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.
Trivia of the Day: What percentage of phishing attacks targeted the logistics/shipping industry in the 4th quarter of 2022?
Happy Hump Day. We've got an expert's take on potential precedent-setting legal action against Expeditors, holding 3PLs accountable for business disruptions post-cyberattack. Also spotlighted: the USDA's report on this winter's reefer commodities, the strategic outcomes of Yellow's terminal auction, and the Port of NY/NJ's latest cargo figures. Don't miss our podcast with Matt Silver and the supply chain crisis flagged by OTR Solutions.
🤔 Trivia of the Day: What percentage of phishing attacks targeted the logistics/shipping industry in the 4th quarter of 2022? Scroll to our main story to find out.
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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
🥔 Top Reefer Commodities this Winter. In the past 30 days, the USDA has highlighted the leading commodities in refrigerated transport: Potatoes lead with 67.5 million lbs. Apples follow at 42.5 million lbs. Dry onions reached 28.4 million lbs. Tomatoes and avocados transported nearly 17.7 and 16.7 million lbs, respectively. And where is it all coming from? A significant portion of this produce, including the top seasonal picks, originates from Mexico, totaling 141.8 million lbs.
🗝️ Key Players Secure Yellow's Terminals. In a landmark auction, logistics giants XPO, Estes, and Saia scored big, snatching up Yellow’s terminals for a combined $1.9 billion. XPO landed the largest haul with 28 properties worth $870 million, while Estes and Saia netted 24 and 17 properties, amassing nearly $250 million and $236 million, respectively. The event attracted carriers and investors, with 130 properties sold and 46 still open for bids. The sale proceeds will address Yellow's sizable debts, including a $700 million federal loan.
🚢 Port of NY/NJ Cargo Challenges. In October 2023, the Port of New York and New Jersey experienced a 6% drop in cargo volumes year-over-year, handling 742,571 TEUs. Despite this decrease, volumes showed a 12% rise from September 2023. Compared to pre-pandemic levels, there's an 11% increase from October 2019. Looking ahead, the port is gearing up for a $220 million infrastructure upgrade at the Newark complex.
TOGETHER WITH TRUCKER TOOLS
Join Trucker Tools CEO, Kary Jablonski, and MODE Global Chief Transportation Officer, Gene Welsh, on Wednesday, December 13th at 12pm EST for “The Next Mile: Exploring Market Trends in Freight for 2024.”
We will set the stage by recapping 2023 key developments that will shape the freight landscape of 2024. From the rising trends of nearshoring, increase in fraud, and significant industry shifts triggered by the exit of major players Yellow and Convoy, learn our predicted market trends for 2024 and how to best prepare your freight brokerage for the year ahead.
Click here to register.
Back in February 2022, the 3PL provider Expeditors International of Washington Inc. experienced a cyber attack targeting its global operating systems, leading to a shutdown of most of its systems worldwide. This shutdown significantly impacted Expeditors' global chain of operations, including customs, freight, and distribution activities, setting a chain reaction for customer shipments.
Exclusively for FreightCaviar, Michael Chada, Co-Founder and Partner at Enduir Cyber, a Cybersecurity Incident Response Firm, details the Expeditors ransomware attack and its widespread implications for the logistics industry.
As we continue to see a massive surge in cybersecurity incidents in all industries, but especially in manufacturing, it is no surprise to see that the logistics industry is also becoming a regular target for ransomware and extortion.
With the increased visibility and awareness of these issues making headlines across the globe, and government agencies like the SEC and the White House making regular announcements of the dangers of cyber incidents to businesses, it is harder and harder to claim ignorance when an attack impacts major operations. In fact, we are now seeing more cases where impacted third parties are claiming contractual breach and punitive damages as a result of impacted services during and after a breach.
In the latest case, we see POC USA, a manufacturer and distributor of protective gear for sports, claiming Expeditors was negligent in their investment and maintenance of an appropriate cybersecurity posture. Not only did Expeditors get breached and ransomed, but they also refused to pay the Threat Actors and voluntarily shut down their services for 45 days. It took another 45 days before POC was able to resume their regular operations with Expeditors.
POC claims this 90-day service interruption could have and should have been prevented and that Expeditor’s handling of the situation was negligent. The industry is already seeing a shift in public sentiment and regulatory involvement in holding executives responsible for cybersecurity attacks. If this case holds, it will likely set yet a new wave of precedent for organizations to hold their third-party providers responsible for poor cybersecurity posture and the financial damage caused by a compromise.
Earlier this year, iRobot sued Expeditors for $2.1 million plus 18% annual interest, citing losses from the cyberattack due to Expeditors' inadequate business continuity plan.
How To Prevent a Cyber Incident:
How To Respond to a Cyber Incident:
AROUND THE FREIGHT WEB
🚚 TuSimple Says Goodbye to U.S. Roads. Autonomous trucking developer TuSimple lays off 150 employees as it winds down U.S. operations, with no takers found for its once-pioneering driverless tech.
🎙️ Freight Insights from Matt Silver. Tune into the FreightCaviar podcast where Matt Silver shares lessons from his journey as Forager's CEO, emphasizing hiring and performance in freight brokerage.
📉 Supply Chain on Edge. A white paper from OTR Solutions warns of an emerging crisis as bankruptcies and unpaid freight threaten the delicate balance of the U.S. supply chain.
🚜 Minn-Dak's Driverless Venture. Minn-Dak Farmers Co-op pioneers in autonomous trucking, using Kratos Defense tech to transport sugarbeets driverlessly in North Dakota.
💼 Brad Jacobs' Billion-Dollar Bet. Brad Jacobs, XPO Logistics founder, readies a new $1 billion acquisition firm, targeting industrial services for his next big venture into technology-driven markets.
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.
CARRIER OF THE WEEK PRESENTED BY LOSTFR8.COM
Founded in 2014 by Ted Johnson, Elite Commodity Express (ECE) operates in reefer and flatbed freight between Nebraska and the US Northeast and Southeast. Ted's journey, from aspirations of farming to trucking influenced by his father, led to establishing ECE, which he built from the ground up. With a dedicated team of 10 drivers and secretary Amy, ECE combines over 120 years of experience in the trucking industry, ensuring high-performance delivery and local pride. Reed, who met Ted through Twitter, highlights Ted's unique business insights, contributing to ECE's success. Learn more about ECE on their LOST FR8 profile.
FREIGHT MEME OF THE DAY
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