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.
Can you guess which is the best-rated logistics company to work for?
Good Friday morning. We're looking at the WSJ's "Top Companies for Career Growth," spotlighting standout employers in logistics. Headlining stories include the Pilot Truck Stop's bribery allegations, Flock Freight's proposal to USDOT, and a $40M trucking Ponzi scheme. Check out our quick hits on broker fraud concerns and the latest on TQL's compliance issues.
🤔 Question of the Day: Can you guess which is the best-rated logistics company to work for? Scroll to the main story to find out.
In today's email:
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🐔 WHAT’S COOKIN’ IN FREIGHT
💼 Berkshire Alleges Bribery in Pilot Truck Stop Earnings Dispute. Berkshire Hathaway has accused the Haslam family of bribing executives to inflate the earnings of the Pilot truck stop chain as part of a counter lawsuit amidst a dispute over the valuation of the Haslams' remaining 20% stake. The allegations arise from Berkshire's claim that the family tried to influence Pilot's profits, which determine the buyout price agreed upon in 2017. The Haslams have countered by accusing Berkshire of altering Pilot’s accounting practices to understate earnings. With the potential impact on Pilot's reported profits unclear, Berkshire seeks a January trial to address these issues alongside the Haslams’ initial lawsuit.
🖊️ Flock Freight's USDOT Proposal. In an open letter to the USDOT, Flock Freight CEO Oren Zaslansky discusses a significant issue in the logistics industry: about 50% of heavy-duty trucks are underutilized. This inefficiency leads to 25% of freight space being wasted. Flock Freight proposes a solution with their FlockDirect service, which uses algorithms to better utilize truck space and potentially reduce diesel emissions by 40%. The company aims to collaborate with the USDOT for a more efficient and resilient supply chain. This proposal coincides with President Biden's recent focus on supply chain resilience.
💸 The $40M Trucking Ponzi Scheme. Franklin Ray from Michigan engineered a $40 million trucking Ponzi scheme. Convincingly promising investors lucrative returns from a fleet of over 2,000 trucks supposedly delivering for e-commerce giants, Ray amassed a fortune, flying on private jets and buying vintage cars. His ploy? Using new investments to pay earlier backers. The scheme crumbled, leading to his conviction on wire fraud and identity theft charges. Ultimately, Ray was sentenced to more than 17 years in prison.
TOGETHER WITH VERIFIED CARRIER
In the face of a concerning surge in cargo theft incidents, the transportation industry stands at a critical juncture. CargoNet's recent report reveals a disconcerting 59% increase in events during the third quarter of 2023, with strategic cargo theft accounting for a staggering $31.1 million in stolen shipments.
As we approach 2024, the industry demands a robust solution, and Verified Carrier emerges as the strategic imperative. Our platform's meticulous vetting and verification processes offer not just a defense against the rising tide of theft but a proactive shield reshaping the industry's security landscape. With an unwavering commitment to staying ahead of emerging threats, Verified Carrier isn't merely predicting trends; it's setting the standard for a secure and trustworthy freight ecosystem.
As we navigate the challenges ahead, rest assured, Verified Carrier isn't just a safeguard – it's a testament to the industry's resilience and dedication to overcoming adversities.
In a comprehensive analysis by The Wall Street Journal, the best companies for career growth have been ranked. The ranking of these Fortune 500 companies is the result of examining a blend of factors, including hiring practices, pay scales, promotion rates, and workforce diversity. We're focusing on the companies relevant to the logistics industry. Here are a few that made it:
Rank #21 J.B. Hunt Transport Services: J.B. Hunt stands out with its integrated freight and logistics services. The company excels in promotion opportunities, competitive pay, and a celebrated work culture.
Rank #28 XPO Logistics: XPO Logistics, with a workforce of 39,500, impresses with its focus on pay, hiring practices, and fostering a positive work culture.
Rank #95 FedEx Corporation: FedEx, with a massive workforce of 529,000, got top scores for its strong pay structure, comprehensive hiring strategies, and its strong work culture.
Rank #1 Coca-Cola: With a workforce of 82,500, Coca-Cola is the number one company for career growth, with exceptionally high pay, hiring, and culture scores.
Rank #2 J.M. Smucker: A strong pay structure and sound internal promotion practices help the J.M. Smucker company come in at number two overall.
Rank #3 W.W. Grainger: The industrial supply company takes third place on the list.
| Rank | Company Name |
|---|---|
| 9 | Costco |
| 11 | Target |
| 14 | Lowe's |
| 19 | Pepsico |
| 27 | Amazon |
| 84 | Goodyear Tire & Rubber |
| 30 | Skechers U.S.A. |
| 36 | Nike |
| 69 | Estée Lauder |
| 62 | Mondelez International |
| 33 | Chewy |
| 77 | Expedia Group |
| 89 | Wayfair |
| 99 | Ebay |
| 22 | Best Buy |
| 26 | Walgreens Boots Alliance |
| 44 | Nordstrom |
| 54 | Gap Inc. |
| 55 | Home Depot |
| 72 | Foot Locker |
| 73 | Macy's |
| 78 | Walmart |
| 80 | Ulta Beauty |
The list contains plenty of companies that boast robust supply chain networks for those in logistics who may be looking to branch out. You can take in the full Top 100 ranking of the Fortune 500 here.
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AROUND THE FREIGHT WEB
😟 Double Trouble. A FreightCaviar Poll sponsored by OTR Solutions highlights 'Double Brokering' as the top fraud concern for 50% of brokers.
🍖 Mortadella's Comeback. The Italian delicacy is carving a niche in the U.S., with its popularity and imports on a significant rise since 2019.
🚂 Southwest Connection. Union Pacific's new terminal in Phoenix heralds a sustainable link for freight between LA ports and the Southwest.
🔍 Forced Compliance? Posts are swirling, insinuating that the FMCSA enforced compliance on TQL after revealing a 47% commission rate. We will report more once more info is updated.
🚚 Update: Yellow's Potential Resurgence. This new bid could put defunct trucker Yellow back on the map, aiming to rehire workers and recover lost freight business with a "smaller, leaner" trucking strategy. But they'll need to convince the Feds to help that happen.
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
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