A high commission split means nothing without stability. Learn how credit exposure, factoring risk, and financial discipline impact freight agent income and why the right agency foundation matters most.
Rob Carpenter shares what the non-domiciled CDL ruling means for fleets, compliance, and rates.
Plus: Algorhythm Holdings Up 3.6x, Flexport Targets IPO, Roadcheck 2026 and more.
Good Friday Morning. Whoever at MegaCorp decided to sponsor golfer Brian Harman's hat - the winner of the Open Championship - deserves a raise. Following his win, the freight brokerage experienced a near 5000% increase in online traffic. Meanwhile, FreightWaves recognized Molson Coors as a 2023 Shipper of Choice, and Q2 earnings from Ryder, Landstar, and Old Dominion declined, yet their stock prices are rising. After 100+ years in business, Yellow Corp formally announced plans to file for bankruptcy on Monday, making it the largest bankruptcy in trucking history. Waymo has dropped its self-driving truck program and decided to shift focus back to cars. Lastly, if you ship with UPS, expect hefty double-digit rate hikes in 2024 - take a wild guess as to how much.
In today's email:
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🐔 WHAT’S COOKIN’ IN FREIGHT
🏌️ MegaCorp Wins Big. MegaCorp, a freight brokerage, has experienced a surge in public attention and online search traffic due to its sponsorship of golfer Brian Harman, who recently won the Open Championship with the company's logo prominently displayed on his hat. The company's vague and mysterious name attracted many humorous speculations on social media, but it ultimately increased its visibility and drove a 5,000% increase in website traffic, making the sponsorship a successful marketing strategy.
🍺 Molson Coors Named 2023 Shipper of Choice. Molson Coors, the maker of Coors Light & Miller Lite, has been recognized as a Shipper of Choice for 2023 by FreightWaves due to its efficient and flexible supply chain. Shipping about 13 million barrels of beverages annually through over 7,000 transportation providers, the company has managed to effectively respond to the increasing consumer demand. Andrew Silver, the former CEO of MoLo Solutions, commented, calling Molson Coors "one of the best".
📈 Ryder, Landstar, Old Dominion Q2 2023 Earnings Report. Ryder suffered an $18 million loss in Q2 2023 due to weaker market conditions and a substantial charge associated with its departure from the UK market. Simultaneously, Landstar System Inc. reported a year-over-year decrease in revenue and earnings in the same quarter, with net income dropping to $66.6 million from $112.5 million the previous year. Old Dominion Freight Line's Q2 revenue fell by over 15% YoY, with less-than-truckload (LTL) shipments per day down by 11.5%. In the past year, despite the downturn in the freight market, Ryder's stock has risen by 28.55%, Landstar's has increased by 29%, and Old Dominion's share prices have impressively surged by 40.6%.
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Yellow Corp, the fifth-largest trucking company in the United States, is slated to file for bankruptcy on Monday morning. The company currently operates 14,127 tractors and 43,287 trailers and has its headquarters in Nashville, TN. Let's take a look at its history.
Yellow's origin traces back to 1906, when Grover Cleveland “Cleve” Harrell initiated a horse-drawn hack service in Oklahoma City. Progressing to a Model T Ford in 1918, he painted it yellow, thereby attracting more passengers and leading to a boom in business. This success prompted him to trademark the name Yellow Cab in Oklahoma, a concept later copied by John Hertz in Chicago, who obtained the national trademark for it.
When oil was discovered in Oklahoma City, the Harrell brothers launched Yellow Transit Freight Lines in 1929 to serve small manufacturers. The company remained modest in size until an ownership group led by George E. Powell Sr. acquired it in 1952. Under this new leadership, Yellow pioneered the consolidation of small freight shipments into trailer loads, a concept advanced by the Fruehauf Trailer Company. The company's name transitioned from Yellow Transit Freight Lines to Yellow Freight System Inc. in 1968, eventually becoming Yellow Corporation in 1992.
The dawn of the 21st century brought a flurry of acquisitions and restructuring for Yellow Corp. Notably, in 2003, it acquired Roadway Corp., then the largest LTL carrier in the US for $1.05 billion. Following this was the purchase of USF Corp. in 2005. These acquisitions led to a drastic increase in Yellow's revenue and necessitated significant structural changes within the company.
Despite rebranding as YRC Worldwide in 2006 and back to Yellow Corporation in 2021, the company faced economic adversities, narrowly dodging bankruptcy in 2009. Recently, it came under scrutiny as a congressional report criticized a flawed $700M COVID-19 relief loan from the U.S. Treasury.
Throughout these transitions, one element remained constant - the unique Swamp Holly Orange color used on all company tractors. Chosen in 1929 in collaboration with E. I. du Pont de Nemours and Company, this distinctive hue was found to be the most visible on highways.
Despite its rich history and numerous triumphs, the Yellow Corp now stands on shaky grounds. The company plans to file for bankruptcy on Monday, and amidst these financial struggles, it also intends to sell off its logistics unit, Yellow Logistics Inc. This comes amid unresolved labor disputes and allegations of withheld employee benefits contributions. As the logistics and transportation sectors brace for the impacts, the once towering Yellow Corp stands as a testament to the cyclical nature of business - rise and fall.
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AROUND THE FREIGHT WEB
🇲🇽 US Investment in Mexico Continues. The USTDA is funding a study to upgrade Chiapas, Mexico's freight infrastructure for a transition from road to rail transport.
🏭 Data Indicates US Supply Chain Rebound. Instawork data shows a resurgence in the US supply chain, led by west coast manufacturers, as indicated by increased hourly wages and labor demand.
🚛 Waymo Shifts Gears from Autonomous Trucks to Ride-Hailing. Waymo is redirecting its focus from self-driving trucks to ride-hailing, seeing more commercial opportunities in the latter.
⚠️ Norfolk Southern's Derailment Leads to Skyrocketing Cleanup Costs. The costs from Norfolk Southern's Ohio derailment have doubled to $803 million due to cleanup efforts, legal fees, and community assistance, with final totals pending additional negotiations.
📦 UPS Shippers Face Hefty Rate Hike. In 2024, UPS shippers could see double-digit general rate increases due to high contract costs with the Teamsters union, with hikes potentially ranging between 11% and 12%.
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FREIGHT MEME OF THE DAY
Correction: In our previous newsletter, we inaccurately stated that Surge Transportation was the main sponsor of FreightWaves' "What the Truck?!?" show in 2022. We would like to clarify that the primary sponsor was actually AIT, while Surge Transportation was the third sponsor. We apologize for any confusion caused by this error.
Plus: Algorhythm Holdings Up 3.6x, Flexport Targets IPO, Roadcheck 2026 and more.
A penny stock wiped $4.8B off C.H. Robinson's market cap yesterday. Plus: self-driving trucks are now running 1,000 miles nonstop, STG Logistics cleared a major bankruptcy hurdle, the FMCSA revoked nine ELDs, and more.
Here’s what’s trending across freight and logistics on X, LinkedIn, Reddit, and YouTube.
In just three years, we have moved from an industry that relied heavily on manual phone calls and emails to one where many of us use AI to some extent to support the above.
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