Freight Day! 🚚 We’re starting the week with updates from both the refrigerated logistics and traffic congestion fronts.

Alex Winston, founder of Reefer Van Network, discusses his shift from Expedite All to focusing exclusively on the refrigerated small truckload niche. Alex shares how his team is scaling capacity by building state-of-the-art equipment for on-demand, temperature-controlled freight and how technology, including AI, is transforming the reefer market.

Meanwhile, the American Transportation Research Institute (ATRI) has released its annual report on truck traffic bottlenecks. For the seventh year in a row, the intersection of I-95 and State Route 4 near the George Washington Bridge in Fort Lee, New Jersey, remains the top chokepoint.

💬 More in Freight:

⚫️ WWEX Group to Acquire JEAR Logistics

⚫️ Connecting Logistics: CargoRex

⚫️ Expeditors and PAMT Q4 Earnings Reports

⚫️ PODCAST: Inside The Future of Small Reefer Shipments with Alex Winston

WWEX Group to Acquire JEAR Logistics 🤝

Dallas-based WWEX Group is set to acquire JEAR Logistics, a 3PL specializing in refrigerated freight, according to an anonymous source familiar with the discussions. Employees at JEAR were notified about the acquisition on February 14. This move is part of WWEX Group's continued efforts to expand its market presence and enhance its service offerings in the competitive logistics and transportation sector.

About JEAR Logistics

Founded in 2007 and headquartered in Charleston, South Carolina, JEAR Logistics has made a name for itself by offering over-the-road truckload and less-than-truckload hauling services, particularly focusing on temperature-sensitive freight. With additional offices in Tampa, Florida, and Nashville, Tennessee, the company employs more than 200 people and is well-regarded for its ability to provide efficient, refrigerated freight solutions.

WWEX Group’s Market Position

WWEX Group ranked third in Transport Topics' 2024 listings with $4.019 billion in gross revenue. The acquisition of JEAR Logistics enhances its competitive edge in the 3PL space, particularly in the growing refrigerated freight sector.

M&A Activity in Transportation and Logistics

The logistics sector saw a surge in mergers and acquisitions in 2024, with $51.5 billion in deal value across 71 transactions. This reflects growing investor confidence and strategic shifts in supply chains, with companies aiming to scale and diversify their services.

Tariff Uncertainty Among Automakers 🤔

Uncertainty over new tariffs on goods from Canada and Mexico continues to impact transportation and automotive manufacturing. Originally set for February 4, a 25% tariff has been delayed for a month, forcing companies like Ryder and Honda to adjust their strategies.

Ryder, handling thousands of border crossings, faces challenges with long-term contracts, making it tough for customers to plan. Honda, which builds 200,000 vehicles in Mexico annually, monitors the situation closely, as its supply chain relies on parts from Mexico and Canada. The impact of the tariffs remains uncertain, but Honda continues to focus on its long-term strategy, including EV production in Ohio.

Ford and GM also express concerns about tariffs on vehicle components. Ford’s CEO warned of negative effects on the U.S. auto industry, while GM’s CFO raised concerns about their impact on assembly plant locations.

While Honda may benefit from higher local content in U.S. production, parts from Japan, Mexico, and Canada could still be affected. As the situation unfolds, companies like Honda and Ryder must remain flexible to navigate short-term challenges while focusing on long-term goals.

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What Else is Moving 🚚

Worst U.S Traffic Bottlenecks: ATRI Study 🚛

The American Transportation Research Institute (ATRI) has released its annual report on the worst truck traffic bottlenecks, and for the seventh consecutive year, the intersection of Interstate 95 and State Route 4 near the George Washington Bridge in Fort Lee, New Jersey, remains the top chokepoint. This continued congestion underlines the ongoing challenges in supply chains.

ATRI's report, which monitors traffic at over 325 highway locations, shows that truck delays are worsening. In 2024, the average truck speed during rush hour dropped to 34.2 mph, a 3% decline from the previous year. The speed was even slower at the top 10 worst locations, averaging just 29.7 mph.

The report highlights major freight hubs like Chicago, Houston, and Atlanta, where congestion contributes billions of dollars in costs to the trucking industry. ATRI estimates that traffic congestion costs the economy $109 billion annually, with trucks using an additional 6.4 billion gallons of diesel while stuck in traffic.

Top 10 Worst Bottlenecks:

1. Fort Lee: I-95 at GW Bridge
2. Chicago: I-294 at I-290/I-88
3. Houston: I-45 at I-69/US 59
4. Atlanta: I-285 at I-85 (North)
5. Nashville: I-24/I-40 at I-440 (East)
6. Atlanta: I-75 at I-285 (North)
7. Los Angeles: SR 60 at SR 57
8. Cincinnati: I-71 at I-75
9. Houston: I-10 at I-45
10. Atlanta: I-20 at I-285 (West)

The report points to infrastructure improvements as a solution. For example, a recent construction project at a formerly top bottleneck location improved rush hour truck speeds by nearly 25%, pushing it out of the top 10.

FREIGHT SNIPPETS ✂️

🥖 French Pastry Plant Coming To Texas | Paris Baguette will soon open its first North American bakery manufacturing plant in Burleson, Texas. The company, known for its fresh pastries and artisan cakes, is investing $160 million in the 260,000-square-foot facility, set to break ground this summer and open in 2027. The plant will support Paris Baguette's expanding network of cafés across North and Central America, creating 450 new jobs and reducing reliance on overseas imports. Read more.

✂️ Soda Company Cuts Roles | PepsiCo Inc. is cutting corporate roles and jobs in its U.S. foods divisions to improve efficiency and become more consumer-focused, part of a multiyear plan launched last year. The layoffs affect the U.S. beverages division, though the company didn’t specify how many employees are impacted. PepsiCo, facing sluggish sales, is focusing on offering more package sizes and healthier snacks to rebound. Its stock has dropped nearly 2% this year, underperforming the S&P 500 Index. Read more.

🦖 CargoRex: Connecting Logistics | CargoRex is a platform designed to connect all logistics silos, providing professionals with a space to explore, discover, and evolve in the industry. Blythe Milligan, founder of CargoRex and host of the Everything is Logistics podcast, created the platform to bridge gaps in knowledge across various sectors of global shipping. After venturing beyond the 3PL space in her podcast, she realized how much more there was to learn. Now, CargoRex helps users stay ahead by offering access to emerging trends, industry insights, and opportunities to connect with strategic partners and creators, all in one place. Read more.

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🚢 Largest Container Ship | The Port of Charleston set a new milestone last week with the arrival of its largest-ever container ship, the OOCL Iris, which docked at the Wando Welch Terminal. The massive vessel, measuring 1,204 feet in length and capable of carrying 16,868 TEUs, surpassed the previous record held by the CMA CGM Marco Polo, which had a 16,022 TEU capacity. Read more.

📊 Expeditors Strong Q4 | Expeditors International reported a strong fourth quarter, exceeding analyst expectations with a 30% year-over-year revenue increase to $2.95 billion. Operating income rose 51%, and net earnings grew 49%. Despite the strong results, Expeditors stock has dropped 5% in the past three months and 7.9% over the past year, but gained 3.6% in the last month. Read more.

📉 PAMT Q4 Loss | PAMT, the parent company of PAM Transport, reported a Q4 operating loss of $37.7 million, mainly due to truck depreciation. An accounting update raised depreciation values by $24.7 million, while a $6.4 million impairment charge reflected the oversupply in the used equipment market. The company's adjusted operating loss was $6.6 million, a significant increase from the Q4 2023 adjusted operating loss of $811,000. Read more.

NEW PODCAST 🎧

#72: Alex Winston, Reefer Van Network

In this episode of the ThinkFreight Podcast, Alex Winston, founder of Reefer Van Network, goes all-in on revolutionizing refrigerated small truckload shipping.

Once juggling Expedite All and Reefer Van Network, Alex explains what sparked his shift to focus solely on the reefer niche and how he's tackling the “unicorn” challenge of growing a network of refrigerated Sprinter vans.

Alex details how his team is scaling capacity by buying and building state-of-the-art equipment for on-demand, temperature-controlled freight. He dives into the gaps in the reefer market, the unique hurdles of refrigerated logistics, and the role of technology—and even AI—in automating processes and optimizing efficiency.

Tune in to discover how Reefer Van Network is transforming a niche market into a game-changing opportunity.

🎧 Available now on Apple, Spotify, and wherever podcasts are available.

Pallets of News 🚛

Victory In "Air Freight Cartel" Settlement ✈️

Deutsche Bahn (DB) has won its decade-long lawsuit against several air freight carriers, including Cathay Pacific, for colluding to inflate cargo prices. DB secured damages from Cathay Pacific, the last defendant in a case involving 11 carriers, including Air Canada, Air France-KLM, and British Airways.

These carriers were found guilty of violating competition laws related to fuel and security surcharges, leading to fines from the European Commission. The case, which started in 2013, ended with a settlement, though terms remain undisclosed. DB’s legal team has secured over 65 settlements, recovering nearly 700 million Euros in damages.

Egg Hauling Semi Crashes 🛑

The Oklahoma Highway Patrol (OHP) responded to a costly crash on the Will Rogers Turnpike (I-44) on Tuesday, February 18, amid winter weather conditions. While the crash resulted in only minor injuries, the OHP humorously noted, “But the semi was hauling eggs! Expensive cargo right now.”

MEME OF THE DAY 😂

Additional notes:
Today, ThinkFreight has launched version 1.5. Many of you have noticed some issues over the last 90 days with our website, as well as a few missed newsletters due to server issues with our previous CMS.

Those issues are now behind us. With the migration to our own custom CMS underway, we’re committed to ensuring there is no further disruption to the coverage we provide for our audience. We'll be back to our 0700 Eastern Time releases next Monday.