?? Focus on Freight Tech

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TGIF. We're ending this week on a high note with some earnings reports for C.H. Robinson and XPO. Both companies are focusing on freight tech to increase efficiency and boost margins.

Plus: Load One acquires Ohio-based Tri-State Expedited, FMCSA task force exposes exploitation in truck lease-purchase agreements, and more.

??Question of the Day: Which U.S. state is the top producer of pumpkins? Scroll to the bottom to find out.

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?? WHAT’S COOKIN’ IN FREIGHT

?? Uber Freight's Mixed Q3 Results: Wider Loss, Rising Revenue. Uber Freight posted an EBITDA loss of $19 million in Q3 2024, its third-largest since integrating with Transplace. Despite the negative earnings, the company saw a slight year-over-year revenue increase to $1.308 billion, marking a rare uptick in gross bookings since the merger. While Uber Freight continues to expand technologically and grow in cross-border trade, skepticism remains over its future within Uber Technologies. CEO Dara Khosrowshahi is confident of the future but is also watching the market “very carefully.”

?? Load One Acquires Tri-State Expedited Service. Michigan's Load One has acquired Ohio-based Tri-State Expedited Service, adding 124 trucks and 154 drivers to enhance its network for time-sensitive freight across the U.S., Canada, and Mexico. Founded in 1978, Tri-State specializes in expedited transportation, making it a valuable addition to Load One's operations. As one of the largest privately held expedite carriers in the U.S., Load One offers a broad range of services including ground expedite, truckload dry van, and cross-border operations.

?? Revealing Exploitation in Truck Lease-Purchase Programs. A FMCSA task force has exposed damning exploitation in truck lease-purchase agreements, with 6% (200,000 out of 3.5 million) of CDL holders potentially impacted. Predatory contracts leave drivers trapped in debt cycles, with many receiving little to no pay, facing poor job security, and often experiencing dangerous working conditions due to economic pressures, data revealed. “Just a handful of drivers out of thousands that appeared to participate in these lease-purchase programs actually completed them successfully, suggesting that the turnover rates are extraordinarily high and the likelihood of success extraordinarily low,” said Steve Viscelli, Research Sociologist, University of Pennsylvania. The FMCSA’s Truck Leasing Task Force (TLTF) aims to curb these practices, proposing regulations to separate lease and carrier agreements and provide restitution for affected drivers.

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C.H. Robinson and XPO Show Strong Gains

C.H. Robinson and XPO reported solid Q3 earnings this week, both showing resilience in a challenging freight market.

C.H. Robinson’s Tech-Driven Model

Under CEO Dave Bozeman, C.H. Robinson has embraced a streamlined “Robinson model,” focusing on lean operations and heavy use of AI to automate key processes.

This approach helped the company reach $4.64 billion in revenue and achieve a 24.5% adjusted operating margin in Q3. Bozeman’s focus on efficiency raised gross profit margins for transportation to a five-year high of 16.4%, even in a sluggish market.

• AI Impact: C.H. Robinson’s new AI-driven processes now handle 2,600 quotes in just 32 seconds and complete 5,500 shipment orders in 90 seconds.
• Operational Efficiency: The company’s emphasis on lean management and reduced response times has set new benchmarks in efficiency and customer service.
• Record Margins: Gross profit margins for transportation operations reached their highest level since 2019, showing the effectiveness of the new model.

XPO’s Strategic Capacity Expansion

XPO’s Q3 revenue climbed 3.7% year-over-year to $2.05 billion, thanks to strong performance in its Less-Than-Truckload (LTL) segment.

The company opened 21 of 28 terminals acquired from Yellow Corp., increasing its capacity across the U.S. by up to 15%.

These terminals allow XPO to expand into new markets and enhance service for existing ones, positioning itself for both current and future demand.

• Terminal Growth: XPO’s terminal additions increase network capacity by 15%, offering broader service and reaching new markets.
• Fleet Expansion: In the past three years, XPO has added over 4,000 tractors and nearly 15,000 trailers, bolstering its fleet to meet rising demand.
• Efficiency Gains: New terminals are seeing efficiency improvements in city and linehaul operations, helping XPO optimize services and reduce costs.

Focus on Technology and Efficiency

C.H. Robinson and XPO are leveraging tech to streamline operations and boost profits. Robinson’s AI-driven automation improves pricing and speeds up service, while XPO uses tech to optimize linehaul and city operations.

Both companies are well-prepared for a market rebound. Robinson’s tech-driven model and XPO’s expanded LTL capacity position them to capture more market share and support steady growth.

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?? AROUND THE FREIGHT WEB

? Aurora Delays Driverless Trucking . Aurora Innovation has postponed the start of its driverless freight operations on the Dallas-to-Houston route from late 2024 to April 2025.

?? Interest in Knight-Swift . Knight-Swift’s recent push into (LTL) services has been spurring attention from shippers seeking flexible and cost-effective options, with one investor calling it “a game changer for us.”

?? Maersk Q3 Earnings . Higher ocean freight rates and container volumes drove a 41% revenue increase for Maersk, prompting an upgraded full-year earnings outlook.

?? Who Ships the Most Pumpkins ? China leads global pumpkin production with 9 million tons annually, while Mexico is the top exporter, shipping 87% of its pumpkins to the U.S.

?? DSV Secures Bonds . DSV raises $5.4 billion in bonds to support its acquisition of DB Schenker. This matches the largest corporate deal in Europe this year.

?? THE FREIGHT CAVIAR CORNER

• Conferences: F3 Future of Freight Festival, November 19-21 in Chattanooga. Get $1395 off with our special link ! In February, join us at Manifest Vegas 2025. Register with our link and save $200 !
• Freight Jobs: Find the latest freight job listings here .
• Find Shippers Fast: Looking for customers? Check out ShipperCRM, the world's largest shipper database, and create an account .
• Podcast: We've snagged an exclusive interview with Darren Brewer, CEO & Founder of Carrier411 .

FREIGHT MEME OF THE DAY

Answer: Illinois is the leading pumpkin-growing state, with over 560 million pumpkins processed annually. Source: FreightWaves .