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.
Plus: Dollar General's expanding fleet, Tesla's win in auto disputes, Mississippi River woes for Midwest farmers, and executive shifts at Coyote Logistics.
Happy Hump Day. Today, we spotlight the chart-toppers of the "FreightTech 100" list for 2024, highlighting industry leaders. We've also got the details on Dollar General's growing private fleet and why Tesla comes out on top amidst auto labor disputes. Also not to be missed: Midwest farmers face challenges due to the Mississippi River's low water levels, the recent executive changes at Coyote Logistics, and more.
In today's email:
TOP LANE MOVERS POWERED BY GREENSCREENS.AI
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🐔 WHAT’S COOKIN’ IN FREIGHT
🚚 Dollar General Expanding Private Fleet. Discount retailer Dollar General plans to grow its private fleet to more than 2,000 tractors by the end of 2023, with over 1,800 tractors currently in operation. This move aims to cut transportation costs by 20% each time a third-party tractor is replaced. The company's Q2 operating profit increased by 24.2% YoY to $692.3 million. Dollar General is also automating distribution centers as part of its strategy to boost supply chain efficiency and operational control.
🏭 Tesla's Edge Grows Amidst Auto Labor Standoff. As Detroit's auto giants battle their unionized workers over wages, Elon Musk's Tesla is emerging as a victor. With streamlined production and nonunionized labor, Tesla's labor costs average $45/hour, compared to competitors' $66/hour. If the UAW secures pay raises, Detroit's Big Three could face costs of $136/hour. Tesla's cost advantage allowed it to cut car prices and still post a 20% Q2 profit increase. While the UAW strike might encourage Tesla unionization, past efforts failed.
📉 How China's Economic Slowdown Affects U.S. Manufacturing. Supply chain expert Jason Miller analyzes the impact of China's economic slowdown on American manufacturing. Semiconductors, machinery, and vehicle assembly lead exports to China, while pulp mills face the highest exposure. In 2021, U.S. exports to China were $86.6 billion, just 1.4% of total domestic manufacturing shipments. Industries like pulp mills, machinery, and chemicals bear the brunt, but most U.S. manufacturers remain relatively unaffected by China's economic challenges.
TOGETHER WITH TRUCKER TOOLS
What to Expect this Peak Season and into 2024
One of the major questions being asked recently is: When will the freight market turn? In the past few months, there has been much uncertainty in the industry, but between recent bankruptcies and layoffs, there may be hope for a booming peak season and market turn in 2024.
Join this webinar to hear from Samantha Jones of Meet Me for Coffee Podcast and Rohit Bezewada of Trucker Tools as they discuss:
Register Now By Clicking Here. (It's Free).
At the intersection of tech and freight, FreightWaves hones in on the trailblazers of the freight technology sector. Introducing the 2024 FreightTech 100, a testament to innovation, adaptability, and tenacity.
Navigating the Rough Terrain of Innovation
How FW Curated the List
But there's more in store, with the FreightTech 25 on the horizon, set to debut in November at the F3: Future of Freight Festival in Chattanooga, Tennessee.
Upcoming FreightTech 25
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AROUND THE FREIGHT WEB
🌾 Mississippi River Lows. Low river levels disrupt Midwest farmers' plans to transport crops. Droughts hinder crops, and barge costs skyrocket, impacting the traditionally inexpensive route to the Gulf.
🔄 Coyote Leadership Shake-up. After a 15-year tenure at Coyote Logistics, Jonathan Sisler steps down as CEO. CFO Sandeep Pisipati ascends to the top, promising fresh leadership for the company's next phase.
⚖️ California vs. Oil Titans. California sues major oil companies, alleging they downplayed climate change's risks. The lawsuit demands they fund recovery efforts for the state's climate-induced crises.
🚚 Texas Border Traffic Halt. El Paso's port sees cargo truck operations pause as border agents tackle migrant influx. The Bridge of the Americas shutdown could impact cross-border trade by up to $33 million daily.
⏱️ CH Robinson's Speedy Border Trade. CH Robinson unveils a Laredo facility to fast-track Mexico-US trade. This strategic move accelerates freight unloading by an average of 10 minutes, saving nearly 60 hours for a day that typically sees 350 loads.
📦 Amazon Hiring 250k for Holidays. Amazon is hiring 250,000 US workers for the holiday season and increasing their average hourly wage to $20.50.
FREIGHT MEME OF THE DAY
The FreightCaviar Podcast: Listen to this week’s podcast on Spotify & Apple Podcasts.
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.
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