?? First Electric Truck Fleet
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Good Morning. Today's feature takes a close look at electric truck startup Nevoya and how they're reigniting investor confidence in battery electric vehicle (BEV) companies.
??Question of the Day: 52% of all cargo thefts in Q3 occurred in California, Texas, & ______. Find the answer below.
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?? WHAT’S COOKIN’ IN FREIGHT
?? Organized Crime Drives Rise in Q3 Theft Activity. CargoNet’s Q3 2024 analysis revealed a 14% YoY rise in cargo theft, with 776 incidents reported across the US and Canada, amounting to over $39 million in stolen goods. Organized crime groups have been a significant factor behind this increase, employing tactics such as phishing schemes, fraud, and vehicle identity manipulation to evade detection. High-value items like footwear and electronics have become prime targets, overtaking previous targets such as solar panels and energy drinks. Although Q3 experienced a slight 1.6% drop in theft from Q2, delayed reporting may adjust this figure. Notably, 52% of all thefts in Q3 occurred in California, Texas, and Illinois.
?? Merx Global Lays Off Majority of Drivers. Merx Global, a trucking company based in Elk Grove Village, Illinois, laid off most of its company drivers due to "current market conditions." On October 11, drivers were rerouted to the company’s yard in Chicago, where they were issued termination letters. Merx Global, which operates with 246 drivers and 244 power units, is selling outdated equipment while retaining approximately 20 drivers for regional routes. Owner-operators leased by Merx Global remain unaffected. Former drivers reported staying with the company despite pay cuts earlier this year, with promises of pay increases once the freight market improved; however, they are now among those terminated. Merx has assisted affected drivers with travel arrangements and is offering to "subsidize part or all of the travel costs."
?? Stability Revives Dealmaking in Logistics. Mergers and acquisitions (M&A) activity in the logistics sector is rebounding as market stability returns following pandemic disruptions. During the COVID-19 pandemic, soaring freight volumes led to inflated valuations, stalling dealmaking. Now, with steadier earnings and interest rates just being lowered, more companies are considering sales or acquisitions. A notable example is DSV’s $12 billion acquisition of DB Schenker. Private equity firms, which had postponed exits due to market volatility, are becoming more active, further driving M&A activity. While interest rates remain elevated, much of the current deal activity comes from strategic investors. As Dan Howard, Managing Director and Head of North America Transport at Goldman Sachs, noted, “It’s all buyer-driven. Unsolicited knocks on doors and bilateral conversations.”
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Nevoya: Short-Haul Electric Truck Fleet
Nevoya claims to be the first fully electric truck company in the U.S., developing a platform for electric commercial vehicles.
The company recently secured $3 million in seed funding from Third Sphere and RedBlue Capital to support its growth and expansion.
Founder Sami Khan sees Los Angeles as a perfect launchpad. "It's the best place in the country for electric trucks. The incentives are the strongest, and there's just a huge market here," he shared with TechCrunch.
His team includes John Verdon, a former Waymo exec, and Tom Atwood, founder of a startup acquired by Project44.
What Nevoya Does:
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Khan reassures clients, "We handle everything—trucks, drivers, charging. There’s no difference to your business.”
Even with fewer than 0.1% of U.S. trucks being electric, demand for cleaner shipping solutions is growing fast. As Khan points out, “We have not failed there once — as soon as you say you have electric vehicles, they pick up the phone. They escalate.”
Why It Works: By focusing on short-haul routes, Nevoya sidesteps the common problems that face long-haul EV trucks—like battery weight and limited charging stations. As a result, they’re already seeing strong demand from shippers eager to decarbonize their operations.
“They want to decarbonize so badly that they are willing to pay a premium, and so for those [customers], we are actually going out at a rate that is higher than diesel.”
Industry experts are also taking note. Benjamin Gordon, CEO of Cambridge Capital, shared his thoughts on Nevoya, saying:
Gordon adds that Nevoya’s focus on Los Angeles makes sense due to the city's traffic congestion and government regulations and suggests when it comes to high-density markets, electric will win out in the long-run.
Looking Ahead: Nevoya is expanding into Texas, where they plan to build charging stations to support their growing fleet.
Regulation Roadblocks: EPA’s Mandate in Question
Of course, it’s not all smooth driving for Nevoya and the rest of the EV trucking sector.
A coalition of 24 states is currently challenging the EPA's new emissions standards, which require 45% of new trucks to be electric by 2032.
The lawsuit argues the rule is overambitious, with concerns about charging infrastructure and the higher costs passed down to shippers and consumers.
The crux of the issue? Battery-electric trucks are still not as practical as their diesel counterparts for long-haul routes. The weight of the batteries limits how much cargo can be carried, and charging stations aren't widely available—especially for fleets making longer trips.
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?? AROUND THE FREIGHT WEB
?? TFI Earnings. Canadia-based logistics firm TFI reported net income of $128 million in Q3 2024. Truckload revenue surged 80%, driven by the Daseke acquisition, while Less-Than-Truckload dropped 7%, and Logistics grew 2.5%.
?? Lax Security. A Becker Logistics study reveals a growing risk of cargo theft due to insufficient security measures, urging companies to bolster safety protocols.
?? Uber Freight Expansion. Uber Freight is capitalizing on the nearshoring boom by expanding its cross-border logistics, connecting more US-Mexico trade routes to meet the rising demand.
?? C.H. Robinson's Growth. C.H. Robinson's drop trailer business hit over 500,000 loads, heading towards a record year with $900 million in revenue.
?? Sentenced for Fraud. Robert E. Carter, of Eau Claire, Wisconsin, was sentenced for forging financial documents to fraudulently acquire semi-trucks by using altered Fond du Lac trucking companies financial records.
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