Plus, a Bank of America report highlights year-over-year changes in consumer spending, a Florida freight forwarding president is arrested, and FedEx considers changes to its LTL arm.
*Greenscreens.ai, forecasts real-time truckload buy prices that are suited to each freight brokerage's purchasing power using AI and machine learning. Its engine takes into account over 130 attributes and data points in each rate forecast.
🐔 WHAT’S COOKIN’ IN FREIGHT
📉 BofA Highlights Shifts in Consumer Spending. Bank of America's latest Global Research report shows spending shifts in the last week of June. Furniture spending plunged around 11% year-over-year, with Clothing and Home Improvement both down approximately 3%. In contrast, Entertainment spending surged. Logistics expert Beau King commented on X, "Not friendly numbers for freight demand. Low food and abysmal housing-related spending. Housing drives long-term consumption. The Fed needs to keep sight of a completely stalled market. It’s not just builders at stake."
🚨 Florida Freight Forwarding President Arrested. Kirill Gordei, President of Apelsin Logistics in Florida, has been indicted for smuggling a high-tech mass spectrometer to Russia, violating U.S. export laws. Gordei, a Belarusian citizen, allegedly shipped the Orbitrap Exploris GC 240 Mass Spectrometer to Russia under the pretense of sending it to Uzbekistan, bypassing required export licenses. This device, which enhances scientific research, is restricted due to potential military uses. Gordei faces up to 20 years in prison if found guilty.
🚛 FedEx Freight’s Future in Question. FedEx Freight, the less-than-truckload (LTL) arm of FedEx, may soon be spun off. CEO Raj Subramaniam announced a review of FedEx Freight’s role to unlock shareholder value, with results expected by year-end. Despite LTL acquisitions losing appeal as B2B synergies fade, FedEx Freight remains a top performer with over 20% operating margins. Industry expert Satish Jindel argues a spin-off could significantly boost shareholder value, much like GXO’s separation from XPO Logistics. While a sale is unlikely due to the division’s size and complexity, a spin-off could attract substantial investor interest in the LTL sector.
TOGETHER WITH TAB LLC
TAB-LLC is a wholly owned subsidiary of Artur Express Inc. Our asset-backed model allows our agents to explore opportunities that would otherwise be unavailable.
At TAB, we provide agents with unmatched support, leading technology, staffing options, and unlimited potential to meet their financial goals and keep the wheels turning.
What we offer:
25-year-old asset-based logistics company with an A+ Credit Rating
The Port of Houston, TX, will be significantly impacted by Beryl's landfall. After landfall, Beryl will move toward the Midwest, potentially disrupting logistics and supply chains throughout the week. (Image Source: National Hurricane Center)
Hurricane Beryl, the first hurricane of the 2024 season, is set to hit South Texas this morning. Forcing the closure of major ports including Corpus Christi, Houston, Galveston, Freeport, and Texas City. Initially hitting Mexico as a Category 2 storm, Beryl has now weakened to a Category 1 hurricane but may strengthen again before making landfall on Monday, says the U.S. National Hurricane Center (NHC).
Key Points:
Port Closures: The Coast Guard set condition "Zulu," expecting gale-force winds within 12 hours, which halted all vessel movement and cargo operations.
Threats: Beryl brings winds of 74-95 mph, heavy rain, and storm surge. Major supply chain hubs like Laredo, Corpus Christi, and San Antonio could face disruptions.
Highway Delays: Expect delays on I-35, I-10, and I-37. FedEx Freight warns of potential capacity shortages if the storm intensifies.
Energy Impact: The 52-mile Houston ship channel, essential for oil shipping, has stopped all traffic. Port closures might halt crude exports and oil shipments temporarily.
Power Outages: Nearly 14,000 Texas customers lost power on Sunday. Acting Texas Governor Dan Patrick urged coastal vacationers to evacuate and prepare.
Craig Fuller, CEO of FreightWaves, highlighted the critical impact on the region:
"With every update, Beryl's path moves northward. The Texas Gulf Coast is one of the most critical suppliers of petrochemicals in the world and is home to several major oil refineries. Hurricane relief loads are already shipping - if the storm strengthens, Beryl could cause capacity shortages in the South and Midwest over the coming week."
Isometric Technologies (ISO)gives brokers access to a network of thoroughly vetted, high-performing carriers, complete with historical performance data for lanes, consignees, facilities and more.
🎯 Target Logistics Managers Sales Tips. Eric W., a Sr. Logistics Manager at Target, offered some great sales tips for freight brokers.
⚖️ Brokers in Limbo with Non-Compete Ban. Texas court pauses FTC's non-compete ban, leaving 30 million Americans in limbo.
🛑 California Trucking Company Shutdown. FMCSA orders Monique Trucking to cease operations after fatal Colorado crash.
📉 Transportation Unemployment Rise. June 2024 U.S. transportation sector unemployment reaches 4.8%, surpassing previous year's 3.3%.
🔌 California's Electric Truck Mandate. Mexican cross-border truckers face challenges complying with California's Advanced Clean Fleets rule by 2025.
🧊 14 Essentials to Setting Up Cold Chains for Biologics. Comprehensive guide outlines crucial steps for managing biologic transportation, including compliance, documentation, and temperature control.
🎣 THE FREIGHT CAVIAR PODCAST
40+ Years In Freight. In this week's episode, we sat down with Noam Frankel, one of the founding members of American Backhaulers (later acquired by C.H. Robinson). Noam gives us an exclusive look behind the scenes of the company's early days, shares his insights on the significant changes in the industry over the past two decades, and discusses his vision for the future of the industry.
🎧 The FreightCaviar Podcast. Listen to this week's podcast on Spotify & Apple Podcasts.
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