🍉 Watermelons

Good morning. Watermelon shipments are booming, container prices have plummeted from $20K to less than $1.2K, fewer Americans are quitting their jobs as the employment market softens, and grocery prices continue to rise. Kenneth Lund was a special guest on our podcast where he shared his story about what happened when CH Robinson refused to give his father a raise.

In today's email:

• Three Freight Headlines: Watermelons surge in produce shipping, US job volatility decreases, and inflation persists for certain grocery products.
• The Allen Lund Story Part 1
• Around the Freight Web: Shipping costs plummet, experts outline the psychology of scams, plus more.
• Freight Meme of the Day

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🐔 WHAT’S COOKIN’ IN FREIGHT

🍉 Top 20 Reefer Commodities. Seedless watermelons are surging ahead in the produce freight industry, with Florida and Georgia seeing the highest volumes. This trend is followed by significant volumes of potatoes, dry onions, apples, and strawberries, reflecting diverse consumer preferences.

👨‍💻 Job Volatility Declines as More Americans Stick to Their Positions. The rate at which American workers voluntarily resign has been declining, indicating a cooling labor market, as per data from the US Labor Department. The quitting rate dropped from 3% in April 2022 to 2.5% in May 2023, a level slightly higher than the pre-pandemic figure. Meanwhile, hiring remains robust, with an average of 314,000 jobs added per month up until May. The slowdown in voluntary resignations could be seen as reflecting easing demand for workers and possibly a decrease in employee confidence in finding better opportunities.

📈 Persistent Inflation Pressures in Grocery Store Aisles. Inflation continues to affect grocery prices, particularly in the areas of packaged food and household goods. Despite a general ease in costs for items like meat and eggs, prices for products such as potato chips and mayonnaise have risen significantly, according to NielsenIQ data. In response, companies like Kroger are taking action to curb costs. Kroger’s sourcing and supply-chain teams are scrutinizing the trucking routes of food manufacturers and exploring areas where expenses can be reduced, in a bid to address the persistent inflation and bring down prices for consumers.

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THE ALLEN LUND STORY PART ONE

Kenneth Lund recently joined Bob and me on The FreightCaviar Podcast. We delved into the captivating history of the Allen Lund Company, unearthing some interesting facts.

→ The Allen Lund Company was started by his father in 1976 after he left C.H. Robinson due to not receiving a raise.

→ Kenny was assisting his father in the business since he was 12. He fondly recalls how he and his siblings were trained to answer the phone at home.

→ Kenny's transformation into the company's inaugural IT employee led the company through pivotal technological advancements. This included the adoption of email and the development of their own software.

→ The growth of the Allen Lund Company into an international entity, with over 700 employees and 37 offices, is anchored by staunch ethics and an exceptional dedication to customer service.

→ Kenny shared his views on AI and GPT-based chatbots, highlighting their infancy stage in practical application within the logistics industry.

Click here to watch our interview on YouTube or listen on Spotify.

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AROUND THE FREIGHT WEB

📉 Easing of Shipping Costs and Container Prices. The cost of shipping a container between China & the US has plummeted from over $20,000 to less than $1,200.

⚖️ Legal Fight Over Biden's Green Trucking Policies. Nineteen state attorneys general are suing the Biden administration over green energy policies for the trucking industry, arguing that they increase costs and aren't supported by current infrastructure.

🧠 The Psychology Behind Falling for Scams. Scams exploit effective mental habits and biases towards consistency and precision, with awareness and critical questioning serving as our best defense against deception.

🚚 Shippers Divert Freight from Yellow Corp Amid Uncertainty. Due to concerns over Yellow Corp's future amid its overhaul and tension with the Teamsters, shippers are starting to redirect their freight to other carriers.

💨 Truck Manufacturers Agree with California on Emission Standards. Key truck and engine manufacturers have agreed to meet California's zero-emission vehicle targets in exchange for relaxed nitrogen oxide pollution standards.

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FREIGHT MEME OF THE DAY