200,000 drivers didn’t disappear overnight. Plus: Dalilah’s Law targets foreign dispatch, a broker ran a $1M USPS scam, the dashcam war escalates, and more.
B1 visa drivers and illegal operators are not the same thing. Here's the difference and why conflating them is hurting the industry.
Happy Monday. Today's feature examines the driving factors behind the top five freight stocks. Also, we cover another brokerage closing its doors after a series of unfortunate events, the rumored Flexport and Convoy deal and the declines at South Carolina ports. Finally, look at our briefs on shifts in fleet sizes and how the trucking sector lost $7 billion in 2021.
In today's email:
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*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
🚛 Texas Freight Brokerage's Decline. For 26 years, SEL Supply Chain Solutions built a reputation for itself in the Texas transport scene. However, 2023 marked its downfall. Starting with a $700,000 theft of video poker machines in Las Vegas, the firm saw a 40% business drop from its $64 million earnings in 2022. Added to this, banking restrictions hampered its operations. CEO Dennis Martin highlights this year as the toughest. Despite the challenges, Martin aims to settle all dues and assist his team's transition.
🤑 Flexport Eyes Convoy's Tech. Logistics company Flexport is in discussions to secure the technology of recently-shut digital freight startup Convoy, according to sources. This comes amidst Flexport's own troubles, having laid off 40% of its workforce this year. While Convoy's previous valuation stood at a staggering $3.8 billion, they struggled to find a buyer after announcing their shutdown. Flexport, despite its workforce cuts, would be integrating some of Convoy's team. However, the terms do not include any of Convoy's physical assets or liabilities.
🚢 South Carolina Ports' Slump. September wasn't kind to the South Carolina Ports Authority, witnessing a 12% drop in cargo volumes from the year before. The month tallied 199,208 total TEUs, even less than August's 203,169. While the broader U.S. port industry anticipates a calmer peak season, retailers are gearing up with inventory adjustments, reverting to pre-pandemic levels in preparation for the holiday shipping season and beyond.
TOGETHER WITH RAPIDO
Rapido is a top nearshore staffing company providing logistics and supply chain talent to companies in the United States. Based in Guadalajara, Mexico, Rapido offers a unique combination of cost savings and access to a skilled workforce, making it an attractive option for American logistics businesses.
See what makes nearshoring to Mexico an attractive option for scaling a logistics company and how partnering with Rapido Solutions Group simplifies the whole process.
We're bringing you the five top-performing freight stocks this year and breaking down the drivers behind their success.
XPO has had a huge +108% YTD growth attributed to a combo of market opportunities post-Yellow's collapse, consistent revenue growth, and stellar Q2 earnings.
Saia's 65% growth comes from strong earnings, booming revenue, wise reinvestment, and a solid return on equity (ROE).
Textainer's growing revenue and a deal with Stonepeak led to its 57% stock growth.
Various factors drive ArcBest's growth trajectory, including strong net income growth, confident share repurchase, and successful acquisitions.
MATX's strong financials and more have contributed to its 43% YTD growth.
There you have it, the freight frontrunners of 2023. But every coin has two sides. Keep your eyes on your inbox because we'll spotlight the worst freight stocks of 2023 next.
JUST TEXT LOCATE IT
TextLocate makes it easy for brokers to communicate directly with drivers via SMS-based text messaging—no app to download—without having to use personal communication devices. Features like 2-way text chat, one-time location updates, and image capture (think BOLs and PODs) all inside a simple dashboard give brokers the quick updates they need to make better decisions about freight. Instead of wasting time calling drivers, brokers simply automate the process through TextLocate and save hours at very little cost investment.
AROUND THE FREIGHT WEB
📊 Fleet Size Trends. Utilizing FMCSA data, @RunningSignal on X showed a significant rise in "1 Power Units" on the road in 2021. Although he doesn't have the data for 2022 & 2023 yet, we anticipate a drastic decrease since 2021, given that the costs to operate an MC are at record highs.
📍 project44 Concerns. Grant Sernick expressed concerns on LinkedIn about project44's valuation and challenges ahead, especially after Convoy's downfall. Jett McCandless, the CEO & Founder of project44, responded in the comments.
⛽ $7 Billion in Wasted Fuel. In 2021, congestion cost the trucking industry $95B, with drivers wasting $7B on fuel in traffic. ATRI identified California, Texas, Florida, and New York as top culprits.
🚚 Yellow's Liquidation. Bankruptcy court approves the sale of Yellow Corp.’s tractors and trailers, signaling the end of an era.
📦 UPS Acquires Company From PayPal. UPS's acquisition of reverse logistics company Happy Returns promises enhanced return experiences.
FREIGHT CONFERENCES WE'RE ATTENDING
FREIGHT MEME OF THE DAY
Also, check out:
200,000 drivers didn’t disappear overnight. Plus: Dalilah’s Law targets foreign dispatch, a broker ran a $1M USPS scam, the dashcam war escalates, and more.
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The domino effects are just starting to hit. Plus: FedEx dethroned UPS, Mexico truck production plunges, another $26M AI supply chain raise, and more.
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