Freight margins are razor-thin. The brokerages surviving it built nearshore teams that actually work.
Flatbed rejections hit a record 48.7%, broker numbers stop falling, and diesel jumps 30 cents overnight.
Congress is moving to put driverless 80,000-lb trucks on public roads. Plus: 13,000 California CDLs get cancelled, diesel hits a 32-year record, Florida wants $50K to get your truck back, and more.
Good Monday morning. Samsara's standout Q3 performance is the feature story today. Also, we detail the unexpected retail stock surges, the downturn in Atlanta's freight market share, and Union Pacific's revenue highs amidst volume lows. Plus, don't miss our insights on peak season rate negotiations and TFI International's latest strategic move.
🤔 Question of the Day: What does ELD stand for? Scroll to the main story to find out.
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
🐂 Bullish on Retail Stocks. Driven by a softer-than-expected inflation report on November 14, key retailers like Victoria's Secret and Foot Locker are defying modest forecasts, with their stocks surging 52% and 50%, respectively. Expectations of a hold on interest rate hikes have lifted spirits in the stock market, leading to a 4.1% increase in the S&P 500. Ulta Beauty's stock saw a 21% increase after better-than-expected sales, and Dollar Tree's consistent traffic led to a boost of 12%. Investor confidence grows despite economic uncertainty.
🚛 Atlanta Freight Market Takes a Hit. Atlanta's freight landscape is shifting gears, with an 11% slump in market share as importers pivot back to West Coast ports. The trucking industry is navigating the fallout, with a decline in demand for routes from Savannah's port. This shift is reshaped by changing shipping costs and global events affecting the Suez and Panama Canals. While shipping rates adjust, Atlanta's trucking sector braces for impact.
🚂 Union Pacific's Revenue on the Rise. Union Pacific Railroad hit a record revenue high of $23.2 billion in 2022 (thanks to inflationary assistance) yet faces a 17% drop in carload volumes since 2014. Despite layoffs and safety concerns raised by unions over track maintenance, UP touts a 25% increase in car velocity and a notable 94% on-time intermodal traffic rate. The company looks to intermodal growth to recover volume losses.
TOGETHER WITH MVMNT
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At MVMNT, we merge technology with real-world freight expertise. We're not just behind screens; we've been on the frontlines, booking freight and understanding the intricacies of the trade. Founded by Chicago natives in America's logistics heartland, our mission is to empower small to medium-sized brokerages to accelerate their growth with the very tools and tech that were once exclusive to the big players. Learn more here.
Samsara, a prominent ELD (Electronic Logging Device) provider for trucking companies, is experiencing an exceptional year, with its share price up 190% year-to-date.
In a year where many trucking companies are facing challenges, Samsara stands out. Contrary to expectations, the company has thrived. Since the beginning of the year, Samsara's stock has surged by 190%. This significant increase, particularly a 27% rise in the last five days, is a testament to a successful Q3.
Had you invested $10,000 in Samsara at the start of the year, your investment would now be worth an impressive $29,000.
Samsara's choice of 'IOT' for its stock ticker symbolizes its core involvement in Internet of Things (IoT) technology.
Curious about Samsara's journey to a $18.5 billion market cap? Many carriers you work with are likely using Samsara’s solutions.
Sanjit Biswas and John Bicket, founders of Samsara, first made their mark with Meraki, acquired by Cisco Systems for approximately $1.2 billion in 2012. Post-Meraki, they pivoted to logistics, introducing Samsara.
Since introducing its first ELD in 2015, Samsara has expanded rapidly. The company went public in 2021 and has since established a global presence.
In the third quarter of 2023 alone, Samsara reported:
Samsara's value in the stock market is anchored in its diverse technology offerings. These include advanced ELD systems, real-time GPS tracking, and innovative IoT solutions that enhance fleet management and operational efficiency. This technological prowess is key to Samsara’s appeal in the stock market, resonating with investors and users alike.
Samsara's prospects appear bright, with a growing customer base. The increasing number of clients investing over $100,000 annually signifies robust confidence in Samsara’s products, even amidst stiff competition. Are you bullish on Samsara?
Source: Seeking Alpha | Samsara's S-1 form | Investors.com
GIVE BACK WITH CUSTOM CARES
As Custom Cares celebrates its 20th anniversary, we reflect on our enduring commitment to community service, established by Perry Mandera in 2004. These twenty years have been a testament to our dedication to giving back through Custom Companies.
Our recent events in Los Angeles and Chicago have highlighted the generosity of our customers, with donations supporting various causes. Particularly meaningful was our pre-Thanksgiving dinner at the Leyden Senior Center, where we connected with and cared for those in need.
As the holiday season unfolds, we extend an invitation to everyone to join us in this journey of giving. Whether it's through donating, volunteering with Custom Cares, or finding your unique way to contribute, every gesture, big or small, underscores our shared commitment to care and share.
We wish everyone a warm and joyous holiday season filled with the spirit of giving.
The Custom Companies Team
Visit the Custom Cares website to learn more about how you can be part of this meaningful season of giving.
AROUND THE FREIGHT WEB
🏗️ Manufacturing Construction Record High. U.S. manufacturing construction spending, hitting a $206B rate with electronics leading at $113B, signals a boom for trucking sectors moving high-tech goods, potentially driving up demand for specialized transportation services.
📈 Peak Christmas Tree Shipping. Negotiating a storm-affected power-only load from OR-PA peaks at $9500, reflecting the heating peak season.
🔋 EV Workforce Shift. Lion Electric joins the growing list of EV companies in downsizing, cutting 10% of its workforce amid shifting demand.
🚚 Acquisition Alert. TFI International expands its reach with the acquisition of Nebraska-based Dahlsten Truck Line, adding 75 trucks to its fleet.
🇺🇸 American Oil Optimism. The US's leading position in oil production sets a bullish tone for America's economic future.
📊 LTL Market Highs. $XPO hits another 52-week high, with a 141% yearly surge, alongside $ARCB's 54.2% climb, marking LTL carriers' growth.
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
Also, check out:
Flatbed rejections hit a record 48.7%, broker numbers stop falling, and diesel jumps 30 cents overnight.
Congress is moving to put driverless 80,000-lb trucks on public roads. Plus: 13,000 California CDLs get cancelled, diesel hits a 32-year record, Florida wants $50K to get your truck back, and more.
Ryan Schreiber breaks down everything about strategy, relationships, mindset, and AI in logistics.
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.
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