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.
Question of the Day: In 1981, right after the deregulation of the trucking industry, this individual started American Backhaulers, which was later bought by C.H. Robinson in 1999. Who is it? Scroll to the bottom of our newsletter to find out.
Happy Black Friday. As we wake up today after eating too much yesterday, we just wanted to let you know that the West Coast is so back. The Port of Long Beach has experienced a 23% year-over-year increase in imports. Aside from that, Freightos, the Israeli-based freight tech startup, is apparently burning $6M per quarter, while another Israeli startup is flying drones without human supervision.
Question of the Day: In 1981, right after the deregulation of the trucking industry, this individual started American Backhaulers, which was later bought by C.H. Robinson in 1999. Afterwards, this individual went on to open Command Transportation, which Echo Global Logistics acquired in 2015. Who is it? Scroll to the bottom of our newsletter to find out.
In today's email:
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🐔 WHAT’S COOKIN’ IN FREIGHT
💸 Freightos Burns $6M, Rakes $5.1M Per Quarter. Freightos, an Israeli-based freight tech company dubbed the "Expedia of Freight," has been burning through $6 million per quarter. The company became public in January of this year through a SPAC and has since seen its stock value drop by over 70%. It currently stands as the year's worst-performing freight stock among those that are still operational. With the release of their Q3 earnings, they reported a modest $5.1 million in revenue, which, although a 9.1% increase from the previous year, is still quite low for a publicly traded company. Additionally, they are burning through $6 million every quarter. On the brighter side, they have $55 million in cash reserves. Only time will tell whether they can turn a profit or if they will shut down like many other freight tech companies this year.
🥷 $9.5 Million in Stolen Goods Recovered. A few recent incidents highlight the prevalence and sophistication of cargo theft schemes. Notably, a group in Philadelphia targeted 55 UPS warehouses, stealing $1.6 million in electronics. In California, a couple amassed $9.5 million in goods from big-box retailers. We're bound to hear more, with CargoNet reporting a 64% increase in thefts and an "extremely high" threat over Thanksgiving. Holiday shopping is underway, and thieves are targeting unattended trucks, focusing on high-value items like electronics and apparel.
🛒 US Retailers Brace For Tough Holiday Season. Despite early promotions and discounts, U.S. retailers are facing a challenging holiday season, with big names like Lowe's, Best Buy, and Kohl's reporting lower year-over-year sales and trimming annual forecasts. Economic indicators suggest cautious consumer spending amid rising interest rates, inflation, and other financial pressures, although some sectors like apparel have shown resilience. While there's hope for positive surprises from Black Friday and Cyber Monday sales, broader concerns about consumer spending persist, leaving the retail industry on alert for a potentially subdued end-of-year performance.
TOGETHER WITH RAPIDO
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See what makes nearshoring to Mexico an attractive option for scaling a logistics company and how partnering with Rapido Solutions Group simplifies the whole process.
The ports of Los Angeles and Long Beach on the West Coast of the United States experienced a significant increase in the number of import containers in October, indicating a preference by some shippers to avoid East Coast routes during the holiday season.
In particular, the Port of Los Angeles reported a 10.7% year-over-year increase, handling 372,455 twenty-foot equivalent units (TEUs). Similarly, the adjacent Port of Long Beach recorded a 23.6% rise, with 363,300 TEUs processed.
Port of Long Beach CEO Mario Cordero also echoes this sentiment, noting a rebound in import volumes in response to concerted efforts to recapture market share. He forecasts moderate growth for the remainder of the year, driven by ongoing retail stocking for the winter holidays.
In 2023, East Coast ports experienced significant shifts in market share relative to their West Coast counterparts. After peaking at 55.4% in Q4 2022, East and Gulf Coast ports saw a decrease in September 2023, capturing 45.1% market share versus the West Coast's 39.6%.
Recently, a reversal occurred, with West Coast volumes rising by 16.7% year-on-year, while East/Gulf Coast volumes fell 13.4%.
Recent challenges at the Panama Canal have had a substantial impact on U.S. ports. A severe drought led to reduced water levels in the canal, forcing a reduction in the number of ships crossing daily from 36 to 24 as of today.
40% of all U.S. container traffic travels through the Panama Canal every year, about $270 billion in cargo annually. Shipping companies have had to carry less cargo, opt for longer and more expensive alternative routes, and face staggering bottlenecks.
Unfortunately for the East and Gulf Coasts, the continuing drought has resulted in some companies rerouting cargo headed in their direction.
JUST TEXT LOCATE IT
TextLocate makes it easy for brokers to communicate directly with drivers via SMS-based text messaging—no app to download—without having to use personal communication devices. Features like 2-way text chat, one-time location updates, and image capture (think BOLs and PODs) all inside a simple dashboard give brokers the quick updates they need to make better decisions about freight. Instead of wasting time calling drivers, brokers simply automate the process through TextLocate and save hours at very little cost investment.
AROUND THE FREIGHT WEB
🤔 Podcast: Mergers & Acquisitions Market For Freight. Geoff Anderman of STG Logistics discusses acquisitions and forecasts for the freight market's improvement following their recent expansion and significant purchases. Here is a clip from our podcast.
🚚 2024 Trucking Industry Conferences. The 2024 calendar is packed with key trucking events offering industry insights, networking, and the latest technology showcases.
🚂 CSX Train Derailment. A CSX train carrying molten sulfur derails in Kentucky, prompting evacuations and a state of emergency declaration.
🚁 Zipline's Drone Leap. Zipline achieves a milestone by flying drones without ground observers, advancing unmanned aerial delivery.
📜 Settlement in Discrimination Case. Covenant Logistics agrees to a $700,000 settlement with the DOJ over allegations of discriminating against noncitizen workers in their employment practices.
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.
FREIGHT MEME OF THE DAY
Want to get your brand noticed by freight brokers? FreightCaviar can help. Work with us to get your services featured in our newsletter, podcast, and more. Plus, we write great articles about what you do. Get in touch with Paul at pbj@freightcaviar.com to learn more.
Answer: Paul Loeb
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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