Plus, the latest on Atlantic hurricane forecasts, Portex's $6.5M raise, and a looming US port strike.
AccuWeather reduces 2024 Atlantic hurricane projections after unusual August. Fewer storms expected, but season's already seen major impacts.
Freight management platform Portex secures $6.25M in seed funding to transform logistics for small and midsize shippers with AI-powered, user-friendly platform.
Plus, a wild freight broker spying story, a Chicago-area trucking company filing for Chapter 7 bankruptcy, and more.
Happy Hump Day. Today, we're diving into Arrive's latest freight market update in our main story. Plus, a handful of other interesting news.
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🐔 WHAT’S COOKIN’ IN FREIGHT
🕵🏻♂️ The Freight Broker Spy. On the FreightBrokers Reddit forum, someone shared a wild story about a new hire in Chattanooga who quit after one day, was caught working for a competitor, and raised suspicions of being a spy. The individual claimed they never accepted the job, making it seem like a shady tactic. Craig Fuller, CEO & Founder of FreightWaves, posted on X, sharing a similar experience at U.S. Xpress. A highly qualified candidate applied for an entry-level position, requested to shadow the team, then disappeared and was later announced as a sales head at a rival company, which soon after established a similar division. How can we combat such risks? Better vetting processes, tighter information controls, and more conversations like these are essential steps.
📉 UPS Delivers Bold Promises, Wall Street Begs to Differ. UPS unveiled ambitious 2026 targets, aiming for $108-114 billion in sales and $14.5 billion in operating profit. Despite these lofty goals, investors remained skeptical, sending the stock down almost 13%. The company's "better and bolder" strategy focuses on healthcare logistics, market share gains, and pricing discipline. However, concerns linger about labor costs, economic uncertainty, and past missed targets. CEO Carol Tomé emphasizes core strengths and global expansion, including the Estafeta acquisition in Mexico. With only 37% of analysts rating UPS as a "Buy," the company faces an uphill battle to convince Wall Street of its optimistic outlook.
💥 Hazmat Truck Explodes in New Jersey. A serious accident occurred on Route 3 in Clifton, NJ, on Monday morning involving a semi-truck hauling chemicals and a bus. The crash resulted in a fire and explosion, leading to the death of a 55-year-old truck driver. The New Jersey Department of Environmental Protection (DEP) reported that the cargo was non-toxic, although some locals, such as Dr. Wayne Gangi, experienced respiratory discomfort due to the smoke. The DEP has stated there are no ongoing air quality concerns. Route 3 reopened on Tuesday as investigations into the incident continue.
TOGETHER WITH CTRL CHAIN
The major IT product distributor Ingram Micro knew that it had to make bold moves to secure its cargo at every level. So they called in CtrlChain. Read how CtrlChain's strategic partnership with Ingram Micro led to a significant reduction in theft, higher carrier willingness to transport their goods, enhanced operational efficiency, and more.
Last week, we had the chance to hang out with the CtrlChain team at their headquarters in Eindhoven, Netherlands. Click here to see some photos.
The freight market is chugging along this summer, following expected seasonal trends but still battling unfavorable conditions. Let's break down the Arrive Insights July 2024 Freight Market Update. To read their entire report (which we highly recommend), click here.
Key Stats:
Demand: Slow and Steady. Freight demand has cooled off from May highs, but that's par for the course. The Cass Freight Index shows shipments are down 6% year-over-year, reflecting ongoing market challenges.
Capacity Remains Resilient. Despite tough conditions, many carriers are on. The DAT Load-to-Truck Ratio reached 4.72 in June, the second-highest since February 2022.
Rates Follow the Playbook
Spot rates spiked around July 4th, as expected, and are now settling. All-in spot rates for dry van hit $2.10 per mile in July, up $0.05 from June. It's not groundbreaking, but it follows normal patterns.
Import Outlook: Steady Ahead
The National Retail Federation expects over 2 million TEUs monthly through October. While positive, it’s not likely to dramatically shift market dynamics.
Market Outlook: Equilibrium Holds
This excerpt sums it up:
The market is firmly in equilibrium... with no imminent signs of an inflationary flip.
We’re not seeing any major disruptions, but also no big catalysts for change.
The Bottom Line?
The freight market has found its rhythm this summer, even if it’s not an exciting one. We’re seeing normal seasonal fluctuations without surprises. Capacity remains ample, keeping a lid on rates. For now, expect more of the same – a market that’s neither booming nor busting, just steadily moving forward.
Source: Arrive Logistics Freight Market Update - July 2024
TEXTLOCATE: YOUR "SUPERPOWER" FOR VISIBILITY
TextLocate makes it easy for brokers to communicate directly with drivers via SMS-based text messaging—no app to download—without having to use personal communication devices.
Features like 2-way text chat, one-time location updates, and image capture (think BOLs and PODs) all inside a simple dashboard give brokers the quick updates they need to make better decisions about freight.
Instead of wasting time calling drivers, brokers simply automate the process through TextLocate and save hours at very little cost investment.
🌎 AROUND THE FREIGHT WEB
☹️ Trucking Company Files for Chapter 7 Bankruptcy. Chicago area-based B.T. Transportation Group Inc. has filed for Chapter 7 bankruptcy. The company will cease operations and liquidate its assets to repay creditors.
🏛️ Wisconsin Trucking Company Owner Convicted of Fraud. Eau Claire resident Robert Carter, 45, was convicted of wire fraud for submitting false information to obtain semi-trucks for his company, Carter Transportation Group.
🚫 Judge Upholds FTC Ban on Noncompete Agreements. A federal judge has ruled that the FTC can enforce a ban on worker noncompete agreements, a significant victory for freight brokers bound by these contracts.
🚚 FMCSA Struggles to Combat Double-Brokering Fraud. Federal regulators report to Congress that they lack sufficient data and jurisdictional power to effectively tackle broker fraud, particularly double-brokering, in the trucking industry.
🅿️ Truck Parking Club Partners With Trucker Path. Trucker Path partners with Truck Parking Club to offer over 520 parking locations for truck drivers across 30 states.
🚨 FMCSA Issues Warning on Email Scams. The FMCSA has warned that individuals are impersonating the agency via email, requesting carriers to send sensitive information.
FREIGHT MEME OF THE DAY
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