🎣 Secrets of a Shady Carrier

TGIF. Today, we're excited to share a true story from our newest writer, Jerome Washington. Back in 2017, Jerome worked as a dispatcher for a shady carrier with...(checks notes) 10 MCs. He reveals his intriguing and eye-opening experience in today's main story.

🤔 Question of the Day:  The current spread between contract and spot rates (16.6%) remains far from the threshold (__%), where markets typically flip to favor carriers. Find the answer in our What's Cookin' in Freight section.

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

❄️ Truckload Market Still Deep in Winter. Don't expect a summer heatwave in truckload rates, warns supply chain expert Jason Miller. His June data dive shows dry van spot rates still down year-over-year, with historically weak seasonal gains. The spread between contract and spot rates (16.6%) remains far from the 10% threshold, where markets typically flip to favor carriers. Miller now sees Q2 2025 as the earliest possible turnaround – and only if everything breaks right for truckers. Looks like shippers will keep enjoying the cold market for a while longer.

💸 APL Cargo's Bankruptcy Balancing Act. Indiana trucking company APL Cargo is in a tight spot. They've filed for Chapter 11 bankruptcy, owing factoring partner WEX Bank $2.3M in secured debt. Now they're asking the court to approve a post-bankruptcy financing deal to keep rolling. But wait, APL's also battling two lawsuits: one from an injured mechanic and another from drivers claiming labor law violations. With assets between $1M-$10M and up to 999 creditors, APL's got a long road ahead.

💥 Red Sea: Ships Sinking, Costs Soaring. Major shipping groups are begging governments to intervene as the vital trade route becomes a war zone. Freight rates have increased 233% in a year as carriers like Maersk and Hapag Lloyd avoid the area. Companies are even adding on emergency surcharges to account for the disruption. With 10-15% of world trade at risk, supply chain chaos looms. The industry warns: "These attacks must stop now." Brace for potential shortages and price hikes on imported goods.

TOGETHER WITH CTRL CHAIN

Ready to boost your freight game?

Small carriers, it's time to level up! Discover 5 reasons why you need supply chain planning tools. From landing bigger clients to higher efficiency, see how CtrlChain can help you stand out.

👉 Read more here.

10 MCs, One Shady Operation: My Freight Dispatching Story

This version of Jerome's content has been edited for length. You can read the full version on our website by clicking here.

How do you do? My name is Jerome Washington. I am a new writer here at FreightCaviar, and I want to share my unconventional path into the world of freight.

Late July 2017 in Poland was tough. It was summer, and my English teaching job was drying up. Most of my students were on summer break or had finished their lessons. I wasn’t too stressed about money, but the demand for native English teachers wasn’t as high as it once was. So, I started searching for a new teaching gig online. That was when an ad caught my attention: Freight. Specifically, a job as a dispatcher.

Honestly, I had no idea about freight. I did have some family who were truck drivers but no dispatchers. I did not immediately apply for the job. I talked to my freight-working family first.

The way my brother was hyping it up had me hooked. Answering phones, checking emails, arranging pick-ups and deliveries, and choosing freight to maximize profits? Sounded like an easy way to make an honest pay. After watching a few YouTube videos, I was feeling myself – and I didn’t even have the job yet!

So I applied and got the job at the company —let's call them "Quake" (I have an NDA signed with them so I can't specify their exact name). During training, my boss, "Jan," instead of just talking about Quake, drilled me about all the other companies under their umbrella.

The first day was great, I was eager to learn. A co-worker showed me how Quake operated, using an online platform to find companies needing freight moved, primarily from the Midwest USA or New York/New Jersey to Southern California or Arizona.

But training at Quake turned from rocky to a full-on earthquake. Here’s why:

• We never delivered on Mondays. It turns out we were using rails to move loads, not trucks, and rail often had weekend delays. The unsuspecting customer had no idea they weren’t getting the long-haul driver they were paying for. Quake maximized profits by moving freight via cheaper rails.
• If a brokerage refused to work with us, we'd use one of our 10 other MCs to get their load.
• We'd combine small loads, so we could combine them into one truck that delivered the final mile from rail to destination. 
• If any issues came up, I was on my own. Solve it by any means:
  • Allow customers to make fake calls with "drivers."
  • Caught using rail?: Deny, deny, deny.
  • Finesse to avoid customer’s tracking systems.

I felt pathetic lying, and my pay depended on the freight I could barely secure. It wasn't long before I was under fire from the boss for not making enough money. After three months, my contract was terminated—a blessing, really.

Quake shook my morals but introduced me to the freight world. Without them, I wouldn't be pursuing this field–only now on a righteous path.

I hope you enjoyed this story. I can’t wait to write more as I settle in with the FreightCaviar team. 

Until next time. See you later.

TOGETHER WITH EPAY MANAGER

Epay Manager Powered by OTR Solutions is a back-office automation solution that enables teams to easily collect PODs and process carrier invoices, manage disputes, schedule carrier payments, and bill customers in one centralized platform for AR and AP teams.

Epay's platform is designed to virtually eliminate operational reliance on email and the need to audit carrier invoices for rate and delivery information thanks to its Audit Proof Invoicing feature. Backed by the power of OTR Solutions, Epay Manager now offers integrated AI-driven NLP automation and working capital solutions.

Schedule a demo to see what Epay can do for you.

🌎 AROUND THE FREIGHT WEB

💪 Broker's Recovery Fund. Freight broker launches GoFundMe after violent attack, seeking $10,000 to cover medical expenses and regain mobility.

🛠️ Another Day, Another DAT Hack. A recent hack on DAT load boards flooded them with thousands of fake $20/mile load postings.

🏠 Moving Building Spectacle. A flatbed trailer slowly hauls 400-ton apartment building for relocation in Madison,WI.

🥑 Avocado Inspection Pause. U.S. suspends avocado and mango inspections in Michoacán after USDA inspectors were assaulted.

🚛 TFI's Latest Acquisition. TFI International acquires food-grade tank hauler Entreposage Marco, continuing its tuck-in strategy.

🎣 THE FREIGHT CAVIAR PODCAST

From $25K Salary to Multimillion Freight Empire. Join us as Kevin Nolan, Founder & CEO of Nolan Transportation Group (NTG), discusses his journey in the logistics industry, from entry-level to opening his own MC, and AI's future impact.

Check out the episode on YouTube, Spotify, or Apple Podcasts.

FREIGHT MEME OF THE DAY

Also, check out:

• 🎧 The FreightCaviar Podcast. Listen to this week's podcast on Spotify & Apple Podcasts.
• Looking to reach a highly targeted freight broker and transportation audience? Sponsor the FreightCaviar newsletter and connect with over 10,300 newsletter subscribers, 38,000+ Instagram followers, and 46,000+ LinkedIn followers. We're only accepting a couple more sponsors for the next year—spaces are limited! Contact Paul at pbj@freightcaviar.com to learn more.