The domino effects are just starting to hit. Plus: FedEx dethroned UPS, Mexico truck production plunges, another $26M AI supply chain raise, and more.
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.
Plus: Overhaulās data shows California leading in cargo thefts, while U.S. ports report rising imports but slowing exports as holiday prep ramps upāand more.
Todayās feature story dives into recent Q3 earnings from Heartland Express, Landstar, and Werner. Plus, Overhaulās data shows California leading in cargo thefts, while U.S. ports report rising imports but slowing exports as holiday prep ramps upāand more.
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š WHATāS COOKINā IN FREIGHT
š September 2024 Cargo Theft Highlights. Overhaulās September data shows California as the top hotspot for cargo theft, with 53% of incidents. Electronics were the most targeted product, and thefts were highest from Tuesday to Thursday, primarily involving full truckloads (30%) and last-mile couriers (28%). Key hotspots included Southern California, Chicago, Philadelphia, and Kansas City. Many incidents occurred at unattended warehouses, distribution centers, or delivery points. Violent thefts involving armed criminals against truck drivers were notably high in North Carolina and Maryland. With the holiday season approaching, these trends may continue.
š US Ports Show Mixed Trends in Import & Export Volumes. Recent data from US ports reveals a mix of rising imports and falling exports. At the Port of Long Beach, imports grew 2% over last year and 17% since 2019, while exports dropped 13% YoY and 28% from 2019 levels. Other West Coast ports, like Los Angeles and Oakland, also saw import growth as retailers prepare for the holiday season, with agricultural exports boosting volumes in Oakland. On the East Coast, ports like Savannah and Everglades reported some increases, though others saw declines due to high inventories.
š²š½ FreightCaviar Exclusive: Nearshoring Talent for U.S. Brokerages. In 2019, Rapido's co-founders, Danny Frisco and Roberto Icaza, saw the potential of Mexicoās skilled workforce through their logistics experience with Coyote and BlueGrace. A chance lunch in Guadalajara sparked the idea to create a company bridging U.S. brokerages with top-tier logistics teams in Mexico. Read the full story on our website to learn how Rapido built a powerful nearshoring solution for U.S. brokerages.
TOGETHER WITH STEALTH MONITORING
Cargo theft is a real problem and costs companies billions of dollars every year. Stealthās customized transportation and logistics security solutions help to reduce and deter cargo, parts, and vehicle theft while providing enhanced site management tools and capabilities.
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Last Friday, we shared insights into Q3 earnings from some of the largest logistics players in the U.S. Today, weāre continuing the financial recap with new updates on Heartland Express, Landstar, and Werner.
Adriana Pulley
Heartland Express reported a $9.3 million net loss for Q3, marking its fifth consecutive quarter in the red. The company is grappling with low demand and rising operating expenses.
CEO Mike Gerdin said:
āWeāll need a meaningful turnaround in the freight environmentā¦ to improve asset utilization and lower our consolidated operating ratio.ā
Landstar expressed a conservative outlook on Q4, citing a āmuted peak seasonā as one reason for the lower guidance.
Joe Beacom, Landstarās chief safety and operations officer, noted:
āYou donāt see people willing to make the investment [in a truck]ā until rates improve, highlighting the uncertainty for the coming months.
While Werner Enterprises missed some earnings expectations, CEO Derek Leathers provided a cautiously optimistic outlook, particularly for potential rate hikes in 2025.
Leathers shared:
āIt is our expectationā¦ that the time for rates to be going up is upon us,ā though he added, āthe next several weeks will really shape and tell us a lot about what to expect going into the formal bid season.ā
The overall message from these companies is clear: 2024 has been tough, but 2025 may hold some promise. Cost control and strategic planning remain essential as companies weather current market conditions and prepare for an uncertain peak season.
The upcoming months will likely give a clearer picture of where the industry is heading, with most leaders looking ahead to 2025 for more substantial improvements.
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š AROUND THE FREIGHT WEB
š³ļø Kamala or Donald? We recently posted a poll on X, where 83% of 230 respondents favored Donald. Our Instagram story poll saw similar results, with 1,000 votes showing the same preference.
šÆ Chipotleās Top Logistics Partner. Arrive Logistics scores Chipotleās Inbound Logistics Supplier of the Year award for the second year in a row.
š ATA Disputes Report on Driver Shortage Claims. A new FMCSA-commissioned report questions the trucking industry's long-standing driver shortage claims, suggesting high turnover and industry structure may be bigger factors.
š Trucking Ponzi Scheme Uncovered. New Jersey trucking company owner charged in a $5 million Ponzi scheme, defrauding investors with promises of high returns.
āļø Election Results Could Shape Port Labor Talks. With a January deadline looming, upcoming U.S. port labor talks may hinge on the presidential election, as employers and unions await potential shifts in government support for their positions.
š£ THE FREIGHT CAVIAR CORNER
FREIGHT MEME OF THE DAY
The domino effects are just starting to hit. Plus: FedEx dethroned UPS, Mexico truck production plunges, another $26M AI supply chain raise, and more.
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.
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