FreightWaves NOW Werner acquires FirstFleet, retailers exit 3PL, & Gatik goes fully driverless | The Daily
The freight market is aggressively correcting toward specialization, highlighted by Werner Enterprises' decision to acquire dedicated carrier FirstFleet for $245 million. This strategic move adds over 2,400 tractors to their fleet and secures stable revenue streams in an otherwise volatile sector.
While carriers expand, major retailers like American Eagle and Office Depot are pulling the plug on third-party logistics services to refocus on core operations. These companies realized that selling "supply chain as a service" became an operational nightmare that distracted from their primary retail goals.
Automation takes a giant leap forward as Gatik launches fully driverless commercial trucking operations in Texas, Arkansas, and Arizona. By removing the safety driver entirely, the company is effectively solving the middle-mile challenge for Fortune 50 retailers moving perishable goods.
Efficiency drives major changes at UPS, where the parcel giant plans to eliminate 30,000 jobs while downsizing its network to manage lower Amazon volumes. The company is also modernizing its air capacity by permanently retiring its aging MD-11 fleet in favor of more efficient Boeing 767s following a recent fatal crash.
Financial scandals rock the brokerage world as a new lawsuit alleges the R&R Family of Companies continued operating while insolvent, racking up millions in unpaid bills. Court filings claim the founders transferred valuable property to themselves even as lenders urged an orderly wind-down of the business.
Finally, regulators have opened a public comment period regarding the controversial under-21 interstate trucking program amid strong industry debate. While large fleets push to extend the pilot to address labor shortages, safety advocates warn of higher crash risks associated with younger drivers.
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