🎣 Major Freight Brokerage Sued & Another Attacked

Good Monday morning. Try not to get sued or attacked in any way this week if you're a freight brokerage. A major Michigan-based freight brokerage was sued over a wage dispute, and another brokerage spilled the beans on a ransomware attack that hit them earlier this year. Get the full scoop below.

🤔 Question of the Day: According to a World Shipping Council report, up to ____ shipping containers are lost at sea each year. Scroll all the way down to find the answer.

Today's Newsletter is Brought to You by CTRLChain.

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🐔 WHAT’S COOKIN’ IN FREIGHT

👁️ 'Big Brother' Freight Brokerage. Kentwood-based freight brokerage Fifth Wheel Freight is being sued by former employees alleging unpaid overtime and invasive surveillance through a company app. Representing 500-1,000 potentially affected workers, the suit accuses the firm of violating federal labor and state privacy laws by misclassifying positions to dodge overtime pay and employing an app that tracks employees' locations and communications, even off-duty. The case is one to watch for the industry, as the outcome could possibly usher in stricter labor and privacy standards – especially as more and more companies increasingly leverage technology for operational oversight.

🚚 America's Riskiest Roads for Truckers. A revealing study by Baderscott.com highlights the dangers truckers face across the U.S., with Wyoming taking the spot as the most perilous state for driving, with a fatality rate of 27 per 100,000 people. Not far behind, Mississippi matches this grim statistic, with Arkansas trailing closely at 22 deaths per 100,000. Read our post for the full list of dangerous states and a few of the safest.

📊 Arrive Logistics March 2024 Freight Market Update. March is nearly behind us, and the 2024 freight market is shaping up with steady demand but softer supply adjustments. With U.S. imports resilient against Red Sea hiccups, and a slight uptick in new carrier entries reducing exits, the sector eyes stabilization. Yet, spot rates have dipped to near cycle lows, with dry van rates at $1.55/mile and reefer rates at $1.84/mile. Despite this, steady diesel prices offer a silver lining. Plus, potential interest rate cuts are likely to increase spending and drive freight demand, but the timeline on these cuts are unclear. As we gear up for the produce season, expect the market to balance out with continued loose conditions but watch for regional upticks rate upticks.

TOGETHER WITH CTRLCHAIN

There's a major trust deficit in freight. It's a reality where transparency feels like a relic of the past, and finding a reliable freight partner feels more like a roll of the dice than a strategic decision.

This blog post, brought to you by CtrlChain, takes a close look at freight relationships, uncovering the root causes of the trust deficit and shining a light on innovative solutions paving the way for a more transparent, secure, and efficient future. Click here to read more on how CtrlChain is taking the charge toward a more trusted logistics experience.

Mainstream Media Reports on Freight Fraud

Rob Hoffman, CEO of Dedicated Carriers, is speaking out about a high-stakes theft the company was victim of last year. Thieves hijacked the brokerage's freight load, and threatened to target more unless Hoffman coughed up $40,000.

A recent piece from the Wall Street Journal describes how it went down.

Messages from "samsultantranss@gmail.com." First the scammer impersonated Sultan Trans but soon began sending threats of more cargo for ransom. **Image Source: WSJ/Zack Wittman**

The Heist: A load of yogurt and plant-based milk, valued at about $50,000, was swiped right from under Hoffman's nose. Thieves exploited the load board system, posing as the legitimate Sultan Trans, to nab the goods meant for a Florida supermarket from a Danone plant in Virginia.
Double Brokering Dilemma: While cargo theft direct from trailers is more common, Hoffman's company encountered a double brokering scam with a twist. Swindlers acted as middlemen, hiring another carrier for cheaper and aiming to pocket the difference. Sadly, they also held the cargo ransom, demanding Dedicated Carriers pay $40K or face more intercepted loads.
A Growing Trend: Cargo theft, particularly through double brokering, is skyrocketing, with reports more than quadrupling in 2023. Causing a hefty loss of around $500 million in 2023. Everyone from brokers to shippers and carriers is feeling the pinch, with insufficient support from law enforcement and the Federal Motor Carrier Safety Administration (FMCSA).

For Hoffman, he and his company seemed to be stuck.

Negotiation Attempt: Hoffman tried to recover the stolen yogurt load, offering to pay the carrier directly.
Carrier's Decision: The carrier, misled by scammers, delivered the goods to a different location in Pennsylvania as directed.
Complicated Recovery: After the cargo reached Pennsylvania, Hoffman was contacted about the "stolen goods" at a warehouse.
Challenges in Recourse: Hoffman encountered obstacles in getting support from law enforcement and the FMCSA, despite filing a report and an insurance claim.

The situation with Dedicated Carriers shows how bold these fraudsters have become, especially with the cloak of technology. By speaking out, we can only hope that Hoffman's story will drive entities like the FBI and FMCSA to step up when it comes to reigning in the issue.

You can read more about the rising cargo theft rates, and the rising target of food in these cases, in our last newsletter. 👇

TOGETHER WITH TURVO

Invite your shippers, carriers, and partners on to your Turvo Network to share, communicate, and solve supply chain issues in real time. Turvo’s unique collaboration technology unifies people, processes, and data, bringing together everyone involved in a shipment for 100% visibility, better on-time deliveries, and a superior customer experience.

Join all size companies using Turvo’s TMS Platform, Mobile App, and the most popular Driver App in the industry. Ask For A Turvo Demo Here.

AROUND THE FREIGHT WEB

👾 Becker Logistics Attacked. After a Reddit user posted in the Freight Brokers forum asking what is happening with Becker Logistics, the official account of Becker Logistics replied, saying, "We were hit by a ransomware attack at the beginning of this year and have been working to rebuild everything since then."

📉 Spot Market Struggles. Senior Economist at Uber Freight, Mazen Danef, breaks down the nearly unprofitable landscape of the trucking spot market.

🚛 Cassandra Gaines Legal Insights. Cassandra Gaines discusses defamation & libel risks in reporting brokers or carriers, inspired by project44's lawsuit.

🔍 Market Finds Bottom. Speakers at the Mid-America Trucking Show (MATS) signal a market bottom, with spot and contract rates stabilizing.

🎣 FREIGHT CAVIAR CORNER

Why OTR Solutions Acquired EPay Manager: Back Office Tech Support for Freight Brokers

In our latest FreightCaviar Podcast episode, we sat down with Clayton Griffin, EVP & Chief Strategy Officer at OTR Solutions and EPay Manager. Clayton takes us through his start at OTR, its recent acquisition of EPay, and the strategies that have driven the success of the company.

Catch the episode on Youtube, Spotify, or Apple Podcasts.

FREIGHT MEME OF THE DAY

Meme Credits to our good friend, **Boris Panov**.

Also, check out:

🎧 The FreightCaviar Podcast. Listen to this week's podcast on Spotify & Apple Podcasts.
🎧 The Bootstrapper's Guide to Logistics is a podcast that highlights and inspires supply chain entrepreneurs, sharing their stories and building a community from the ground up.
Want to get your brand noticed by freight brokers? FreightCaviar can help. Work with us to get your services featured in our newsletter, podcast, and more. Plus, we write great articles about what you do. Get in touch with Paul at pbj@freightcaviar.com to learn more.

Answer: Up to 1,382 shipping containers, are lost at sea annually. See the scale of these losses in this video.