Topics: Carrier Relations, Carrier Solutions, Economic Shifts, Freight Carriers
Freight fraud is one of the biggest issues facing carriers, shippers, and freight brokers today.
“It is top of mind for everyone. It is the first thing that everyone talks about when it comes to risk in the supply chain,” Janelle Griffith, the North American logistics practice leader for insurance broker and risk management company Marsh, told Trucking Dive.
Protecting carriers’ business is always top of mind for Cass Information Systems, and we stand on the front lines with them to combat freight fraud.
‘Bad Actors Treat Freight Fraud Like a Full-Time Job’
Fraudulent activity targeting carriers, shippers, and freight brokers jumped 27% year over year in 2024, according to Highway, a carrier identity and fraud prevention solutions provider.
“Bad actors treat freight fraud like a full-time job, and they’ve expanded their playbook,” Michael Grace, Highway’s vice president of customer risk management, told the Commercial Carrier Journal (CCJ).
Highway’s Freight Fraud Index showed top attacks in 2024 included:
- Identity theft, with fraudsters posing as legitimate carriers to gain access to broker loads.
- Double brokering, with illegitimate carrier transfers resulting in nonpayment and freight loss.
- Change in ownership, involving scammers buying old MC numbers from previously valid companies.
- FMCSA contact manipulation, in which unauthorized email addresses and phone numbers are used to hijack authentic carrier accounts.
Cases of email phishing, in particular, have continued to grow this year. The CCJ reported that phishing attempts increased 27% in February and another 26% in March.
With identity theft, the criminals “are posing as legitimate carriers using stolen credentials; intercepting rate cons and tenders through compromised email accounts; using spoofed numbers and hijacked inboxes to gain trust; and hauling loads under false pretenses — then vanishing,” the CCJ said.
Grace said proactive measures and technological tools are essential for staying ahead of freight fraud.
“As the tools for fraud become more sophisticated, so must our methods of prevention and response,” he said. “If brokers aren’t adapting their defenses, they’re exposing their customers, carriers and freight to unnecessary risk. It’s frustrating to see stolen loads that could have been avoided with the right protection in place.”
Cargo Theft, Fraud Hit Landstar’s Q1 Results
Cargo theft and freight fraud have impacted Landstar System, which reported significantly higher insurance and claim costs in the first quarter than in the same period a year ago — $39.9 million versus $26.3 million.
During the first quarter, Landstar uncovered a fraud incident in a satellite agent office that impacted its international freight forwarding operations. It has created a fraud department and is “investing significantly” in technology and AI to prevent further incidents.
“We’ve stood up various vendors that are helping us attack on really all fronts, whether it’s people, education, or technology. But this is an area where [you’ve] got to remain vigilant and you’re really always playing defense here,” Matt Miller, Landstar’s vice president and chief safety and operations officer, said on an earnings call.
XPO Using AI to Minimize Miles, LTL Freight Handling
XPO also is putting AI to work. In the LTL carrier’s case, it is deploying AI-driven linehaul models to optimize freight movements throughout its network.
XPO Chief Information Officer Jay Silberkleit told Trucking Dive that the carrier is striving to minimize the distance freight travels and the number of times freight is handled.
“Proprietary AI is supercharging these efforts by analyzing massive amounts of data — including volume, capacity, and dimensions — and determining the most effective ways to consolidate and route linehaul freight,” Silberkleit said.
XPO also is testing the use of AI to optimize trailer and route assignments at the shipment level.
“These tools factor in appointment windows and other logistics to enhance on-time performance. We see AI playing a major role in how we operate, compete, and create value over the long term,” CEO Mario Harik said on XPO’s first-quarter earnings calls.
Saia Reducing Reliance on Hub-and-Spoke System
Saia CEO Frederick Holzgrefe said the LTL carrier is working to optimize its operations by adding more direct routes rather than move freight through its hub-and-spoke system.
In a hub-and-spoke system, freight is picked up and taken to a local hub, where it is sorted and transferred through a series of terminals until it reaches its final destination.
Saia opened 21 terminals last year.
“If you can figure out ways to go drive a little bit of volume, get those customers [to] consolidate that freight, and build a direct route from, say, Atlanta all the way to California without having to break the freight through Dallas or Phoenix, that’s actually a way for you to build scale,” Holzgrefe said on Saia’s Q1 earnings call.
Fleets Advised to Lay Out Clear Career Paths for Employees
Leah Shaver, president and CEO of the National Transportation Institute, told FleetOwner that fleets should create career paths for entry-level employees to encourage retention and skill growth.
Shaver sat down with FleetOwner during the National Private Truck Council’s annual conference in May to discuss the “pain points” fleet leaders were coming to her with during the event.
“One challenge was having a training program from the ground up. Some call it ‘dock to driver.’ We call it ‘career pathing,’ which is creating and articulating career paths so folks want to join the company and understand what’s great about the company that would make them want to stay,” Shaver said.
She acknowledged that attracting younger people to the trucking industry is particularly challenging.
“On the driver side, young people like technology and embrace it. Young people like safety and embrace it. Young people really want to understand what their next step is. Companies that hold on to them communicate better. They regularly remind them what their next step is in their career, how they can upskill a little bit more, and how they can increase their exposure and awareness,” Shaver said.
FedEx Chooses LTL Leadership From Within Ranks
John Smith, Federal Express’ chief operating officer, has been tapped to lead FedEx’s new LTL unit as president and CEO. The spinoff of FedEx Freight is slated for June 2026.
Brad Martin, currently the vice chairman of FedEx Corp., will serve as chairman of FedEx Freight. Tom Connolly, who has been with FedEx for nearly 30 years, has been named the vice president of LTL sales.
“I cannot think of two individuals with more knowledge of, or commitment to, the long-term success of the FedEx Freight business than John Smith and Brad Martin,” said FedEx Corp. President and CEO Raj Subramaniam in a news release. “Together they have the track record and expertise to successfully lead this new and exciting chapter for the independent FedEx Freight company.”
Analyst Richa Harnain of Deutsche Bank told FreightWaves that investors were hoping FedEx would not promote from within.
“The popular preference we heard among the investment community [was] that FedEx Freight leadership be an experienced executive outside the organization,” Harnain said.
Interim Leader Named as PAMT CEO Prepares to Step Down
Joseph Vitiritto, who has served as president and CEO of PAMT for nearly five years, will step down effective June 27.
According to an 8-K filing, Vitiritto is resigning for “family reasons.” Before joining PAMT, formerly known as PAM Transport, Vitiritto served in executive and managerial positions at Swift Transportation, Knight Transportation, Colton Carriers, and Schneider National.
Matthew Moroun, chairman of PAMT’s board of directors, has been selected to serve as interim president and CEO. He has been a director since 1992 and chairman since 2007.
PAMT reported a 14.9% drop in year-over-year operating revenue in Q1 and an operating loss of $9.2 million.
Court OKs Sale of Seven Yellow Terminals
The U.S. Bankruptcy Court for the District of Delaware has approved the sale of seven more former Yellow Corp. terminals for a total of $14.25 million.
The approved sales went to:
- M Way Holding for a Pontiac, Michigan, terminal for $10 million.
- Borg Enterprises for a Fargo, North Dakota, terminal for $1.6 million.
- Baldor for a Westbrook, Maine, terminal for $1.55 million.
- Midas Vantage Partners Management for a Mobile, Alabama, terminal for $480,000.
- United Holdings Group for an Atlanta, Illinois, terminal for $450,000.
- Gale Group for a Hubbard, Ohio, terminal for $140,000.
- Goodland Partners for a Goodland, Kansas, terminal for $25,000.
Yellow closed its terminals in late July 2023 ahead of its bankruptcy filing.
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