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.
Good Monday Morning. Freight stocks have unofficially announced their transition to acting like shit coins, with Nikola and Yellow pumping 85% and 43% respectively, after previously falling off a cliff. Meanwhile, a TMS company claims to have more years of experience than the United States of America. Lastly, can you guess which billion-dollar trucking company has a 21% profit margin?
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
🚀 Two Freight Stocks Going to the Moon. Last week, we saw two freight stocks, Nikola and Yellow, trading like unpredictable cryptocurrencies. Nikola, at one point, saw its share price jump 85% over a seven-day period, while Yellow experienced a 43% increase week-over-week. Both stocks have since retreated a bit, but at their current prices, Nikola is up 55% in the last five days, while Yellow is up 24%.
🚚 Signs of Market Recovery, But Improvement Will Be Slow. Jason Miller, a supply chain professor, suggests that the trucking industry's current downturn might be starting to improve, based on data from May 2023. Despite a slight increase in the amount of goods moved that month, Miller warns that the industry isn't out of the woods yet, as the total volume of goods moved is still down 1.3% from a year ago. He predicts that the situation won't improve significantly until 2024. In the meantime, he expects the financial performance of trucking companies for the second quarter of 2023 to be poor, but sees potential for improvement in the third quarter of 2023.
🇨🇳 China's Economic Growth Facing Hardship. China, despite becoming the largest auto exporter in Q1, is facing economic hardship, with deflation, dwindling exports, high youth unemployment, and a declining property market. Private firms have seen investment drop, marking the first sustained decline in decades. However, China is still anticipated to reach around 5% growth for the year.
LOAD TRACKING: IS 100% COMPLIANCE POSSIBLE?
Join us on Tuesday, July 18th at 12pm EST for our webinar, Load Tracking: Is 100% Compliance Possible. Hear from Trucker Tools Vice President of Marketing, Alex Altvater, and Broker Product Manager, Jarret Stowe on:
In the list of the top 100 for-hire trucking companies for the year 2023, UPS Inc. occupies the top position with staggering revenue of $100.3 billion, followed by FedEx Corp., which posted revenue of $92.61 billion. However, FedEx surpasses UPS in terms of employees, boasting 547,000 compared to UPS's 536,000. Interestingly, while Old Dominion ranks last in terms of revenue among the top 10 companies, it boasts one of the industry's largest profit margins at nearly 21%. This is an outstanding achievement for an asset-based company.
Regarding net income, Old Dominion Freight Line takes the third position with a net income of $1.37 billion, closely following UPS and FedEx. Among the top ten companies, TFI International showed significant growth, jumping from the fifth to fourth position. On the other hand, XPO dropped two spots from third to fifth position compared to the previous year.
While UPS, FedEx, J.B. Hunt, TFI International, and XPO retained their positions within the top five, there were notable changes in the bottom half of the list. Several companies, such as ITS Logistics, RoadOne IntermodaLogistics, and National Carriers, joined the top 100 list, whereas some dropped out of the list.
Click here to see the top 100 largest for-hire trucking companies.
AROUND THE FREIGHT WEB
😆 Three Century-Long Experience Touted by TMS Company. Reed Loustalot humorously highlights a TMS company claiming a cumulative 320 years of industry experience.
🚛 150+ Trucking Company Going From Conditional to Satisfactory. In our latest podcast, we interviewed Paul Klimovich of Rochester, NY. The owner of a trucking company that went from being Conditional to Satisfactory recently. He tells us how he did it.
⚠️ Trofeo Logistics Inc Accused of Fraud. Trofeo Logistics Inc. is allegedly involved in freight double-brokering fraud and causing damage without payment.
🚗 Statewide Haulers LLC Accused of Vehicle Theft. Statewide Haulers LLC is allegedly stealing cars during transport, leading to police and FBI investigations.
⚡Electric Truck Adoption Hindered by Charging Infrastructure. The lack of charging infrastructure and potential grid strain present challenges for rapid adoption of electric trucks.
📦 UPS Braces for Potential Strike Action. Amid crucial negotiations, UPS trains nonunion employees for potential labor disruptions to maintain package delivery services.
⛽ $18.4B LNG Terminal Project. NextDecade Corp progresses with its $18.4 billion LNG export terminal project in Texas, potentially transforming regional trade dynamics.
FREIGHT MEME OF THE DAY
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).
