🚚 Shipper Bankruptcy
Freight Day! 👋 A major update in the food industry - Del Monte Foods has filed for Chapter 11 bankruptcy, listing over $1 billion in liabilities and more than 10,000 creditors.
With $1.7 billion in U.S. revenue in FY 2024 and a portfolio of well-known brands, including Del Monte and Contadina, this marks one of the largest food shipper bankruptcies in recent years. More ahead 👇
💬 More In Freight:
⚫️ Active Freight Brokerage Trends
⚫️ Trucking Profitability Squeezed: ATRI Report
⚫️ Amazon's One Million Robots
⚫️ June LMI: Transportation Signals Turning Point
Active Freight Brokerage Trends 📊
The wave of freight brokerage authority revocations is finally be slowing. June saw a net drop of just 13, following a 15-authority decline in May. For the first half of 2025, net closures totaled -367, a sharp improvement from -1,785 in H1 2024—an 80% year-over-year decrease.
That stabilization is a positive sign, even as active broker authorities remain 15% below the long-term growth trend (typically ~6% annual growth).
📊 Change in Net Active Authorities:
- 6-Month: -1.2%
- 1-Year: -6.3%
- 2-Year: -17.2%
- 3-Year: -17.9%
- 4-Year: -5.0%
- 5-Year: +14.7%
While the market hasn’t fully recovered, the sharp contraction appears to be leveling off.
Trucking Profitability Squeezed 💰
ATRI’s latest Operational Costs of Trucking report, released July 1, highlights just how rough 2024 was for carriers.
Operating costs averaged $2.260 per mile, down slightly due to lower fuel prices. But non-fuel costs hit a record $1.779 per mile, up 3.6% from 2023. Driver wages, equipment payments, insurance, and tolls all climbed—with truck and trailer payments alone up 8.3%.
On a per-hour basis, total costs hit $90.89 with fuel and $71.57 without it.
Margins were brutal: average operating margins were under 2% across all sectors—and negative (-2.3%) in truckload. Carriers cut staff, parked trucks, and sold off capacity. Empty miles rose to 16.7%, and the number of drivers per truck dropped to 0.93.
Despite the pressure, truck age, dwell time, and breakdown frequency improved—a testament to how hard fleets are working to stay efficient.
“The industry is navigating one of the toughest freight markets in years,” said Groendyke CEO Greg Hodgen. “This data is more important than ever as we fight rising costs and shrinking margins.”
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What Else Is Moving 🚚
Del Monte Foods: Shipper Bankruptcy ❌
Del Monte Foods has filed for Chapter 11 bankruptcy, listing over $1 billion in liabilities and more than 10,000 creditors. With $1.7B in U.S. revenue in FY 2024 and a brand portfolio that includes Del Monte, Contadina, College Inn, and Joyba, this is one of the largest food shipper bankruptcies in recent years.
These are unsecured claims, meaning repayment is uncertain and depends on asset sales or court-approved reorganization plans.
Logistics vendors are heavily exposed:
- Uber Freight (Transplace) is owed $9M
- Saddle Creek Logistics is owed $1.3M
- CHEP USA is owed $470K
Del Monte has secured $912.5M in DIP financing, split between term and asset-based loans, led by Wilmington Savings Fund Society and JPMorgan. The company is exploring the sale of “all or substantially all” of its assets—including major brands.
For logistics providers, post-bankruptcy services may still be paid, but terms will require court approval and fall under tighter credit conditions. As with many Chapter 11 cases, transportation and warehousing partners remain essential but face a high-stakes balancing act.
FREIGHT SNIPPETS ✂️
🤝 Moody's Upgrades | Moody’s has upgraded GXO Logistics to investment-grade status, bumping its senior unsecured rating to Baa3 from Ba1, officially moving it out of "junk" territory. The upgrade comes with a stable outlook—unlike S&P, which still holds a negative outlook following GXO’s 2024 acquisition of U.K.-based Wincanton. Moody’s cited GXO’s modest leverage, global scale, and exposure to growing trends like e-commerce and logistics outsourcing. Despite reporting a $96M net loss earlier this year, GXO’s adjusted EBITDA remains strong, and its EBIT margin is expected to rise from 1.8% to 5% over the next two years. The agency expects GXO to focus on deleveraging, modest M&A, and stock buybacks—not aggressive shareholder payouts. Read more.
📉 Freight Down Across All Modes | Transborder freight across North America totaled $126.3 billion in April, down 8.5% from the previous year, according to the U.S. Bureau of Transportation Statistics. U.S.–Canada trade dropped 13.6% to $56.6B, while U.S.–Mexico trade dipped 3.8% to $69.7B. Truck freight accounted for $82.8B (down 8.6%), rail fell 20.9%, and vessel freight hit $7.3B (down 25.3%). Top truck ports included Detroit, Port Huron, and Buffalo (Canada) and Laredo, El Paso, and Otay Mesa (Mexico). On the rail side, Detroit, Port Huron, and International Falls led for Canada, while Laredo, Eagle Pass, and El Paso led for Mexico. Read more.
💤 Sleeping Truck Driver | A truck driver has been arrested following a deadly multi-vehicle crash that killed five and injured several others on I-20 near Terrell, Texas. According to the Texas Department of Public Safety, 27-year-old Alexis Osmani Gonzalez-Companioni faces five counts of manslaughter and one count of aggravated assault with a deadly weapon. Authorities say he was behind the wheel of a truck-tractor and allegedly fell asleep, crashing into a Ford F-150 carrying five people. Read more.
TOGETHER WITH CARRIERSOURCE.
CJ Logistics Transportation: Review Of The Week 🏆
This week, we spotlight CJ Logistics Transportation, an asset-based transportation provider headquartered in Des Plaines, IL. Specializing in regional delivery, dedicated fleets, and drayage services, CJ Logistics offers customers peace of mind with dedicated in-house company drivers and 24/7 operations.
Their fleet of 84 units provides operational synergies through their transportation management center, helping clients improve service, reduce costs, and avoid penalties.
CJ Logistics utilizes advanced technology like TMS LoadStop, PortPro, Samsara ELDs, AI dashcams, and real-time tracking to ensure smooth, seamless, and secure operations. CJ Logistics operates in a wide range of states including California, Florida, Georgia, Illinois, New Jersey, and more.
Carrier Name: CJ Logistics Transportation
DOT Number: 3095481
Headquarters: Des Plaines, IL
Fleet Size: 84
🚨 Senate Passes Trump 'Big Beautiful Bill' | After a tense overnight session, Senate Republicans pushed President Trump’s sweeping tax cut and spending bill through with a 50-50 vote, broken by Vice President JD Vance. Three GOP senators—Tillis, Collins, and Paul—voted against it. The bill includes major tax breaks, spending cuts, and increased funding for defense and deportations. The CBO estimates the bill would add $3.3 trillion to the national debt over the next decade by 2034. Read more.
🐄 Mexican Livestock Imports | After a May shutdown triggered by a dangerous parasitic fly, the U.S. is preparing to reopen ports for Mexican livestock—starting with Douglas, Arizona on July 7, according to the USDA. The suspension, caused by the outbreak of the flesh-eating New World screwworm, halted imports of cattle, horses, and bison. The parasite can kill a full-grown steer in under 10 days. Additional ports in New Mexico and Texas will reopen gradually through mid-September, with USDA evaluating risk after each phase. Read more.
🦾 One Million Robots | Amazon has deployed its 1 millionth robot, now operating in over 300 facilities globally. The milestone unit was sent to a fulfillment center in Japan. Alongside the milestone, Amazon unveiled DeepFleet, a new AI model designed to improve robot movement in warehouses. The company says it’s already cut robot travel time by 10%, boosting delivery speed, lowering costs, and reducing energy use. Read more.
Pallets of News 🚛
Transportation Signals Turning Point 👀
The June LMI hit 60.7, marking its third reading above 60 since July 2022—all of which have occurred in 2025. This reflects a more active supply chain environment, driven by a mid-month surge in inventories as importers raced ahead of potential tariffs.
Transportation trends were steady but hint at tightening:
- Transportation Capacity fell to 52.4 (↓2.3), the lowest since October. Early June even saw contraction before recovering late in the month.
- Transportation Utilization held steady at 52.9, though expansion cooled sharply from early highs.
- Transportation Prices dipped slightly to 62.0 (↓1.1) but remain firmly expansionary—despite diesel prices jumping ~20 cents in late June.
Key context: Freight volume remains steady but unspectacular. FedEx reported a 6% increase in package volume, and Southeast tender rejections briefly topped 10%, while West Coast long-haul freight remains soft.
Looking ahead, LMI respondents expect continued inventory growth, rising transportation prices, and contracting capacity—a mix that could push freight markets toward stronger expansion in the second half of 2025.
MEME OF THE DAY 😂
