The Supreme Court just heard arguments in the broker liability case weāve been tracking. Plus: oil shipping costs explode, trucking insurance is stuck in 1980, regulators brace for a carrier crackdown, and more.
Optimize freight broker operations by fixing payment workflows in Q1. Streamline carrier pay before capacity shifts compress your margins.
Tucker Carlsonās nicotine brand loses 378,000 tins in a cargo theft. Plus: produce rates reset, diesel climbs, and a bill that could pull hundreds of thousands of drivers off the road.
Plus: New Mexico tops winter crash rates, Freight Essentials files a RICO case against WWEX, C.H. Robinson partners with Highway to combat fraud, and more.
Happy Friday the 13th. In todayās feature story, we break down Trumpās bold stance against port automation and what it means for the supply chain.
Plus:
Correction: In yesterdayās newsletter on Chairman & CEO Brad Jacobs, we misstated a few dates and figures. The article has been updated to reflect accurate information.
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š WHATāS COOKINā IN FREIGHT
āļø Dangerous Roads. A recent study by J & Y Law reveals New Mexico as the most dangerous state for truck drivers in winter, with 122.1 crashes per 100,000 drivers, more than double the national average. Oklahoma and Montana follow with rates of 112.1 and 99.4, highlighting the perils of icy roads and poor visibility that disrupt supply chains during the holiday season. Take into consideration Michiganās Metro Detroit area, where they experienced 86 crashes in 24 hours Thursday due to snow squalls and black ice, with hazardous conditions expected to persist until a weekend thaw. Authorities are stressing patience and caution for all drivers this upcoming winter season.
ā Freight Essentials vs. WWEX. Freight Essentials has filed a RICO lawsuit against WWEX Groupācomprising Worldwide Express, GlobalTranz, and Unishippersāalleging hidden fees tied to fuel costs and cargo insurance. The suit, filed in Texas, claims these fees defrauded small businesses and development companies, costing them rightful commissions. Freight Essentials, a top GlobalTranz partner, uncovered the alleged scheme and faced alleged retaliation, including contract termination and customer sabotage. The lawsuit also accuses Worldwide Express of ācorporate espionage.ā WWEX, the fourth-largest US logistics brokerage with $4.9 billion annual revenue, has not responded. Freight Essentials seeks damages, declaring the case a "David versus Goliath" battle, according to their attorney Rogge Dunn.
š¤ CHRW Partners with Highway. C.H. Robinson has partnered with Highway. Utilizing Highway's advanced Carrier Identity Engine, this collaboration enhances real-time identity verification, aligns freight opportunities with carriers' capabilities, and safeguards networks against fraud and theft. C.H. Robinsonās VP Cody Griggs praised the partnership as a commitment to security and opportunity, while Highwayās CEO Jordan Graft emphasized its role in creating safer, more efficient freight transactions. We at FreightCaviar are happy to have Highway as a sponsor and look forward to seeing what they do next. Congratulations Highway!
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According to our data, carriers only call back 13% of the time after saying they need to check with their driver. Reps waste time fielding calls like these where carriers arenāt vetted, arenāt interested, or arenāt a good fit.
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HappyRobot is AI communicationābuilt for logistics.
President-elect Donald Trump is taking a clear stance against port automation, aligning with the International Longshoremenās Association (ILA) ahead of a potential East and Gulf Coast strike on January 15.
In a recent meeting with ILA leaders Harold and Dennis Daggett, Trump doubled down on his opposition to port automation, stating:
He criticized foreign-based terminal operators and ocean carriers for pursuing cost-saving technologies instead of investing in American workers.
Trumpās message? Keep the machines out and the workers in. Hereās what heās pushing for:
The United States Maritime Alliance (USMX), representing port employers, pushed back, defending automation as a way to improve worker safety, port efficiency, and overall capacity. In a statement, the group said:
āILA membersā compensation increases with the more goods they move ā the greater capacity our ports have and goods that are moved means more money in their pockets.ā
However, FreightWaves CEO Craig Fuller pointed out a deeper reasoning behind Trumpās stance:
āTrump's decision to side with the Longshoremen against automation might seem surprising at first glance, given his āpro-businessā reputation. The union highlighted that the USMX primarily consists of foreign-owned companies. In Trump's view, this pits Americans against the world and he will always lean America First.ā
Meanwhile, Dr. Jason Miller, a supply chain expert, weighed in on the likely ripple effects of a strike:
āWhat does USMX have to lose if there is a strike? Vessels getting queued up outside the ports will provide a lift to spot ratesā¦ The three parties set to lose the most are (i) consumers; (ii) U.S. importers, and (iii) U.S. exporters.ā
The reaction online was mostly negative:
Impact on the Supply Chain: With the January 15 deadline looming and talks at an impasse, shippers are already front-loading imports to prepare for potential disruptions. If the ILA strikes, billions in trade could come to a standstill, echoing the chaos seen in previous port disruptions.
Trumpās port stance comes alongside other freight-related positions.
As the January 15 strike deadline approaches, Trumpās anti-automation stance adds fuel to an already heated labor showdown. With tariffs and EV policies also on the table, freight markets are bracing for ripple effects in 2025.
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š AROUND THE FREIGHT WEB
š 48% Say Theft Tops 2024. Nearly half of brokers name cargo theft as 2024's top issueāwatch Highwayās Michael Caney on What The Truck?! to explore trends and 2025 projections here.
š 12% Time Drain. Freight brokers spend 12% of their time fixing back-office issues, including POD headaches, invoice disputes, and phishing risksālearn how automation can simplify workflows and reduce errors here.
š Greenscreens.ai & Convoy Collaboration. Greenscreens.ai is partnering with Convoy to optimize price intelligence within freight logistics.
āļø Forwarder Facing Charges. Natalya Mazulina, a New York freight forwarder, was indicted on 12 counts of conspiracy to illegally export goods to Russia without a license, money laundering, and other violations in connection with current US Sanctions.
šØ PACCAR Truck Recall. PACCAR is recalling over 220,000 Peterbilt and Kenworth trucks for an Electronic Control Unit (ECU) issue. The faulty ECU issue could be a crash risk due to faulty steering mechanisms.
š Gatik's First Response. Autonomous trucking company Gatik is collaborating with first responders and local officials to integrate driverless tech safely. Their 100% safety record highlights fixed-route reliability across 600K+ deliveries.
š¤ Volvo & DHL's Autonomous Trucks. Volvo and DHL are debuting autonomous trucking on Dallas-to-El Paso routes.
š£ THE FREIGHT CAVIAR CORNER
FREIGHT MEME OF THE DAY
The Supreme Court just heard arguments in the broker liability case weāve been tracking. Plus: oil shipping costs explode, trucking insurance is stuck in 1980, regulators brace for a carrier crackdown, and more.
Tucker Carlsonās nicotine brand loses 378,000 tins in a cargo theft. Plus: produce rates reset, diesel climbs, and a bill that could pull hundreds of thousands of drivers off the road.
The Middle East crisis is already hitting carriers. Plus: Florida lost $3B in crops, flatbed rates posted a fifth straight weekly increase, a $5B brokerage was just acquired, and more.
Plus: autonomous trucking just raised $113M, California is fighting to keep 20,000 drivers, Arrive's 2026 truckload freight forecast, and more.
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