🫠 Convoy: Final Months, CEO's Letter & Lessons

Good Monday Morning. The conversation continues surrounding Convoy's collapse, including questions surrounding the company's final business decisions and communication choices. Plus, we reveal poll results on whether Convoy's exit benefits the industry, dissect Knight-Swift's mixed Q3 earnings, and examine the future of autonomous and electric trucking. You also don't want to miss our insights on Greenscreens.ai's new feature, 'Capacity on Tap.'

In today's email:

• Three Freight Headlines: Convoy poll results, Knight-Swift's stock jumps 12% on earnings report, and Volta Trucks Bankrupts.
• #TruckYeah: What We Can Learn from Convoy's Collapse
• Around the Freight Web: Freight Gong goes viral, Rapper Drake ponders life as a trucker, Greenscreens.ai aggregates carrier capacity with 'Capacity on Tap,' and more.
• Freight Meme of the Day

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🐔 WHAT’S COOKIN’ IN FREIGHT

🚚 Convoy's Collapse: Is the Freight Industry Better Off? The recent closure of digital freight broker Convoy ignited debates across social platforms. Our polls indicate that nearly half of respondents view the company's exit as positive for the freight industry. Public opinions vary, with some expressing sympathy for the affected employees and others criticizing Convoy's business model, especially its impact on smaller trucking firms.

📈 Knight-Swift Stock Jumps 11.75% On Mixed Q3 Results. Revenue rose to $2.02 billion, a 6.5% YoY increase, with truckload earnings hitting $1.18 billion, up 21.9%. However, operating expenses grew by 18.8%, and adjusted operating income declined by 60.8%. Despite a 21.9% rise in truckload revenue, adjusted operating income dropped 65.8%. CEO David Jackson highlighted truckload market hurdles but sees potential for positive rate shifts. The focus is enhancing performance, expanding the less-than-truckload sector, and revitalizing their recent acquisition, U.S. Xpress Enterprises.

🚛 Volta Trucks Bankrupts. The pursuit of zero emissions hit a bump: Volta Trucks, developers of a notable 16-tonne electric truck, declared bankruptcy. Meanwhile, KargoBot's CEO forecasts a significant shift in the trucking industry within the next decade. Already taking strides, they've deployed 100 trucks in Inner Mongolia, pioneering their 'Hybrid Driverless Solution'. This fuses autonomous technology with a human-led convoy system.

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Convoy: Final Months, CEO's Letter & Lessons

Despite Convoy's clear troubles in the months leading up to its collapse, the company continued hiring new employees until late August. Elizabeth Keller, an employee of just over a month, shared on LinkedIn. Craig Fuller, when questioned, rationalized that the hiring might have been a strategy to make Convoy seem attractive to potential buyers or investors.

#TruckYeah

Convoy's CEO, Dan Lewis, raised eyebrows when he concluded a letter—informing employees about the company's closure and their termination—with "#TruckYeah." The peculiar choice of words left many questioning the CEO's judgment.

More Digital Freight Brokerages to Close Doors

Rumors suggest that Convoy might not be the last digital freight brokerage to face such financial constraints. Several other digital freight brokerages that have secured VC funds are allegedly struggling, and one has already stopped paying carriers. Factoring companies with which we've spoken to have informed us that there are a couple more digital freight brokerages they have blacklisted.

Learning from Convoy's Mistakes

Many commenters on social media platforms stressed that Convoy's downfall was a significant learning opportunity. While some expressed sympathy, the consensus was clear that merely raising a billion dollars does not guarantee success. External opinions like Chad Almjeld's emphasized the importance of building a client-focused model and avoiding the pitfalls that large investments might bring.

TOGETHER WITH ISO

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AROUND THE FREIGHT WEB

🥁 #GongYeah. The Please Advise Freight Gong has gone viral. Go bang it for good luck.

🦗 Tyson Foods Dives into Insect-Protein. Tyson Foods partners in a U.S. venture to produce insect-derived meal and oil.

🎤 Drake's Trucker Rap. In his latest album, Drake raps about pondering whether his love would still be by his side if he had a CDL and was truck driving from STL to ATL.

🖥️ Greenscreens.ai's New Feature. Greenscreens.ai introduces 'Capacity on Tap,' streamlining carrier capacity sourcing with strategic partnerships like ISO and leveraging its dynamic pricing platform to its fullest.

💵 Dollar General's Shift. Amidst choppy performance, Dollar General reappoints Todd Vasos as CEO, eyeing a supply chain transformation after operational hiccups and inventory challenges.

🌍 Second Convoy of Trucks Deliver Aid to Gaza. Twenty trucks carrying humanitarian aid endorsed by the UN entered Gaza on Saturday.

FREIGHT CONFERENCES WE'RE ATTENDING

• Feb. 5th-7th, 2024: 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.
• November 7th-9th, 2023: F3, taking place in Chattanooga, TN November 7th-9th. The heart of Freight Alley and home to FreightWaves—will come alive once again with the largest festival in freight November 7-9, 2023. Bringing together experts, entrepreneurs, industry leaders, educators and more to discuss the key factors impacting freight markets and the latest trends pushing our industry forward. Receive $500 off your ticket with our exclusive link.

FREIGHT MEME OF THE DAY

Also, check out:

• 🎧 The FreightCaviar Podcast. Listen to this week's podcast on Spotify & Apple Podcasts.
• ☕️ FreightCaviar Fall Essentials: purchase a FreightCaviar sticker, hoodie, long-sleeve, or mug by clicking here. Use code FC10 to receive a 10% discount.
• 🤝 Master the essentials of freight brokering with Freight360's comprehensive online course, tailored for both aspiring brokers and current agents looking to enhance sales and operations. Receive $150 off your course with our code FREIGHTCAVIAR. Click here to learn more.