Freight margins are razor-thin. The brokerages surviving it built nearshore teams that actually work.
Flatbed rejections hit a record 48.7%, broker numbers stop falling, and diesel jumps 30 cents overnight.
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.
Good Friday morning. F3 2023 may be over, but we're reliving some of our favorite moments, featuring the innovative showcases and industry insights that stuck with us the most. We've got more for you with Reed Loustalot's Freight Gong demonstration, the impact of Panama Canal's drought on global shipping, and Goldman Sachs' promising economic forecast for 2024. Plus, don't miss Kendra Tucker's candid response on DAT's fraud prevention efforts and the good news on those adorable pups you may have seen at F3.
In today's email:
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🐔 WHAT’S COOKIN’ IN FREIGHT
🔔 A Legendary Freight Demo. Reed Loustalot (@lostisreed) got to do a live demonstration of the Freight Gong at the F3 Future of Freight Festival. FreightGong.com is a virtual space to celebrate your big freight wins on a mass scale. Its user-friendly design ensures seamless integration into brokerage operations, demanding minimal time investment. The website continually updates, with the latest addition being a leaderboard that highlights users and brokerages with the most gong rings.
💧Panama Canal Restrictions to Continue Into 2024. We previously covered the Panama Canal's low water levels and the consequential vessel restrictions. However, the situation is intensifying. The ongoing restrictions are leading dry bulk vessels, notably those transporting U.S. grain, to increasingly reroute through the Suez Canal. This ongoing issue severely limits Panama's transit capacity, altering trade routes, inflating freight rates, and heightening geopolitical concerns. The added roughly 10 days to shipping times and heightened costs don't dim the Suez Canal's growing importance in Asia-U.S. East Coast trade. Industry leaders acknowledge this shift, expecting these challenges to extend well into 2024.
📈 Goldman Sachs Predicts Stronger 2024 Economy. Goldman Sachs' optimistic 2024 economic forecast reveals global GDP growth exceeding expectations, with the US leading the way. Inflation is expected to ease, dropping from 6% to 3% thanks to post-COVID recovery. The forecast also highlights strong real household income growth, a more accommodating monetary policy, and a thriving manufacturing sector. Goldman Sachs has a track record of accurate predictions, with their 2022 recession odds forecast proving accurate. Their forecast contradicts the general outlook and offers hope for an improved 2024.
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From a Q&A with Brad Jacobs to revealing the FreightTech 25, FreightWaves' F3: Future of Freight Festival 2023 was a whirlwind of insight, inspiration, and revelations. We're bringing you a recap of some of the talks that impacted us the most.
Thom Albrecht, CFO at Reliance Partners, dropped a bombshell - over 20% of their customer base with an average fleet size of 4-5 trucks has shuttered this year. While premiums grew by 10%, the market is consolidating, especially among smaller fleets. The challenging market conditions have also led to concerns about fraud. Albrecht predicts that the capacity loss might start to reverse by mid-next year—Albrecht's insights in detail.
FreightWaves announced the 2024 FreightTech 25 award winners during the conference. Notable for its major shake-up, this year's list includes 17 newcomers and the absence of many previous mainstays. Amazon Freight, Plus (a developer of autonomous trucking technology), and Fillogic (innovating in microdistribution hubs) are in the top three spots. Greenscreens.ai and Isometric Technologies, both sponsors of FreightCaviar, are new entrants to the list. Check out the full list.
CEO Andrew Leto of Emerge, a freight procurement platform, is reshaping how shippers and carriers connect. With over 3,400 carriers with a fleet of 20+ and 400 shippers in their network, Emerge is growing rapidly challenging traditional freight procurement practices. Leto believes the traditional brokerage model, dominated by carrier sales reps, is increasingly unsustainable with declining margins and high costs and faces hurdles in digital transformation. Explore Emerge's journey.
Brad Jacobs of XPO Inc. shared his pearls of wisdom, stressing the importance of fearing failure and praising middle managers. He remains bullish about freight brokerages despite current market volatility. His insights provide a blend of realism and optimism.
Jacobs on Celebrating Success:
In a keynote that sparked both controversy and conversation, Alex Epstein passionately defended the role of fossil fuels in our world. Criticizing California's zero-emission vehicle initiatives, he presented a case for the necessity and morality of fossil fuel use, while also nodding to nuclear power as a potential game-changer. Read more about Epstein's perspective.
We relived the best moments from the final day at F3. From Reed Loustalout's live freight gong demo, hiking Lookout Mountain, Brad Jacobs' inspiring Q&A session, and more.
F3 2023 was not just a conference but a vibrant showcase of freight's future that is much needed in the current climate. From thought-provoking discussions to groundbreaking innovations, the event left us all waiting eagerly for next year's event. A big thank you to FreightWaves for bringing it all to us.
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AROUND THE FREIGHT WEB
🤔 Truckstop CEO's Candid Moment. Kendra Tucker humorously reacts to Craig Fuller's inquiry about DAT's fraud prevention, saying a lot with just one look.
🚂 Mexico's Rail Regulations. President Andrés López Obrador mandates private freight companies to introduce passenger services, bringing challenges like electrification and scheduling conflicts, potentially straining freight train operations.
🐼 Panda Farewell Flight. FedEx Panda Express embarked on a 19-hour journey, returning three giant pandas from the National Zoo to China on Wednesday.
🐶 Puppy Adoption Success. Sponsored by OTR Solutions, all five puppies at FreightWaves' F3 Event find new homes, with adoption fees covered by Sean Laidacker of Loyalty Logistics.
🌍 Flexport's Global Impact. Flexport's 2023 Impact Report highlights the crucial role of logistics in humanitarian aid, with over 33 million kilograms of relief goods delivered by Flexport worldwide.
FREIGHT CONFERENCES WE'RE ATTENDING
Feb. 5th-7th, 2024: 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:
🎧 The FreightCaviar Podcast. Listen to this week's podcast on Spotify & Apple Podcasts. ☕️ FreightCaviar Fall Essentials: purchase a FreightCaviar sticker, hoodie, long-sleeve, or mug by clicking here.
Flatbed rejections hit a record 48.7%, broker numbers stop falling, and diesel jumps 30 cents overnight.
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.
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