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.
Plus, the binge-worthy drama between Forward Air & Omni Logistics.
Happy Hump Day. We've got the facts and stats behind what it takes to bring you that Thanksgiving meal this year. Plus, the contentious Forward Air-Omni merger, a university shipping scam, and expert acquisition insights also make the headlines.
In today's email:
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🐔 WHAT’S COOKIN’ IN FREIGHT
⚠️ Forward Air and Omni: Disaster Deal? While the tech world deals with its OpenAI drama, the logistics sector has its own binge-worthy battle going down. Forward Air and Omni Logistics are locked in a legal battle over their troubled $3.2 billion merger. Announced in August 2023 to reshape the logistics industry, the deal has since spiraled into controversy. First, there was a significant drop in Forward Air's stock following the announcement. Later, Omni filed a lawsuit against Forward for breaching the merger agreement, to which Forward responded with a counterclaim, ultimately seeking to be let out of the deal. The situation further intensified when investor Ancora accused Omni of harassment. The industry reacts, wondering what was behind Forward's agreement in the first place.
🕵️♂️ College Con: $3.5M Shipping Scam. 21-year-old Matthew Frederic Bergwall, a University of Miami student, orchestrated a bold $3.5 million shipping fraud scheme targeting a major global shipping company. Using unauthorized access to employee accounts, he manipulated tracking information to fraudulently return high-end items, from electronics to designer wear, while pocketing the merchandise. His extravagant spoils included a $41,000 Rolex and trips to Dubai. This scam led to nearly 10,000 fraudulent transactions, causing significant losses to retailers. Now, Bergwall may be trading college for a potential 45-year sentence in federal prison.
🤝 Masterclass in Strategic Logistic Acquisitions. In one of our favorite podcasts this year, FreightCaviar visited Geoff Anderman, President and COO of STG Logistics, at the company's headquarters. Geoff steered us through the intricacies of strategic logistics acquisitions that explain why STG is a $2 billion company. If you're curious about the world of private equity, the art of deal-making, and what makes a successful buy, this is an interview you don't want to miss.
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As families across the nation prepare their tables for the annual Thanksgiving feast, a complex dance of logistics and supply chain management plays out behind the scenes.
Last year, the U.S. raised around 210 million turkeys. The states that led the way were:
2023's numbers are on the rise, with a total of 245 million turkeys expected to be produced in the U.S. this year.
According to the American Farm Bureau Federation (AFBF), the average cost of a Thanksgiving meal has dropped this year, with the average cost of a Thanksgiving dinner for 10 being around $61.17, or less than $6.20 per person. However, social media users may not agree, especially considering higher rates of inflation raising food costs this year.
Data also shows a decrease in the cost of a turkey (due to cases of bird flu over the past few years), but items for side dishes have seen an increase this year due to lingering supply chain issues. According to the AFBF:
The journey of a Thanksgiving meal is an extensive one, often covering up to 2,500 miles to transition from farm to table. To accommodate the increased demand, nearly 700,000 employees are recruited for the holiday season. This surge includes drivers, warehouse staff, and logistics coordinators.
We also give more thanks to our nation's troops as the Defense Logistics Agency has helped ensure over 360,000 pounds of food have been delivered or are projected to arrive by the eve of Thanksgiving.
The demand for turkeys has been steadily rising, with a notable preference for smaller-sized turkeys, likely due to smaller family gatherings. This alters the dynamics of production, transportation, and storage.
America will see around 50+ million turkeys sold over the Thanksgiving weekend, spending more than $1 billion.
The chart below from Mexicom Logistics contains more insights into the preparation behind getting that Thanksgiving meal.
As we give thanks for the plentiful spread on our tables this year, let's also tip our hats to the logistics community that brings the harvest home.
From all of us at FreightCaviar: Happy Thanksgiving!
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AROUND THE FREIGHT WEB
🌨️ Record Breaker. Anchorage shatters a nearly 30-year-old November snowfall record with 39.1 inches, despite El Niño's warm prediction. U.S. Foods got to put its new trailer snow plow to the test.
🚔 Hauling More Than Freight. A Toronto trucker was sentenced to 11 years for smuggling $3.5M of cocaine into Canada.
📉 Sales Slump. Best Buy forecasts a holiday-quarter sales dip and trims annual revenue forecast amid cautious consumer spending.
🚁 Maritime Heist. Militants, likely Houthi rebels, execute a helicopter raid to capture a Japanese tanker in the Red Sea.
🚚 Market Maneuvers. Explore the four charts that explain the current freight market that sees a 4.3% decrease in demand, capacity issues, and more.
🚛 Tech Meets Trucking Troubles. Ruslan Shamanov explores the reasons behind Convoy's operational halt and the challenges of 'uberizing' the trucking industry.
CARRIER OF THE WEEK PRESENTED BY LOSTFR8.COM
W B Logistics Inc, founded in 2008 in Bartlett, IL by the Keserovic family, boasts a durable fleet of 53’ vans and 48’ flatbeds, currently seeking drivers for Bartlett to Kansas City and Houston routes. They emphasize a family-oriented business approach, providing regional USPS runs that guarantee daily home time, and new flatbed positions with top-of-the-line equipment. Notably, their driver tenure averages 4 years, with some surpassing 10 years. Check out their LOST FR8 profile by clicking here.
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
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.
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.
FMCSA cracks down on MC numbers. A $158M trucking Ponzi. Middle East surcharges.
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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