LA rejections just doubled, flatbed hit $3.74, and 9,500 drivers are off the road. Plus: SoCal theft ring busted, C.H. Robinson cuts headcount, UP CEO fires back, and more.
Good Morning & Happy Friday. It’s a slower news day, but here’s what’s happening: PepsiCo expands its electric fleet with Einride, and UPS braces for a shorter holiday peak. Plus, mega carriers report mixed Q3 earnings and more.
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Question of the Day: Knight-Swift’s revenue dropped 7.1% YoY, but its LTL segment grew __%.
*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
Einride and PepsiCo Expand Electric Truck Fleet. Image Source: The EV Report.
🚛 PepsiCo & Einride Electrify Memphis Routes. PepsiCo and Einride have launched a digital electric truck fleet in Memphis to reduce Scope 3 emissions on Frito-Lay’s distribution routes. With five electric trucks covering 200,000 miles annually, this partnership aims to save 143 metric tons of CO2 emissions each year. A 700 kW charging station at Armstrong Transportation supports the effort, advancing PepsiCo’s decarbonization strategy.
🚚 ATA’s Truck Tonnage Index Sees Dip. September saw a 2.1% decline in the ATA For-Hire Truck Tonnage Index, which measures the total weight of freight moved by trucking companies, reflecting a potential “return to pre-COVID norms.” This drop reverses the gains from July and August, signaling slower demand in the contract freight segment. Meanwhile, the Cass Freight Index reported a 5.2% year-over-year drop in shipments, aligning with private fleet trends.
📦 UPS Prepares for Softer Holiday Volume. Major UPS shippers are reducing holiday volume forecasts due to a shortened peak season, which may drive shoppers toward in-store purchases rather than home delivery. Although UPS expects a strong season overall, the tight 17-day window between Black Friday and Christmas Eve has led consumers to worry about timely deliveries, boosting in-store shopping projections. The company aims to balance the slower demand with higher surcharges and a new contract with the US Postal Service. Despite competitive pricing pressures, UPS anticipates improved Q4 results driven by adjusted strategies and robust peak season revenue.
Trucker Tools, long dedicated to fraud prevention, has developed a new fraud toolkit to help brokerages combat increasingly sophisticated schemes. This toolkit enables broker partners to proactively identify fraud and protect their operations.
We had some key trucking companies drop Q3 2024 earnings reports over the last two days.
Here's a look at how they're performing.
1. Knight-Swift Transportation (KNX)
Knight-Swift’s revenue dipped 7.1% YoY, pressured by lower truckload rates, but its LTL segment grew 16.7%, showing potential in diversified lanes.
CEO Adam Miller is optimistic: "In 2025, we’re going to have to, as an industry, convert any rate improvement into margin improvement."
2. Old Dominion Freight Line (ODFL)
Old Dominion kept market share steady despite a flat Q3, reflecting a slowing economy.
CEO Marty Freeman: "Continued softness in the domestic economy" impacted results, yet ODFL's on-time service and low cargo claims lead the industry.
3. Ryder Systems (R)
Ryder’s revenue grew, but profits fell, shaped by more contracts and weaker rental and sales.
CFO John Diez expects Q4 earnings growth: "Our current forecast does not contemplate a recovery in freight conditions this year."
4. Covenant Logistics Group (CVLG)
Covenant believes the freight recession may be bottoming out, posting flat revenue and a slight decrease in net income.
CEO David Parker: “We’re just kind of going along the bottom… waiting on the catalyst to move things forward.”
5. Universal Logistics Holdings (ULH)
Universal saw a mixed Q3, with net income up 14.7% but revenue down, including a 25.4% brokerage drop after closing its company-managed operations.
“We continue to navigate a deeply depressed freight environment, and we also made the difficult but necessary decision to close our company-managed brokerage operation." CEO Tim Phillips, Universal Logistics Holdings
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🌎 AROUND THE FREIGHT WEB
😂 Funny Freight Terms. Besides being called 'boss' by an Eastern European dispatcher, what other freight terms do brokers find funny? Check out the comments in this Reddit thread.
⚓ Port Strike Looms Over Automation Talks. U.S. port unions and industry leaders are negotiating over automation and wage increases, with a potential January strike looming if no agreement is reached.
🌉 DCLI to Pay $100M. DCLI’s owners have agreed to pay the US government more than a $100 million in relations to Francis Scott Key Bridge collapse, though it excludes reconstruction costs.
🚨 Truck Driver Arrrested. Paul Stokes was arrested in Tennessee for battery and other charges after allegedly slashing another truck driver's neck following an argument and missing a delivery in Wisconsin.
🚩 Fatal Long Break. Travis Merrill fatally shot his coworker, Tamhara Collazo, reportedly due to frustrations over her “unauthorized long breaks” and a perceived lack of interest in him.
🎣 THE FREIGHT CAVIAR CORNER
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Podcast: This week’s episode features Danny Frisco, CEO of Rapido Solutions Group, discussing nearshoring's impact on carrier sales. Listen here.
I’m Adriana, a writer and editor at FreightCaviar. I’ve covered everything from freight tech to industry lawsuits and market shifts, helping scale us to almost 14K subscribers. My goal: to make logistics stories digestible, clear, and fun to read.
Hello! I'm Jerome FreightCaviar! I’m into the politics of freight and the impact it will have worldwide. I'm always eager to learn more. Follow me on X @JeromeFreightC
LA rejections just doubled, flatbed hit $3.74, and 9,500 drivers are off the road. Plus: SoCal theft ring busted, C.H. Robinson cuts headcount, UP CEO fires back, and more.
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