Trucking news and briefs for Wednesday, Nov. 20, 2024:
Ponzi scheme charges: Sanjay Singh of Royal Bengal Logistics found guilty
A jury in the U.S. District Court for the Southern District of Florida earlier this month found Sanjay Singh, owner of Royal Bengal Logistics Inc., guilty of wire fraud, money laundering and conspiracy charges.
As previously reported, Singh was charged by the U.S. Securities and Exchange Commission after raising approximately $112 million from investors in an alleged Ponzi scheme.
According to the Department of Transportation Office of Inspector General, an investigation revealed that Singh used his company to create a Ponzi scheme by attracting investors to purchase contracts for trucking services with promises of extremely high interest payments. The scheme garnered many investors from the Haitian-American community, OIG noted.
Singh then misappropriated millions of dollars of investor funds for personal gain, according to details of the investigation, including sending millions overseas to family members in India.
Singh’s sentencing is scheduled for Feb. 28, 2025.
[Related: Florida fleet owner charged in alleged $112M Ponzi scheme]
Trucking conditions saw September decline, but positive readings expected on horizon
Likely to the surprise of few among Overdrive readers, trucking market conditions for motor carriers declined in September from August, according to FTR’s Trucking Conditions Index (TCI).
The firm’s TCI hit -2.47 in its September slump from August’s -1.39 reading. FTR said weakness in the principal freight dynamics -- rates, utilization and volume -- offset lower fuel costs and slightly less unfavorable financing costs during the month.
The TCI has been positive only twice -- in May and June of this year -- since April 2022, but FTR’s forecast envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” said Avery Vise, FTR’s vice president of trucking. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
With the election of Donald Trump in mind, Vise said FTR will “be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity.”
[Related: Optimistic for freight turnaround? You're not alone: Survey]
FMCSA grants brake-light waiver renewal to tanker fleet
Groendyke Transport has been granted a renewal of its exemption by the Federal Motor Carrier Safety Administration that allows the fleet to use an amber brake-activated pulsating lamp on the rear of its trailers in addition to the steady-burning brake lamps required by the Federal Motor Carrier Safety Regulations (FMCSRs).
FMCSA earlier this year granted a provisional renewal of the waiver through Oct. 26. With a new notice published Wednesday, FMCSA is renewing the waiver for five years through April 26, 2029.
The exemption applies exclusively to CMVs operated by Groendyke Transport and does not extend to any other motor carrier. Under terms of the waiver, Groendyke must provide recurring yearly data submissions to include information on rear-impact crashes and incidents involving trucks equipped with amber brake-activated pulsating lamps.
[Related: FMCSA provisionally renews brake-light waiver for tanker fleet]
