Dynamo Dispatch (2025/02/03)
Issue 317 | Tradeverifyd, Lyric, UVeye
Dynamo Dispatch. A weekly update from Dynamo Ventures covering the latest and greatest in supply chain, mobility, and building venture-scale businesses.
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Weekly Commentary 💭
💥 Dynamo portfolio company Sennder is expanding their partnership with Nestle to reduce carbon emissions in road logistics by using electric trucks and renewable diesel. Their latest initiative in Germany has deployed electric trucks for Nestlé’s THOMY product line, covering over 10,000 km in four months and cutting emissions by approximately 55 tonnes annually on a single route. Shoutout to the Sennder team for the continued momentum!
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Supply Chain 📦
⭐ Crackdown on Tariff Exemption Snares US E-Commerce Retailers. A crackdown on the de minimis tariff exemption, which allows duty-free imports under $800, is impacting both Chinese e-commerce giants like Shein and Temu as well as American retailers that use Mexico as a fulfillment hub. US and Mexican regulatory changes, including new levies on textiles and apparel, have disrupted supply chains, forcing companies to reroute shipments or consider moving operations back to the US. The uncertainty is causing delays in product launches, with Fabletics and other brands struggling to import goods into Mexico due to changing policies. Many retailers are now evaluating costly shifts to US-based distribution, but logistical complexities make it difficult to implement these changes quickly. Related, Shein Calls For Equally Applied Tariffs As It Aims To Keep Prices Low.
Parcel Delivery Rates: What 2025 Could Bring FedEx, UPS Shippers. Parcel shippers still have an opportunity to secure lower rates in 2025, but increasing surcharges and shifting carrier strategies may limit savings. FedEx, UPS, and other carriers have been offering aggressive discounts due to weak demand, though rising fees, especially for bulky and lightweight packages, are beginning to counteract this trend. Shippers sending five-to-ten-pound packages may still find competitive pricing, while those dealing with very light or heavy shipments face higher costs due to fee increases and Postal Service rate changes. Experts suggest shippers carefully analyze their shipping data and negotiate contracts strategically, as pricing trends will depend on UPS’ financial performance and overall market conditions. Related, Shippers 'Happy to Pay Top Dollar' for Guaranteed Price and Capacity.
US, UK Ships Return to Red Sea After Houthis Vow to Hold Fire. British and American ships are cautiously resuming passage through the Red Sea after Yemen’s Houthi rebels agreed to cease attacks on vessels linked to these nations, improving prospects for normalizing traffic on this vital trade route. Since the ceasefire began on January 19, six ships associated with the US and UK have transited safely, though risks in the Red Sea and Gulf of Aden remain high. The halt in attacks followed a ceasefire agreement between Israel and Hamas. Related, Maersk Will Continue Avoiding the Gulf of Aden and elsewhere on Maersk, Maersk Says Gemini Will Offer Better Service at Same Cost.
Green Shoots’ in US Economy Fuel Optimism, but Not Exuberance, Among LTL Carriers. Expectations for increased LTL demand are rising due to improving manufacturing, lower inventories, and steady consumer demand, with experts predicting a potential freight market recovery in the second half of 2024. While optimism is growing, the freight recession isn’t over yet and both LTL and truckload demand remain soft, though truckload carriers are starting to see slight rate hikes after years of declines. Economic indicators such as rising wages, easing inflation, and improving manufacturing output signal potential growth, but uncertainties remain, including winter storms, truck capacity adjustments, and potential trade tariffs.
Asia-US Box Traffic Hits an All-Time High, Boosted by Retail Front-Loading. Containerized exports from 18 Asian countries to the US reached a record 21.45M TEU in 2024, driven by longer shipping routes due to the Red Sea crisis, a strong US economy, and concerns over tariffs and dockworker strikes. US imports from China rose 16% to 11.8M TEU, while shipments from South Korea, Japan, and Taiwan also increased, with ASEAN exports surging 24% as manufacturing shifts away from China. South Asia, particularly India, saw a 16% rise in exports to 1.5M TEU, solidifying its role as a garment production hub. Analysts note that US retailers stocked up early to mitigate supply chain disruptions, and while no immediate changes are expected, trade patterns may shift post-Chinese New Year and with potential incoming tariffs. Completely unrelated, How California Wildfires are Affecting Supply Chains.
Mobility 🚗
⭐ What We Know About the American Airlines Plane and Army Helicopter Crash. An American Eagle regional jet and a US Army Black Hawk helicopter collided over the Potomac River near Reagan National Airport, with investigators probing air traffic control staffing and flight paths as potential factors. Recovery crews are working through challenging conditions to retrieve victims and wreckage, while the NTSB analyzes flight data recorders to determine the cause. The crash, the first major US commercial aviation disaster in 16 years, has prompted immediate regulatory scrutiny, including restrictions on helicopter traffic at the airport. Also, Philadelphia Plane Crash, What Went Wrong.
Boom Supersonic Jet Breaks Sound Barrier To Open Way For New ‘Concorde’. Boom Supersonic’s XB-1 test aircraft exceeded Mach 1 over California, marking the first time an independently developed jet has broken the sound barrier. The venture backed company aims to launch its Overture commercial airliner by 2029, promising flights at Mach 1.7 and halved travel times on key routes. While Boom has secured airline orders and $600M in funding, it still faces major financial and technical hurdles in reviving supersonic air travel. For more progress in the US, Lithium Refinery to Build $1.2B Factory in Oklahoma and Stellantis to Build New Truck in Idled Illinois Plant.
VW Prepared to Hand Its Factories to Chinese Electric Carmakers. Facing a downturn in Germany’s automotive industry, Volkswagen is open to partnerships with Chinese EV manufacturers to utilize excess factory capacity. The automaker recently scrapped plans to close German plants, instead cutting costs through job reductions and wage savings. As Chinese EV makers flood Europe with competitively priced vehicles, Volkswagen and other German carmakers struggle to keep pace, raising broader concerns about the country’s economic stagnation. Related, Tesla, BMW Sue EU as Tension Mounts on Chinese EV Tariffs.
GM Posts Quarterly Loss, Makes Plans for Potential Tariffs. General Motors reported a fourth-quarter loss driven by a $4B restructuring in China while preparing for possible US tariffs on Mexico and Canada. The company is expediting vehicle imports and evaluating options to shift pickup truck production to the US to mitigate cost impacts. CEO Mary Barra emphasized GM's financial flexibility but warned that longer-term responses depend on policy specifics, as tariffs could inflate industry-wide costs and drive up US car prices. Another OEM, Nissan is Cutting Production in the US by 25%.
Polestar Looks For New Suppliers in the US Due to Component Ban For China. The electric carmaker Polestar is exploring non-Chinese suppliers to comply with a new US ban on Chinese software and hardware in EVs, set to take effect for 2027 models. Despite the regulatory challenge and rising competition, CEO Michael Lohscheller affirmed Polestar’s commitment to the US market, citing its South Carolina manufacturing facility. Analysts question whether Polestar can sustain its US presence, but Lohscheller remains focused on the company’s software-driven EV strategy.
The Future of Supply Chain 🎙️
Check out our podcast series that’s been running since 2018. On each episode of the Future of Supply Chain, we sit down with a different entrepreneur, investor, or industry veteran to discuss innovation, technology, and the most exciting opportunities in supply chain as we build the future of the industry together.
Fundraises and M&A 💸
OneThird Raises €3.5M in Series A Funding. OneThird aims to reduce food waste in the supply chain through an AI-powered scanner that predicts the shelf life of fresh produce. The company will use the funds to expand its AI and sensor technology, accelerate its product roadmap, and enhance operations. The round was led by Invest International, with participation from previous investors Pymwymic, SHIFT Invest, and Oost NL.
Rynse Raises $5M in Seed Funding. Rynse is a fleet management software platform that connects fleet management with payment systems to streamline vehicle services. The funding will be used to expand into the private sector, enhance product development, and scale operations. The round was led by Autotech Ventures, with participation from Founder Collective, Correlation Ventures, and Connexa Capital.
Tradeverifyd Raises $8M in Series A Funding. Tradeverifyd is a supply chain risk management intelligence platform. The funding will be used to accelerate GTM efforts and enhance support for supply chain leaders navigating regulatory and compliance challenges. The round was led by Silicon Road VC and Bread & Butter Ventures, with participation from Acronym, Techstars, and a100x.
129Knots Raises $10M in Funding. 129Knots is a fintech that transforms real-world assets like supply chain invoices or trade receivables into tokenized, investment-grade digital assets. The funding will be used to scale operations globally and address the $2.5 trillion trade finance gap through secure chain technologies and AI-driven credit risk assessment. The round was led by Sing Fuels, with additional support from Enterprise Singapore, IBM Consulting, and McKinsey & Company.
Kwetta Raises $10.5M in Series A Funding. Kwetta is a New Zealand-based EV charging startup addressing grid optimization for electric buses and trucks in Europe. The funding will be used to scale operations, enhance technology, and expand into Europe’s heavily constrained grid markets. The round was led by Blackbird, with participation from Virescent Ventures, Icehouse Ventures, and existing investors.
Omnitron Sensors Raises $13M in Funding. Omnitron Sensors is creating affordable sensors for self-driving cars. The funding will aid expansion of the company’s engineering and operations teams, as well as accelerate production of the company’s sensors. Corriente Advisors led the round with participation from L’Attitude Ventures.
Bonsai Robotics Raises $15M in Series A Funding. Bonsai Robotics is developing machines that can navigate orchards on their own to produce. The round will enable the company to expand its software capabilities, physical AI platform, and data set, as well as accelerate commercialization efforts.Bison Ventures led the round and was joined by Cibus Capital alongisde existing investors Acre Venture Partners, Congruent Ventures, Fall Line Capital, E14 Fund, SNR and Serra Ventures.
Earth AI Raises $20M in Series B Funding. Earth AI is a predictive explorer for clean energy metals. The funding will be used to advance AI and drilling technology, expand its project pipeline to over 50 sites, and increase drilling capacity. The round was led by Tamarack Global and Cantos Ventures, with participation from Overmatch, Alpaca, Sparkwave Capital, and existing investors Y Combinator and Scrum Ventures.
Meteomatics Raises $22M in Series C Funding. Meteomatics is a weather intelligence & technology which enables companies to navigate weather’s increasing impact on their operations. The funding will support increased scale to meet growing demand and further US expansion, alongside the development of the platform to grow the company’s set of verticalized solutions. Amira Growth led the round, with participation from Klima, the Alantra Energy Transition Fund, and Fortyone.
Lyric Raises $23M in Seed Funding. Lyric aims to address supply chain resilience by leveraging AI to enable customers to model out complex predictions, decisions, and optimizations. The round was co-led by Primary Venture Partners and Permanent Capital Partners.
Mangrove Lithium Raises $35M in Funding. Mangrove Lithium is a lithium conversion company. The funding will be used to begin construction of a lithium refining plant which will aim to produce enough battery-grade materials for 25K EVs per year. The funding comes from new investors Mitsubishi Corporation, Asahi Kasei Corporation, InBC Investment Corp., Orion Industrial Ventures, and Export Development Canada. Existing investors Breakthrough Energy Ventures, BMW i Ventures, and BDC Capital also participated.
UVeye Raises $191M in Funding. UVeye is an AI-based vehicle inspection technology startup. The funding will be used to expand deployments globally, including scaling its operations with Amazon and other fleet and rental companies. Woven Capital led the round, with participation from UMC Capital.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
AI Engineer at Ceto in Newcastle, UK (Remote).
FP&A Analyst at Solvento in Mexico City, MX.
Autonomous Vehicle Test Engineer at Gatik in Mountain View, CA.