Freight Morning! 👋 A Houston man is facing federal charges for allegedly operating a series of chameleon carriers. Shaquan Jelks, 48, is accused of running multiple trucking businesses despite being barred by the FMCSA, using front owners while secretly managing operations. More ahead 👇

💬 More in Freight:

⚫️ Arrive Logistics June 2025 Market Update

⚫️ Automating Beef Plants

⚫️ Layoffs Hit Food Distributors

Arrive Logistics June 2025 Market Update 📊

The May freight market remained steady, marked by seasonal patterns, soft demand, and strong carrier capacity. Aside from Roadcheck Week volatility, spot rates rose briefly and settled quickly—consistent with trends from earlier this year.

Demand Outlook

Volume remained low, with spot and import activity both declining in May. Tariff-related uncertainty—especially pending court rulings on U.S.-China trade—has begun to influence shipping behavior, while recent tariff reductions sparked a temporary rebound in import orders. Still, high prices and cooling consumer spending pose downside risks. Domestic manufacturing contracted for the third straight month.

Supply Conditions

Capacity held firm. Load-to-truck ratios and rejection rates rose during Roadcheck and Memorial Day but eased soon after. Flatbed markets cooled. New truck orders are now below replacement rates, suggesting potential capacity tightening later this year if demand rebounds.

Rates Outlook

Rates followed typical seasonal trends—briefly elevated during late May, then softening into June. July 4th could bring temporary volatility, but rate hikes are expected to fade quickly. CVSA’s Operation Safe Driver Week (July 13–19) may cause short-term capacity tightening. Rising fuel prices are also a concern, especially if global tensions escalate.

Pressure On Trade Deals 🤝

With just two weeks until President Donald Trump’s deadline for securing trade deals, key negotiations remain stalled. Starting July 9, countries without bilateral agreements will face steep “Liberation Day” tariffs—significantly higher than the current 10% baseline.

So far, only the U.K. has finalized a deal, but it maintains the 10% rate and fails to resolve Britain’s concern over 25% steel tariffs. Meanwhile, talks with China are on pause under a temporary truce that lasts through mid-August.

TOGETHER WITH ROSE ROCKET.

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What Else Is Moving 🚚

Chameleon Carrier Shutdown ❌

A Houston man is facing federal charges for allegedly operating a series of chameleon carriers—unauthorized trucking companies created to evade federal oversight after previous shutdowns.

According to the U.S. Department of Justice, 48-year-old Shaquan Jelks continued to run multiple trucking businesses despite being barred by a federal court and the FMCSA. Jelks is accused of using friends and family as front owners while secretly managing day-to-day operations, a classic sign of chameleon carrier behavior.

Prosecutors say Jelks repeatedly lied to the FMCSA, obstructed safety investigations, and submitted falsified documents. Instead of addressing safety violations—including after a fatal crash involving one of his drivers in February 2022—Jelks allegedly shifted operations to new entities under different names to stay under the radar.

The indictment also claims Jelks funded his illegal operations with fraudulently obtained Paycheck Protection Program (PPP) loans. Companies tied to the scheme include Adversity Transport Inc., 4 Life Transport Corporation, Vashti Freight Lines LLC, Highway Empire Transportation, and King C Transportation LLC, as well as other shell companies like TNT Top Hauling Inc. and Oil Man Transport LLC.

A judge ordered Jelks held without bond, citing his history of noncompliance and a prior 1997 murder conviction. The indictment, initially sealed, was unsealed June 21 but remains limited in publicly available details. The FBI and DOT Office of Inspector General are leading the investigation.

FREIGHT SNIPPETS ✂️

🤝 SpartanNash Acquired | C&S Wholesale Grocers will acquire SpartanNash for $1.77 billion in cash, expanding its grocery supply chain nationwide. The $26.90 per share offer represents a 52.5% premium. The deal, approved by both boards, is expected to close by the end of 2025. The combined company will run nearly 60 distribution centers, serve 10,000 retail locations, and operate 200+ stores under banners like Piggly Wiggly, Family Fare, and Grand Union. Read more.

🏗️ Container Push | Importers are rushing goods into the U.S. before an August 12 tariff deadline, prompting a spike in container ship arrivals at the Ports of Los Angeles and Long Beach — the busiest since January. Port officials expect a short-term volume boost but not a sustained surge, as recent freight bookings have softened. Long Beach terminals are at 60% capacity, LA at 70%, with both ports saying they’re well-prepared. The increase is expected to benefit trucking, rail, and warehouses, though volumes remain below normal for June. Read more.

🏦 Defaulting On Tractor, Trailer Payments | Dolche Truckload Corp. has filed for Chapter 11 bankruptcy after receiving a default notice and facing a lawsuit from M&T Bank. Despite the filing, owner Desi Evans emphasized the Illinois-based carrier is still operating and not shutting down. The company listed $1.9 million in assets and $3.4 million in liabilities in its June 15 filing. No layoffs are planned, and daily operations continue. M&T Bank, the largest creditor, is owed over $1.9 million and holds secured claims on multiple trucks and trailers. The bank’s leasing arm sued Dolche in February for breaching equipment financing contracts and failing to meet monthly payments on two loans. Read more.

TOGETHER WITH CARRIERSOURCE.

Blue Northern Distributing: Review Of The Week 🏆

This week, we spotlight Blue Northern Distributing, a trusted provider headquartered in Eau Claire, WI, specializing in the delivery of milk and dairy products to schools and businesses across Western Wisconsin.

With a fleet of 17, Blue Northern Distributing also serves a variety of other industries, offering multi-stop, store-level deliveries, line hauls, drop and hooks, and power-only services. Known for long-term, customer-focused relationships, they have earned a 4.7/5 rating on CarrierSource from 6 reviews.

Blue Northern Distributing operates across Minnesota, Wisconsin, Illinois, and Iowa, with preferred lanes including Minneapolis, MN to Milwaukee, WI, Chicago, IL to Minneapolis, MN, and Eau Claire, WI to Minneapolis, MN.

🚨 Counterfeit Jewelry Seizure | CBP officers in Louisville seized nearly 2,200 pieces of counterfeit jewelry over two nights in June. The fake items, valued at over $25 million if genuine, included knockoff Cartier and Van Cleef & Arpels pieces shipped from China and Hong Kong to U.S. homes. Read more.

🤖 Automating Beef Plants | Cargill plans to invest nearly $90 million over the next few years in advanced technologies, including computer vision, at its Fort Morgan, Colorado beef plant. The investment will support the rollout of CarVe, a proprietary automated system that uses computer vision to measure red meat yield in real time. By helping workers refine cutting techniques and reduce waste, the technology enables Cargill to maximize meat output at a time when cattle supplies are at historic lows. Since 2021, the company has already invested $24 million in tech upgrades at the facility. Read more.

🥩 JBS Launches Bond Sale | JBS NV, the world’s largest meat producer, launched a $3.5 billion bond sale — its largest ever — to extend its debt maturities. The Brazilian firm is issuing debt in three tranches maturing in 10, 30, and 40 years. It also plans to repurchase $1 billion in notes due 2027 and redeem part of its $900 million in 2028 bonds. Read more.

Pallets of News 🚛

Illegal Commercial Trucking 'Tunes' 🧰

The owner of a Pennsylvania diesel repair and towing business is facing serious federal charges for allegedly tampering with the emissions systems of hundreds of commercial trucks.

Matthew Caroluzzi, owner of Matt’s Heavy Duty Mobile Diagnostics and Truck Repair and Heavy Towing (Matt’s HD), was indicted on June 3, 2025, by a federal grand jury. He faces nine counts of violating the Clean Air Act, plus one count of conspiracy and aiding and abetting.

Layoffs Hit Food Distributors ✂️

Layoffs and closures are sweeping across the U.S. food sector, with over 1,500 jobs cut since early May. Major companies across production, distribution, and retail are making adjustments amid shifting consumer demand and operational changes.

United Natural Foods Inc. (UNFI) is closing its Schnecksville, PA distribution center, cutting 716 jobs after ending a deal with Key Food Stores. Amazon Fresh shut down its Federal Way, WA store, eliminating 125 jobs. Bakery Barn is closing a Pennsylvania factory and cutting 82 positions. 

Conagra Brands will close its Michigan food plant, laying off 75. Del Monte Foods is shutting down a fruit processing facility and two warehouses in Yakima, WA, affecting 499 workers, including 448 seasonal roles.

Kroger announced it will close more than 60 stores by the end of 2026. While specific locations haven’t been disclosed, the company cited a $100 million impairment charge and expects modest financial benefits.

MEME OF THE DAY 😂