Plus: A historic rail merger is officially on the books, a deadly Charlotte crash reignites underride guard concerns, South Korea angles to sidestep U.S. tariffs with a shipbuilding deal, and more in today's newsletter.
Union Pacific’s $85 billion Norfolk Southern merger and Hub Group’s $51.8 million Marten Intermodal deal signal major shifts in U.S. freight, raising questions on competition, costs, and capacity.
Truckstop, one of the top U.S. load boards, is making big changes. After news of layoffs of an unknown number of North American staff over the last year, Truckstop now looks to outsource customer service roles to Firstsource, a partner company with locations in India and the Philippines. Here’s what you need to know:
Layoffs: Significant cuts to North American staff (dating back to March 2023).
Outsourcing: Customer service roles moving to Firstsource (locations in India and the Philippines).
Centralized Support: New carrier support team is based in Texas.
Customer Service Revamp
CEO Kendra Tucker insists these changes will benefit customers.
"Growth requires continuous improvement," she says.
The plan includes:
US-Based Support: Carrier-facing support centralized in Dallas.
Overseas Operations: Broker support and internal operations moved abroad.
CEO’s Vision
Tucker emphasizes that the restructuring will enhance efficiency and service quality.
"The partnership brings us closer to the customer, geographically," she states.
While some insiders worry, Tucker assures close management of the outsourced teams.
Industry Trends
Truckstop isn’t alone. Other freight logistics companies like C.H. Robinson, Coyote, and Uber Freight have also cut staff. These moves reflect a broader industry trend towards tech-driven cost reduction.
Fraud and Automation
Fraud prevention remains a key concern. Despite some roles moving overseas, Tucker stresses,
"We’re investing in tech to match freight and root out fraud."
The aim is to reduce wait times and improve service through enhanced automation.
Customer Feedback
Mixed reactions from customers highlight the challenge. One carrier noted,
"They care about fraud but need the right people to make it happen."
While there is some support in the US, the bulk of the true support will be overseas. It is highly understandable why some consumers can be skeptical that their needs will be tended to efficiently and effectively.
With the rumor of more layoffs coming from Truckstop soon,
there is no telling what new adjustments will be made next, and what impact they could have for Truckstop, and also other companies that are in the process of restructuring and may adopt a similar strategy.
Hello! I'm Jerome FreightCaviar! I’m into the politics of freight and the impact it will have worldwide. I'm always eager to learn more. Follow me on X @JeromeFreightC
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