Dynamo Dispatch (2025/06/16)
Issue 335 | Warp, Daybreak, AIM
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Weekly Commentary 💭
This week’s developments show just how central supply chains have become in the geopolitical chess match, with the US and China shifting focus from tariffs to weaponized export controls. Meanwhile, economic and political volatility continue to ripple through the freight sector—from a stalled truckload recovery to GM’s reshoring challenges and Tesla’s controversial robotaxi debut. Inflation cooled more than expected, ports prepare for a tariff-driven import rush, and enforcement gaps in new carrier registrations are raising fresh safety concerns. As always, read on for more.
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⭐ Supply Chains Become New Battleground in the Global Trade War. “The era of weaponized supply chains has arrived”. The US and China are increasingly using export controls—such as restrictions on rare earths and semiconductor technology—as strategic economic weapons. Recent negotiations prioritized easing these supply-chain curbs over traditional tariff disputes, highlighting how global economic power is now being exercised through control of critical sectors rather than just market access. While the US leverages its dominance in advanced tech, China maintains a chokehold on key industrial goods, creating vulnerabilities that have prompted businesses to rethink and restructure their supply chains. As tensions persist, companies may be forced to split operations between US and Chinese markets, treating them as distinct ecosystems to mitigate risk. Related, US, Mexico Discuss Deal to Cut Trump's Steel Tariffs, Sources Say and India, US Trade Talks Hit Hurdle on Trump Tariffs, GM Crops.
Economic Uncertainty Delays Truckload Market Breakout. The US truckload market is slowly rebalancing after a prolonged downturn, with tender rejection rates and spot rates showing early signs of tightening capacity despite weak demand. Overcapacity from the COVID-era boom has been slow to correct, but rising rejection rates suggest a meaningful number of carriers have exited the market. Trade policy uncertainty and economic headwinds, including slowing investment and rising jobless claims, have kept freight volumes subdued, with much inventory sitting idle. Completely unrelated, New Solar Energy Installation at the East Coasts Largest Seaport is Complete.
Trump Signs Orders to Bolster US Drone Defenses, Boost Supersonic Flight. President Trump signed three executive orders aimed at strengthening US defenses against drone threats, expanding commercial drone use, and advancing electric air taxis and supersonic aircraft. The orders establish a federal task force to enhance drone detection, protect sensitive sites, support law enforcement, and promote domestic development over reliance on Chinese drone makers. Trump also directed the FAA to lift the decades-old ban on supersonic flights over land, provided the aircraft produce no audible sonic boom, potentially revitalizing commercial supersonic travel. Related, Explained: What Trump’s Executive Orders on Drones Mean for US Exports.
FAA Makes Telling Decision on Boeing 787s After Air India Crash. Following the deadly crash of Air India Flight 171, which killed nearly all 242 on board, India has ordered urgent inspections of its Boeing 787 fleet which has prompted global scrutiny of the aircraft. While Indian regulators moved quickly, the FAA and US officials said there's no immediate safety data warranting a grounding of 787s stateside. Transportation Secretary Sean Duffy emphasized that US teams, including the NTSB, FAA, Boeing, and GE Aerospace, are heading to India to investigate. The US pledged to act swiftly if safety issues emerge, but stressed decisions will be based on facts, not speculation. Also, FAA to Eliminate Floppy Disks, Outdated Tech in Air Traffic Control System.
GM's $4B Spending Push Shows Why Reshoring Is So Hard. GM’s $4B plan to shift production of high-margin vehicles like the Silverado and Equinox from Mexico to US plants is being hailed by the Trump administration as a win for tariffs and domestic manufacturing. But the move also highlights the steep hurdles facing broader reshoring efforts, namely gaps in US supplier ecosystems, costly capital equipment imports, and a chronic skilled labor shortage. While giants like GM can absorb higher costs and tap existing infrastructure, smaller manufacturers face crippling tariff exposure and delayed investment due to policy volatility. Despite high-profile announcements, US factory construction has stalled, raising doubts about the depth of this so-called reshoring boom. Still, Trump Says He May Soon Hike Auto Tariffs To Get More US Production.
Tesla To Launch ‘Robotaxis’ In Austin Next Week, But Critics Says The Tech Still Isn’t Safe. Tesla plans to launch its first fleet of driverless robotaxis in Austin on June 22, making the city a testing ground for Full Self-Driving (FSD) technology despite ongoing federal investigations and local safety concerns. A public demonstration showed a Tesla using FSD repeatedly failing to stop for a child-sized mannequin crossing from a stopped school bus, sparking outrage from safety advocates. While Elon Musk touts plans to scale to 1,000 vehicles within months, critics warn the tech isn’t ready and note Austin officials weren’t consulted. With limited state oversight until 2026, the rollout is accelerating faster than regulatory safeguards can catch up. Elsewhere, Wayve and Uber Plan London Robotaxi Launch After UK Speeds Up Autonomous Vehicle Rollout.
New Carrier Authorities Are Surging in Surprising Places. A surge in new trucking authorities is emerging in overlooked ZIP codes like Fresno, CA and Laredo, TX, raising red flags about enforcement gaps, fraud, and safety risks. While California and Texas still lead in volume, much of the growth is tied to short-lived “ghost fleets,” visa loopholes, and unvetted drivers slipping through FMCSA’s audit system. Nearly 60% of new carriers go unaudited during their critical first year, and crash rates among new entrants have nearly tripled. As filings spike ahead of anticipated rule crackdowns, industry leaders warn that unchecked growth is outpacing oversight which can threaten both safety and fair competition. Also on the road, Transportation Chief Seeks To Weaken Fuel Economy Standards, Calls Biden-Era Rule ‘Illegal’.
Inflation Cools More Than Predicted as Companies Draw Down Inventories. US inflation eased more than expected in May, with the core Consumer Price Index rising just 0.1% monthly and 2.8% annually—the lowest yearly increase in four years—as companies drew down pre-tariff inventories instead of raising prices. While some tariff-sensitive goods like appliances saw price increases, and prices for apparel, vehicles and other goods will probably increase and peak during the third quarter as companies reduce pre-tariff inventories, overall inflation remained mute. This reinforces the Federal Reserve’s likely decision to hold interest rates steady in June and potentially cut rates later in 2025. Completely unrelated, BYD Launches Logistics Subsidiary – and Eyes Ports and Shipping Sectors.
Import Surge Expected Amid Tariff Reprieve: NRF Port Tracker. Major US ports are expecting a summer surge in imports as retailers rush to bring in goods during a 90-day reduction in China-based tariffs, reversing a prior slowdown in shipments caused by high duties. The National Retail Federation reports that shippers resumed frontloading in late May, aiming to beat the July and August deadlines when tariffs may return, though overall import volumes remain below last year’s levels. Forecasts show YoY declines in monthly container volumes from June through October, with September expected to drop 21.8% due to comparisons with last year’s labor-driven frontloading. Completely unrelated, LVMH Bets on AI to Navigate Luxury Goods Slowdown.
Court Orders DAT to Temporarily Halt Trucking Factoring Service. A Georgia court has temporarily barred DAT from offering freight factoring services, pending a hearing on whether its recent acquisition of Outgo violates a non-compete agreement with former partner OTR Capital. OTR claims DAT’s move into direct factoring through Outgo breaches their existing agreement while DAT, North America's largest truckload load board, argues the lawsuit is without merit and says the dispute threatens the cash flow of its carrier customers, which rely on factoring for liquidity. The case highlights DAT’s broader push to expand its services, following its recent acquisitions of Outgo and Trucker Tools.
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 💸
MesoMat Raises Seed Funding. MesoMat is a hardware-as-a-service company embedding proprietary sensors into rubber materials to digitize commercial tires, enabling real-time monitoring of pressure, leaks, fuel efficiency, and wear. The funding will be used to build out its sales team and scale with large North American fleets and tire manufacturers already using its platform. The round was led by Ridgeline, with participation from RISC Capital, RPV Global, and Extra Innings Ventures.
Piston Raises $6.1M in Seed Funding. Piston is a payments platform enabling cardless fuel transactions for commercial fleets via QR codes, offering enhanced traceability and reduced fraud compared to traditional fleet cards. The funding will be used to expand its engineering, operations, and GTM teams, and grow its network of fleet and gas station partners. The round was led by Spark Capital, with participation from Pear VC and BOND.
Co-Power Raises €6.4M in Seed Funding. Co-Power is a Munich-based climate tech company building decentralized energy infrastructure for industrial sites, combining on-site solar, battery storage, and a virtual power plant (VPP) platform to reduce costs and improve energy resilience. The funding will support deployment of its clean energy systems and accelerate the launch of its industrial VPP across Europe. The round was led by Cherry Ventures, with participation from Abacon Capital, Aurum Impact, and others.
Sunrise Robotics Raises €7.3M in Seed Funding. Sunrise Robotics is a Slovenia-based robotics company developing simulation-trained, dual-arm robotic cells to automate repetitive manufacturing tasks for European factories facing severe labor shortages. The funding will be used to grow its team across Europe, improve its AI systems, and scale production of its robotic cells to support small and mid-sized manufacturers. The round was led by Plural, with participation from Tapestry, Seedcamp, Tiny.vc, and Prototype Capital.
Bolo AI Raises $8.1M in Seed Funding. Bolo AI is an enterprise AI company building intelligent tools for heavy industry, helping teams act quickly and safely by unlocking knowledge buried in documents, procedures, and legacy systems. The funding will be used to expand operations and accelerate development across its US and Bangalore engineering hubs. The round was led by True Ventures, with participation from Benchstrength, Accomplice, J Ventures, and Beat Ventures.
Warp Raises $10M in Series A Funding. Warp is a tech-enabled freight network helping shippers reduce logistics costs via an integrated system of shippers, carriers, and warehouses. The round will fund the development and deployment of autonomous warehouse robots designed to streamline workflows inside Warp’s logistics hubs. Up.Partners and Blue Bear Capital co-led the round.
ZeroRISC Raises $10M in Seed Funding. ZeroRISC is a silicon security startup commercializing open-source, chip-level integrity solutions through its Integrity Management Platform, enabling verifiable device trust across the supply chain. The funding will accelerate product development, expand platform adoption, and support post-quantum security integrations. The round was led by Fontinalis Partners, with participation from Fundomo, Ray Stata, Dylan Patel, SBXi, Chelpis Ventures, Bond Street Capital, and existing angel investors.
Q5D Raises $13.5M in Series A Funding. Q5D is a robotics startup automating the production of wiring harnesses by embedding wiring directly into product structures, eliminating labor-intensive manual processes in industries like automotive and aerospace. The funding will support commercial pilots, team expansion, and manufacturing capacity ahead of full-scale deployment. The round was co-led by Lockheed Martin Ventures, Chrysalix, and Maven SWIF, with participation from SOSV, UKI2S, UntroD, and CPI Enterprises.
Daybreak Raises $15M in Series A Funding. Daybreak is an AI-native supply chain planning platform that uses autonomous, explainable AI agents to surface risk, improve forecast accuracy, and automate decision-making across complex planning workflows. The funding will be used to industrialize ML ops, expand its decision intelligence engine, and scale its agent ecosystem to reduce global inventory waste. The round was led by TPG Growth and Dell Technologies Capital.
Remarcable Raises $15M in Series A Funding. Remarcable is a construction procurement platform digitizing material transactions and streamlining workflows between contractors and suppliers through deep API and EDI integrations. The funding will be used to expand platform capabilities, onboard more suppliers, and invest in AI tools to automate accounts-payable and materials tracking. The round was led by Insight Partners.
AIM Raises $50M in Funding. AIM is an embodied AI platform retrofitting heavy equipment like bulldozers and excavators with autonomous capabilities to improve safety, productivity, and cost efficiency in mining and construction. The funding will accelerate deployment of its plug-and-play autonomy system across global job sites, enabling zero-entry worksites, AI-optimized planning, and continuous operations. The round was backed by Khosla Ventures, General Catalyst, Human Capital, Ironspring Ventures, Mantis, and DCVC.
Nominal Raises $75M in Series C Funding. Nominal’s tools enable hardware companies - specifically in space, energy, and defense - to more easily test designs and monitor their progress. The raise will fuel engineer and sales staff hiring as well as product development. Sequoia Capital led the round.
Coco Robotics Raises $80M in Funding. Coco Robotics is a Los Angeles-based startup building last-mile delivery robots that has completed over 500K zero-emission deliveries for national retailers like Subway and Jack in the Box. The funding will support expansion of its autonomous delivery fleet. The round includes undisclosed funding events from 2021 to 2025 and was backed by Sam Altman, Max Altman, Pelion Venture Partners, and Offline Ventures.
Gecko Robotics Raises $125M in Series D Funding. Gecko Robotics is the developer of AI-powered software and advanced robotics for maintaining critical infrastructure, particularly for manufacturing, energy, & defense applications. The round was led by new investor Cox Enterprises, joined by continuing investors USIT, XN, Founders Fund and Y Combinator.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Recruiter at Steam in Chattanooga, TN.
Senior Software Engineer - Machine Learning at Raft in London, U.K.
GeoSpatial Technology Manager at Gatik in Mountain View, CA.