The domino effects are just starting to hit. Plus: FedEx dethroned UPS, Mexico truck production plunges, another $26M AI supply chain raise, and more.
Freight margins are razor-thin. The brokerages surviving it built nearshore teams that actually work.
Flatbed rejections hit a record 48.7%, broker numbers stop falling, and diesel jumps 30 cents overnight.
🤔 Question of the Day: Is Matt Silver buying Coyote? Scroll to the bottom of the newsletter to find out.
Happy Valentine's Day. FreightCaviar is feeling the love and the dent in our wallets with our featured story on V-Day spending. Plus, ArcBest rolls out their autonomous forklift system, a big acquisition for CDL 1000, and forecasts look positive for a close freight market upswing.
🤔 Question of the Day: Is Matt Silver buying Coyote? Scroll to the bottom of the newsletter to find out.
In today's email:
TOP LANE MOVERS POWERED BY GREENSCREENS.AI
*Greenscreens.ai, forecasts real-time truckload buy prices that are suited to each freight brokerage's purchasing power using AI and machine learning. Its engine takes into account over 130 attributes and data points in each rate forecast.
🐔 WHAT’S COOKIN’ IN FREIGHT
🤖 ArcBest Launches Robo-Forklift Tech. ArcBest has amped up the warehouse world with Vaux Smart Autonomy™, a blend of autonomous forklifts, reach trucks, and genius software. The Vaux Counterbalance Forklift can carry up to 5,000 pounds, zoom around at 7.4 mph, and reach up to 23 feet high, needing just 12.5 feet of aisle space. The Narrow Aisle Reach Truck has a lifting capacity of up to 4,500 pounds, a top speed of 7.5 mph, and a towering reach of up to 40 feet, needing just 9.5 feet of aisle space.
🤝 CDL 1000 Acquires Struggling Next Trucking. Chicago-based, CDL 1000, acquires Next Trucking, signaling a significant consolidation in drayage. This strategic merger unites CDL 1000's short-haul expertise with Next Trucking's stronghold in Los Angeles and Long Beach ports, propelling CDL 1000 into a top position in the region. With challenges mounting in the tech-focused shipping firms and economic downturn, Next Trucking announced in June 2023 that it was looking for a capital injection or exit. The acquisition was backed by large financiers like Brookfield Growth and others.
🚚 Transportation Insight Freight Forecast: Q1 2024 Update. The latest Transportation Insight predicts an upward trajectory for truckload spot rates in 2024, with the trend expected to continue into 2025. Inflation is easing, but interest rates remain high while the freight industry balances inventories with sustained consumer spending. Imports are showing signs of life, especially with a notable rise in container imports, indicating a refreshed demand for overseas goods. The market is leaning towards equilibrium, so prepare for a year of adjustment and potential rate renegotiations.
TOGETHER WITH ISO
Carrier reliability is central to everything you do. Are you measuring it?
Booking unreliable carriers leads to higher operational costs: more bounces, more reschedules and more headaches. With ISO, you can source carriers for every lane based on service data. More reliable carriers mean happier customers, higher volumes and lower cost per load. Learn more at iso.io.
According to last month's survey from the National Retail Federation (NRF) and Prosper Insights & Analytics, Valentine's Day Spending is set to break records this year – with $14.2 billion expected to be spent on significant others.
The data comes from a survey of 8,329 adults, with a margin of error of plus or minus 1.1 percentage points. Let's jump into it.
Gift-givers are playing the classics this year, with preferences showing a sweet spot for the usual candy, greeting cards, and flowers.
The typical love-struck consumer will spend about $185.81, which is nearly $8 above the five-year average. Love, it seems, also inflates with time.
With all the goods moving around, some bad actors have jumped at the opportunity to move some not-so-lovely freight. Customs and Border Protection (CBP) seized a haul of over $9.5 million in hard narcotics hidden in a shipment manifested as roses. The seizure occurred at the World Trade Bridge port of entry.
On February 6th, a routine check turned into a significant bust when a 2004 Freightliner truck, masquerading as a delivery service for roses in a refrigerated trailer, was pulled over for secondary inspection.
During this time of year, when hearts are full and wallets are open, a seizure like this shows the darker side of things.
Here's to your Valentine's Day being nothing but sweet this year, as the record spending translates into more freight moved.
TOGETHER WITH TURVO
If you're still running your logistics business on spreadsheets or using outdated transportation management software, this year will be harder than it has to be.
The world has changed, and today's fastest-growing 3PLs and freight brokers are leveraging digital tools to accelerate shipment planning, execution, and settlement. Share a modern TMS with slick screens and collaboration functions that eliminate back-and-forth check calls. Bring together everyone involved in a shipment for 100% visibility and a better customer experience.
Ask for a Demo to learn how Turvo customers achieve a 95% reduction in manual steps per shipment, 3X more revenue per broker, and 5X more shipments per client than the norm.
AROUND THE FREIGHT WEB
🚛 Phoenix Rise to Bustling Freight Hub. Phoenix is quickly becoming a freight hub similar to Ontario, California with a new rail line, reducing transit times to Dallas and improving connectivity between key cities.
🚫 PA Highway Ban. A sudden ban impacted truck drivers in Pennsylvania, with major highways off-limits starting early Tuesday morning.
❄️ NJ Port Shutdown. The inclement weather also led to the closure of NJ ports, disrupting freight operations. Mother Nature once again shows her strength.
🌎 BlueGrace Expands. BlueGrace Logistics opens its first office in Mexico, enhancing cross-border freight services with a comprehensive range of transport options.
🏘️ Warehouse-Free Suburb. Deerfield, an affluent Chicago suburb, amends zoning to ban warehouse developments, aiming to manage the impacts of e-commerce growth on noise, pollution, and traffic levels in the community.
📈 Trimble Revenue Up 30% Y/Y. Despite a strong year, Trimble anticipates lower revenue in 2024 due to challenges in the transportation sector.
JOIN THE LOST FR8 DISCORD
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FREIGHT MEME OF THE DAY
Also, check out:
Answer: Matt Silver denied rumors today that he is buying Coyote from UPS. Read his entire tweet here.
The domino effects are just starting to hit. Plus: FedEx dethroned UPS, Mexico truck production plunges, another $26M AI supply chain raise, and more.
Flatbed rejections hit a record 48.7%, broker numbers stop falling, and diesel jumps 30 cents overnight.
Congress is moving to put driverless 80,000-lb trucks on public roads. Plus: 13,000 California CDLs get cancelled, diesel hits a 32-year record, Florida wants $50K to get your truck back, and more.
Ryan Schreiber breaks down everything about strategy, relationships, mindset, and AI in logistics.
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