Freight Day! 👋 Today, we're talking about a major sentencing in the logistics world. Sanjay Singh, founder of Royal Bengal Logistics in South Florida, has been sentenced to 23 years in prison for running a Ponzi scheme that defrauded investors of over $100 million. More ahead 👇

💬 More in Freight:

⚫️ FMCSA Planning Cuts To Workforce

⚫️ May 2025 Active Freight Brokerages

⚫️ May LMI: Stable Metrics, Rising Prices

⚫️ Port Gridlock Threatens Mexico's Supply Chains

FMCSA Plans Cuts To Workforce ✂️

The FMCSA is requesting a $927 million budget for FY2026—a 2% increase from last year—while planning to reduce its workforce by about 7%, or 89 full-time equivalent positions, according to a new budget request submitted by the U.S. DOT.

With an additional $135 million from the Infrastructure Investment and Jobs Act, FMCSA’s total FY2026 funding tops $1 billion.

Most staff cuts would affect headquarters, leaving the 852 safety-related positions intact. The Office of Safety, which oversees crash prevention efforts, accounts for over 75% of FMCSA’s workforce.

May 2025 Active Freight Brokerages 📊

For the first time in years, the decline has nearly stopped. In May, the net number of active freight brokerages dropped by just 15 authorities—a notable slowdown after years of steep monthly losses. Is this a turning point? Hard to say. But the floor might be near—and there could be room to grow from here.

Snapshot as of 5/1/25:

• 6-Month: -2.4%
• 1-Year: -7.3%
• 2-Year: -17.4%
• 3-Year: -16.9%
• 4-Year: -3.1%
• 5-Year: +16.2%

TOGETHER WITH ROSE ROCKET.

When the freight market feels unpredictable, your TMS shouldn’t. 

TMS.ai is the only AI-native TMS built from the ground up for modern logistics operations.

Whether you’re trying to lower operating costs, automate dispatch, or scale without hiring—TMS.ai gives you the power to do more, faster. Built by Rose Rocket, a trusted name in logistics tech.

What Else Is Moving 🚚

$54M Ponzi Scheme 🥷

Sanjay Singh, founder of Royal Bengal Logistics in South Florida, was sentenced to 23 years in prison for running a Ponzi scheme that defrauded investors of more than $100 million. Convicted in November 2023 on eight counts—including wire fraud, money laundering, and conspiracy—Singh had raised $158 million but used much of it for personal use, including risky stock trading, according to the DOJ.

The scheme ran from 2020 to 2023, impacting over 2,000 victims, many of whom were working-class Haitian residents in South Florida. Prosecutors say Singh lost $12 million gambling on meme stocks and tried to shift responsibility to his general counsel when the fraud unraveled.

Despite his attorneys describing him as a first-time, nonviolent offender with a low risk of reoffending, the judge imposed a near-maximum sentence. One victim, now 66, told the court they were forced to return to work to recover financially.

FREIGHT SNIPPETS ✂️

🌀 2025 Hurricane Forecast | NOAA forecasts 13–19 named storms for the 2025 Atlantic hurricane season, including 6–10 hurricanes and up to 5 major ones (Category 3 or higher). There’s a 60% chance of an above-normal season, driven by warm ocean temps, low wind shear, and strong West African monsoons. “With advanced models and tools, we’ve never been more prepared,” said Commerce Secretary Howard Lutnick. ENSO-neutral conditions support storm development, and officials warn impacts can stretch far inland, as seen with hurricanes Helene and Debby last year. In 2024, Hurricane Helene damaged I-40 in East Tennessee, closing it for months. Asheville and surrounding areas are still recovering from flood damage and infrastructure loss. Read more.

🐄 Driver Injured After Hitting Cows | A semi-truck struck multiple cows on Highway 16 in Fillmore County, Minnesota, early on May 31, killing ten of the eleven animals hit. According to the Minnesota State Patrol, 57-year-old James Brian Gregoire was driving a 1998 Volvo westbound in Fountain Township when the crash occurred around 4:30 a.m. He was hospitalized with non-life-threatening injuries. Authorities are investigating how the cows ended up on the roadway. Read more.

🚢 $625M Ship Channel Deepening Project Complete | After six years and $625 million, the Port of Corpus Christi has opened 11.9 miles of its deepened and widened ship channel. The project expanded the channel to 54 feet deep and 530 feet wide to support larger vessels and two-way traffic. The upgrade strengthens the port’s role as the top U.S. crude export hub and the second-largest LNG export port. In 2024, total trade through the port reached $89 billion, with top partners including South Korea, the Netherlands, and India. Read more.

TOGETHER WITH CARRIERSOURCE.

Cooler Logistics: Brokerage Review 🏆

This week, we spotlight Cooler Logistics, a specialized logistics provider based in Chicago, IL. Founded on the belief that empowered employees deliver the best service, Cooler Logistics has assembled an all-star team of freight professionals.

Their expertise spans high-value refrigeration, LTL/partial loads, drayage, and more, enabling them to navigate the complexities of the transportation industry.

With a focus on transparency, accountability, and continuous improvement, Cooler Logistics ensures that both their customers' and teammates' needs are met. They have earned a 4.9/5 rating on CarrierSource from 21 reviews.

Name: Cooler Logistics
DOT Number: 4109566
Headquarters: Chicago, IL

Pallets of News 🚛

May LMI: Stable Metrics, Rising Prices 📈

Transportation metrics were largely steady in May, with capacity, utilization, and pricing all remaining in expansion territory, according to the latest Logistics Managers’ Index (LMI).

• Transportation capacity held firm at 54.7, nearly unchanged from April. Capacity was tighter for upstream players (neutral at 50) but expanded significantly for downstream retailers (65.3).
• Utilization slowed to 52.6, the weakest since November 2023.
• Transportation prices surged in the second half of the month to 71.5, crossing into “significant expansion” territory. Prices have outpaced capacity for 13 straight months as carriers pass on higher operating costs.

Smaller firms felt the pressure more, with a logistics cost index reading of 69.8 versus 56.7 for larger companies. Respondents expect transportation prices to rise sharply over the next year, returning a future outlook of 75.

Key Inventory & Warehouse Insights:

• Inventory levels slowed to 51.5 while inventory costs jumped to 78.4 — the widest gap since October 2022 — suggesting static, expensive stockpiles.
• Downstream firms dipped into contraction (43.1) while upstream firms showed moderate growth (56.5), likely due to tariff-related pull-forwards earlier in the year.
• Warehouse capacity slipped to neutral (50), the lowest reading in over a year, while utilization and pricing remained elevated at 62.5 and 72.1, respectively.

The overall LMI rose to 59.4, driven by rising transportation and inventory costs. The report notes a growing belief that worst-case tariff scenarios may not materialize, potentially setting the stage for transportation market recovery in 2026.

Port Gridlock Threatens Supply Chains 🇲🇽

Operations at Mexico’s Port of Manzanillo remain bogged down by delays and staff shortages, even a week after customs workers ended a strike. Canacar President Miguel Angel Martinez says some trucking firms are nearing bankruptcy, with containers stuck for over 72 hours and drivers enduring poor conditions. Grupo Marva, which Martinez also leads, has already defaulted on payments due to the disruption.

MEME OF THE DAY 😂