year record, Florida wants $50K to get your truck back, and more.
Ryan Schreiber breaks down everything about strategy, relationships, mindset, and AI in logistics.
Oil spikes to $120 on Iran news before settling near $106. Plus: another influencer shipment gets stolen, Wyoming can now pull your truck, 24 states sue over tariffs, and more.
The Supreme Court just heard arguments in the broker liability case we’ve been tracking. Plus: oil shipping costs explode, trucking insurance is stuck in 1980, regulators brace for a carrier crackdown, and more.
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