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.
"Lots of other reasons to be bullish on the trucking industry in 2024: retail inventories have burned off, easing credit conditions, ..." - Craig Fuller, CEO & Founder of FreightWaves.
Good Wednesday morning. Today's feature breaks down the key data from Arrive's January 2024 Freight Market Update. We're also looking at another alarming spike in cargo theft, the ongoing contraction in the freight brokerage sector, and Triumph Financial's impressive earnings. Don't miss TruckStop's insights on fraud prevention and a final agreement on a pivotal merger.
🤔 Quiz of the Day: Instances of freight fraud have skyrocketed in 2023, up ___% from 2022 and a whopping ___% from 2021. Scroll to the Around the Freight Web image to find the answer.
In today's email:
TOP LANE MOVERS POWERED BY GREENSCREENS.AI
*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
🚨 Skyrocketing Cargo Theft in 2023. There was a significant 57% increase in cargo theft in 2023, with $130 million worth of goods stolen (a number considered woefully underreported). This escalation is particularly acute in the hotspots of California, Texas, and Florida, with a notable rise in cargo train robberies along the southern border. With industry leaders Paul Graham (YC) and Ryan Petersen (Flexport) discussing potential culprits, the pressure is on to tackle the issue. Some companies are adopting technologies like digital locking systems and real-time tracking. But questions remain on whether they can keep up with the boom of e-commerce and the resulting influx of "land pirates" ready to pilfer freight.
📉 Freight Brokerage Slump Hits 7-Month Streak. Data compiled by Brush Pass Research shows a contraction in the freight brokerage sector for the seventh month running, with a 7.8% drop in active brokerages compared to last year. The current total mirrors figures from two years ago, yet still shows a 21% jump since January 2021. Amidst a 22-month freight recession, the sector has seen a net increase of 33% since pre-pandemic levels. Despite 25,000 new brokerages emerging from January 2020 to December 2022, only 9,700 have sustained operations. With 2024 freight market predictions "unimpressive," the future of freight brokerages hang in the balance.
📈 Triumph Financial Reports 40% Revenue Increase. Triumph Financial showcases robust health with a net income of $8.8 million, while its division TriumphPay notably reaches EBITDA positivity. TriumphPay's revenue leaped by 40.6% in 2023, defying the freight recession. The division's strategic expansion includes the integration of Coyote Logistics into its network, reflecting a strong performance with a 16.7% increase in total payment volume. Poised for future growth, TriumphPay's new offering, LoadPay, promises to enhance financial management for truckers.
TOGETHER WITH CTRLCHAIN
ChainCargo, a leading Dutch logistics company active in Europe and the U.S., has rebranded to CtrlChain, marking a significant step in its growth strategy. The combination of "Ctrl" and "Chain" symbolizes a control tower, highlighting the access to crucial data insights and control over the logistics processes. This results in enhanced efficiency, reduced costs, and improved service levels.
The company has grown impressively, boasting a significant growth rate in the last five years and expanding its network notably within the FTL market in Europe and recently in the U.S. The company addresses key industry challenges such as freight fraud and driver shortages while emphasizing sustainability by offsetting CO2 emissions.
The Freight Market Update for January 2024 from Arrive Logistics provides crucial insights into the U.S. freight market. We're highlighting their report on the trends and dynamics in truckload demand, supply, rates, and overall capacity to give you a comprehensive view of the industry's current state and future outlook.
Arrive's January 2024 Freight Market Update reveals a market in transition, with varying trends across different equipment types and an overall movement towards equilibrium.
Others are more cautious in claiming a turnaround in the freight market, given recent weather conditions.
Overall, some indicators hint at recovery and transition towards stability at this juncture, but the complexities of external factors like weather conditions and global economic shifts suggest the path ahead may still hold unexpected challenges.
Adriana Pulley
Adriana Pulley
Source: Arrive Insights
GET INTEGRATED WITH OTR SOLUTIONS BROKER SERVICES
The trucking industry is crazy right now, and being a broker can be stressful. Managing your invoices, billing, collecting, carrier-base, and cashflow can feel like an impossible task, but OTR Solutions has figured out the impossible.
They eliminate cash flow problems for carrier payments and ensure margin funding in just 24 hours with broker invoice factoring. OTR Solutions takes care of billing and collection processes with your shippers. With lightning-quick and accurate invoicing, your customers will never need another broker to handle their freight needs. Kick back, relax, and let OTR take care of your brokerage.
If you want to know more, check them out here or text “OTRFC” to 80483 to see what they can do for your business.
AROUND THE FREIGHT WEB
🚫 Fraud Freeze. Truckstop blocked an impressive 9,928 accounts in a major clampdown on freight fraud last year, championing security in the industry.
🤝 Merger Milestone. Forward Air and Omni Logistics have settled their merger dispute, with a new deal expected to close shortly. Find out the revised terms of this crucial agreement.
✈️ Air Cargo Climb. Air freight volumes from Vietnam to Europe have spiked 62% due to Red Sea delays. Xeneta's data indicates a shift to air amid growing concerns.
💰 Walmart's Winning Drivers. Walmart's truck drivers enjoy six-figure salaries, a rarity in the industry. Their commitment reflects the retailer's strategy for supply chain excellence.
🎧 Logistics Tech Talk. The latest Freight Caviar Podcast takes on tech trends with A.J. Cheek (REPOWR) and Evan Shelley (Truck Parking Club), revealing insights on apps, why logistics companies fail, and more. Tune into the new episode for expert takes.
FREIGHT CONFERENCES WE'RE ATTENDING
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:
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.
Join over 14K+ subscribers to get the latest freight news and entertainment directly in your inbox for free. Subscribe & be sure to check your inbox to confirm (and your spam folder just in case).
