FIrst it wasSaaS(in particular, and Software in general), thenPrivate Credit, thenInsurance Brokers, then it wasfinancials/brokersthat were hammered on Tuesday, thenreal estate service stockstumbled yesterday, and today it is the turn ofLogistics stocksto plunge as investors followed the bouncing AI disruption ball and freaked out over the sector’s vulnerability to the newest crop of artificial intelligence applications and tools that can disrupt countless industries.

As the brutal "AI Scare Trade" bouncing ball hits yet another sector, we have seen a painful selloff among big trucking stocks such as DSV and Kuehne and Nagel, both of which are down double digits.

The selling is attributed to a 9:15am ETpress releasefrom Algorhythm Holdings - a "leading AI technology company" - which announced that its"SemiCab platform in live customer deployments is enabling its customers’ internal operations to scale freight volumes by 300% to 400% without a corresponding increase in operational headcount."

These results, detailed in SemiCab’s recently published industry white paper, demonstrate how the company’s AI-driven Collaborative Transportation Platform is transforming freight management from a labor-intensive, manual process into a highly automated, intelligence-led system. In fact, individual operators using SemiCab have been able to manage more than 2,000 loads annually, compared to the traditional industry benchmark of approximately 500 loads per year per freight broker, demonstrating a 4x improvement in workforce productivity.

“Historically, logistics has been constrained by human bandwidth,” said Gary Atkinson, Chief Executive Officer of Algorhythm Holdings. “Every increase in volume requires more planners, more dispatchers, and more manual intervention. Our SemiCab platform breaks that dependency by embedding intelligence directly into the freight operating system.”

According to the release"the AI-driven leverage of SemiCab’s platform directly supports stronger unit economics and capital efficiency for its customers. As volumes increase, customers benefit from:"

Of course, it is unclear - and will be unclear for months if not years - just howdisruptivethis AI platform will be to established businesses which have invested billions in established processes, but in keeping with the recent trend of selling (and shorting) potentially affected sectors first, and asking questions much later, the results has been the immediate loss of market cap across the logistics/industrials sector.

The selling adds to AI disruptions fears already pressuring Software, Games, Private Credit and Real Estate Brokerage names which have all been crushed in recent weeks, and all of which are again underperforming today.

As Goldman trader Christian DeGrasse writes, "the same exact tape is just repeating itself - almost anything previously tagged by ‘AI-risk’ narrative, whether deemed ‘rational or not’, is underperforming (CRE Brokers, Office REITs, Wealth, Info services, select exchanges, Insurance brokers, payments, Fintech) – while the alts started out somewhat stable but are starting to wobble, as are the banks (which largely have been immune to the ‘scare’ – with superregionals in particular being an attractive hideout within fins .. reach out for people’s views there)"

REITs (especially the large caps) continue to outperform as a hideout zone .. Towers, Datacenters (EQIX Earnings +), Senior Housing in Healthcare, SPG in Malls, WY, Triple nets, etc …

Source: ZeroHedge News