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.
Question of the Day: Can you guess what the most popular snack item is at Dominick's Truck Stop in NJ?
Good Monday Morning. For our main story today, we have an exclusive with Dominick Tullo, operator of the legacy T&R Oil Company, and the bustling New Jersey-based Tullo Truck Stop. The September Truckload Market is showing signs of a slowdown, so we'll break down what you need to know. Over in Kentucky, cargo thefts are seeing a concerning spike, especially in strategic double-brokering. And finally, if you're watching the labor landscape, we've got insights on recent strikes and what they spell for the freight industry.
🤔 Question of the Day: Can you guess what the most popular snack item is at Dominick's Truck Stop in NJ?
In today's email:
TOP LANE MOVERS POWERED BY GREENSCREENS.AI
*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
🚛 September Truckload Market Insights 2023. The truckload market in September sees potential weakening, with signs of a subdued peak season and decreased containerized imports. The labor market's cooling is evident, with July job openings at their lowest since February 2021, influencing the FOMC's decision to hike interest rates. Despite the average mortgage rates rising above 7%, the effective interest rate on outstanding mortgages remains at 3.6% due to previous refinancing and purchases. Core PCE indicates a deceleration in inflation, potentially signaling a peak in mortgage rates, but heightened demand might keep them elevated. Strikes by the UAW union threaten a significant drop in the auto manufacturing sector, which could affect trucking ton volumes. The spot market rates show no significant revival.
🪧 Labor Unrest and What it Means for the Freight Industry. Amidst President Biden's $9.2 billion loan to Ford for EV production, a revival in American manufacturing is in the spotlight. Ford's shift to produce EV batteries domestically, particularly in non-union states, raises concerns for UAW members who initiated a strike on Friday. With American laborers pushing for better terms across industries, it's indicative of a broader trend of nearshoring and a renewed focus on domestic production. This shift towards restoring American manufacturing, coupled with labor demands, presents both challenges and opportunities. For the freight industry, it translates to potential changes in supply chains, demand patterns, and a reimagining of U.S. transport logistics.
🚨Dramatic Rise in Cargo Thefts in Kentucky. Kentucky faces a surge in strategic double-brokering and redirected load thefts. Criminal groups exploit unsuspecting trucking companies, redirecting shipments to California and Chicago. Liquor and energy drinks are primary targets, with electronics at risk, too. A copper shipper lost nearly $2 million in six thefts. Kentucky State Police urge thorough vetting of brokers and carriers, plus detailed documentation. Advanced tech and swift law enforcement involvement are vital for cargo recovery.
UNLOCK THE POWER OF OBJECTIVE PERFORMANCE DATA WITH ISO
What if you had access to this type of data the next time you cold call a Shipper? ISO is the industry’s first neutral Service Index, providing freight brokers with a platform to objectively measure their performance strengths. Gain access to industry-wide performance benchmarks, dynamic carrier & customer scorecards, and powerful analytics to raise service standards across your network. Visit iso.io to get started.
This week's podcast features Dominick Tullo, who operates T&R Oil Company and Tullo Truck Stop. The family-owned business has evolved from ice and coal to modern-day fuels. By day, they fuel trucks; by night, assets directly. Their Newark, New Jersey truck stop offers essential amenities and boasts partnerships with giants like Exxon Mobil. Here's a snapshot of what we discussed:
Truck Stop Essentials:
Fuel Distribution Insights:
Regulations & Compliance:
Fuel Insights & Beyond:
Fuel isn't just about pumping and selling. There's a strategy to it, one that Dominick has honed. For instance, despite the CAT scale being nationally marketed, up to 60% of its revenue gets directed to CAT. This contrasts with the NJ truck stop, where they pocket the full revenue sans marketing.
And for those curious about fuel pricing? There's a trend to follow. Prices ascend rapidly but descend at a more measured pace, a "prices up fast, down slow" phenomenon. With a margin of around 5% (that's 20 cents/gallon), it's all about staying competitive.
Unique to NJ: gas station attendants do the pumping, a tradition causing potential political debates.
Tullo Truck Stop Essentials
It’s not just diesel that’s being pumped here. Truckers are refueling on essentials like the overwhelmingly popular buttered rolls, as revealed in Tullo’s recent poll.
There's a lot more that isn't covered here with Dominick Tullo, including how he utilizes social media and the advantages and disadvantages of Diesel Exhaust Fluid (DEF). Head over to FreightCaviar on Spotify or YouTube for more.
TOGETHER WITH ISO
ISO is the industry leader in delivering unparalleled transparency and reliability in logistics performance through its one-of-a-kind scoring system. Click here to learn more.
AROUND THE FREIGHT WEB
🛣️ The Modern Marvel of American Interstates. Reed Loustalot highlights the impressive expanse and seamless accessibility of the U.S. interstate system.
📉 Trucking Volume Declines. The trucking ton-mile index reading for July highlights a bleak outlook for 2023's trucking demand recovery. Anticipated weak peak import season and manufacturing recessions confirm the downward trend.
📬 Ameritrans' Unpaid Wages. Drivers for Ameritrans Express are left with millions unpaid after the company’s questionable contract termination with the U.S. Postal Service. The firm's bankruptcy further complicates matters, leaving contractors in financial distress.
🐔 Chicken Highway Havoc. A multi-vehicle crash in Atlanta spilled a truckload of frozen chicken onto Interstate 285. While the extent of the injuries remains unknown, the peculiar scene captured attention.
🛍️ GXO's Big Acquisition. GXO Logistics is set to acquire PFSweb for $181 million, intensifying its focus on e-commerce fulfillment for elite brands. This acquisition will integrate PFSweb into GXO's expansive operations post-deal completion.
FREIGHT MEME OF THE DAY
The FreightCaviar Podcast: Listen to this week’s podcast on Spotify or Apple Podcasts.
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.
Join over 14K+ subscribers to get the latest freight news and entertainment directly in your inbox for free. Subscribe & be sure to check your inbox to confirm (and your spam folder just in case).
