Oil spikes to $120 on Iran news before settling near $106. Plus: another influencer shipment gets stolen, Wyoming can now pull your truck, 24 states sue over tariffs, and more.
The Supreme Court just heard arguments in the broker liability case we’ve been tracking. Plus: oil shipping costs explode, trucking insurance is stuck in 1980, regulators brace for a carrier crackdown, and more.
Optimize freight broker operations by fixing payment workflows in Q1. Streamline carrier pay before capacity shifts compress your margins.
If you had invested $10,000 in XPO on January 3rd, 2023, that $10,000 would now be worth _______. Read the main story to find out.
Good Friday morning. Today's newsletter features our 2023 Freight Stock Wrap-Up, looking at the year's stock successes and setbacks. Don't miss our headlines: a dramatic SWAT standoff with a semi on a Houston freeway, a cunning heist of premium tequila, and an analysis of the trucking industry's crucial balance between supply and demand. Plus, FreightCaviar goes north of the Arctic for some cold facts about trucking in Norway.
🤔 Question of the Day: If you had invested $10,000 in XPO on January 3rd, 2023, that $10,000 would now be worth _______. Read the main story to find out.
In today's email:
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🐔 WHAT’S COOKIN’ IN FREIGHT
🚨 Dramatic Houston Highway Standoff. In Houston, a high-tension standoff unfolded on the I-10 East Freeway when Trinidad Cutshall, a 42-year-old truck driver, initiated a slow-speed chase and refused to exit his vehicle. The incident, beginning at 1 p.m., led to a SWAT team intervention. Using specialized equipment, officers safely apprehended Cutshall by 3:30 p.m. He was treated for injuries and faces felony evading charges. Authorities suspect impairment, but no weapons were found. The truck's trailer was empty. The freeway was temporarily closed during the standoff, and no police officers were injured.
🥃 'Grinch Tequila Heist'. Cargo thieves swiped 19,000 bottles of tequila from Daytoon Distributors, derailing their inaugural shipment from Mexico to North Carolina. Valued at nearly $400,000, the heist was discovered when fake updates from a non-existent driver came to light. With the load believed to be in California, the veteran-owned company is not letting this dampen spirits. Daytoon is already mapping out alternate routes to ensure the January debut of their aged reposado and crisp blanco tequilas, maintaining their course for a February market splash.
📊 Balancing Trucks and Freight Demand. The freight market stands at a crossroads, with "aggressive" predictions by Morgan Stanley's TLQURE model forecasting spot rates climbing to $1.88 in 6 months and $2.28 in 12 months. Industry dialogue, sourced from FMCSA's data, contrasts elevated tractor counts against smaller freight volumes, suggesting the "great shakeout" of capacity hasn't reached its full potential. Consensus points toward a crucial rebalance on the horizon.
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We're looking at the top ten freight stock price increases compared to the companies with the steepest declines and poorer comparative performances. Surprisingly there were not many losers in 2023. Only 4 out of the top 10 worst freight stocks lost value this year.
We analyzed 28 freight and transportation stocks to come up with this list.
After suffering a net income loss after spinning off RXO last year, the stock continued to climb after strong earnings reports throughout 2023. The LTL carrier received an $870M loan to buy 26 Yellow terminals and two leases nationwide.
Answer: If you had invested $10,000 in XPO on January 3rd, 2023, that $10,000 would now be worth $27,830.
Saia also had a strong year, holding onto the freight it onboarded after Yellow's collapse and agreeing to acquire 17 terminals from the shuttered company.
After missing Q1 and Q2 expectations, Arcbest beat estimates in Q3. The company credits its dynamic pricing strategy for allowing it to adapt effectively to fluctuating market demands.
Forward Air's stock faced significant challenges in 2023. After the company acquired Land Air Express, there was a 3.04% decline. Then came the disputes with Omni Logistics, with the company filing a suit against Forward Air to enforce the merger of the two companies.
UPS stock took a hit due to labor disputes that ended with a historic wage increase win for the UPS Teamsters union. The company had to cut its revenue outlook in Q3, leading to another drop in the stock.
Norfolk Southern faced challenges this year with mixed fiscal results– a7% revenue growth in Q1 overshadowed by a 32% drop in income after the East Palestine derailment. Q2 and Q3 continued the downward trend.
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AROUND THE FREIGHT WEB
🇳🇴 Northern Insights. Part of the FreightCaviar team is in Norway this week interviewing truckers 220 miles north of the Arctic Circle. Kenneth, a Norwegian owner-operator, shares his struggles in the current freight market and anticipates a turnaround next year.
🚧 Fleet Suspension. BC Ministry swiftly suspends Chohan Freight Forwarders Ltd's entire fleet after a damaging overpass incident. Details here.
📊 Swift's Tough Safety Stats. Swift's safety record shows 949 crashes since 2021 with 14k power units.
🌍 Global Delays. Flexport's CEO reports around 920,000 TEU containers diverted around Southern Africa and another 1,002,000 containers delayed in the Suez area, affecting global freight and potentially Q1 inflation data.
🤝 Strategic Acquisition. Grupo Mexico acquires major stakes in two maritime transportation companies, bolstering US-Mexico trade operations amid border challenges.
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FREIGHT MEME OF THE DAY
Also, check out:
Oil spikes to $120 on Iran news before settling near $106. Plus: another influencer shipment gets stolen, Wyoming can now pull your truck, 24 states sue over tariffs, and more.
The Supreme Court just heard arguments in the broker liability case we’ve been tracking. Plus: oil shipping costs explode, trucking insurance is stuck in 1980, regulators brace for a carrier crackdown, and more.
Tucker Carlson’s nicotine brand loses 378,000 tins in a cargo theft. Plus: produce rates reset, diesel climbs, and a bill that could pull hundreds of thousands of drivers off the road.
The Middle East crisis is already hitting carriers. Plus: Florida lost $3B in crops, flatbed rates posted a fifth straight weekly increase, a $5B brokerage was just acquired, and more.
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