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Radiant Logistics acquires another operating partner

a white tractor leaving the Port of Houston with a blue ocean container

Radiant Logistics announced Wednesday it has acquired Focus Logistics, one of its strategic operating partners, for an undisclosed sum.

Michigan-based Focus is a domestic and international freight forwarder primarily serving customers in the marine, aerospace and trade show sectors. It was founded in 2003 by Terrie Evans and Cliff Kisielewski and began operating under Service By Air in 2006. (Radiant acquired Service By Air in June 2015.)

Focus will merge with an existing Radiant operation in Detroit. Kisielewski will lead that unit as general manager. Evans will be retiring.

While no financial terms were provided, Radiant said a portion of the purchase price will be tied to Focus’ future performance – a structure similar to that of past Radiant acquisitions.

“Since Radiant acquired Service By Air back in 2015 they have proved to be a great partner, providing us a much larger platform to support and grow our business,” Kisielewski said in a news release after the market closed on Wednesday. “It has been rewarding to be a part of the building momentum of the Radiant network over the years and we are excited to now transition the business in a way that meets our own personal goals while also ensuring the continued success of our customers and employees.”

Renton, Washington-based Radiant (NYSE: RLGT) ended its fiscal year (June 30) with $25 million in cash and an untapped $200 million credit facility. On its quarterly call in September, Radiant said it would use its clean balance sheet to pursue both organic growth and acquisitions, including the conversion of privately held agents into company-owned stations.

Radiant completed six acquisitions in its recent fiscal year.

It acquired Daleray Corp. in October 2023, Select Logistics (and sister company Select Cartage) in February, Viking Worldwide in April, Cascade Transportation and DVA Associates in June, and Foundation Logistics & Services in September.

“The Focus transaction represents yet another great example of our work with our strategic operating partners,” said Bohn Crain, Radiant founder and CEO. “We launched Radiant in 2006 with the goal of partnering with logistics entrepreneurs who would benefit from our unique value proposition and the built-in exit strategy available to the entrepreneurs participating in our network.”

More FreightWaves articles by Todd Maiden

Closures continue on I-40 and I-26 in North Carolina, I-40 in Tennessee

Some key roads in western North Carolina heavily used by truckers have reopened following the devastation created by Hurricane Helene, but among many other closures, Interstate 40 west of Asheville remains shut and the closure carries into Tennessee.

At a Tuesday press conference, Joey Hopkins, North Carolina’s secretary of transportation, reviewed several key road reopenings while saying that “recovery will take time, and we appreciate your patience as we continue to assess and repair the roads in North Carolina.”

A database of all road closures as of Tuesday morning listed more than 450 closures throughout the state, the vast majority of them citing “weather event” as the cause of the closure. But one is more important than the rest: Interstate 40,  which to the west of Asheville enters North Carolina at its border with Tennessee in the Great Smoky Mountains and along the Pigeon River, whose flooding has been one of the key contributors to the devastation and havoc in the area.

Interstate 40 is closed at the border with Tennessee both eastbound and westbound. The state’s database of closures shows the shutdown as going all the way to the 20 mile marker.

Andrew Barksdale, a spokesman for the North Carolina Department of Transportation, said the road is washed out for several miles eastbound. Pictures of the damage have been widely circulated on social media.

The Interstate 40 closure in North Carolina stretches into eastern Tennessee. According to local media reports, I-40 in the Volunteer State is closed eastbound from the border with North Carolina to Tennessee mile marker 432 while I-40 westbound is closed from North Carolina to mile marker 435.

Mile marker 432 is about 20 miles into Tennessee from the North Carolina line. 

The North Carolina Department of Transportation posted Tuesday on X, the former Twitter, showing a sweeping detour around the area that involves Interstate 81 through Tennessee and into Virginia, Interstate 77 from Virginia into North Carolina, and then Interstate 85 into South Carolina.

Interstate 26, which enters North Carolina north of Asheville, is fully open in the state, Hopkins said. But for drivers in that area on Interstate 26, the problem is that the road is closed once they try to enter the Volunteer State. In Tennessee, the state’s storm update listed five destroyed bridges. Two are on Interstate 26, eastbound and westbound at mile marker 39.6. The other destroyed bridges are all on state roads.

An official with the Tennessee Department of Transportation said the closure on the Tennessee side is from the state line to Exit 37 in Unicoi County.

Of those five bridges, Butch Eley, Tennessee’s commissioner of transportation, told a media briefing Tuesday that “there’s nothing there and so those are going to have to start from scratch and be rebuilt.” But he added that the state has already begun to award contracts to get construction moving quickly on those projects.

U.S. Highway 421, which travels in roughly the same direction as Interstate 26 and goes through hard-hit Boone, North Carolina, also is open, Hopkins said.

Interstate 40 in North Carolina will remain closed “for some time due to the extent of the damage,” Hopkins said. “We’re  already looking at some options to stabilize the road that’s left there, so hopefully we can start repairs just as soon as possible.”

But local media reports have cited statements by other officials that the outage could last for months. 

Hopkins said the state has been sending emergency cell phone alerts to drivers in the area of the interchange between Interstate 40 and Interstate 77. That is a distance of more than 100 miles, but east of Asheville, Interstate 77 is the first interchange with an interstate that drivers on Interstate 40 will encounter.

“We only want emergency or local traffic past that point,” Hopkins said.

What is not clear is whether freight deliveries into Asheville would be considered “emergency” and whether truck traffic coming eastbound from Interstate 77 would be discouraged by state police on that road.

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Missouri trucker hauling his very first load trapped for days by Helene

Tristen Utter was nearly finished with his first delivery to North Carolina when he was caught in the disastrous and deadly remnants of Hurricane Helene, stranding him for days with no way to contact loved ones. 

Utter, 27, of Kansas City, Missouri, a first-time National Carriers truck driver hauling beef to an Ingles distribution center in Black Mountain, had parked his truck Thursday night ahead of a 5 a.m. delivery Friday. He was sound asleep when he awoke at 3:30 a.m. Friday because winds were rocking his truck, fully loaded at 80,000 pounds, back and forth and he saw shopping carts flying through the air.

Helene devastated western North Carolina, causing landslides and catastrophic flooding. More than 150 were killed by the storm across the Southeast. The storm — one of the deadliest in U.S. history — wiped away entire communities. Hundreds remain missing in North Carolina. Many who survived the catastrophe were trapped due to closed — or missing — roads.

The next morning, Utter said he learned around 11:30 a.m. that I-40 and I-26 were closed because of the storm. About five minutes later, he said he saw reports about concerns of a dam breaking. He lost cell phone service just minutes after.

“I was just waiting to see if I was going to die or not,” he said. 

Utter said he was planning to spend the night in his truck in the Ingles parking lot, but it was full when he arrived, so he stayed in another lot about a half-mile away. When he walked to the center Friday morning, he was shocked to see trucks flipped on their sides and that an electrical fire had broken out at the warehouse.

Photos and videos show extensive flooding at the center.

“Ingles Markets is devastated by the catastrophic damage from Helene,” the company said in a statement. “Unprecedented destruction and tragic loss of life have touched every town, city, community, and business. Our hometown Black Mountain, North Carolina, which houses our distribution center, was one of these areas. We had loss of power, critical infrastructure, transport vehicles, inventory, and yes, even loss of life.”

Utter said he was aware that Hurricane Helene was going to slam into Florida, but he did not expect such devastating weather from its remnants.

He spent days stuck in a Dollar General parking lot with about a dozen other drivers. Since he had been planning to be on the road for a month, he was stocked with food and water, which he shared with fellow drivers. Another driver also shared water with the group.

Utter said he was impressed with how community members and strangers alike rallied together. One driver’s load of food was about to go bad, so he opened his truck to share it with residents. 

Hopey & Co., a grocery store in Black Mountain, opened its doors to give away everything for free.

“I met some really great people,” he said. “It was a terrible experience, but overall the community pulled together.”

Utter was able to leave Black Mountain on Monday after spending five days trapped due to road closures. He praised National Carriers for the company’s response – including a personal call from the company vice president – and how they reassured his family even when Utter didn’t have service to reach them.

“Just the way that they treated me and the way they have been with me through this ordeal has made me want to stay with them,” he said.

Schenker sale to DSV approved

Image shows a Schenker worker and trailer with cargo.

The supervisory board of Germany’s Deutsche Bahn AG (DB) on Wednesday approved the sale of forwarder Schenker to Danish logistics group DSV.

The combined companies will have revenue of $43.5 billion, ranking ahead of current leading global forwarder Kuehne+Nagel of Switzerland, at $28.11 billion. The joint workforce will total around 147,000 employees at 1,850 locations in more than 130 countries.

Also on Wednesday, the German government granted its approval of the sale, which is expected to be completed in 2025 pending regulatory approvals, DB said in a release.

Deutsche Bahn had agreed to the sale in September as it refocuses on its core domestic passenger rail business and pays down some $33.25 billion in debt.

The combined logistics networks will have annual volume of 4.3 million twenty-foot equivalent units, 2.64 million tons of airfreight and 1.88 million square feet of warehouse space in more than 60 countries. DSV has said it plans to invest around $1.1 billion in Schenker, founded in Vienna in 1872.

Schenker is the latest acquisition by DSV (DSV.CO). Others have included UTi Worldwide of the U.S., Switzerland-based Panalpina and Kuwaiti Global Integrated Logistics. The Danish company won out over a bid by a private investor consortium led by CVC Capital Partners of New York.

Find more articles by Stuart Chirls here.

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Union behind port strike donates $100,000 for Hurricane Helene relief

The International Longshoremen’s Association (ILA) donated $100,000 to the American Red Cross’ Hurricane Helene Relief fund on Wednesday.

The union, which made headlines this week for its port strike across the U.S. East and Gulf coasts, said in an emailed news release that it is encouraging its locals to join the fundraising campaign.

 “Recent hurricanes have caused significant devastation, affecting countless families and communities along our coastlines,” said ILA President Harold Daggett in the release. “In times like these, it is crucial that we come together to support those who need it the most. With this in mind, we are reaching out to ask for your assistance in contributing to hurricane relief efforts.”

Daggett acknowledged that the union is holding this fundraising effort while its members are in the second day of the strike.

“We know the timing is difficult, and many of you are already making sacrifices in our fight for a fair contract,” Daggett said. “However, if your Local is in a position to provide a donation, no matter how small, it will make a meaningful difference to those affected by these natural disasters.”

The donation comes as industry analysts worry the strike could cripple hurricane relief efforts by stunting deliveries of essential goods.

In a news release, Leslie Sarasin, CEO of FMI, The Food Industry Association, urged parties to return to the negotiating table. She stated that the strike threatens to “compound the horrific situation in the Southeastern United States resulting from Hurricane Helene.”

“We must be focused on helping the communities and people devastated by Hurricane Helene,” Sarasin said in the release. “The strike on the East and Gulf Coasts by the International Longshoremen’s Association threatens to make the situation even more dire. This action has already begun to jeopardize food supply chain operations, and the strike has the potential to disrupt the long-term stability of markets and commodities, namely pharmaceuticals, seafood, produce, meat, cheese, ingredients, and packaging.”

Sarasin warned that an extended strike could raise the cost of goods and reduce availability.

The U.S. Department of Agriculture notes that the U.S. only exports 20% of its domestically produced agricultural products; the remaining 80% goes toward feeding its own population. Most of the food imported to the U.S. is made up of sweeteners, fruits and tree nuts, and sugar and confections.

J.B. Hunt, UP.Labs create FreightTech lab

J.B. Hunt Transport Inc. (NASDAQ:JBHT) announced Wednesday it is teaming up with venture group UP.Labs to create a logistics-focused technology incubator for startups looking to solve industry challenges.

“From the inception of modern intermodal transit to digital freight matching platforms to emerging safety technology and beyond, J.B. Hunt has always been people focused, technology empowered and capacity driven, and we’ve been on an innovation journey since our founding in 1961. … Our collaboration with UP.Labs will continue this journey as we look for new ways to disrupt, adapt and accelerate across the transportation industry,” said Shelley Simpson, president and CEO at J.B. Hunt, in a news release.

The Logistics Venture Lab will be looking for six companies to join its incubator over the next three years to focus on leveraging FreightTech within service areas including brokerage, dedicated transportation, intermodal and truckload freight.

“I’m thrilled to be collaborating with J.B. Hunt, a leader in the transportation and logistics industry,” said John Kuolt, founder and CEO of UP.Labs, in the news release. “Through the Logistics Venture Lab, we will launch startups rooted in big data, GenAI, and emerging technologies to solve industry problems with some of the world’s best entrepreneurs.”

Kuolt also celebrated UP.Labs’ previous successful investment partnerships with Porsche AG, which started in 2022, and Alaska Airlines, creating Airline Venture Lab in 2023

UP.Labs announced Wednesday as well that its partnership with Alaska Airlines committed $5 million to fund Odysee, an AI-powered flight schedule optimization solution.

This lab partnership with J.B. Hunt marks UP.Labs’ fourth innovation partnership.

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Port strike Day 2; fighting forever FreightGuards; USA’s new largest truckstop  | WHAT THE TRUCK?!?

On Episode 764 of WHAT THE TRUCK?!?, Dooner is talking to What’s Going On With Shipping’s Sal Mercogliano about the ILA port strikes as they enter Day 2. With ports from Maine to Houston shut down due to the strike, what impacts will we see in the supply chain, how are negotiations going, and when will it end? We’ll break it down.

With Carrier411 announcing the FreightGuards can’t be deleted, a new startup called Carrier Defender is the latest line of defense for trucking companies looking to protect their reputations. We’ll find out from Aleks Bates and Dan Artaev how they’re helping carriers fight back against fallacious Freightguards.

Move over Iowa 80, there’s a new largest truck stop in town. This month, Outpost is opening a 30-acre truck stop in Dundee, Illinois, with 1,000 spaces, which tops Iowa 80’s 900 spots. We’ll find out from Trent Cameron why they built it, whom it will serve and when it will open. 

Plus, Walmart and others join Helene relief effort; serial truck tire slasher strikes again; and more.

Catch new shows live at noon EDT Mondays, Wednesdays and Fridays on FreightWaves LinkedIn, Facebook, X or YouTube, or on demand by looking up WHAT THE TRUCK?!? on your favorite podcast player and at 5 p.m. Eastern on SiriusXM’s Road Dog Trucking Channel 146.

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Navigating peak season 2024: Challenges, expectations and consumer behavior

By Bart De Muynck

The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.

As autumn leaves begin to fall, retailers brace themselves for the annual onslaught of peak season. However, 2024 is shaping up to be a particularly challenging year, with a confluence of factors creating a perfect storm of potential disruptions. From capacity constraints and pricing hikes to looming labor disputes and unpredictable weather events, retailers face a complex and demanding landscape.

One of the most pressing challenges facing retailers this peak season is the ongoing strain on the global supply chain. The lingering effects of the pandemic, coupled with geopolitical tensions and labor shortages, have created a bottleneck in the flow of goods. As a result, carriers are grappling with limited capacity, forcing them to prioritize higher-paying shipments and implement substantial price increases.

According to industry experts, ocean freight rates are expected to surge by as much as 30% during peak season, while airfreight rates could climb even higher. These increases will inevitably trickle down to retailers, impacting their bottom line and potentially leading to higher prices for consumers.

In addition to higher base rates, retailers can expect to face a slew of additional fees during peak season. These surcharges, which are typically levied by carriers to offset increased costs of handling peak season volumes, can range from fuel surcharges and peak season surcharges to congestion surcharges and equipment imbalance surcharges. These fees can quickly add up, further impacting retailers’ profitability and potentially squeezing their margins. It’s essential for retailers to factor these additional costs into their pricing and inventory planning to avoid any unpleasant surprises.

The pandemic has also significantly altered consumer behavior, and these changes are expected to persist during peak season 2024. E-commerce continues to boom, and consumers are increasingly demanding faster, more convenient delivery options. Retailers will need to invest in robust fulfillment capabilities and omnichannel strategies to meet these expectations.

Rising inflation and economic uncertainty are impacting consumer sentiment as well. Shoppers are becoming more price-sensitive and are likely to be more discerning in their purchases. Retailers will need to offer competitive pricing and promotions to attract and retain customers. This also leads to expectations for a shorter peak season as many consumers are delaying holiday shopping until closer to the actual events, expecting deep discounts and promotions.

In addition, peak season 2024 is fraught with potential disruptions from weather events and labor disputes. Hurricane season is in full swing, and storms like Helene could wreak havoc on supply chains, delaying shipments and causing shortages.

Meanwhile, the strike by the International Longshoremen’s Association against port operators on the East and Gulf coasts could have a devastating impact on retailers, especially those reliant on those ports for their imports.

The upcoming peak season presents a formidable set of challenges for retailers. From capacity constraints and pricing increases to unpredictable weather events and labor disputes, there are many potential obstacles to success. By proactively addressing these challenges, retailers can position themselves for a successful peak season. This involves carefully managing inventory levels, diversifying sourcing and fulfillment strategies, and investing in technology and automation to improve efficiency.   

Bart

About the author

Bart De Muynck is an industry thought leader with over 30 years of supply chain and logistics experience. He has worked for major international companies, including EY, GE Capital, Penske Logistics and PepsiCo, as well as several tech companies. He also spent eight years as a vice president of research at Gartner and, most recently, served as chief industry officer at project44. He is a member of the Forbes Technology Council and CSCMP’s Executive Inner Circle.

FBX Report: October 02, 2024

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33,000 Boeing workers lose health care coverage

Editor’s Note: This story first appeared on AirlineGeeks.com.

Boeing has cut health care coverage for 33,000 of its workers and their families as machinists union strikes continue to halt production in the Pacific Northwest.

A news release from the International Association of Machinists and Aerospace Workers (IAM) emailed Tuesday stated that workers were informed of the cuts by U.S. Postal Service notifications to their homes. The move is being criticized by striking union members as a misstep by Boeing (NYSE: BA).

“Boeing executives cannot make up their minds,” said IAM International President Brian Bryant in the release. “One day they say they want to win back the trust of their workforce. The next moment, on the heels of many recent missteps by their labor relations team, Boeing executives are now tripping over dollars to get pennies by cutting a benefit that is essential to the lives of children and families, but is nothing compared to the cost of the larger problems Boeing executives have created for their workforce and for the company itself over the last ten years. Their missteps are costing not just the workers but our nation.”

Bryant called for action by Boeing’s new CEO, Kelly Ortberg.

“It’s time for the new CEO to truly engage at the proposal-based level and to take the reins from his subordinates who are fumbling critical decisions like this one,” he continued. “There is no reason the health benefits question could not have been punted on to allow more time for negotiations at the table – it is an unnecessary and cruel decision by Boeing executives that will cost the company much more than it saves them, both short-term and long-term.” 

Jon Holden, president of IAM District 751, said his fellow union members, who have been on strike since Sept. 13, were prepared for this kind of treatment.
“It’s been a long couple of decades with many threats to their livelihoods and this was an expected action in line with this management team,” Holden said in the release. “Over the years, members are often impacted by ill-advised decisions from the C-Suite, yet we stand strong and confident in our efforts to raise the standard for everyone.”

IAM refused to vote on Boeing’s “final” contract offer last week, stating that the company bypassed the negotiating process by broadcasting the offer publicly. That offer expired on Friday.

Bryant said delays by Boeing have caused IAM members to be kicked off their insurance plan.

“This is unnecessary and could have been avoided by continuing talks to come to an acceptable agreement, instead of walking away from mediation last Friday,” Bryant said. “Our members continue to be strong in their resolve and will not settle for anything but a fair contract that recognizes and rewards the critical and dedicated work they perform.”

In a statement sent to NBC affiliate King 5, Boeing confirmed that health care coverage ended for the striking employees on Monday. The company said it is prepared to meet at any time and negotiate with the aim of reaching an agreement as soon as possible.

Boeing did not immediately respond to AirlineGeeks’ request for comment.