Welcome to the WHAT THE TRUCK?!? Newsletter presented by Drive Axle. In this issue: Is this hot week in freight markets sustainable; I-75 crash update; and more.
Dead cat bounce or sustained summer?
SONAR
Blitz week bop — CVSA International Roadcheck week ends today, but the early impacts are already being felt across the supply chain. One broker said, “Just got off the phone with a customer who said it’s the ‘worst’ DOT Blitz week they’ve ever seen … and dude has been at this for a looooong time.”
Brokers who bet against a tight market are taking it on the chin this week, one few truckers will shed a tear for after the three-year freight recession they’ve been through.
SONAR
The Outbound Tender Rejection Index in SONAR is also popping as trucks park and capacity tightens this week. Will the 90-day pause on tariffs be enough to encourage another massive pull forward?
The very obvious black cloud hanging over freight was the cancellation of ocean bookings. Like it or not, U.S. supply chains and manufacturing are very tied to China as many raw materials also originate there. However, as soon as the 90-day pause was announced on tariffs, ocean bookings started to soar.
“A rolling seven-day average of container bookings from China to the U.S. saw 5,709 twenty-foot equivalent units on May 5, Ben Tracy, vice president of strategic business development for shipping analyst Vizion, wrote in a LinkedIn post. As of Tuesday, that figure had rocketed to 21,530 TEUs, an increase of 277%.” – FreightWaves’ Stuart Chirls
Ocean rates could get pricey as steamship lines issue peak season surcharges and capacity tightens. During the tariff crisis, many of the larger ships were repositioned on other lanes, leaving smaller boats with less capacity to deal with the demand.
SONAR
Will that amount be enough freight volume to keep trucks full through summer? Very likely. Some even predict a mini-COVID market-like event. Long term is where it gets more iffy. After all, tariffs are now still 30%-plus higher than they were prior to the trade war, and they stack upon preexisting tariffs as well.
And while wholesale prices may have fallen, shippers are still dealing with much higher import costs than they previously were.
Signals to watch? English language proficiency enforcement and how it impacts capacity. If DOT or ICE gets aggressive in targeting truckers like they have been with construction, you’ll see this industry get very skittish in no time.
What do you think? Do you think blitz week momentum meets increased shipper demand, or is this just a dead cat bounce and the market will fall back to the bottom? Email me.
Don’t miss WHAT THE TRUCK?!? on Friday where we’ll go deep into SONAR’s new Trade War Command Center.
It just keeps getting worse
ABC 7
The tragic Mother’s Day crash on I-75 in Chattanooga, Tennessee, keeps getting more infuriating. As we covered on Wednesday’s WHAT THE TRUCK?!?, the driver involved in the crash that killed two fathers and sent a family to the burn unit has been charged in the incident. Joseph Antoinier faces charges of reckless homicide, felony reckless endangerment and reckless aggravated assault.
News 3 reports, “Police say Antoinier failed to brake before hitting five other vehicles. Two people are dead, while five are still in the hospital.”
Eyewitnesses say he entered slowed traffic while driving “erratically” at a high rate of speed and failed to brake.
It’s similar to another fatal incident in Austin, Texas, earlier this year. Amazon, the carrier, and the driver are now being sued for $100 million in that incident.
East Ridge Police
Amazon spokesperson Amber Plunkett said that the load was booked via Amazon Relay and added, “This is a horrible tragedy, and our thoughts are with all those involved.” According to Amazon, “Amazon Relay allows authorized third-party carriers to haul freight loads on behalf of Amazon.”
So, who was the carrier on the load? East Ridge Police have confirmed Joseph Antoinier was employed by Valparaiso Trucking Corp.
East Ridge Police
Valparaiso Trucking Corp. owner Wisner Florestant told News 9, that “7 of his drivers are owner-operators and do not drive his trucks. He added that Joseph Antoinier is responsible for his own actions, ‘as a grown man who’s been driving for years.’”
While Valparaiso Trucking Corp. may want to wash its hands of the event, the reality is, authorities allege that the actions of the company’s driver destroyed a family.
GoFundMe
Police say 23-year-old Lane Smith, from Fayetteville, Tennessee, was killed in the accident. He, his wife and two children were returning from a Mother’s Day dance competition when they were struck by Antoinier’s truck. Lane tragically did not survive, while his children and wife all suffered severe burns and are hospitalized.
They have a GoFundMe set up to help cover medical bills, the funeral and this devastating loss. If you’d like to support them, you can here.
WTT Friday
SONAR’s Trade War Command Center; Nikola owner speaks; Truckers for Troops – Friday on WHAT THE TRUCK?!?, I’m catching up with SONAR’s Will Hopping to learn all about their new Trade War Command Center, which tracks trends, rates and disruptions in real time.
William Hall took the plunge and bought a Nikola hydrogen truck. Now that the company is bankrupt, have he and other owner-operators been left holding the bag? He shares his experience..
OOIDA is celebrating its annual Truckers for Troops event. Over the past 17 years, OOIDA has raised more than $800,000 and sent more than 3,278 care packages, serving more than 39,276 members of the military. Norita Taylor fills us in.
Plus, headlines, market vibes and more.
WTTGear.com
WTTGear.com
The fit – Head on over to WTTGear.com to get our made-in-the-USA T-shirt collection. Also, now all products get free shipping in the U.S.
Now on demand
Driver charged in fatal Mother’s Day crash; from trucker to AI dispatch founder
Is US-China trade deal bullish for freight; FreightGuard: Fair or foul
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Don’t be a stranger,
Dooner
