🚚 Trevor Milton & Nikola
Freight Morning! 👋 We’re starting the day with some intriguing developments at Nikola. After filing for Chapter 11 bankruptcy protection in February, the company is looking to sell its business by mid-April.
Amid this transition, founder Trevor Milton, recently pardoned after a securities fraud conviction, has shown interest in purchasing Nikola’s assets. More details ahead 👇
💬 More in Freight:
⚫️ Panama Alleges "Abusive" Violations
⚫️ AI For Military Logistics
⚫️ Mistral AI Secures $110M From Shipping Giant
⚫️ PODCAST: From Zero To 70 Trucks and INC 5000 with Andrey Yakimchuk
Panama Alleges "Abusive" Violations 🏛️
Panama's comptroller announced on Monday that criminal complaints will be filed against CK Hutchison Holdings officials and Panamanian government figures after discovering that the contract with the Hong Kong conglomerate, which operates ports at both ends of the Panama Canal, heavily disadvantages Panama. This comes as CK Hutchison considers a $23 billion sale of the two ports to a consortium led by BlackRock Inc. and Mediterranean Shipping Co.
The contract, renegotiated in 1997, has reportedly cost Panama $1.3 billion in lost revenue. Panama’s comptroller general, Anel Bolo Flores, criticized the contract as overly favorable to CK Hutchison, calling it "abusive."
Truck Thieves Caught In FL 🚔
The Hillsborough County (Florida) Sheriff's Office Auto Theft Unit has arrested three individuals linked to a theft ring that stole semi-trucks and dump trucks worth over $6 million. The thefts occurred across several Florida counties, including Hillsborough, Polk, Hernando, Pasco, Sarasota, and Pinellas, with incidents traced back to September 2024.
After a thorough investigation, detectives identified and arrested Rayge Sanchez, 40; Christian Garcia Diaz, 26; and Jose Nuñez, 29. The three are charged with grand theft and RICO conspiracy. Sanchez and Diaz face five counts of Grand Theft (over $100,000) and one count of RICO conspiracy, while Nuñez faces seven counts of Grand Theft (over $100,000) and one count of RICO conspiracy.
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What Else Is Moving 🚚
Trevor Milton & Nikola 👀
Nikola, which filed for Chapter 11 bankruptcy protection in February, is hoping to sell its business by mid-April. Amidst this, founder Trevor Milton, who was recently pardoned after being convicted of securities fraud, has expressed interest in purchasing the company’s assets. However, his bid has been met with resistance. Court filings indicate that Nikola blocked Milton from inspecting assets at its Coolidge, Arizona factory earlier this month.
Milton's Controversial History with Nikola
Nikola’s ongoing struggles include battery fires, product recalls, and overall financial instability, culminating in its bankruptcy filing. Despite this, Milton’s bid to acquire the company’s assets is part of the latest twist in Nikola’s eventful history. Milton, who founded Nikola in 2014 and led its public debut via a SPAC merger in 2020, resigned amid fraud allegations, was convicted in 2022, and was sentenced to prison in 2023 before being pardoned by President Trump last month.
ISSO LLC's Bid for Nikola's Assets
ISSO LLC, a Nevada entity linked to Milton, submitted a bid for Nikola’s assets on March 21. The company allowed ISSO to inspect the factory but imposed restrictions, barring photography and denying access to a specific representative, believed to be Milton himself. Milton’s father and lawyer are also involved in filings related to ISSO.
Court Response to Milton’s Bid
While Milton’s spokesperson did not respond to requests for comment, a person familiar with his intentions confirmed he is pursuing the bid. Nikola’s lawyer dismissed Milton’s involvement as a “publicity stunt,” and Judge Thomas Horan sided with Nikola, preventing Milton from touring the facility. An auction is scheduled for April 7 to determine the highest offer for Nikola’s assets.
FREIGHT SNIPPETS ✂️
🤖 AI For Military Logistics | A defense tech startup based in Washington has raised $15 million in a pre-seed round led by 8VC. Gallatin AI, founded in 2024 by Woody Glier, Daniel Buchmueller, and Brian Ballard, aims to transform military logistics with AI to improve the speed and effectiveness of supply chain decision-making, addressing vulnerabilities in modern supply lines. The company’s flagship solution, Navigator, integrates real-time data and AI to enhance resupply workflows, enabling military personnel to maintain operational advantages. This platform will scale across military services to address urgent logistical challenges. Read more.
🦾 AI Driving Tech | Qualcomm Technologies and DeepRoute.ai are partnering to advance driver assistance technology with Qualcomm’s Snapdragon Ride platforms. Their goal is to create vehicles that interpret the road in a human-like manner using AI models that learn from human driving behaviors. This collaboration will enhance both LiDAR and vision-only systems, enabling features like urban and highway navigation and automated parking. DeepRoute.ai has also focused on enhancing visibility in difficult lighting, ensuring vision-only systems perform as effectively as those using LiDAR. Read more.
🪪 Arkansas CDL Bill | An Arkansas lawmaker withdrew a controversial bill imposing stricter regulations on non-citizen commercial vehicle drivers but introduced a new proposal focusing on English language proficiency. The original Secure Roads And Safe Trucking Act of 2025 (HB1569) sought to require a domestically-issued CDL, impose higher penalties for accidents caused by drivers without one, and enforce English language requirements. A new bill, HB1914, was introduced on March 31 and focuses solely on English proficiency. Read more.
REVIEW OF THE WEEK PRESENTED BY CARRIERSOURCE.
Spot On TMS: Carrier Review Of The Week 🏆
This week, we spotlight Spot On TMS, a provider based in Kansas City, MO, specializing in FTL, LTL, cross-docking, and yard management services. Designed to tackle those "oh shoot" moments, Spot On TMS is here to solve unexpected issues with efficiency and expertise.
With a fleet of 11, they pride themselves on providing excellent trucking services and quick, reliable solutions for their clients. Spot On TMS has earned a 4.8/5 rating on CarrierSource from 17 reviews.
DOT Number: 3182918
Headquarters: Kansas City, MO
Fleet Size: 11
🚔 Staged Truck Crashes | Fraudsters who stage truck accidents to sue trucking companies could face harsh penalties under new legislation. The Staged Accident Fraud Prevention Act would make intentionally causing or arranging a crash with a commercial vehicle a federal crime. Offenders could face up to 20 years in prison, or more if the crash causes serious injury or death. The bill targets fraudsters who stage accidents to file frivolous lawsuits, often seeking millions in damages, which raise insurance costs and hurt small trucking businesses. The "Operation Sideswipe" case in Louisiana, involving staged crashes, has led to 63 indictments. Read more.
🐔 Third Charged | A third individual has been charged in connection with the theft of $100,000 worth of poultry from a tractor trailer in Miami last year. Yoel Torres-Diaz, 42, and Carlos Acosta-Viera, 37, were arrested on April 9 on grand theft charges after being seen entering a stolen tractor trailer, which had been located by the Florida Highway Patrol. The two men were quickly apprehended. Torres-Diaz was later linked to the September 2024 theft of a trailer loaded with $100,000 worth of poultry, stolen from a truck driver’s home on Old State Road 9 and Northwest 155th Lane in Miami. Torres-Diaz is reportedly part of a "sophisticated criminal group" and is also suspected of involvement in a 2022 theft of a trailer carrying lumber. Read more.
🚛 LTL Network | Roadrunner announced the addition of 278 new lanes to its LTL network on March 18, expanding service from key cities including Atlanta, Detroit, Nashville, Cleveland, and Grand Rapids. This expansion strengthens Roadrunner’s long-haul LTL capabilities, with one-third of the new lanes extending over 1,000 miles. Read more.
NEW PODCAST 🎧
#79: Andrey Yakimchuk, Hawk Logistics
In this episode, I sit down with Andrey Yakimchuk, founder and CEO of Hawk Logistics. Andrey shares his inspiring journey from immigrant truck driver to building a successful trucking company. He discusses the early struggles of becoming an owner-operator, how he navigated challenges like high-interest loans and finding good drivers, and the evolution of Hawk Logistics as it grew into a fleet of 70 trucks.
The conversation dives into Andrey’s leadership philosophy, focusing on empowering people, building strong relationships, and fostering a positive company culture. As Hawk Logistics continues to grow, Andrey shares his vision for the future, including expanding into direct shipper relationships and setting ambitious goals for the coming years.
🎧 Also available on Apple, Spotify, and wherever podcasts are available.
Pallets of News 🚛
Mistral AI Secures $110M 🤝
French tech startup Mistral AI has secured a $110 million deal with shipping giant CMA CGM to develop custom AI tools for its shipping, logistics, and media operations. Mistral will collaborate with CMA CGM teams in Marseille and at the company's media headquarters in Paris to create AI tools that will handle email inquiries about shipping routes, speed up claims processing, and improve document and customer request management.
This agreement brings CMA CGM’s total AI investment to €500 million, following a separate $150 million AI deal with Google and investments in AI companies like Poolside and Dataiku. Additionally, CMA CGM helped launch the nonprofit Kyutai research lab in 2023.
Sentenced For Fraud, Conspiracy 🩳
The U.S. District Court for the Western District of New York has sentenced Tony Kirik, also known as Anatoliy Kirik, to 45 months in prison. On June 21, 2024, Kirik, owner of New York-based trucking companies Orange Transportation Services Inc. (OTS) and Dallas Logistics Inc. (DLI), was found guilty of conspiracy, submitting false documents, making false statements, falsifying records, and concealing material facts.
Kirik conspired with others to defraud the Federal Motor Carrier Safety Administration (FMCSA), attempting to hide his ownership and management of DLI, as well as its affiliation with OTS. DLI had received a "conditional" FMCSA safety rating, which indicated insufficient safety controls. By falsely representing that DLI had a better safety rating, Kirik lowered its insurance premiums and attracted customers who avoided carriers with conditional ratings.
MEME OF THE DAY 😂
📍 Upcoming events: Catch up with us at TIA: Capital Ideas Conference in San Antonio this week and at the Broker Carrier Summit in Indianapolis on April 28-May 2. Let us know if you’ll be there – we'd love to connect!
