☕️ Hump Day

Happy Hump Day. Big moves in logistics as Yellow Corp. takes a swing at Teamsters with a hefty lawsuit. Meanwhile, Dexory boosts its AI warehouse solution with a fresh $19M, Convoy goes through another staff shuffle, and Prologis bags a cool $3.1B in logistics real estate. Can you guess what percentage of FreightCaviar poll respondents plan to quit their job this year?

In today's email:

• Three Freight Headlines: Yellow Corp. sues Teamsters, manufacturing boom may not lead to better freight market, plus a FreightCaviar Poll reveals 47% of us plan on quitting within the year.
• Apple, TSMC, & Mazda Shift Supply Chains out of China
• Around the Freight Web: $19M raised for AI-based warehouse operations, Convoy downsizes staff again, Prologis acquires $3.1B in logistics real estate, plus more.
• Meme of the Day

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🐔 WHAT’S COOKIN’ IN FREIGHT

🚚 Yellow Corp. Sues Union for $137M Amid Financial Distress. Less-than-truckload carrier, Yellow Corp., is suing the International Brotherhood of Teamsters for $137 million for breach of contract. Yellow alleges that the union's interference has blocked proposed changes crucial for the company's survival and resulted in severe financial loss.

🚧 Cautioning Impact of US Manufacturing Boom on Trucking. Jason Miller, a supply chain professor, discusses the recent increase in construction spending on manufacturing plants in the US. He points out that spending on new plants has risen dramatically from an annualized average of $8.7 billion in 2019-2020 to $96.8 billion in April 2023. However, this 10x increase may not translate directly into a proportional increase in trucking freight volumes.

🧐 FreightCaviar Poll: 47% Plan On Quitting Their Job Within the Year. Yesterday, the Bloomberg Business account on Instagram reported that their study concluded, "more than one in four office workers plan to quit within the year." We decided to do our own poll on our Instagram page and out of nearly 800 votes, 47% of people chose 'Yes'.

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APPLE, TSMC, & MAZDA SHIFT SUPPLY CHAIN OUT OF CHINA

Supply Chain Shift for Major Companies

For over 40 years, China has been the manufacturing hub for many global companies. However, due to trade tensions and COVID-19 disruptions, firms are now shifting their supply chains. Among these are tech giant Apple, leading chipmaker TSMC, and Japanese carmaker Mazda.

Apple's Partial Diversification

Apple's production was significantly affected by China's strict COVID lockdowns. In response, the company began moving iPhone production to India and explored similar actions for the iPad. Despite this, the Vision Pro mixed reality headset still involves Chinese suppliers, indicating Apple's continued reliance on the country's manufacturing capabilities.

TSMC's Investment in the US

TSMC is another company looking to diversify its operations outside China. Although not completely abandoning China, the company has announced a significant $40 billion investment in a second factory in Arizona, USA. Despite cost considerations, the move is partially funded by the US government to boost local semiconductor chip production.

Mazda's Return to Japan

Mazda, a Japanese car manufacturer, has also taken steps to reduce its dependence on Chinese suppliers. The company is asking parts suppliers to manufacture outside China and is increasing stockpiles in Japan. This shift aims to ensure robustness and stable procurement within the company's supply chain.

Click here to read the entire story.

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AROUND THE FREIGHT WEB

🦿 $19M to Enhance Warehouse Operations. Warehouse tech startup Dexory secures $19 million in Series A funding to expand its AI and autonomous robot-driven inventory management solution.

📈 Pickett Foresees Q4 TL Rate Increase. An increase in Truckload rates by Q4 2023 may challenge contract stability, Pickett Research predicts.

👨‍💻 DAT Hiring CTO. Users debate on Twitter the needed skills and potential bureaucracy for a CTO role at DAT.

🚛 FreightTech Investments. Cart.com, Nuvocargo, and Cargobot collectively secure $102M in funding, fueling growth and innovation in the freight industry.

🚚 Convoy Reshuffle. Digital freight platform Convoy undergoes staff downsizing for the fourth time within a year.

🌎 Traxion Buys BBA. Mexico's Traxion acquires US firm BBA Logistics for $10 million, expanding its door-to-door cargo brokerage services in the US.

🏭 Prologis Strengthens Market Hold. Prologis acquires $3.1B of logistics real estate from Blackstone, enhancing its global leadership in industrial property.

FREIGHT MEME OF THE DAY