July 21, 2025 • 30 mins
Are you keeping up with the shifts in freight, from automation to AI-driven brokers and everything in between?
With 95% of broker tasks potentially automated, the focus now is on leveraging technology while keeping the human touch where it matters, customer and carrier experience. Whether it’s investing in automation, tightening up internal processes, or building face-to-face relationships in a crowded market, now’s the time to niche down and stay visible! Tune in to learn more!
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:04):
Came back with a bank window down yelling now money anything hey oh got the foot on the gas pedal to the metal when I'm get to the back hey Got the foot on the gas pedal to the metal when the blame moving fast hey Let them all cross if they hate then let them hate them make a bigger balls.
Speaker 2 (00:25):
Hey what is up ladies and gentlemen?
We are back.
We are live.
It is the Freight Coach Podcast, the top podcast in transportation, coming to you guys every single weekday, 8:30am Pacific, 10:30 Central, to break down some industry headlines.
But most importantly, you guys provide some actual insight into what you can do with all of this information.
If this is your first time tuning in, welcome.
(00:45):
This is the real side of freight, ladies and gentlemen.
And I do say that before every single show.
And what I mean by that is I only speak with transportation professionals because the end of the day, you guys, I want to talk to the right individuals who have done what you're looking to do or who are currently doing what you're trying to achieve, so you can take that information, apply it, utilize it, and see a meaningful difference in your business and your life.
(01:06):
Happy Monday, everybody.
I'm excited for this week, right?
At the end of the day, I coach myself up to be excited no matter what out there.
But you know, you guys, we're going to be talking about, you know, kind of like what are the big indicators that I'm looking at in the market in regards to freight forecasting, right?
What do I do to inside of my own organization and my internal thought processes and like the people that I talk to as well and the industry?
(01:35):
What are some of those things that are out there that I look for to kind of see where things are trending and where they might go or what might not happen out there?
Because I truly feel like we are in a very unique time in the freight market.
Not unheard of, not unseen or anything like that.
But at the end of the day, there's a lot kind of going on out there.
(01:56):
And how do you make sense of all of this stuff and how do you actually apply it to your business?
I think is another thing too, because there's a lot of information that comes at us at all times.
And you know, I have chosen a couple of headlines that I think are things to kind of like watch out for.
(02:19):
And then I think that it's one of those situations that I'm paying attention to out there.
And so we're going to start off breaking down a couple of articles and then from there we are going to talk about, we're going to talk about how to like what do we do with all of this information and how do we apply to our business to see a meaningful difference for the rest of this year as a broker.
(02:42):
Right.
So first article I wanted to talk about today is, you know, because again and then the first one is kind of tied into tariffs, right.
And I think tariffs are the new boogeyman out there in the media in regards to the transportation industry and we're here to talk about that.
So first article that we're going to break down today is from my friends over at the joc and it is Drage stakeholders say industry under threat from falling rates and increased costs.
(03:12):
It goes on to say Drage providers across the US Say their survival is under increasing threat amid rising cross pest pressures driven by new competition, including technology enabled platforms.
Sustained business operators are more often turning to mergers or acquisitions to bolster their companies in a bid to hold off competitors.
Drage truckers say their costs have been rising since COVID and while at the same time their pricing power is under a downward pressure.
(03:39):
But we are in a situation where new entrance brokers AI are in competition with us, says Matt Schrap, CEO of West coast based Harbor Trucking Association.
The lowest price wins.
Ken Callaway, co founder, chairman and president of Road1 Intermodal, which has dredge operations across the country.
Set a price differentiating, excuse me, a price difference of as little as $50among competitors will win the business.
(04:06):
And then the cost pressures are the highest or the largest I've seen in my career.
And then last week was announced that Oakland bay storage provider GSC Enterprises that it was shutting down its operations.
And then it's surprising that others haven't fallen, excuse me, says Robert Loya, the chief operating officer at TGS Logistics.
(04:27):
And you know, I look at this, you know, because I think obviously with a lot of the overall economic indicators and a lot of the what's going on with the current administration out there, reshoring is a major push, right?
(04:48):
Like that's no, that should be no surprise to anybody if you've been watching the news at all, that reshoring is a major push.
And if that happens and again I look at a lot of this stuff over the course of the next 10 to 20 years, obviously Drage is going to be the first one that's going to be affected by that.
Speaker 3 (05:07):
Right.
Speaker 2 (05:07):
Drage and then, you know, shipping in volumes and stuff like that intermodal, that's going to be another one that's affected by it too.
Just based on the fact that again, I want to preface obviously everything that I say here by I went to public school, but if we bring more manufacturing back here to the United States of America, there's going to be less imports at that point exports.
(05:28):
There might be, you know, a revitalization of it if stronger US Economy leads to more exports and everything else.
You never know.
But if we're just talking in current terms, that's where I see that industry being affected the most, is it's going to be in the drayage market and then the intermodal market.
Speaker 3 (05:44):
Right.
Speaker 2 (05:44):
Because if there's less stuff being imported, they're just going to have to pivot at that time.
Speaker 3 (05:48):
Right.
Speaker 2 (05:50):
I think that there's a if you go around those port cities and again, I'm not saying that their business is going to go away entirely, but I think it's just going to reshape the local freight markets in major port cities, right?
Because a lot of those guys are already going 50, 70, 500 miles or whatever from the port.
There's going to be a lot more business.
I think that's going to come in that.
So I think that's just going to shift capacity overall.
(06:13):
But I think like the way that they operate and do business is going to change exponentially.
And I just look at it, you know, again, from like the operational costs that are going on out there.
I mean, it's well documented inside of the state of California, what goes on out there.
And there's a couple of major ports, Louisiana, Long Beach, Oakland.
And you know, there also is a lot of other environmental rules and hoops that they have to jump through just to operate their business inside of that state.
(06:43):
And then, you know, that the pricing power which they brought up there, I think that is a very accurate statement, but it goes kind of across the industry.
And you have to ask yourself why is that, though?
Why is a customer willing to pull you from a load for 50 bucks?
And to me the answer is they can, right?
(07:06):
Like they can do that because there are people out there who are willing to do it, right?
And that's like the hardest part of operating in a free market is, you know, some people there is going to be a push to lower prices and everything else that comes along with it.
And that is part of it, right?
Like that's part of the industry.
(07:28):
So from my seat, from my perspective, I think that There are certain customers out there that are going to look for that, but there's a lot of them that don't necessarily play that game.
And again, I'm not as well versed in the drayage market, but based on what he's saying, in my experience inside of Drayage, that's accurate, right?
Like people will pull you off of 50 bucks.
(07:51):
Maybe I just had the wrong customer at that time.
But I also look at it as.
There is some of those situations where that's going to be a part of it, price is going to be a part of it.
And again, it's very challenging to show your overall worth to a customer early on, right?
Like when you're in the door with somebody, you're telling them stuff that they've been told a hundred times before and been burnt by that exact sales pitch, right?
(08:18):
So it's like time is of the essence.
I feel like in a lot of these instances when it comes to pricing and everything else that comes along with it and I, I look at the drayage market as a whole probably being the most affected if all of the contents of re industrializing the United States of America comes into effect.
(08:44):
I feel like that's the one that's going to be affected the most.
And I think they have the biggest target on their back in regards to potentially needing to.
To flip and everything else.
But everything that was brought up in this article is applicable to every sector of the transportation industry when it boils down to it, right?
Everybody has rising costs, everybody's dealing with declining rates out there, market saturation.
(09:06):
I think everybody can make the argument that there is a lot of people doing not a lot of jobs at the end of the.
And that's one of those things that comes along with it.
And then again that supply and demand, you guys, I feel like in its most basic form it is legitimately supply and demand.
(09:26):
And that's what we're up against out there, you guys.
There is a lot more supply in the market than there is demand for it, right?
So again, you have to look at it from the.
At least this is the way that I'm looking at it is I got to just undeniably better than everybody else.
At the end of the day, that's all I have to do.
And I have to hold myself to those higher standards out there over the long term because I feel like everything in this article, every sector of the industry is being affected by this.
(09:55):
And you know, just another thing too, I'm not here to Argue.
That article, excuse me, was from the Joc.com you guys.
And it's dredge stakeholder, say industry under threat from falling rates increased costs.
And I would agree with that.
But I would also kind of put that out there throughout the entire industry as a whole.
But you know, I look at, I'm not here to argue because you know, I know there's a lot of people out there who are way smarter than me who are talking about tariffs all the time, but I think we need to approach a lot of what is being done over a viewpoint of the next 10, 15, 20, 30 years.
(10:30):
Right.
I feel like there's.
Yeah, because of course you're not going to re industrialize the United States of America in 12 months.
Right.
And I feel like we look at life in such a shorter time frame now that we have a hard time comprehending that these things take time.
Speaker 3 (10:43):
Time.
Speaker 2 (10:43):
Right.
Social media does a wonderful job of over inflating how easy everything apparently is out there and how fast you can just become a millionaire and have everything figured out.
And I feel like with tariffs, I truly feel like the entire premise of re industrializing the United States of America, I am a massive fan of, I am always going to be a fan of it.
(11:07):
I just understand and I've adopted the fact that this is going to take a lot of time, there are going to be a lot of ups and downs from it, but I truly feel like in the long run it is a great move for the United States of America.
Again, I'm looking at this over the next 20 to 30 years, not the next 20 to 30 minutes.
And I feel like that snap, knee jerk emotional response is what a lot of people are looking at this from.
(11:31):
Because again, you can find pockets of data out there that tell a story and a narrative and you can stick on that narrative and you can make a lot of valid points from it.
But how long is that narrative going to be?
How long can you argue for that point?
Speaker 3 (11:44):
Right.
Speaker 2 (11:44):
Like you gotta.
I truly feel like with this one you have to look at it over the next 20 to 30 years.
And again, I could be wrong.
This could all be wrong.
This could all beautifully blow up in all of our faces.
You just never know.
Speaker 3 (11:54):
Right.
Speaker 2 (11:54):
But you could argue the inverse of it as well and it could all literally blow up in our entire face as well.
Speaker 3 (12:00):
Right.
Speaker 2 (12:01):
That's the beauty of a free market, you guys.
There's a lot of stuff hinging on that.
So that's point number one of the freight forecast.
Right.
If I'm Looking at this economic data that's out there, Drayage carriers, there's a lot of increased competition but again it can be put out there across the industry.
Now second one, this article is from fleet owner.com and this is from JB Hunt.
(12:24):
The title of the article, excuse me, is JB Hunt eyeing at least $100 million in cost cuts that comes out there.
And it goes on to say that the number 4 carrier on the fleet, 5 fleet owner 500 for hire saw its insurance claims and group medical costs climb $21 million from the spring of 2024.
(12:45):
President and CEO Shelly Simpson said of the savings plan, that's our first $100 million.
And then they said it's looking to enhance a lot of it through automation out there.
So like that's the next point of all of this is what I think is a potential big part of the industry is going to be a big push for automation that comes along with it.
(13:12):
And to kind of Summarize that article, JB Hunt unveiled a comprehensive $100 million annual cost savings initiative during its Q2 2025 earnings aimed at countering inflation driven price pressure on wages, equipment and insurance.
The savings strategy focuses on three pillars.
Boosting operational efficiency, optimizing asset utilization through technology, and redesigning processes to reduce redundancies.
(13:39):
While most savings are expected in 2026, early benefits are already visible despite flat revenues out there.
Of Q2 we had a revenue of 2.93 billion and a 4% drop in operating income.
Intermodal volumes grew free and free cash flow remained strong, enabling aggress buybacks and preserving financial responsibility.
(14:03):
So I think a lot of large organizations, and again I feel like they're going to look at this right, and I've said this a lot and again I, and I want to preface this by saying I don't want anybody to lose their job.
At the end of the day, you guys, I hate seeing that stuff out there because I know at the end of the day there's families that are behind that, there's children that are behind that and there's people's real lives that are affected by that.
Speaker 3 (14:26):
Right?
Speaker 2 (14:26):
I'm not here to advocate for anybody to lose their job.
But when you see a large logo, and again, this is not me directing any of this towards JB Hunt at all.
This is what I feel like.
A lot of large companies who can invest in a lot of automation out there are going to be attacking this and they are going to be Removing, as they said in this article, redundancies and inefficiencies.
(14:50):
So what's the first thing that comes to your mind?
When I think about redundancies and inefficiencies, I think about lazy individuals out there who have jobs that can be automated and like I said, lazy people that have jobs that can be automated.
Speaker 3 (15:08):
Right.
Speaker 2 (15:10):
I feel like, you know, again, I want to preface this by saying I feel like if you're a real killer and a real producer, you're going to have a job no matter what comes out through automation, no matter what comes out through technology killers are always going to be employed out there.
But we also all know that we've worked in organizations where there's people who are employed that we all know probably shouldn't that kind of do the bare minimum out there.
Speaker 3 (15:33):
Right.
Speaker 2 (15:33):
Like again, I'm here just to speak through experience and I'm here to speak the truth of what we all know is out there.
And I feel like a lot of those individuals days are numbered and I feel like a lot of companies are going to be looking at that.
I've been a part of organizational restructures before when I been in that room and they're like, hey, take the highest compensated people and the lowest tenured people and get rid of them.
Speaker 3 (15:58):
Right?
Speaker 2 (15:59):
It's, it's disgusting.
But like it's the way that people look at it sometimes, right?
And again, I feel like they have to look at that.
They have to look at cost reductions because again, especially when they're publicly traded, you guys, no matter what the, any publicly traded company says, their fiduciary responsibility is to the shareholders, not the employees of said company.
(16:21):
And again, I'm not saying that this means that all of them are hostile workplaces and stuff like that, but again, you guys, they got to make a return for their investors.
And that's generally the way that a lot of these companies look at it.
And it is just a straight cost cutting thing.
And they got to improve their fiscal standing out there, you guys, so they can go out there and have a higher share price.
(16:44):
It's just, it's just the reality of it.
Right?
And Cody Kaylor says a lot of really good.
He says automate everything and focus on revenue producing tasks.
Winners focus on winning more, losers focus on winners.
Amen to that, Cody.
But it's the truth, right?
And, and that is in to kind of segue into a little bit about like the broker forecast and the blueprint.
(17:05):
That's how I'M attacking my business, you guys.
It's not that I don't want to hire people, but how can I automate literally everything that I possibly can so I can grow in a way where I don't have to look at, hey, how can we reduce headcount?
Speaker 3 (17:20):
Right?
Speaker 2 (17:20):
Like, and again, this is a very pie in the sky idea and I get this, but I am of the mindset that we can automate 95 of my job as a freight broker.
And it should be automated, right?
The only thing that should never be automated is the customer and the carrier experience.
Right.
And I think as a lot of these large organizations go out there, I think that there will be some that will overly automate.
(17:45):
And again, I'm not pointing the finger at anybody out here, but I'm just saying J.B. hunt was the company of this article and again, they had spoken about what they're looking to reduce and I feel like that is a playbook that a lot of large companies are going to look at and they are going to automate everything.
And I agree with them.
(18:06):
Right.
Because if you are not performing, you guys, you are not going to have a job in all reality.
Speaker 3 (18:12):
Right?
Speaker 2 (18:13):
Again, I can't speak for a lot of people, but like, that's just where my heart's at.
I feel like their technology is getting to the point where mediocre and low performing individuals that are out there are not going to have a place in the workforce.
I'm not here to argue what's fair, what's not, but I feel like that's the reality.
And when people are seeing insurance costs rising, fuel costs rising, a lot of stuff rising, they gotta cut.
(18:37):
And that's just the reality of running a business, you guys.
Like, it's not as hunky dory as a lot of people make it out to be.
And if you're not from the Midwest, hunky dory means, you know, sunshine and gumdrops, ladies and gentlemen.
And there's going to be a lot of hard things that are done out there.
So you know, again, I look at this as a, a good thing for high performing individuals because you are now going to be tasked with the right automation and tech stack to, you know, if you could only do 20 loads in a day as a solar provider, like I'm convinced with the right automation you could probably do like 100 loads in a day.
(19:11):
But again, that's just me and I could be wrong.
Somebody out there could be like, I'm going to do 500 loads in a day and I fucking love it.
But I feel like that's where we're at with it.
I truly do.
So I think automation is the next big threat to the industry in the sense of like reshaping things and how it's going to look.
And I'm here for it, right, because I feel like there was a lot of redundancies out there and we got to be faster, cheaper and more nimble than your competition.
(19:35):
And when there's an industry that is the transportation industry, where there is a lot of competition out there.
You guys, welcome to the show, ladies and gentlemen.
People are going to go out there and they're going to automate and automate to reduce their ability to win on price.
Because we all know price is a major factor.
It's not the end all be all, but it's a major factor out there.
(19:57):
The third article is this is the next one that I think it gets the most talking points, but I feel like it's the most overblown out there.
And this is the ELP mandate.
This article was from Freight Waves.com and then it's immigration crackdowns could crunch trucking capacity.
And it goes on to say that the big beautiful bill will have substantial impact on immigration labor.
(20:20):
I don't know if I necessarily agree with that.
I feel like again, the big thing that's missing from a lot of this is enforcement.
There are going to be states that enforce it, there are going to be states that do not enforce it.
And if you toe the party line here, and this is the way that I truly think you have to look at this, toe the party line out there.
(20:44):
The world's fifth largest economy, AKA the static state of California probably isn't going to be enforcing this all that much out there now.
There'll be some other ones that.
Yes, that will.
But I just do not see that much capacity leaving the market from this in particular.
Speaker 3 (21:02):
Right?
Speaker 2 (21:02):
Could it.
Yes, absolutely.
I could be completely fucking wrong.
There was a massive increase in budget to ICE out there, you guys, so this could.
I could be completely wrong on this.
But if I look at it in today's standards, I, I just don't see it being that big of a deal that drops capacity out.
(21:23):
I feel like companies going out of business have a larger effect on capacity in the coming months than I think the ELP stuff, because I just don't.
I think that we've.
I don't want to say gone too far.
That's the right.
That's the wrong word for it, but I feel like we are at a point in the industry where there's a lot of subjective verbiage inside of the ELP mandate that goes on out there.
(21:51):
There's going to be some people that go too far, there's going to be some that don't go far enough and then there's going to be some that just don't care.
And I feel like this is something that's a great talking point.
It gets a ton of clicks all over social media, gets the base really riled up out there.
I just don't think that it's going to have that much of an effect on the industry.
And again, I could be wrong, but my standpoint, from somebody who actually does the job, you guys, and doesn't just talk about it every single day, I don't see this having that much of an effect on capacity out there.
(22:20):
I truly don't.
And if it does, it's going to be a long time.
This isn't going to be like they're just going to start rounding them all up and sitting there at the scale house and everything else and pulling people off the road.
I just don't think that it's that big of a deal or that much of a priority.
But it could become that in time and again I could be wrong with that, but I think like that's another big talking point out there.
(22:43):
But you know, again, if we're looking at a lot of this and we're looking at the freight forecast and everything else, I think that there's a lot of stuff that's up in the air and I feel like a lot of what we need to do is this when everybody's going in one direction.
And this is one thing that I have found in my brief career is being self employed, you guys.
(23:03):
The one thing that I can say with 100% confidence that I have seen the most success in is doing the opposite of what the masses say.
So yes, when everybody talks about automation, I'm a fan of automation, but there's going to be a large group of people that overly automate and again, I feel like there's a point that is going to come back where it's going to snap back in, that people are going to need actual physical verification that you're a real person that is knocking on doors, actually being able to cold call, actually being able to do the job that you're talking about.
(23:38):
I think that's where a lot of investment needs to be done inside of your organization is you got to get out there and shake hands.
You guys get out there and meet as many people as possible.
That might not be door knocking at a local shippers.
It might go, you know, going to a trade show, going out there and introducing yourself to people out there, checking them out.
(23:58):
If you're a niche based broker or a niche based carrier out there, get out there and meet people inside of that vertical.
Go to some of those industry conferences and again, if you can't afford to go to some of those conferences because you know, flights, hotels, meals, it's expensive, you guys go out there and knock on doors.
Just what we do inside of our company, we call ahead and ask to stop by.
(24:21):
Do you need to do this?
No, but I believe in long term brand perception and I don't want to be no.
And I'm sure people can look at us as a pushy sales rep and that's fine because a lot of us get lumped in to that category.
But I just want, when people hear my name and my company's name, I want them to at least have somewhat of a positive perception of us.
And that's my big thing with it.
(24:42):
So I'm going to stick with that and call ahead and we are going to continue down that path and try and introduce ourselves and just get in front of people.
Speaker 3 (24:51):
Right.
Speaker 2 (24:52):
I just don't think that there is enough that I have seen and again, I could be completely wrong and I've said this before, I just don't think that there's enough that is being done right now that is going to have a short term, a massive like short term implication on the market.
I think it could be business as usual until this time in 2026, you guys.
(25:15):
So again we truly need to look at how can, yes, how can you get your P L in line?
How can you reduce your expenses?
Because again you guys, this is business, this is not personal and businesses are going to do what's best for them.
As you should.
Speaker 3 (25:28):
Right?
Speaker 2 (25:29):
Like as somebody who owns a company, I have to have a sustainable business throughout the years here.
So again I think like you're going to take fiscal responsibility to the next level.
Automation affords that for you.
Right?
But you also need to look at how can I increase my output.
And that is also where automation comes into play.
Speaker 3 (25:47):
Right.
Speaker 2 (25:48):
Maybe you can go out there and find some sales automation that can help you find more shippers inside of your vertical that you're out there in and create better Notes for you, maybe there's something like that, right?
And you need to leverage that.
And that's where I would look because I feel like at this point in time, if you have the money and you're a, an organization that can invest in automation, I think that you need to look at certain tools out there that can help increase your productivity.
(26:18):
And you should do that, you should run with that, and you should start looking at how can I do less with more?
Because I, I don't think anything that is happening right now is going to change the market in the foreseeable future.
I don't think the ELP mandate is going to have that much of an effect on it.
Again, there's a lot of stuff that's being talked about that is phenomenal for social media analytics, you guys.
(26:42):
Phenomenal.
If you want to go out there and talk on tariffs, boom, you're going to get a ton of engagement.
If you want to go out there and talk on the current administration, you're going to get a lot of engagement out there, you guys.
If you want to talk on a lot of things, you're going to do that.
But again, in the real world where I operate, you guys and the decisions that I'm making, I don't see anything changing anytime soon.
I think that you have to be look at your internal processes.
(27:04):
How can you do more with less?
How can you become a better service provider out there?
Because that's what we are, you guys, whether you own trucks or you're a broker, you are a service provider.
How is your customer experience with you?
How is your carrier experience with you?
If you own a trucking company, how's your broker experience with you inside of there?
And again, I'm not here to argue about the fringe or talk about the fringe.
I'm here to talk about the actual movers and shakers in this industry who give a about the transportation industry.
(27:28):
And that's everybody who listens to this show.
So how can you provide a better product or service out there?
That is where we have to look and we have to look at how do we uncover some inefficiencies inside of our operations, you guys, because again, I'm gonna sound like a broken record.
I don't think things are changing anytime soon, but there are opportunities out there, you guys.
(27:49):
So again, my blueprint moving forward, how do I become faster in my responses?
How do I reach more prospects?
How do I earn more business?
How do I sound different and better than everybody else on the phone and in person.
And a lot of that is inside of that niche, you guys.
And that's where we need to be focused on.
At the end of the day, you guys, we need to be focused on that.
(28:10):
As we're wrapping up the show here, I do want to give a shout out.
Danielle Spinelli is having a fraud webinar this week.
She DM me last week and asked me to bring it up.
Probably should have brought it up at the beginning of the show, but I am bringing it up right now, you guys.
Fraud webinar out there again, just giving away free game on what you can apply to your business, you guys, if you're having an issue with that or you need a fraud response plan, I would jump all over that, you guys.
(28:34):
Again, there's a lot of people who are creating a lot of great content out there that can help you out in your business.
You need to check that out.
But as always, you guys, if you got value in what you heard, subscribe to the show.
Ladies and gentlemen, if you're feeling really ambitious after this one, which you should be, rank the show on itunes and Spotify, because if you see value, your network's going to see value as well.
I appreciate you guys.
I love you guys, and we'll be talking to you soon.
Speaker 1 (29:01):
Came back with a bank window down yelling now money at a if they hate, then let them Made them make a bigger boss Hey.
Came back with a bank window down yelling now money anything hey oh got the foot on the gas pedal to the metal when I'm get to the back hey Got the foot on the gas pedal to the metal when the blame moving fast hey Let them all cross if they hate then let them hate them make a bigger balls.
Speaker 2 (00:25):
Hey what is up ladies and gentlemen?
We are back.
We are live.
It is the Freight Coach Podcast, the top podcast in transportation, coming to you guys every single weekday, 8:30am Pacific, 10:30 Central, to break down some industry headlines.
But most importantly, you guys provide some actual insight into what you can do with all of this information.
If this is your first time tuning in, welcome.
(00:45):
This is the real side of freight, ladies and gentlemen.
And I do say that before every single show.
And what I mean by that is I only speak with transportation professionals because the end of the day, you guys, I want to talk to the right individuals who have done what you're looking to do or who are currently doing what you're trying to achieve, so you can take that information, apply it, utilize it, and see a meaningful difference in your business and your life.
(01:06):
Happy Monday, everybody.
I'm excited for this week, right?
At the end of the day, I coach myself up to be excited no matter what out there.
But you know, you guys, we're going to be talking about, you know, kind of like what are the big indicators that I'm looking at in the market in regards to freight forecasting, right?
What do I do to inside of my own organization and my internal thought processes and like the people that I talk to as well and the industry?
(01:35):
What are some of those things that are out there that I look for to kind of see where things are trending and where they might go or what might not happen out there?
Because I truly feel like we are in a very unique time in the freight market.
Not unheard of, not unseen or anything like that.
But at the end of the day, there's a lot kind of going on out there.
(01:56):
And how do you make sense of all of this stuff and how do you actually apply it to your business?
I think is another thing too, because there's a lot of information that comes at us at all times.
And you know, I have chosen a couple of headlines that I think are things to kind of like watch out for.
(02:19):
And then I think that it's one of those situations that I'm paying attention to out there.
And so we're going to start off breaking down a couple of articles and then from there we are going to talk about, we're going to talk about how to like what do we do with all of this information and how do we apply to our business to see a meaningful difference for the rest of this year as a broker.
(02:42):
Right.
So first article I wanted to talk about today is, you know, because again and then the first one is kind of tied into tariffs, right.
And I think tariffs are the new boogeyman out there in the media in regards to the transportation industry and we're here to talk about that.
So first article that we're going to break down today is from my friends over at the joc and it is Drage stakeholders say industry under threat from falling rates and increased costs.
(03:12):
It goes on to say Drage providers across the US Say their survival is under increasing threat amid rising cross pest pressures driven by new competition, including technology enabled platforms.
Sustained business operators are more often turning to mergers or acquisitions to bolster their companies in a bid to hold off competitors.
Drage truckers say their costs have been rising since COVID and while at the same time their pricing power is under a downward pressure.
(03:39):
But we are in a situation where new entrance brokers AI are in competition with us, says Matt Schrap, CEO of West coast based Harbor Trucking Association.
The lowest price wins.
Ken Callaway, co founder, chairman and president of Road1 Intermodal, which has dredge operations across the country.
Set a price differentiating, excuse me, a price difference of as little as $50among competitors will win the business.
(04:06):
And then the cost pressures are the highest or the largest I've seen in my career.
And then last week was announced that Oakland bay storage provider GSC Enterprises that it was shutting down its operations.
And then it's surprising that others haven't fallen, excuse me, says Robert Loya, the chief operating officer at TGS Logistics.
(04:27):
And you know, I look at this, you know, because I think obviously with a lot of the overall economic indicators and a lot of the what's going on with the current administration out there, reshoring is a major push, right?
(04:48):
Like that's no, that should be no surprise to anybody if you've been watching the news at all, that reshoring is a major push.
And if that happens and again I look at a lot of this stuff over the course of the next 10 to 20 years, obviously Drage is going to be the first one that's going to be affected by that.
Speaker 3 (05:07):
Right.
Speaker 2 (05:07):
Drage and then, you know, shipping in volumes and stuff like that intermodal, that's going to be another one that's affected by it too.
Just based on the fact that again, I want to preface obviously everything that I say here by I went to public school, but if we bring more manufacturing back here to the United States of America, there's going to be less imports at that point exports.
(05:28):
There might be, you know, a revitalization of it if stronger US Economy leads to more exports and everything else.
You never know.
But if we're just talking in current terms, that's where I see that industry being affected the most, is it's going to be in the drayage market and then the intermodal market.
Speaker 3 (05:44):
Right.
Speaker 2 (05:44):
Because if there's less stuff being imported, they're just going to have to pivot at that time.
Speaker 3 (05:48):
Right.
Speaker 2 (05:50):
I think that there's a if you go around those port cities and again, I'm not saying that their business is going to go away entirely, but I think it's just going to reshape the local freight markets in major port cities, right?
Because a lot of those guys are already going 50, 70, 500 miles or whatever from the port.
There's going to be a lot more business.
I think that's going to come in that.
So I think that's just going to shift capacity overall.
(06:13):
But I think like the way that they operate and do business is going to change exponentially.
And I just look at it, you know, again, from like the operational costs that are going on out there.
I mean, it's well documented inside of the state of California, what goes on out there.
And there's a couple of major ports, Louisiana, Long Beach, Oakland.
And you know, there also is a lot of other environmental rules and hoops that they have to jump through just to operate their business inside of that state.
(06:43):
And then, you know, that the pricing power which they brought up there, I think that is a very accurate statement, but it goes kind of across the industry.
And you have to ask yourself why is that, though?
Why is a customer willing to pull you from a load for 50 bucks?
And to me the answer is they can, right?
(07:06):
Like they can do that because there are people out there who are willing to do it, right?
And that's like the hardest part of operating in a free market is, you know, some people there is going to be a push to lower prices and everything else that comes along with it.
And that is part of it, right?
Like that's part of the industry.
(07:28):
So from my seat, from my perspective, I think that There are certain customers out there that are going to look for that, but there's a lot of them that don't necessarily play that game.
And again, I'm not as well versed in the drayage market, but based on what he's saying, in my experience inside of Drayage, that's accurate, right?
Like people will pull you off of 50 bucks.
(07:51):
Maybe I just had the wrong customer at that time.
But I also look at it as.
There is some of those situations where that's going to be a part of it, price is going to be a part of it.
And again, it's very challenging to show your overall worth to a customer early on, right?
Like when you're in the door with somebody, you're telling them stuff that they've been told a hundred times before and been burnt by that exact sales pitch, right?
(08:18):
So it's like time is of the essence.
I feel like in a lot of these instances when it comes to pricing and everything else that comes along with it and I, I look at the drayage market as a whole probably being the most affected if all of the contents of re industrializing the United States of America comes into effect.
(08:44):
I feel like that's the one that's going to be affected the most.
And I think they have the biggest target on their back in regards to potentially needing to.
To flip and everything else.
But everything that was brought up in this article is applicable to every sector of the transportation industry when it boils down to it, right?
Everybody has rising costs, everybody's dealing with declining rates out there, market saturation.
(09:06):
I think everybody can make the argument that there is a lot of people doing not a lot of jobs at the end of the.
And that's one of those things that comes along with it.
And then again that supply and demand, you guys, I feel like in its most basic form it is legitimately supply and demand.
(09:26):
And that's what we're up against out there, you guys.
There is a lot more supply in the market than there is demand for it, right?
So again, you have to look at it from the.
At least this is the way that I'm looking at it is I got to just undeniably better than everybody else.
At the end of the day, that's all I have to do.
And I have to hold myself to those higher standards out there over the long term because I feel like everything in this article, every sector of the industry is being affected by this.
(09:55):
And you know, just another thing too, I'm not here to Argue.
That article, excuse me, was from the Joc.com you guys.
And it's dredge stakeholder, say industry under threat from falling rates increased costs.
And I would agree with that.
But I would also kind of put that out there throughout the entire industry as a whole.
But you know, I look at, I'm not here to argue because you know, I know there's a lot of people out there who are way smarter than me who are talking about tariffs all the time, but I think we need to approach a lot of what is being done over a viewpoint of the next 10, 15, 20, 30 years.
(10:30):
Right.
I feel like there's.
Yeah, because of course you're not going to re industrialize the United States of America in 12 months.
Right.
And I feel like we look at life in such a shorter time frame now that we have a hard time comprehending that these things take time.
Speaker 3 (10:43):
Time.
Speaker 2 (10:43):
Right.
Social media does a wonderful job of over inflating how easy everything apparently is out there and how fast you can just become a millionaire and have everything figured out.
And I feel like with tariffs, I truly feel like the entire premise of re industrializing the United States of America, I am a massive fan of, I am always going to be a fan of it.
(11:07):
I just understand and I've adopted the fact that this is going to take a lot of time, there are going to be a lot of ups and downs from it, but I truly feel like in the long run it is a great move for the United States of America.
Again, I'm looking at this over the next 20 to 30 years, not the next 20 to 30 minutes.
And I feel like that snap, knee jerk emotional response is what a lot of people are looking at this from.
(11:31):
Because again, you can find pockets of data out there that tell a story and a narrative and you can stick on that narrative and you can make a lot of valid points from it.
But how long is that narrative going to be?
How long can you argue for that point?
Speaker 3 (11:44):
Right.
Speaker 2 (11:44):
Like you gotta.
I truly feel like with this one you have to look at it over the next 20 to 30 years.
And again, I could be wrong.
This could all be wrong.
This could all beautifully blow up in all of our faces.
You just never know.
Speaker 3 (11:54):
Right.
Speaker 2 (11:54):
But you could argue the inverse of it as well and it could all literally blow up in our entire face as well.
Speaker 3 (12:00):
Right.
Speaker 2 (12:01):
That's the beauty of a free market, you guys.
There's a lot of stuff hinging on that.
So that's point number one of the freight forecast.
Right.
If I'm Looking at this economic data that's out there, Drayage carriers, there's a lot of increased competition but again it can be put out there across the industry.
Now second one, this article is from fleet owner.com and this is from JB Hunt.
(12:24):
The title of the article, excuse me, is JB Hunt eyeing at least $100 million in cost cuts that comes out there.
And it goes on to say that the number 4 carrier on the fleet, 5 fleet owner 500 for hire saw its insurance claims and group medical costs climb $21 million from the spring of 2024.
(12:45):
President and CEO Shelly Simpson said of the savings plan, that's our first $100 million.
And then they said it's looking to enhance a lot of it through automation out there.
So like that's the next point of all of this is what I think is a potential big part of the industry is going to be a big push for automation that comes along with it.
(13:12):
And to kind of Summarize that article, JB Hunt unveiled a comprehensive $100 million annual cost savings initiative during its Q2 2025 earnings aimed at countering inflation driven price pressure on wages, equipment and insurance.
The savings strategy focuses on three pillars.
Boosting operational efficiency, optimizing asset utilization through technology, and redesigning processes to reduce redundancies.
(13:39):
While most savings are expected in 2026, early benefits are already visible despite flat revenues out there.
Of Q2 we had a revenue of 2.93 billion and a 4% drop in operating income.
Intermodal volumes grew free and free cash flow remained strong, enabling aggress buybacks and preserving financial responsibility.
(14:03):
So I think a lot of large organizations, and again I feel like they're going to look at this right, and I've said this a lot and again I, and I want to preface this by saying I don't want anybody to lose their job.
At the end of the day, you guys, I hate seeing that stuff out there because I know at the end of the day there's families that are behind that, there's children that are behind that and there's people's real lives that are affected by that.
Speaker 3 (14:26):
Right?
Speaker 2 (14:26):
I'm not here to advocate for anybody to lose their job.
But when you see a large logo, and again, this is not me directing any of this towards JB Hunt at all.
This is what I feel like.
A lot of large companies who can invest in a lot of automation out there are going to be attacking this and they are going to be Removing, as they said in this article, redundancies and inefficiencies.
(14:50):
So what's the first thing that comes to your mind?
When I think about redundancies and inefficiencies, I think about lazy individuals out there who have jobs that can be automated and like I said, lazy people that have jobs that can be automated.
Speaker 3 (15:08):
Right.
Speaker 2 (15:10):
I feel like, you know, again, I want to preface this by saying I feel like if you're a real killer and a real producer, you're going to have a job no matter what comes out through automation, no matter what comes out through technology killers are always going to be employed out there.
But we also all know that we've worked in organizations where there's people who are employed that we all know probably shouldn't that kind of do the bare minimum out there.
Speaker 3 (15:33):
Right.
Speaker 2 (15:33):
Like again, I'm here just to speak through experience and I'm here to speak the truth of what we all know is out there.
And I feel like a lot of those individuals days are numbered and I feel like a lot of companies are going to be looking at that.
I've been a part of organizational restructures before when I been in that room and they're like, hey, take the highest compensated people and the lowest tenured people and get rid of them.
Speaker 3 (15:58):
Right?
Speaker 2 (15:59):
It's, it's disgusting.
But like it's the way that people look at it sometimes, right?
And again, I feel like they have to look at that.
They have to look at cost reductions because again, especially when they're publicly traded, you guys, no matter what the, any publicly traded company says, their fiduciary responsibility is to the shareholders, not the employees of said company.
(16:21):
And again, I'm not saying that this means that all of them are hostile workplaces and stuff like that, but again, you guys, they got to make a return for their investors.
And that's generally the way that a lot of these companies look at it.
And it is just a straight cost cutting thing.
And they got to improve their fiscal standing out there, you guys, so they can go out there and have a higher share price.
(16:44):
It's just, it's just the reality of it.
Right?
And Cody Kaylor says a lot of really good.
He says automate everything and focus on revenue producing tasks.
Winners focus on winning more, losers focus on winners.
Amen to that, Cody.
But it's the truth, right?
And, and that is in to kind of segue into a little bit about like the broker forecast and the blueprint.
(17:05):
That's how I'M attacking my business, you guys.
It's not that I don't want to hire people, but how can I automate literally everything that I possibly can so I can grow in a way where I don't have to look at, hey, how can we reduce headcount?
Speaker 3 (17:20):
Right?
Speaker 2 (17:20):
Like, and again, this is a very pie in the sky idea and I get this, but I am of the mindset that we can automate 95 of my job as a freight broker.
And it should be automated, right?
The only thing that should never be automated is the customer and the carrier experience.
Right.
And I think as a lot of these large organizations go out there, I think that there will be some that will overly automate.
(17:45):
And again, I'm not pointing the finger at anybody out here, but I'm just saying J.B. hunt was the company of this article and again, they had spoken about what they're looking to reduce and I feel like that is a playbook that a lot of large companies are going to look at and they are going to automate everything.
And I agree with them.
(18:06):
Right.
Because if you are not performing, you guys, you are not going to have a job in all reality.
Speaker 3 (18:12):
Right?
Speaker 2 (18:13):
Again, I can't speak for a lot of people, but like, that's just where my heart's at.
I feel like their technology is getting to the point where mediocre and low performing individuals that are out there are not going to have a place in the workforce.
I'm not here to argue what's fair, what's not, but I feel like that's the reality.
And when people are seeing insurance costs rising, fuel costs rising, a lot of stuff rising, they gotta cut.
(18:37):
And that's just the reality of running a business, you guys.
Like, it's not as hunky dory as a lot of people make it out to be.
And if you're not from the Midwest, hunky dory means, you know, sunshine and gumdrops, ladies and gentlemen.
And there's going to be a lot of hard things that are done out there.
So you know, again, I look at this as a, a good thing for high performing individuals because you are now going to be tasked with the right automation and tech stack to, you know, if you could only do 20 loads in a day as a solar provider, like I'm convinced with the right automation you could probably do like 100 loads in a day.
(19:11):
But again, that's just me and I could be wrong.
Somebody out there could be like, I'm going to do 500 loads in a day and I fucking love it.
But I feel like that's where we're at with it.
I truly do.
So I think automation is the next big threat to the industry in the sense of like reshaping things and how it's going to look.
And I'm here for it, right, because I feel like there was a lot of redundancies out there and we got to be faster, cheaper and more nimble than your competition.
(19:35):
And when there's an industry that is the transportation industry, where there is a lot of competition out there.
You guys, welcome to the show, ladies and gentlemen.
People are going to go out there and they're going to automate and automate to reduce their ability to win on price.
Because we all know price is a major factor.
It's not the end all be all, but it's a major factor out there.
(19:57):
The third article is this is the next one that I think it gets the most talking points, but I feel like it's the most overblown out there.
And this is the ELP mandate.
This article was from Freight Waves.com and then it's immigration crackdowns could crunch trucking capacity.
And it goes on to say that the big beautiful bill will have substantial impact on immigration labor.
(20:20):
I don't know if I necessarily agree with that.
I feel like again, the big thing that's missing from a lot of this is enforcement.
There are going to be states that enforce it, there are going to be states that do not enforce it.
And if you toe the party line here, and this is the way that I truly think you have to look at this, toe the party line out there.
(20:44):
The world's fifth largest economy, AKA the static state of California probably isn't going to be enforcing this all that much out there now.
There'll be some other ones that.
Yes, that will.
But I just do not see that much capacity leaving the market from this in particular.
Speaker 3 (21:02):
Right?
Speaker 2 (21:02):
Could it.
Yes, absolutely.
I could be completely fucking wrong.
There was a massive increase in budget to ICE out there, you guys, so this could.
I could be completely wrong on this.
But if I look at it in today's standards, I, I just don't see it being that big of a deal that drops capacity out.
(21:23):
I feel like companies going out of business have a larger effect on capacity in the coming months than I think the ELP stuff, because I just don't.
I think that we've.
I don't want to say gone too far.
That's the right.
That's the wrong word for it, but I feel like we are at a point in the industry where there's a lot of subjective verbiage inside of the ELP mandate that goes on out there.
(21:51):
There's going to be some people that go too far, there's going to be some that don't go far enough and then there's going to be some that just don't care.
And I feel like this is something that's a great talking point.
It gets a ton of clicks all over social media, gets the base really riled up out there.
I just don't think that it's going to have that much of an effect on the industry.
And again, I could be wrong, but my standpoint, from somebody who actually does the job, you guys, and doesn't just talk about it every single day, I don't see this having that much of an effect on capacity out there.
(22:20):
I truly don't.
And if it does, it's going to be a long time.
This isn't going to be like they're just going to start rounding them all up and sitting there at the scale house and everything else and pulling people off the road.
I just don't think that it's that big of a deal or that much of a priority.
But it could become that in time and again I could be wrong with that, but I think like that's another big talking point out there.
(22:43):
But you know, again, if we're looking at a lot of this and we're looking at the freight forecast and everything else, I think that there's a lot of stuff that's up in the air and I feel like a lot of what we need to do is this when everybody's going in one direction.
And this is one thing that I have found in my brief career is being self employed, you guys.
(23:03):
The one thing that I can say with 100% confidence that I have seen the most success in is doing the opposite of what the masses say.
So yes, when everybody talks about automation, I'm a fan of automation, but there's going to be a large group of people that overly automate and again, I feel like there's a point that is going to come back where it's going to snap back in, that people are going to need actual physical verification that you're a real person that is knocking on doors, actually being able to cold call, actually being able to do the job that you're talking about.
(23:38):
I think that's where a lot of investment needs to be done inside of your organization is you got to get out there and shake hands.
You guys get out there and meet as many people as possible.
That might not be door knocking at a local shippers.
It might go, you know, going to a trade show, going out there and introducing yourself to people out there, checking them out.
(23:58):
If you're a niche based broker or a niche based carrier out there, get out there and meet people inside of that vertical.
Go to some of those industry conferences and again, if you can't afford to go to some of those conferences because you know, flights, hotels, meals, it's expensive, you guys go out there and knock on doors.
Just what we do inside of our company, we call ahead and ask to stop by.
(24:21):
Do you need to do this?
No, but I believe in long term brand perception and I don't want to be no.
And I'm sure people can look at us as a pushy sales rep and that's fine because a lot of us get lumped in to that category.
But I just want, when people hear my name and my company's name, I want them to at least have somewhat of a positive perception of us.
And that's my big thing with it.
(24:42):
So I'm going to stick with that and call ahead and we are going to continue down that path and try and introduce ourselves and just get in front of people.
Speaker 3 (24:51):
Right.
Speaker 2 (24:52):
I just don't think that there is enough that I have seen and again, I could be completely wrong and I've said this before, I just don't think that there's enough that is being done right now that is going to have a short term, a massive like short term implication on the market.
I think it could be business as usual until this time in 2026, you guys.
(25:15):
So again we truly need to look at how can, yes, how can you get your P L in line?
How can you reduce your expenses?
Because again you guys, this is business, this is not personal and businesses are going to do what's best for them.
As you should.
Speaker 3 (25:28):
Right?
Speaker 2 (25:29):
Like as somebody who owns a company, I have to have a sustainable business throughout the years here.
So again I think like you're going to take fiscal responsibility to the next level.
Automation affords that for you.
Right?
But you also need to look at how can I increase my output.
And that is also where automation comes into play.
Speaker 3 (25:47):
Right.
Speaker 2 (25:48):
Maybe you can go out there and find some sales automation that can help you find more shippers inside of your vertical that you're out there in and create better Notes for you, maybe there's something like that, right?
And you need to leverage that.
And that's where I would look because I feel like at this point in time, if you have the money and you're a, an organization that can invest in automation, I think that you need to look at certain tools out there that can help increase your productivity.
(26:18):
And you should do that, you should run with that, and you should start looking at how can I do less with more?
Because I, I don't think anything that is happening right now is going to change the market in the foreseeable future.
I don't think the ELP mandate is going to have that much of an effect on it.
Again, there's a lot of stuff that's being talked about that is phenomenal for social media analytics, you guys.
(26:42):
Phenomenal.
If you want to go out there and talk on tariffs, boom, you're going to get a ton of engagement.
If you want to go out there and talk on the current administration, you're going to get a lot of engagement out there, you guys.
If you want to talk on a lot of things, you're going to do that.
But again, in the real world where I operate, you guys and the decisions that I'm making, I don't see anything changing anytime soon.
I think that you have to be look at your internal processes.
(27:04):
How can you do more with less?
How can you become a better service provider out there?
Because that's what we are, you guys, whether you own trucks or you're a broker, you are a service provider.
How is your customer experience with you?
How is your carrier experience with you?
If you own a trucking company, how's your broker experience with you inside of there?
And again, I'm not here to argue about the fringe or talk about the fringe.
I'm here to talk about the actual movers and shakers in this industry who give a about the transportation industry.
(27:28):
And that's everybody who listens to this show.
So how can you provide a better product or service out there?
That is where we have to look and we have to look at how do we uncover some inefficiencies inside of our operations, you guys, because again, I'm gonna sound like a broken record.
I don't think things are changing anytime soon, but there are opportunities out there, you guys.
(27:49):
So again, my blueprint moving forward, how do I become faster in my responses?
How do I reach more prospects?
How do I earn more business?
How do I sound different and better than everybody else on the phone and in person.
And a lot of that is inside of that niche, you guys.
And that's where we need to be focused on.
At the end of the day, you guys, we need to be focused on that.
(28:10):
As we're wrapping up the show here, I do want to give a shout out.
Danielle Spinelli is having a fraud webinar this week.
She DM me last week and asked me to bring it up.
Probably should have brought it up at the beginning of the show, but I am bringing it up right now, you guys.
Fraud webinar out there again, just giving away free game on what you can apply to your business, you guys, if you're having an issue with that or you need a fraud response plan, I would jump all over that, you guys.
(28:34):
Again, there's a lot of people who are creating a lot of great content out there that can help you out in your business.
You need to check that out.
But as always, you guys, if you got value in what you heard, subscribe to the show.
Ladies and gentlemen, if you're feeling really ambitious after this one, which you should be, rank the show on itunes and Spotify, because if you see value, your network's going to see value as well.
I appreciate you guys.
I love you guys, and we'll be talking to you soon.
Speaker 1 (29:01):
Came back with a bank window down yelling now money at a if they hate, then let them Made them make a bigger boss Hey.
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