News

Air LLC has made significant changes to its top leadership just seven months after launching commercial operations. According to an internal memo shared with FreightWaves, Edward Wegel has been appointed as CEO of the Miami-based startup cargo airline, replacing the previous CEO. This move comes at a time when the air cargo industry is facing intense competition and rising costs. The new leadership change may signal a shift in strategy for 7Air, which has a fleet of four Boeing 737-800 converted freighters on lease, mostly serving the Caribbean and Central America. Wegel's extensive experience in the aviation industry will be crucial in navigating these challenges. Wegel is a seasoned aviation entrepreneur with a proven track record of building and scaling airline operations,

The U.S. government has taken significant steps to address issues with truck drivers who live outside the country, aiming to improve road safety and prevent deadly crashes. Two major initiatives have been implemented: a new FMCSA rule and the proposed Dalilah's Law. These measures target non-domiciled commercial driver's licenses (CDLs), which are special truck licenses for individuals who don't reside in a U.S. state. The previous lack of proper checks led to thousands of licenses being issued without verifying drivers' immigration status, resulting in fatal crashes. The FMCSA rule, which went into effect on March 16, 2026, focuses solely on non-domiciled CDLs and limits who can obtain these licenses to U.S. citizens, nationals, lawful permanent residents, or individuals on specific work visas. Drivers must present a valid passport and I-94 form, and states must check immigration status using a government system before issuing, renewing, or upgrading any license. This new regulation aims to ensure that every truck driver on U.S. roads has been properly vetted for safety, reducing the risk of accidents caused by unvetted foreign drivers. The rule's focus on non-domiciled CDLs ensures that existing licenses are mostly grandfathered until they expire but cannot be renewed without new proof. In contrast, Dalilah's Law proposes more comprehensive changes to the CDL system, making its limits permanent law if passed by Congress. This bill would require states to audit all current foreign-domiciled licenses within one year and revoke any that don't meet the rules, potentially resulting in a loss of up to 8 percent of federal highway funding for non-compliant states. The key differences between these two measures lie in their scope and permanence. The FMCSA rule is a regulation that can be easily changed or weakened by future administrations, whereas Dalilah's Law would lock the changes into law, adding English language requirements for safety and fairness. Dalilah's Law also forces states to clean up old mistakes and punishes companies that break the rules, making it a more comprehensive toolbox for improving road safety. This bill has the potential to prevent future tragedies like the one that inspired its creation, which resulted in the critical injury of a five-year-old girl in California. The implementation of these measures marks a significant shift towards safer roads and stricter regulations on foreign truck drivers. As the days of easy loopholes for unvetted foreign drivers come to an end, truckers, companies, and everyday drivers can expect improved road safety and reduced risk of accidents. While both measures share similarities in their focus on non-domiciled CDLs, Dalilah's Law offers a more comprehensive approach to addressing the issue. The proposed law's emphasis on English language requirements for safety and fairness adds an important layer of protection for drivers and passengers alike. Ultimately, the success of these initiatives will depend on the willingness of states and companies to comply with the new regulations. As the U.S. government continues to prioritize road safety, it is essential that all stakeholders work together to ensure that these measures are effective in preventing future tragedies.

With its reputation built on moving containers across oceans, Maersk has expanded into the parcel logistics market by leveraging data modeling, artificial intelligence, and a network of carrier partners. The company's goal is to provide shippers with a seamless experience from warehouse to customer doorstep. By combining its own assets with those of partner carriers, Maersk aims to deliver packages efficiently across the country. Maersk's entry into parcel logistics marks a significant shift in the company's strategy. After years of focusing on container shipping, the maritime giant has recognized the potential for growth in this new market. The acquisition of Visible Supply Chain Management and B2C Europe platforms has enabled Maersk to create a single platform that offers shippers a unified label, invoice, rate card, and tracking experience. The parcel logistics industry is known for its unpredictability, with surprise demand spikes posing a significant challenge for operators. However, Maersk's data modeling approach aims to mitigate this risk by analyzing customer forecasts and identifying patterns. By doing so, the company can better plan resources and make informed decisions about capacity allocation. Maersk's use of data modeling is crucial in addressing the unpredictability of consumer demand. The company tracks how well each customer predicts their own volume and uses this information to refine its forecasting models. This enables Maersk to identify potential forecast ranges and allocate resources accordingly. The impact of Maersk's entry into parcel logistics will be felt across the supply chain industry. As companies like Maersk invest in data-driven solutions, they are poised to offer more efficient and reliable services to their customers. This, in turn, is expected to drive growth and innovation in the sector. Maersk's focus on data modeling and artificial intelligence sets it apart from other players in the parcel logistics market. By leveraging these technologies, the company can provide shippers with a more personalized experience and improve overall delivery times. The parcel logistics market is becoming increasingly complex, with companies like Maersk navigating this landscape to stay ahead of the curve. As the industry continues to evolve, it will be interesting to see how other players respond to Maersk's entry into this market. Maersk's acquisition of Visible Supply Chain Management and B2C Europe platforms has enabled the company to create a comprehensive network of carriers and warehouses. This infrastructure is critical in supporting the company's parcel logistics operations and ensuring seamless delivery to customers. The parcel logistics industry faces numerous challenges, including unpredictable demand spikes and supply chain disruptions. However, with Maersk's data-driven approach and commitment to innovation, the company is well-positioned to navigate these challenges and drive growth in the sector.

The Port of Long Beach reported a notable increase in cargo volumes in February 2026, handling 767,525 twenty-foot equivalent units (TEUs), an uptick of 0.3% from the same period last year. This growth can be attributed to the port's continued efforts to optimize its operations and meet the evolving needs of its customers. The solid overall cargo volumes are a testament to the port's ability to adapt to changing market conditions, ensuring that it remains a reliable partner for shippers and carriers alike. The import sector saw a slight decline in February 2026, with imports falling by 0.2% to 368,060 TEUs. This decrease can be attributed to various factors, including increased competition from other ports and the ongoing impact of global trade tensions. However, it is worth noting that exports experienced a significant surge, rising by 8.2% to 97,422 TEUs. This growth underscores the port's importance in facilitating international trade and its role as a key player in the global supply chain. The empty container rate, which serves as an indicator of future imports, declined by 0.15% to 302,044 TEUs. This decrease suggests that shippers are beginning to adjust their expectations regarding import volumes, potentially due to concerns about global trade uncertainty and increased competition from other ports. The decline in empty containers also highlights the port's efforts to optimize its container handling operations and improve efficiency. In a statement, Port Chief Executive Dr. Noel Hacegaba noted that cargo movement at the Port of Long Beach remains fluid despite external pressures. This sentiment underscores the port's commitment to providing reliable and efficient services to its customers, even in the face of uncertainty and disruption. The conflict in the Middle East has added new uncertainty to global trade, triggering broad market conditions and reactions from parties across the supply chain. As Hacegaba noted, this conflict has already triggered a rapid rise in oil prices, which will have significant implications for supply chains worldwide. Year-to-date, the port has processed 1,615,290 TEUs, which is down 6% from the record-setting period last year. This decline can be attributed to various factors, including increased competition and global trade tensions. However, it is worth noting that the port's cargo volumes remain strong, suggesting its ability to adapt to changing market conditions. The disruption at the Strait of Hormuz has already triggered a rapid rise in oil prices, which will have significant implications for supply chains worldwide. If the Middle East conflict persists, Hacegaba cautioned that supply chains everywhere will have to navigate higher fuel and vessel operating costs and seek alternative shipping routes. The Port of Long Beach's solid cargo volumes in February 2026 serve as a reminder of its importance in facilitating international trade. As global trade continues to evolve, the port's ability to adapt and provide reliable services will be crucial in ensuring the smooth operation of supply chains worldwide. In conclusion, the Port of Long Beach's performance in February 2026 suggests that it remains a vital link in the global supply chain, despite external pressures and uncertainties. As the global economy continues to navigate the challenges posed by the Middle East conflict and other factors, the port's ability to adapt and provide reliable services will be essential for ensuring the smooth operation of supply chains worldwide.

Universal Logistics Holdings reported sharply weaker financial results for the fourth quarter of 2025 , as declines across several transportation segments — particularly intermodal — weighed on the company’s earnings. The Warren, Michigan-based logistics provider reported fourth-quarter operating revenue of $385.4 million, down from $465.1 million a year earlier, while net income fell to $3.7 million, or 14 cents per share, compared with $20.2 million, or 77 cents per share, in the fourth quarter of 2024. Operating income also dropped significantly, falling to $17.5 million from $38.3 million a year earlier as operating margins compressed to 4.5% from 8.2%. “The fourth quarter of 2025 yielded mixed results within our service portfolio,” CEO Tim Phillips said in a news release. “Our contract logistics and trucking segments performed in line with expectations, while underperformance in intermodal remained a meaningful headwind to our overall results.” Contract logistics remains largest segment Universal’s contract logistics segment, which includes value-added and dedicated services, remained the company’s largest business line but still posted lower revenue. Contract logistics generated $268.6 million in revenue, down 12.6% year over year from $307.4 million. The decline was partly due to the completion of a specialty development project in Stanton, Tennessee, that contributed more than $51 million in revenue in the prior-year quarter. The segment recorded operating income of $23.2 million, compared with $39.1 million in the prior-year quarter. Intermodal remains major drag Universal’s intermodal segment posted the steepest operational pressure, with revenue dropping to $52.7 million, down 27.9% from $73.1 million a year earlier. Load volumes declined 19.1%, while pricing fell further, pushing the segment to an operating loss of $10.6 million, compared with a $9.7 million loss in the same quarter of 2024. Trucking and brokerage volumes fall The company’s trucking segment reported revenue of $64.1 million, down 23.6% year over year from $83.8 million. Within that segment, brokerage services revenue fell to $16.1 million, compared with $25.5 million a year earlier as shipment volumes declined. Load volumes in the trucking segment fell 25.9% year over year, though revenue per load increased modestly. Dividend maintained despite weaker results Despite the weaker earnings, Universal’s board declared a quarterly dividend of 10.5 cents per share, payable April 3, to shareholders of record on March 23. The company ended the quarter with $26.8 million in cash and cash equivalents and $802.3 million in outstanding debt. Management said it continues focusing on cost reductions and operational efficiency initiatives as freight market conditions remain subdued. Metric Q4/2025 Q4/2024 Y/Y % Change Total Revenue $385.4M $465.1M -17.1% Trucking Revenue $64.1M $83.8M -23.6% Brokerage Services Revenue $16.1M $25.5M -37.1% Intermodal Revenue $52.7M $73.1M -27.9% Contract Logistics Revenue $268.6M $307.4M -12.6% Adjusted EPS $0.14 $0.77 -81.8% Universal Logistics key fourth-quarter performance indicators.

Royal Bengal Logistics, a Florida-based company, raised $158 million from 2,000 investors by promising 200% monthly returns. The scheme operated under four distinct investment programs, each structured to appear legitimate but ultimately premised on false representations about the company's profitability and growth. These programs were designed to exploit trust networks within defined communities, specifically targeting the Haitian-American community in Broward County and surrounding areas. ["The Truck Program offered investors a minimum of $55,000 for a semi-truck that would be titled in their name and operated by Royal Bengal Logistics as part of its fleet. Investors were promised 200% monthly returns, which is mathematically impossible in any real trucking operation. The program's returns required the trucks to generate gross revenue astronomical enough to support such claims.", ["The Long-Term Owner Financing Program offered returns in the range of 20% to 40%, while the Short-Term Investment Program promised returns in the same range, albeit with a shorter commitment period. The Trailer Sponsorship Program tied investments to trailer manufacturing operations in India, with investors receiving guaranteed returns from the trailers' subsequent use.", ['Despite its professional website and FMCSA registration, Royal Bengal Logistics operated as a Ponzi scheme. The company had real drivers, was listed on the SAFER database, and held annual investor events, but it was operating at a loss and using new investor money to pay returns to existing investors. Singh personally extracted funds from the company throughout, using them for personal expenses, mortgage payments, and stock market trading.', ['The scheme succeeded because it built credibility with a real-looking operation, targeted specific communities where trust networks were strong, paid early investors reliably to generate testimonials and referrals, and used new capital to fund returns to existing investors and personal expenses. The receiver appointed by the court estimated net losses of approximately $53.7 million, while Singh personally lost more than $12 million in investor money through speculative stock trading.', ["The trucks purchased with investor funds were described as older vehicles with 'lots of miles' that were ultimately cannibalized for parts at a Royal Bengal facility in Lubbock, Texas. The trailer manufacturing program had no operational reality that matched its description, and investors who put in $50,000 to fund trailer construction were not financing trailers being built and shipped to expand a growing fleet.", ['The scheme exploited the trust networks within defined communities, specifically targeting the Haitian-American community in Broward County and surrounding areas. The early investors who received returns from the Ponzi scheme became, wittingly or not, the referral network for the next round of investors, allowing the scheme to grow from community to community.', ['The Royal Bengal Logistics scheme succeeded because it was constructed to look legitimate. The website was professional, the FMCSA registration was real, and the early return payments were real. However, these red flags should be precisely named because they appear in every Ponzi scheme that targets the trucking industry.', ["The trucking industry's credibility was exploited by Royal Bengal Logistics to facilitate a massive Ponzi scheme. Every carrier, owner-operator, and investor in a trucking-adjacent deal needs to understand exactly how this mechanism works to avoid falling victim to similar schemes in the future."]]]]]]]]

A civil asset forfeiture process allows law enforcement to seize property suspected of being connected to criminal activity without charging the owner with a crime. In Texas, this process is particularly aggressive, generating over $50 million in state proceeds each year. The financial incentive structure creates a direct stake for officers and prosecutors in the outcome of these cases. The Woods case highlights the risks faced by truckers carrying cash on the road. Ameal Woods, a Mississippi-based owner-operator, was stopped on Interstate 10 in Texas with $42,300 in his trunk, which he had saved to buy a new truck. The sheriff's deputy seized the cash, claiming it was connected to drugs, despite no evidence of illicit activity being found. The case demonstrates how the burden of proof shifts to the property owner in civil forfeiture cases. Unlike criminal cases, where the government must prove guilt beyond a reasonable doubt, civil asset forfeiture requires only a preponderance of evidence that the property is connected to crime. This means the police can take your money without charging you with anything. The Institute for Justice found that 60% of civil forfeiture cases in Texas are resolved without contesting the seizure. In nearly all these cases, the property owner loses their assets because they cannot afford to hire a lawyer or prove the money's innocence. The Woods case is not an isolated incident. Interstate highways are where a significant share of asset forfeiture happens, with Texas generating over $50 million in state proceeds each year through seizures. The money flows directly into law enforcement and prosecutor budgets. Law enforcement agencies in Texas use copy-and-paste affidavit language across dozens of cases, often without the officer present at the traffic stop. This lack of transparency and accountability is a major concern. If you are running a small trucking operation and carrying cash to buy a truck or equipment, civil asset forfeiture is a direct financial risk. The fact that buying a truck with cash is legal does not protect you from seizure. You need to document your transactions and exercise your rights to avoid this situation. Driving through high-interdiction corridors like I-10 in Texas increases the risk of being targeted for asset forfeiture. Documenting every dollar before traveling can help prevent these cases. Knowing what consent means and costs you is crucial, as well as not answering questions about cash voluntarily. The Institute for Justice has consistently argued that states like Texas violate the constitutional guarantee of due process by placing the burden of proof on the property owner rather than the government. Federal courts have generally been reluctant to intervene in state forfeiture programs, but the cumulative weight of cases like Woods' is building a constitutional record that may eventually force a reckoning.

The Surface Transportation Board has denied requests from Norfolk Southern and Union Pacific to investigate Canadian Pacific Kansas City's handling of UP-NS interline intermodal trains on a critical shortcut connecting the West Coast and Southeast. The board stated that any service problems on the Meridian Speedway have been resolved, and gateway conditions imposed as part of the 2023 Canadian Pacific-Kansas City Southern merger do not apply to intermodal traffic moving over the 320-mile corridor. This decision was made unanimously by the STB, indicating a lack of evidence supporting intervention at this time. ['The board also noted that NSR and UP have not demonstrated a need for Board intervention at this time, citing the resolution of service issues on the Meridian Speedway as a key factor in their decision. However, it remains to be seen how this decision will impact intermodal customers who had previously diverted freight to trucks due to alleged deterioration of service.', ["In September, NS and UP wrote separate letters to the STB, with NS alleging that deterioration of service had prompted intermodal customers to divert freight to trucks. NS requested regulators to enforce CPKC's promise to maintain service levels on the Speedway, a shortcut for traffic moving between the West Coast and the Southeast. UP separately asked the STB to investigate whether CPKC was complying with its merger-related commitments.", ["CPKC told the STB that the NS and UP complaints were inaccurate and not subject to board oversight. The Meridian Speedway is a joint venture between CPKC and NS, with CPKC operating the corridor. However, service problems arose after CPKC's May 2025 cutover to the legacy CP computer system in former KCS territory in the United States.", ['CPKC acknowledged service problems immediately following the cutover but stated that those were resolved quickly. By late summer, transit times across the Speedway were faster than before the CP-KCS merger. Despite this, UP and NS had sparred with CPKC over Meridian Speedway operations since CPKC reimposed an 8,500-foot train length restriction in August 2025.', ["The move affected just one train, an interline intermodal service that UP and NS run from Los Angeles to Atlanta. CPKC Chief Executive Keith Creel argued that his railroad's customers should not experience delays simply because UP and NS do not want to run their train to siding length. However, this restriction has led to increased dwell times at Hollywood Yard in Shreveport, where UP splits its 11,000-foot train into two sections before handing the trains to CPKC.", ["The STB's decision suggests that the impact of the train-length restriction on service levels may be more complex than initially thought. The board noted that increased dwell time at Hollywood Yard is not indicative of deteriorated service on the Meridian Speedway, and that UP's actions may be attributed to other factors such as compliance with the 8,500-foot restriction.", ['The outcome of this decision will likely have implications for intermodal customers who rely on reliable service on the Meridian Speedway. As the rail industry continues to evolve, it is essential to ensure that regulatory bodies are equipped to address emerging issues and provide timely intervention when necessary.', ["In conclusion, the STB's denial of a probe into CPKC's handling of intermodal trains highlights the complexities of regulating intermodal services. The decision underscores the importance of close collaboration between railroads, regulators, and customers to ensure seamless service delivery."]]]]]]]]

The trucking industry has been undergoing a significant transformation in recent months, with two federal agencies playing a crucial role in reshaping the driver pool. The Department of Transportation (DOT) and the Department of Homeland Security (DHS) have operated in close coordination, tightening who can legally hold a Commercial Driver's License (CDL) and pulling drivers off interstates and out of their homes who could no longer pass that standard. This two-agency enforcement operation has been one of the primary supply-side stories in trucking since mid-2025, with significant implications for small carriers and owner-operators. The impact of this enforcement wave can be seen in various statistics. FMCSA removed over 7,000 CDL schools from its Training Provider Registry, cutting off the pipeline that was creating fraudulent new CDL entrants. The March 16 Final Rule on non-domiciled CDLs has now taken legal effect, eliminating eligibility for the large majority of current holders who do not meet the new visa standard. California revoked 17,000 CDLs in a single enforcement action, and New York faces DOT orders to revoke more than half of its 32,000 non-domiciled CDLs. The structural direction has not changed, but the management quality and political stability of the agency executing it may improve with Mark Mullin's arrival. As a hardline immigration enforcer from Oklahoma, Mullin is well-positioned to maintain and potentially escalate the posture established by Kristi Noem. He represents a state that pioneered this enforcement model and has personal and political roots in the most aggressive state-level enforcement partnerships in the country. Mullin's background and stated positions suggest he will continue to prioritize immigration enforcement, which may lead to more drivers being pulled off the road. The practical concern raised by some analysts is that Stephen Miller, the White House Deputy Chief of Staff, will continue to drive immigration policy from inside the White House, potentially overriding Mullin's priorities. The supply-side market story has not yet fully materialized in spot rates, with demand remaining soft and enforcement implementation slower than anticipated. However, the cumulative pipeline of capacity removal is building, with estimates suggesting that up to 614,000 drivers could exit the commercial driving market if the full scope of immigration enforcement and CDL restriction runs its course. The J.B. Hunt study by Noël Perry of Transport Futures estimated that a recession would dampen the rate impact, but a multi-year enforcement maturation is still expected. FTR's Avery Vise has projected a potential 'market that is like 2021' by year-end 2026 if enforcement matures and demand stabilizes. The DHS leadership change is not a pivot point for small carriers and owner-operators, but rather a continuity signal with an asterisk for the shutdown resolution wildcard. The person at the top of DHS changes, but the enforcement architecture underneath that person remains largely intact. Mullin's arrival may create a temporary opening for a funding resolution that Noem's presence was obstructing. If that happens, it would restore full DHS operational capacity, including ICE's enforcement budget and staffing, which would likely mean more enforcement activity, not less. The transition from Kristi Noem to Mark Mullin at DHS is unlikely to change the direction of enforcement, but may bring more operational stability. As a hardline immigration enforcer with personal and political roots in the most aggressive state-level enforcement partnerships in the country, Mullin is well-positioned to maintain and potentially escalate the posture established by Noem. The enforcement wave continues to reshape the trucking industry, with significant implications for small carriers and owner-operators. The structural direction has not changed, but the management quality and political stability of the agency executing it may improve with Mullin's arrival.

Mexico's automotive industry continues to play a crucial role in North America's cross-border freight engine, with three-quarters of vehicles produced in the country exported to the US. The industry is heavily export-driven, particularly towards the US market, which remains the main destination for vehicles assembled in Mexico. This deep integration of North American automotive supply chains under the USMCA trade framework underscores the importance of Mexico as a key export platform for automakers serving the North American market. ["The country's major assembly plants, operated by global automakers such as General Motors, Stellantis, and Ford, are concentrated in states like Coahuila, Nuevo León, Guanajuato, Puebla, and San Luis Potosí. These production clusters have turned Mexico into a critical export platform for the automotive sector, with vehicles and components moving daily across the US-Mexico border by truck and rail. The heavy reliance on the US market highlights how production decisions in Mexico are closely tied to demand in the American automotive sector.", ["In February, General Motors led the country with 69,652 vehicles produced, followed by Stellantis with 40,865 units. Other major producers included Nissan with 40,214 vehicles and Ford Motor Co. with 31,508 units. The figures show that Mexico's role as one of the world's most export-oriented automotive manufacturing hubs is firmly established.", ['The industry continues to be dominated by light trucks and SUVs, with about 80.4% of total vehicle production in Mexico accounted for by these types of vehicles during the first two months of 2026. This reflects consumer demand trends in North America, where light trucks and SUVs remain popular choices among car buyers.', ['The growth of the US auto market has also driven investment in logistics infrastructure, with BNSF Railway breaking ground on a major rail-served industrial park in Texas. The Logistics Center North Dallas project represents an investment of roughly $500 million and is expected to take about 19 months to complete.', ['A.P. Moller – Maersk has also expanded its trucking and distribution network in Southern California with the opening of a new ground freight facility in Fontana, California. The site includes 22 dock doors, a fleet of 18 vehicles, and 24/7 operations, allowing Maersk to accelerate freight turnaround times by up to five hours.', ["The Fontana hub complements Maersk's existing ground freight stations in Sacramento, San Francisco, San Diego, and Los Angeles, strengthening the company's network of over 65 facilities across North America. This expansion highlights the growing importance of logistics infrastructure in supporting the growth of the US auto market.", ["As the US auto market continues to grow, it is likely that Mexico will remain a critical player in the country's automotive supply chain. The deep integration of North American automotive supply chains under the USMCA trade framework ensures that Mexico will continue to play a key role in meeting demand for vehicles and components in the US.", ['The growth of the US auto market also underscores the importance of investment in logistics infrastructure, as companies such as BNSF Railway and A.P. Moller – Maersk expand their networks and facilities to support the growing demand for transportation services.']]]]]]]]

The truckload tender rejection rate chart for the Midwest and West Coast regions has revealed an unprecedented disparity, with the Midwest recording rejection rates above 18% for the past month, while the West Coast region saw its rejection rates peak near 5% in early February before retreating. This divergence is a stark contrast to the typical synchronization of regional tender rejection rates, which usually move in sync due to various market and seasonal factors. The most obvious explanation for this disparity lies in seasonality, as the West Coast regional rejection rate typically reaches its lowest levels in the first few months of the year. However, this year's Lunar New Year holiday occurred later than usual, pushing the rebound in import volumes into April, which may contribute to the higher rejection rates on the West Coast. The Midwest region has been under strain due to winter storms and transportation network failures over the past month, resulting in backlogs and uneven demand. The Southwest and Southeast were directly affected by these storms, yet the Midwest still recorded the highest rejection levels. This may be attributed to the fact that the region was already under strain before the recent disruptions. The decline in long-haul or transcontinental truckload volume from the nation's largest West Coast markets is another factor contributing to the divergence. Tenders for loads moving more than 800 miles from Los Angeles and Ontario markets remain down 20-40% year over year, which suggests that some level of demand loss in the region is keeping truckload capacity more available. The shift in demand patterns may also be attributed to intermodal conversion, as loaded domestic intermodal volumes have averaged roughly 10% higher year over year in recent weeks. However, this trend has not been consistent throughout the year, and international container demand has been weaker than in previous years for most of the year. Furthermore, the divergence in rate trends between Midwest and West Coast lanes may be contributing to the disparity. Invoice data suggests that contract rates out of long-haul Los Angeles markets were rising late last year, while rates originating in Chicago were flat to slightly lower. This may indicate that even though overall demand was soft, loads moving by truck out of Los Angeles often carried greater urgency. Regulatory pressures may also be playing a role, although it is difficult to measure precisely. Enforcement pressure appears to have been elevated in parts of the Midwest, prompting a lawyer to publish an article advising foreign-born drivers to avoid operating for a period last October. The divergence between the Midwest and West Coast rejection rates is likely the result of several factors working simultaneously. As import demand returns in the coming weeks and produce season begins, conditions could shift quickly, particularly as many shippers are operating with leaner inventories — adding yet another layer of pressure to an already fractured freight market. The chart of the week highlights the importance of real-time data in understanding the state of the freight markets. The SONAR truckload rejection index provides a valuable snapshot of the industry's performance, and the commentary offers insights into the factors driving this disparity between the Midwest and West Coast regions.

The retail industry is the engine that drives truckload freight, with products moving on trucks multiple times from factories to ports, and then to distribution centers, warehouses, and finally to stores. This means that carriers are crucial to the movement of goods. The load board changes when retailers shift their supply chain strategies, resulting in different markets becoming busier or more congested. ["When retailers change where they store product and how they move it, the load board changes with them. Different markets get busier, while others tighten up. Carriers who understand this shift can position themselves in the right markets to capitalize on the increased demand. Those who don't may find themselves chasing freight that has already moved to another location.", ['A survey of 250 retail supply chain executives reveals a significant shift in the way retailers are moving their product. The biggest finding is that 93% of these leaders plan to expand warehousing and distribution in the US or Mexico, with 85% aiming to pull at least half of their supply chain footprint out of East Asia by 2028.', ['This shift away from East Asia means that carriers will see changes in the types of freight they are handling. With fewer products coming from China, there is a growing need for carriers who can handle Mexican and domestic goods more efficiently.', ['The Midwest and Southeast are expected to benefit from this shift, with regional distribution centers being built in markets such as Nashville, Memphis, and Columbus. This will result in shorter hauls, more frequent loads, and increased activity in these regions.', ['Carriers who understand the changing dynamics of the retail supply chain can position themselves for success by targeting these emerging markets. However, those who fail to adapt may find themselves struggling to keep up with demand.', ['The survey also found that 93% of retail supply chain leaders are increasing buffer inventory to counter trade uncertainty. This means that carriers will see an increase in freight volumes as retailers stockpile more product than they need.', ["Buffer inventory is a temporary surge in freight activity, driven by retailers' efforts to hedge against tariff changes and supply disruptions. Carriers should be aware of this trend and position themselves accordingly.", ['The survey highlights the importance of understanding the decision behind the load. By knowing why a particular load is moving, carriers can anticipate when the market will shift and get positioned in the right markets before everyone else figures it out.', ['For carriers who pick up freight through broker or direct shipper relationships, the most important number to note is that only 21% of retail supply chain executives said they are confident their current logistics network is equipped for the regional fulfillment strategy they are committing to. This means that 79% are not satisfied and plan to restructure their partnerships.', ["The survey found that weak visibility tools are a major gap in shippers' current carriers, with 55% citing this as an issue. Carriers should prioritize building real-time tracking capabilities to stay competitive.", ["However, it's essential to note that the regional DC buildout is not yet complete, and the full volume of freight will not materialize until consumers start spending again at the pace those investments assume.", ['Carriers should be cautious in their pricing strategies and avoid stretching their operations against demand levels that have not yet arrived. By understanding the changing dynamics of the retail supply chain, carriers can position themselves for success and capitalize on emerging markets.']]]]]]]]]]]]

The FMCSA has issued a formal warning to the trucking industry, advising against buying, selling, or leasing USDOT numbers and operating authorities outside of legitimate corporate transactions. The agency's move is a response to the growing issue of illicit paper companies that have been selling these authorities online at inflated prices. These companies are taking advantage of the industry's vetting ecosystem, which relies on age as a factor in determining trustworthiness. By acquiring an aged authority, carriers can bypass the probationary period and gain access to freight relationships that would otherwise be out of reach. The problem is not just about the cost, but also about the legitimacy of the carrier's identity. Aged authorities often come with fabricated email accounts, DAT and TruckStop profiles, bank accounts, and carrier packets that have been pre-filed with major brokers. This manufactured identity can be used to deceive brokers and shippers into approving the carrier. The FMCSA's bulletin highlights a critical issue in the industry: the lack of scrutiny when it comes to transfers between entities. The agency notes that some transactions may appear legitimate on the surface but can actually involve bad actors running under clean identities. MOTUS, the registration modernization platform, is designed to strengthen identity verification and detect relationships between entities through shared addresses, phone numbers, and personnel. However, even with these improvements, the system is not foolproof, and bad actors can still find ways to exploit it. The marketplace for illicit paper companies has been thriving online, with websites and messenger apps serving as venues for transactions. Buyers are willing to pay inflated prices for these authorities, often ranging from $3,000 to $10,000, depending on the age and legitimacy of the carrier's identity. This is not a paperwork problem, but rather a issue of accountability. When carriers acquire an aged authority, they are essentially buying legitimacy wholesale. The FMCSA has warned that participation in this market will result in revocation of operating authorities. The implications for legitimate operators are clear: nothing changes if they follow the proper procedures for buying or selling businesses. However, for those who engage in illicit activities, the consequences can be severe. The FMCSA's move is a significant step towards addressing the problem of illicit paper companies and restoring trust in the industry.

The federal government has moved to restore the owner-operator model, which has been subject to significant changes and uncertainty in recent years. The Department of Labor's formal proposal to rescind the 2024 rule and return to something close to the 2021 framework is a welcome relief for small carriers and owner-operators who have structured their businesses around this model. The proposed rule does two things: first, it formally rescinds the 2024 Biden rule, eliminating the six-factor equal-weight framework; second, it restores something close to the 2021 Trump-era framework, which applied the same economic reality test but with a critical structural difference. The new framework elevates two factors above the rest as core factors that carry the most weight in the analysis: control over work and opportunity for profit or loss based on the worker's own initiative and investment. The change is more favorable to the owner-operator model because it centers the analysis on entrepreneurial independence rather than functional integration. An owner-operator who owns their own truck, sets their own schedule, manages their own fuel costs, chooses their own loads, and takes on the financial risk and reward of their own business makes their own profit-and-loss decisions. The 'integral to the business' consideration is still present in the new framework but no longer carries equal weight. The Department of Labor's Wage and Hour Division administrator Andrew Rogers described the philosophical shift directly: 'Generally, if a worker is in business for him or herself and isn't dependent on an employer for work, the worker is an independent contractor.' The Owner-Operator Independent Drivers Association (OOIDA) has welcomed the proposal specifically because it corrects a problem in the 2021 version that OOIDA had flagged. The new rule removes an example that suggested motor carriers could require speed limiters and other technology on independent contractors' trucks to maintain regulatory compliance, which would have undermined the independence that defines the contractor relationship. However, this is not a final rule yet; it's a proposed rule that requires public comment until April 28. The Department of Labor must issue a final rule after reviewing comments, and federal rules do not override state law. This means that small carriers operating in states with stricter independent contractor laws, such as California, still need to comply with those regulations. The proposed rule does reduce the likelihood of an aggressive DOL enforcement campaign targeting carrier-contractor relationships but does not eliminate the civil litigation risk. If a relationship would not survive scrutiny under a rigorous analysis, the shift in DOL enforcement posture does not immunize it from a lawsuit. For small carriers and owner-operators who use the 1099 contractor relationship, this rule change is real and immediate. The pressure around the 'integral to the business' factor has been removed from the federal enforcement framework, allowing carriers to move forward with more confidence at the federal level. The new framework protects genuine independent contractor status primarily if the driver owns their truck, manages their costs, and makes entrepreneurial decisions about their own business. However, it's essential to document that independence to ensure protection under this rule.

The FMCSA has issued a formal warning to carriers not to buy or sell DOT numbers, as this behavior can lead to revocation of operating authority. The bulletin emphasizes that USDOT numbers are non-transferable identifiers assigned to specific legal persons and cannot be sold, rented, or transferred outside of legitimate corporate transactions. This warning comes in response to the growing issue of chameleon carriers, which are trucking companies that get shut down for safety violations, revoked authority, or enforcement actions, then reopen under a new identity — new name, new DOT number, clean record — and return to the road as if nothing happened. FMCSA has been tracking this problem since the early 2000s and has found that these reincarnated carriers are approximately three times more likely to be involved in serious crashes than legitimate new-entrant carriers. The bulletin also highlights the importance of understanding which structure your business operates under, as this determines what is legally possible when you sell your business, take on a partner, or change the structure of your operation. Sole proprietors can keep their USDOT number, but corporations must transfer it to the new owners upon sale or change in ownership. FMCSA's bulletin serves as part of a broader federal crackdown on chameleon carriers and registration fraud. The agency is using new tools and strategies to detect and prevent this type of behavior, including strengthened identity verification at the point of registration and improved ability to detect relationships between entities through shared addresses, phone numbers, personnel, and other data points. The bulletin also notes that the market for USDOT numbers can be used to misrepresent a carrier's compliance history, which is a serious competitive and safety threat. Legitimate carriers who built their safety records honestly over years of compliant operations are being directly threatened by this kind of fraud. FMCSA's new MOTUS registration system is designed to make this type of fraud harder to execute. The system includes strengthened identity verification, improved ability to detect relationships between entities, and tighter integration between registration records and enforcement history. Carriers operating transparently have nothing to fear from a system designed to detect fraud. However, those who engage in improper transfers or purchase leased DOT numbers are at risk of having their authority revoked. The bulletin has four practical implications for small carriers and owner-operators: they must understand that USDOT numbers do not transfer with the sale of a business, they must update FMCSA records promptly when ownership changes, they must be aware that purchasing or leasing an established DOT number is a serious offense, and they must take steps to protect themselves from being targeted by fraudulent schemes. The bulletin serves as part of a year's worth of accelerating enforcement signals from the federal government. The agency is cracking down on all types of freight fraud, including fake CDL schools, non-domiciled driver fraud, shell company structures, purchased DOT numbers, and chameleon carrier reincarnation.

CMA CGM, the world's third-largest ocean carrier, has announced plans to re-flag 30 of its ships under the French flag, starting in 2026. The move is expected to increase the company's home-registered fleet by 30%, bringing the total number of vessels registered under the French flag to 40. This significant expansion will mark a major comeback for CMA CGM, which had faced challenges in recent years due to increased competition and rising costs. ["The decision comes on the heels of CMA CGM's CEO, Rodolphe Saade, appearing in the Oval Office with President Donald Trump in March 2025. At the time, Saade pledged investment of $20 billion over four years in U.S. shipping, sparking hopes that the company would invest in new vessels and support American shipyards. However, as of February, CMA CGM had spent only about $1 billion on terminals at Bayonne, New Jersey, and Los Angeles, with no new ship investments made.", ["Despite the initial investment promise, CMA CGM has struggled to meet its targets, registering just one vessel under the U.S. flag. The company's maritime revenue and profits have also declined in 2025, with box traffic reaching 24.2 million TEUs, up 2.8% year-on-year, but revenue declining 6.1% to $34.3 billion. Operating earnings (EBITDA) fell to $7.9 billion from $11.2 billion and EBITDA margin slipped 7.8 points to 23%, on average revenue per TEU off 8.7% to $1,414.", ["The decline in CMA CGM's financial performance is attributed to a range of factors, including the global trade reset, geopolitical disruptions, and excess vessel capacity. These challenges have put pressure on the company's bottom line, making it essential for CMA CGM to adapt and innovate to remain competitive in the market.", ["CMA CGM's decision to re-flag its ships under the French flag is a strategic move that will help the company navigate these challenges. By increasing its home-registered fleet, CMA CGM can take advantage of more favorable tax regulations and regulatory frameworks, which will enable it to operate more efficiently and effectively.", ["This expansion also marks a significant step forward for CMA CGM's commitment to supporting American shipyards and investing in U.S. shipping. The company's pledge of $20 billion over four years was seen as a major boost to the domestic maritime sector, and this move will help to reinforce that promise.", ["The re-flagging of 30 ships under the French flag is a testament to CMA CGM's commitment to its long-term strategy. By investing in its home-registered fleet, the company can build resilience and adaptability, which are essential for success in today's fast-paced and competitive maritime market.", ['As the global economy continues to evolve, it is likely that CMA CGM will continue to face challenges and uncertainties. However, with this strategic move, the company is taking a proactive approach to addressing these challenges and positioning itself for long-term success.', ["The future of CMA CGM's operations in the U.S. remains uncertain, but one thing is clear: the company's decision to re-flag its ships under the French flag marks an important turning point in its journey towards recovery and growth."]]]]]]]]

Farmers are warning President Trump that the closure of the Strait of Hormuz could send fertilizer prices higher as planting season starts, potentially leading to higher food prices for consumers. The American Farm Bureau Federation in a letter to Trump said prices for fuel and fertilizer have increased rapidly since Iran closed the Strait. Ships move 30% of fertilizer inputs such as phosphate and urea and finished fertilizer, and 20% of crude oil from the Persian Gulf, to global markets including the United States. The closure of the Strait of Hormuz has already had a significant impact on global energy markets, with fuel prices increasing rapidly since Iran closed the waterway. The American Farm Bureau Federation is now warning that this disruption could have far-reaching consequences for farmers and consumers alike. With planting season just around the corner, any further disruptions to fertilizer supplies could lead to higher food prices and reduced crop yields. The AFBF has called on Trump to prioritize the delivery of fertilizer ingredients or risk a shortfall in crops. This is a critical issue for farmers who are already struggling with tight margins and low crop prices. The group's president, Zippy Duvall, has warned that any failure to act could lead to disruptions to the food supply chain not seen since 2022 when food price inflation reached record highs. The closure of the Strait of Hormuz is not just a threat to American farmers, but also to national security. The production of fertilizers and other essential crops relies on a complex web of global supply chains, and any disruption could have far-reaching consequences for the entire economy. Duvall has warned that a failure to act could contribute to inflationary pressures across the U.S. economy. The American Farm Bureau Federation is urging Trump to work with other nations to maintain open shipping lanes in the Strait of Hormuz. This would involve providing U.S. Navy escorts for vessels hauling fertilizer and other essential goods, as well as facilitating insurance coverage for shipping. The group has also called for a waiver of the Jones Act, which requires cargo moving between domestic ports to be carried by U.S.-flag vessels. The closure of the Strait of Hormuz is already having a significant impact on global energy markets, with fuel prices increasing rapidly since Iran closed the waterway. This disruption could have far-reaching consequences for farmers and consumers alike, particularly in the United States where many crops rely on imported fertilizers and other essential goods. The American Farm Bureau Federation's call for U.S. Navy escorts and insurance coverage is a critical step towards mitigating this risk. The Jones Act has been a contentious issue in recent years, with some arguing that it restricts competition and drives up costs. However, the American Farm Bureau Federation is urging Trump to consider waiving the act for fuel transportation, as this could help to reduce costs and improve efficiency. The group's call for insurance coverage is also a critical step towards mitigating the risk of disruptions to the food supply chain. The closure of the Strait of Hormuz poses a significant threat to the global food supply, and its impact will be felt across the United States. The American Farm Bureau Federation's warnings are a timely reminder of the importance of maintaining open shipping lanes in this critical region. Any failure to act could have far-reaching consequences for farmers, consumers, and the entire economy. The situation highlights the complex web of global supply chains that underpin modern agriculture. The closure of the Strait of Hormuz is just one example of how disruptions to these supply chains can have far-reaching consequences for farmers and consumers alike. As the world becomes increasingly interconnected, it is more important than ever to prioritize cooperation and coordination between nations. The American Farm Bureau Federation's call for action is a critical step towards mitigating the risk of disruptions to the food supply chain. By prioritizing the delivery of fertilizer ingredients and working with other nations to maintain open shipping lanes, Trump can help to ensure that farmers have access to the essential goods they need to produce crops. This is a critical issue for national security and economic stability, and it requires immediate attention from policymakers.

Amazon has expanded its network in India to the northeast, launching new routes connecting Kolkata and Guwahati to Delhi and other regions with fulfillment centers. The company announced this expansion on Friday, which is expected to improve delivery speeds by up to five times across all seven sister states in the region. By adding dedicated air capacity, Amazon is reducing transit times that were previously constrained by road and rail connectivity. The northeast region of India has historically faced logistics challenges due to its geography, making it difficult for businesses to transport goods efficiently. However, with this expansion, Amazon is providing a reliable and efficient solution for sellers in the region, including those in horticulture and specialty produce. This will enable them to access customers nationwide more easily. The new routes launched by Amazon will connect Kolkata and Guwahati to Delhi and other regions with fulfillment centers, creating an integrated air and surface multimodal network. This network will improve delivery speeds across the region and provide businesses with a competitive edge in the market. Amazon's expansion into the northeast region is also expected to boost cross-border e-commerce, as the value cap on courier exports has been removed. This move is part of the government's efforts to encourage air cargo development in the region, which includes funding for building air cargo infrastructure and warehousing. The company's logistics capabilities in India date back to 2013, when it began operating overnight routes connecting major metro areas. Today, Amazon operates about eight air-rail multimodal connections and leverages belly compartments in commercial passenger aircraft to expand its reach. Amazon Air has an extensive air logistics network in the United States and Europe, with a smaller operation in India. The company's fleet includes around 100 aircraft, which will be used to support high-volume one-day delivery across the region. The expansion of Amazon's air cargo service is significant because it provides businesses in the northeast region with access to a broader customer base and enables them to participate more fully in India's growing digital economy. This move will also help to reduce transit times, making it easier for sellers to transport goods efficiently. In addition to improving delivery speeds, the expansion of Amazon's air cargo service is also expected to create new opportunities for businesses in the region. With this expanded network, sellers can now reach customers nationwide more easily and participate in cross-border e-commerce. Overall, the expansion of Amazon's air cargo service to Northeast India is a significant move that will improve delivery speeds and enhance the region's logistics capabilities. As the company continues to grow its presence in the region, it is likely to have a positive impact on the local economy.

The new bill, which was introduced on February 25, 2026, aims to create a certification requirement for surface transportation contracts with the Department of Defense. This means that any carrier involved in transporting DOD freight must submit a written certification stating they are not owned or controlled by a Chinese military company. The certification requirement applies to prime contractors, subcontractors, and owner-operators at all tiers of the supply chain. This means that even small carriers and independent operators will be required to meet these standards. The bill also requires prime contractors to keep records of certifications for at least 5 years and subjects violators to suspension and debarment from DOD contracting. The new legislation creates a Secure Defense Freight Carrier Registry, which will require carriers to undergo enhanced national security vetting. This screening process will check for ownership or control connections to Chinese military entities or other foreign adversary entities. Carriers must also verify that drivers and personnel with access to DOD freight meet security standards comparable to the Transportation Worker Identification Credential program. The registry will be established within one year of enactment, and carriers will need to re-vet every two years. The bill also provides a waiver provision for exigent circumstances at the Secretary of Defense's discretion. However, the baseline prohibition remains hard, and carriers that fail to comply may face significant penalties. The introduction of this legislation comes as concerns about Chinese military influence in the U.S. supply chain continue to grow. In recent months, several high-profile cases have highlighted the risks of Chinese-owned companies operating in the trucking industry. This bill aims to address these concerns by creating a more robust and transparent system for regulating Chinese-owned carriers. The impact of this legislation will be felt across the entire supply chain. As the bill requires certification at every level of the chain, even small carriers and independent operators will need to adapt to new standards. The increased scrutiny will also put pressure on prime contractors to ensure that their subcontractors and owner-operators meet these requirements. The trucking industry has long operated outside the scope of similar regulations in other areas of the supply chain. However, with this bill, the era of assuming that cleared contractors automatically mean secure freight is over. The new legislation marks a significant shift in the trucking industry's approach to security and compliance with U.S. regulations. As carriers prepare for the implementation of this new law, it is essential to understand the implications and requirements. Carriers must ensure they have robust systems in place to verify ownership structures and Chinese military connections. This will require significant lead time and resources to implement new vetting processes. The introduction of this legislation highlights the growing importance of supply chain security in the modern era. As companies continue to face increasing scrutiny over their relationships with foreign entities, it is essential that they prioritize transparency and compliance. The trucking industry must adapt to these changing regulations to remain competitive and secure.

Uber Freight says the freight market could be entering a more volatile phase, with tightening truckload capacity, elevated cargo theft and policy-driven disruptions. According to Uber Freight’s report Q1 freight market update: What shippers should be watching now , tender acceptance rates have fallen sharply from last year, signaling increasing pressure on truckload networks and higher transportation costs for shippers. “Even with seasonal headwinds, the market remains structurally tight,” the report said. “First-tender acceptance is hovering around 85%, significantly lower than last year’s 92%. This has led to elevated shipper costs, as rejected shipments are either moving down routing guides or into the spot market.” Spot truckload rates are currently more than 25% higher year over year, reflecting tightening supply and demand dynamics across trucking. “Planning cycles are shortening, and flexibility is becoming more valuable than ever,” Uber Freight said. San Francisco-based Uber Technologies (NYSE: UBER ) operates three platforms: Uber (ride-hailing), Uber Freight (logistics), and Uber Eats (food and goods delivery). Truckload capacity tightening again Uber Freight analysts said structural changes in the trucking sector are reducing available capacity even as demand begins to recover. Organic supply reductions, weak equipment sales and regulatory pressures have limited the number of carriers entering the market. At the same time, consumer-oriented sectors such as retail and consumer packaged goods are showing stronger freight demand. “On the demand side, there is a split based on sectors. Consumer-oriented lanes, like retail and CPG, are driving volume growth, while industrial sectors remain stagnant. However, manufacturing output and orders have shown positive signs, potentially signaling a recovery,” the report said. Industrial sectors remain relatively weak, but early signals suggest manufacturing output and orders could begin improving later this year. The combination is creating uneven freight flows that are increasing volatility across truckload networks. For shippers, the report recommends strengthening routing guides, diversifying carrier relationships and closely monitoring market conditions to avoid excessive exposure to the spot market. “Focus on short-term (30-90-day) pricing resets on specific lanes. However, avoid chasing the lowest prices, as this could lead to carrier issues and declining routing guide performance,” Uber Freight said. LTL networks could see spillover freight The tightening truckload environment may also push more shipments into the less-than-truckload sector. Uber Freight said LTL rates are currently up 5.2% year over year, reaching record levels even as demand across the sector has been relatively soft. “With these shifts, large industrial and CPG shippers are beginning to rethink their legacy LTL Strategies,” according to the report. “This includes considering ways to reduce daily and premium LTL and focusing more on efficient moves with consolidation and deferred options.” If truckload capacity tightens further, the report suggests that LTL carriers could experience increased freight volumes as shippers move smaller shipments or consolidate freight differently. Some large shippers are already reconsidering their LTL strategies by reducing premium shipments and shifting toward consolidated or deferred service options to control costs. Cargo theft and fraud remain elevated Security risks remain one of the freight industry’s most persistent operational challenges, Uber Freight said. Cargo theft incidents across North America increased 18% in 2025, according to the report, underscoring ongoing vulnerabilities across trucking and logistics networks. Uber Freight said its own network has reduced fraud incidents by about 20% through tighter carrier onboarding procedures and increased monitoring of suspicious activity. The report also points to potential regulatory responses aimed at combating organized theft, including legislation such as the Combating Organized Retail Crime Act and the Household Goods Shipping Consumer Protection Act. Industry groups have also expanded cooperation with security databases such as CargoNet to identify fraud patterns and track stolen shipments. Cross-border freight faces growing uncertainty Policy changes and geopolitical tensions are also contributing to increased volatility in international logistics. Uber Freight analysts said cross-border networks — particularly trade flows involving Mexico, Canada and major ocean shipping corridors — are experiencing sudden disruptions rather than gradual global shifts. “Tariff moves, new regulations, carrier exits, and severe weather are all factors that can impact cross-border operations,” the report said. Ocean shipping reliability has slipped slightly to about 63% schedule reliability, with vessel delays averaging just over five days. The legal battle surrounding tariffs imposed under the International Emergency Economic Powers Act (IEEPA) has also added uncertainty to global trade planning. While a recent court ruling lowered effective tariff rates after determining that President Donald Trump exceeded his authority in some cases, Uber Freight analysts said any increase in global tariff levels could quickly raise landed costs and disrupt established supply chains. “In Mexico and Canada, shippers are increasing mini-bids, executing routing guide resets, and focusing on benchmarking and early Q3 conversations as they respond to new regulations, changing rates, and freight volumes,” Uber Freight said. Freight market entering a more complex phase Rather than a single market-wide shift, Uber Freight said supply chain disruptions are increasingly appearing as lane-level shocks — sudden rate spikes, corridor closures or localized capacity shortages. To prepare, the report recommends that shippers develop corridor-specific contingency plans, diversify carrier networks and improve shipment visibility. The goal is to ensure freight continues moving even when specific trade lanes or transportation modes face sudden disruptions. “As policy changes and market volatility accelerate, shippers that plan proactively and build flexible networks will be better positioned to manage risk,” the report said.

New York–Flexport’s public introduction of its winter technology release could not have been more opportune, and one part of its timeliness wasn’t even known when the presentation took place. At a well-attended event in New York City late last month, with dimmed lighting and a setting more akin to a cocktail reception, Flexort CEO Ryan Petersen had an unexpected tailwind when he addressed the audience about the latest version of the company’s supply chain software: the Supreme Court rejection of President Donald Trump’s tariffs. That step suddenly made several features in the company’s latest release likely more valuable to its freight forwarding customers than they might have been had the court’s decision gone the other way. And then a little more than a week after the New York event, the U.S. and Israel launched its attack on Iran, followed by an Iranian counterattack, creating massive turmoil in international freight markets. The tools in the winter Flexport release thus got a little more valuable. The radical shifts in some shipping routes as a result of the Middle East war were almost a perfect “value prop” for the first product Petersen introduced in his presentation: the Flexport Atlas. Atlas is the first new product cited The Atlas, like all the services introduced at the New York event, has no cost. Additionally, the Atlas is available to non-users of the Flexport system and can be accessed here. It’s based on data Flexport already has for use by its customers monitoring the status of their shipments. “This is our first attempt to really bring that to the surface and allow you to see how the world’s ocean network actually functions,” Petersen said. As Petersen described it, Flexport Atlas allows its users to “zoom in on any port and see what’s happening. What are the terminals? What are the ships that are coming and going to this port? What are the current levels of congestion?” The list continued from there. While Flexport Atlas may not have seemed as valuable during the presentation as now, because the Middle East war was still more than a week away, several other features rolled out in the Flexport system (all are no-cost additions) were more immediately important coming so soon after the Supreme Court tariff decision. As with any presentation today about technology changes, AI was never far from the discussion. Tariffs tools: Petersen had spoken for a while before mentioning tariffs, “which is pretty crazy given the Supreme Court ruling,” he said. The court invalidated the Trump administration tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The fall release featured a tariff simulator, which Petersen said “is getting a huge amount of usage.” It was part of a suite of products aimed at aiding the interaction between shippers and U.S. Customs. The simulator is driven, Petersen said, by a Flexport staff that he said has “a team of experts with dozens of years and decades of experience in customs compliance, to interpret the rules and read the new regulations, to figure out, OK, how does this actually work?” The tool is available online to non-Flexport customers. The changes wrought by the Supreme Court decision on tariffs, which came down on a Friday, had been built into the tariff simulator by Monday, Petersen said. “We have that commitment to always keep this up to date and accurate,” he said. Petersen said the number one user of the simulator, based on data coming off the tool, is U.S. Customs and Border Protection. The next logical step, given all that has occurred with tariffs, is a refund calculator. Flexport’s product to calculate refunds had been in development when the Supreme Court decision came down, Petersen said. He said the tool is “very easy to use.” But that doesn’t mean the question of refunds will be easy. “Don’t get too excited, don’t start spending that money,” Petersen said. “But I do believe there will be refunds on the IEEPA duties.” Even if the tool is simple, he said, calculating refunds is not simple. “But that’s what this tool is about,” Petersen said. “Your CFO is going to love it to show them what might be coming. Flexport Digital Routing Guide: Petersen described current routing guides as “simply taking two different port pairs and saying, OK, when I have a container going between those ports, which carrier should ship it? And if it’s not available on the first carrier it rolls over to the second and on downward.” He described the system as “dumb and static. There’s no business logic here.” The digital routing guide will use agentic AI to answer the question of “how do you want your container to move? Do you want to go in the first ship available, the cheapest ship, do you want to allocate freight in certain ratios?” The product’s real time algorithms will assign the containers to a ship based on those customer desires, Petersen said. Improvements in search: In the fall release, Flexport introduced what Petersen described as a “single pane of glass, allowing you to see all your shipments on the platform, regardless whether you shipped it with Flexport with another forwarder or carrier.” That came with a search engine that Petersen described as “being able to just type what you’re looking for, whether it’s the name of a product, a purchase order number, and just instantly it shows up.” The latest AI features within the search engine is “much more powerful in terms of using natural language to search,” he said. He said the tool is live for some customers now but will be rolled out to the universe of Flexport’s clients in the coming weeks. Cutting back on notifications: Petersen said customer feedback has been that users “told us they don’t love the number of notifications that we send, just like sort of way too much information and it’s hard to figure out what really matters.” That will be cut by about 80%, he said, “by just being really granular and specific about what data people are going to want to see and not doing this like sending the same message to two people at the same company.” Translation service: “For the last 200 years or so, English has been the language of global trade, and today we’re introducing live translation because there’s billions of people around the who world who don’t speak English,” Petersen said. And a lot of them, he added, are from countries that “are really important manufacturing centers for our customers.” Languages available in the new tools are Vietnamese, Thai, Korean, Italian, German and Spanish. That range of languages should take care of about 86% of container trade, Petersen added. TikTok tie-in: Flexport now services about a million orders per year for TikTok merchants, Petersen said. The company now will be a “first class citizen in the Flexport seller portal, so you can just instantly connect here, fulfilling inventory from a single pool.” The end consumers of the products will be able to get live tracking updates inside the TikTok app, he said. More articles by John Kingston Derek Barrs defends FMCSA’s bold moves at TCA 6th Circuit rejects NLRB’s Cemex rule, dealing blow to unionization efforts Amazon defrauded: guilty plea in $3M+ fraud involving trailers

The freight market is improving. That part is true. Spot rates on the Sonar National Truckload Index climbed from around $2.60 per mile in mid-January to nearly $2.82 by February — a 20-cent jump that had carriers posting on social media for the first time in years without the word “survival” attached to it. Tender rejection rates are creeping up. Some lanes are genuinely tightening. And compliance enforcement — the crackdown on non-domiciled CDLs with a March 16 Final Rule removing an estimated 200,000 CDL holders from the eligible driver pool — is generating the kind of supply-side optimism the industry has not felt since 2021. But here is the problem with all of that. The thing that actually generates sustainable freight demand — not rate spikes, not capacity exits, but real, durable, repeatable freight volume — is the consumer. And the consumer, right now, is telling a completely different story than the one trucking social media is celebrating. Understanding both stories — not just the one that feels good — is the only way to run a disciplined operation in this market. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot('/21776187881/FW-Responsive-Main_Content-Slot1', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668545404-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1709668545404-0'); }); The Signal Everyone Is Talking About: Capacity Is Finally Leaving To understand why carriers are excited, you have to go back to the root cause of everything that has happened to trucking since mid-2022. The industry is oversupplied. Not slightly oversupplied — catastrophically oversupplied relative to where freight demand settled after the pandemic bubble deflated. When you have too many trucks chasing too few loads, rates collapse regardless of fuel costs, regardless of driver wages, regardless of how professionally you run your business. The math doesn’t care about your operational excellence when there are ten carriers bidding on every load that would have once attracted three. That dynamic began to shift — slowly — as carrier exits accelerated through 2024 and into 2025. Over 6,400 carrier authorities were revoked in December 2025 alone . The freight recession has been brutal precisely because it has been doing the work of forcing out the capacity that flooded in during the 2021 boom. Now compliance enforcement is accelerating that exit. The FMCSA’s March 16 Final Rule limits non-domiciled CDLs to holders of H-2A, H-2B, and E-2 visas. FMCSA’s own estimate is that 97% of the approximately 200,000 current non-domiciled CDL holders will not qualify under the new standard. California alone cancelled 13,000 CDLs in a single day on March 6. J.B. Hunt has projected total market removals of 214,000 to 437,000 drivers over the next two to three years. That is a meaningful supply reduction in a market where supply reduction is exactly what rates need to recover. The market understands this math. That is what the spot rate optimism is about. And that optimism is not irrational. But here is where the analysis has to go deeper, because supply and demand is always a two-variable equation — and the trucking industry right now is having a very serious conversation about one variable while almost entirely ignoring the other. Chart: SONAR CDNCA.USA. This chart shows the difference in capacity (net) and it tells a story over the past few years of exits, as well as entrants The Signal Nobody Wants to Talk About: The Consumer Is Tapped Out Freight does not move because trucks exist. Freight moves because people buy things. That sounds obvious. But it has a profound implication that gets lost in every conversation about CDL enforcement and capacity exits: if the people buying things run out of money, run out of credit, or simply stop buying, it does not matter how many trucks leave the market. You can remove 500,000 drivers tomorrow and rates will not recover long term if the freight they would have hauled never materializes. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot('/21776187881/fw-responsive-main_content-slot3', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767553440-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767553440-0'); }); And right now, every major economic indicator tied to consumer spending is flashing yellow. Serious delinquencies are skyrocketing in the US: Credit card delinquencies rose +0.3 percentage points in Q4 2025, to 12.7%, the highest since Q1 2011. This is only below the 2010-2011 period when delinquencies peaked at 13.7%, in the aftermath of 2008. Since Q3 2022, serious… pic.twitter.com/1h22VTZKzQ — The Kobeissi Letter (@KobeissiLetter) February 11, 2026 Credit card debt just hit a record no one in this country has ever seen. Total U.S. credit card balances reached $1.277 trillion in the fourth quarter of 2025, according to the Federal Reserve Bank of New York — the highest balance recorded since tracking began in 1999. That number is $350 billion higher than the previous pre-pandemic record set in Q4 2019. Balances have increased 66% since Q1 2021, when pandemic-era savings briefly pulled them down. Nearly half of all American credit cardholders — 47% — are currently carrying a balance from month to month, and the average APR on those balances is running above 20%. Americans are not saving and spending. They are borrowing and spending, and that borrowing has a ceiling. Total U.S. consumer debt across all categories — mortgages, auto loans, credit cards, student loans — has surpassed $18 trillion. The Federal Reserve Bank of Boston’s own research found that low-income and middle-income consumers are now carrying higher levels of real credit card debt than they held before the pandemic, while only high-income consumers still have room on their cards. The spending growth that has kept the economy appearing healthy has been concentrated at the top of the income distribution. The bottom and middle — the people who generate the bulk of everyday consumer goods freight — are stretched. The college graduate unemployment problem is not a talent story. It is a demand story. In the fourth quarter of 2025, the unemployment rate for recent college graduates aged 22–27 climbed to approximately 5.7%, with the underemployment rate hitting 42.5% — its highest level since 2020, according to the Federal Reserve Bank of New York. Bloomberg reported in February 2026 that the percentage of unemployed Americans with four-year degrees hit a record in January at 36.6% of those 25 and older. The unemployment rate for college graduates between ages 23–27 has risen 42% since 2019. Why does this matter to a trucker? Because college-educated workers in their 20s and 30s are the primary demographic for household formation , new home purchases, appliance purchases, furniture purchases, and the discretionary consumer spending that generates freight. When those workers are unemployed or underemployed, they are not signing leases on new apartments. They are not buying sofas from Ashley HomeStore. They are not ordering grills for the backyard they do not yet own. Oxford Economics has been direct about the cause: entry-level positions are being displaced by AI at measurably higher rates, and hiring for new graduates is down 16% year-over-year. This is not a temporary blip. It is a structural shift in who is entering the consumer spending cycle — and the answer right now is fewer people than in any comparable period in over a decade. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot('/21776187881/fw-responsive-main_content-slot4', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668086344-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1709668086344-0'); }); The housing market is confirming the same story from a different direction. Redfin documented that in December 2025, there were over 600,000 more sellers than buyers in the U.S. housing market — a 47% disparity and an all-time record in data going back to 2013. Pending home sales plummeted 9.3% that same month, the steepest monthly drop since April 2020. Foreclosure filings were up 19% year over year in October 2025. This matters to trucking in a way that rarely gets explained clearly. Housing is the freight multiplier. Every home purchase generates a cascade of downstream freight: appliances, furniture, building materials, landscaping supplies, home improvement goods, flooring, fixtures. New home sales and existing home sales combined represent one of the largest and most consistent freight demand drivers in the entire economy. When 600,000 more people are trying to sell homes than there are buyers to purchase them, that entire downstream freight chain goes quiet. Home Depot and Lowe’s feel it first . Then the carriers hauling to those distribution centers feel it. Then you feel it at the load board. I believe it's no longer a question of IF but WHEN the national average price for diesel reaches $5 per gallon… thinking the next few days it'll happen. $4.83/gal right now. — Patrick De Haan (@GasBuddyGuy) March 12, 2026 Gas prices are now double-taxing a consumer who was already at the limit. When crude oil spiked past $100 a barrel following the Iran conflict — with Brent briefly touching $119.50 — and retail gas prices moved toward $4.00 and beyond, it did not just hurt carriers on the cost side. It hammered consumers on the spending side at the same time. Every additional dollar a family spends at the gas pump is a dollar that does not go to groceries, home goods, clothing, electronics, or any of the other categories that generate truckload freight. For a consumer already carrying $1.27 trillion in credit card debt at 20%+ APR, a $60-a-week gas increase is not an inconvenience. It is a budget crisis. The Equifax K-shaped economy framework describes what is actually happening right now better than any single number: the economy is splitting. High-income consumers are fine — their credit card debt is below pre-pandemic levels and their assets have appreciated. Everyone else is navigating record debt, slowing wage growth, rising energy costs, and a job market that, for those just entering it, is the hardest in over a decade. Freight demand is generated by both halves of that economy, but the half that is struggling is the half that generates volume freight — the everyday goods movement that fills spot loads, fills retail DCs, and fills the lanes that small carriers depend on. The Class 8 Contradiction Nobody Is Asking About Here is the data point that deserves more scrutiny than it is getting. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot('/21776187881/fw-responsive-main_content-slot5', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767778941-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767778941-0'); }); Class 8 truck orders exploded in February 2026 to approximately 47,200 units — the highest order total since September 2022, rising 159% year-over-year, according to FTR Transportation Intelligence. Three consecutive months of 20%-plus year-over-year order growth. The industry is ordering equipment at a pace not seen in three and a half years. The stated explanations are legitimate: EPA 2027 regulations are going to make new trucks significantly more expensive starting next model year, so large fleets are pulling purchases forward. Fleets that held aging equipment through the freight recession are finally cycling it out. And improved spot rate sentiment has given some carriers enough confidence to commit capital. But read the ACT Research analysis carefully. The firm notes that the order surge is being driven by large fleets and dealers, that smaller carriers continue to face tighter credit conditions, and — most importantly — that the order turnaround reflects replacement demand and regulatory positioning more than it reflects conviction about freight volume growth. FTR’s own senior analyst was explicit: “A more durable recovery in equipment demand will require a sustained improvement in underlying economic and freight market conditions.” The concern is this: if large carriers are ordering equipment now — at the same time that compliance enforcement is removing capacity from the spot market — you could have a scenario where capacity exits through the compliance door and re-enters through the equipment order door within 12 to 18 months, before underlying consumer demand has recovered enough to absorb it. The cycle resets. The same small carriers who held on through the freight recession find themselves competing against a refreshed large-carrier fleet in a spot market that never fully recovered on the demand side. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot('/21776187881/fw-responsive-main_content-slot6', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767872042-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767872042-0'); }); That is not a prediction. It is a risk that the data currently supports, and one that every small carrier should be thinking about. What This Means: The Sugar Rush Problem There is a concept worth naming here. When compliance enforcement removes a significant volume of capacity quickly — as the non-domiciled CDL crackdown is doing right now — it creates what looks and feels like a market recovery. Rates improve. Load boards tighten. Sentiment lifts. It is real. But it is a supply-side adjustment, not a demand-side recovery. And supply-side adjustments, by definition, have a ceiling determined by what demand actually supports. Think of it like a large cookout where the food was made for 200 people and 300 showed up. As people leave — even as 100 leave — the remaining guests feel more comfortable. There appears to be enough food. Everyone relaxes. But if nobody brings more food, eventually the supply runs out no matter how many people have left. What looks like plenty is actually just fewer people competing for the same fixed amount. The freight equivalent: if demand does not grow to meet the tighter supply, you end up with a market that is less bad than 2024 but is not actually healthy. Rates stabilize but do not surge. Lane pricing improves in some regions but not others. Small carriers who stretched to get through the recession find themselves still operating on thin margins, just with slightly more predictability. A genuine recovery — the kind that produces the 2021-era rate environment that so many carriers are hoping to return to — requires demand to lead. It requires consumers to spend. It requires home sales to generate downstream freight. It requires the 22-to-35-year-old demographic to find stable employment, form households, and start buying the things that fill trucks. Right now, the data on every one of those conditions is moving in the wrong direction. Chart: SONAR OTVI.USA. Outbound Tender Volumes have road a roller coaster over the past few years and this is a good indicator of the amount of available freight to spill into the spot market. What Small Carriers Should Do With This Information None of this is an argument for pessimism. It is an argument for precision. The supply-side improvements are real, and they will produce better market conditions for carriers who are positioned to capture them. Compliance enforcement is ongoing. Carrier exits continue. If demand even holds flat while capacity continues to contract, rate floors will rise. There is a legitimate case for cautious optimism about the next 12 months. But the operative word is cautious. Here is what that looks like in practice: Do not price your operation for 2021. That market was produced by a once-in-a-generation demand shock that is not coming back. Price for the market that the consumer data actually supports right now — which is a market in gradual improvement, not explosive recovery. Carriers who set their cost structure and rate expectations to a recovery that has not yet arrived get hurt when the timeline slips. Know your break-even number cold. With diesel volatile — Brent crude hit $119.50 intraday before pulling back, and the Iran situation is not resolved — your cost per mile can shift $0.15 to $0.25 in a matter of weeks. Every rate you accept needs to be benchmarked against that moving number in real time, not against what diesel cost last month. Do not let the sentiment change your discipline. The danger of a market that feels like it is recovering is that it loosens financial discipline before the recovery has been confirmed by data. Watch the consumer spending numbers. Watch pending home sales. Watch credit card delinquency rates. Those are the leading indicators for the freight volumes that will determine whether the spot rate improvement is durable or temporary. Watch the Class 8 orders. If large fleet expansion orders — not replacement purchases — begin meaningfully increasing in Q3 or Q4 2026, that is a signal that new capacity is staging to re-enter the market. The window between compliance-driven capacity exit and equipment-order-driven capacity re-entry is the window where the best rate environment for small carriers will exist. Know where you are in that window. Reader Submitted Questions Q: If 200,000 drivers are being removed from the market, why isn’t that enough to drive a full recovery on its own? A: Because those drivers represent supply, and recovery requires demand. Removing capacity tightens the supply side of the equation and improves rate floors — that part is real and already showing up in spot data. But sustainable, durable rate recovery requires freight volume to grow, and freight volume is driven by consumer spending. Right now, consumers are carrying $1.277 trillion in credit card debt at 20%-plus APR, housing transaction volume is at levels consistent with the 2008 financial crisis, and unemployment for the demographic most likely to generate new household spending is at its highest level in over a decade. Supply-side improvements can produce a better market than 2024. They cannot, by themselves, produce a healthy market. That requires the demand side to cooperate. Q: The spot rate data is showing real improvement. Why shouldn’t I take that at face value? A: You should take it at face value — as a current data point, not a trend confirmation. The rate improvement that began in late November 2025 has been real and meaningful. But ACT Research and data have both noted that the rate run-up has been at least partially weather-influenced and compliance-driven, not purely demand-driven. A demand-driven rate spike — the kind you see when consumer spending is expanding and shippers cannot get enough trucks — looks different from a supply-tightening rate spike. The former is self-reinforcing. The latter requires continuous capacity exit to sustain. Track whether the rate improvement holds through spring when seasonal demand normalizes. If it does, you have evidence of genuine demand improvement. If it fades, you have confirmation of what the consumer data is already suggesting. Q: What is the one number you would watch most closely to confirm whether a real recovery is coming? A: Consumer credit card delinquency rates. Not because delinquency itself generates freight, but because it is the most direct real-time signal of whether the consumer is managing or breaking. Right now, serious delinquencies — accounts 90-plus days past due — are projected to hold around 2.57% through 2026, which is elevated but stabilizing. If that number starts rising meaningfully, it means consumers are losing their ability to spend on credit, which is the mechanism that has been sustaining consumer spending even as wages and savings have not kept pace. A delinquency spike would be the signal that the consumer engine is not just under pressure — it is stalling. And when the consumer engine stalls, freight demand follows within one to two quarters. The freight market right now is like a patient who has been sick for three years, just started a new treatment, and is showing early signs of improvement. The improvement is real. The early data is encouraging. But the underlying conditions that made the patient sick have not fully resolved, and declaring a full recovery before the vitals confirm it is how you end up back in the hospital. Stay disciplined. Watch the data behind the headlines. And operate your business for the market that exists today with the hope that a true recovery of spending is on the horizon.

Amerijet International Airlines has announced the passing of its founder, David Bassett, who was 77 years old. Bassett established Amerijet in 1974 and led the company for over 40 years, transforming it from a single-aircraft air taxi operation into a leading regional all-cargo carrier. His dedication to the industry and commitment to serving underserved markets will be deeply missed by his colleagues and customers alike. Bassett's journey began in his teenage years in Guyana, where he learned to fly and helped repair aircraft on remote jungle airstrips. After serving in the United States Air Force, he moved to South Florida to pursue his dream of running an aviation company. His early experiences shaped his approach to building a successful airline. The air cargo industry was still in its infancy when Bassett founded Amerijet. At that time, most freight was transported in the belly holds of passenger aircraft. Dedicated cargo airlines were just beginning to build their networks, but Bassett saw an opportunity to serve a underserved market in Latin America and the Caribbean. Bassett's vision paid off as Amerijet expanded its operations to include overnight courier routes for major companies like Purolator, FedEx, UPS, DHL and Airborne Express. The airline continued to grow and establish itself as a leading regional cargo carrier. Under Bassett's leadership, Amerijet built a strong cargo network connecting the Caribbean, Mexico, Central America, and South America. The airline offered a lifeline to communities during hurricanes and other natural disasters by helping move critical supplies and humanitarian aid. Bassett was known for his close relationships with customers, agents, and partners throughout the region. He mentored many employees and created a family environment based on loyalty, respect, hard work, and caring. His legacy will be remembered as one of innovation and dedication to serving the air cargo industry. In 2013, Bassett received the prestigious Wright Brothers Memorial Award for his lifetime contribution to commercial aviation safety. Earlier, in 2007, he was honored with the Juan Trippe Award, recognizing his significant contributions to the development of international aviation. Bassett's impact on the air cargo industry will be felt for years to come. His legacy serves as a reminder of the importance of innovation and dedication to serving underserved markets. As Amerijet continues to grow and evolve under new leadership, Bassett's vision and commitment to excellence will remain an inspiration. As news of Bassett's passing spreads, the air cargo industry is left to mourn the loss of a true pioneer and leader. His contributions to the industry will be remembered for generations to come, and his legacy will continue to shape the future of air cargo transportation.

The Port of Los Angeles processed 824,323 twenty foot equivalent units (TEUs) in February, second-busiest in port history and an increase of 3% from a year ago. “Retailers and manufacturers brought in cargo ahead of the Lunar New Year holiday, when many factories paused production in Asia,” Port of Los Angeles Executive Director Gene Seroka said in a media briefing. “As we head into our traditional slack season, it will be followed by some replenishment of inventories, particularly spring and summer fashion goods.” Seroka predicted March traffic would be flat ahead of measurable import gains in April. The outlook is shadowed by pervasive global uncertainty spurred by the Iran war, recent Supreme Court tariff rulings and trade policy shifts. Seroka, who worked in the Middle East as a liner exective, isn’t seeing disruptions to U.S. cargo flows from the current conflict, and doesn’t foresee any in the future, absent some dramatic changes. The revival in truck rates seen in other U.S. regions has missed Southern California, according to SONAR data, as seasonal weak import demand leaves room for growth. The less-than-crushing volumes have helped port operations remain fluid, with truck turns averaging less than 60 minutes. In response to a question from FreightWaves, Seroka expects ample drayage capacity once import volumes start to climb. There are 20,000 drivers licensed to do business with the port, he said, with approximately 9,000 making at least one port trip per week. Seroka, who recently visited a major supplier of automotive components in Michigan, said, “Manufacturing flows serving the United States continue to move, and we’re not seeing disruption to U.S.-bound cargo today.” (Containerized imports that have cleared customs at the Port of Los Angeles in blue, booked TEUs inbound to Los Angeles in orange. Chart: SONAR. To learn more about SONAR, click here ) Los Angeles is currently served by 40 scheduled ocean services, and Seroka said some cancelled or blanked rotations are starting to return. Loaded imports in February totaled 433,812 TEUs, up 5% y/y, while loaded exports were 116,633 TEUs, an increase of 7%. The hub processed 273,878 empty container units, an indicator of future imports, off 2% from a year ago. Year to date, the port has handled 1,636,324 TEUs, 5% lower than the same period in 2025. Read more articles by Stuart Chirls here . Related coverage: Purported Iran threat to attack California with drones ‘not credible’: LA port chief FMC monitoring war’s effect on ocean shipping rates Ten Maersk ships ‘trapped’ in Persian Gulf US Navy won’t escort strait shipping: Report

The Florida Senate has passed a bill, SB 86, in response to the fatal crash on the Florida Turnpike last August that killed three people. The driver, Harjinder Singh, was operating a commercial motor vehicle without authorization and had obtained a non-domiciled CDL in California. The bill now needs to be approved by the House before it can take effect. The bill aims to hold carriers accountable for hiring unqualified drivers, including undocumented immigrants. Senator Don Gaetz, the sponsor of the bill, stated that carriers who hire unqualified operators bear accountability for what happens when those operators are on the road. The bill declares the operation of commercial motor vehicles by undocumented immigrants to be an imminent safety hazard. SB 86 amends Florida Statute 316.3026, which governs unlawful operation of motor carriers. It classifies the operation of commercial motor vehicles by undocumented immigrants as a significant safety risk, triggering the out-of-service framework rather than just a citation process. This classification is crucial because it allows law enforcement to take action against carriers who fail to verify their drivers' qualifications. The bill requires commercial motor vehicle operators in Florida to be lawfully present in the United States, hold a valid driver's license, understand the English language, and be able to communicate effectively with law enforcement officers. These requirements are not new federal standards but rather state-level requirements that now carry specific enforcement consequences under Florida law. Law enforcement custody is mandatory for sworn officers who determine an undocumented immigrant is operating a commercial motor vehicle. The bill also requires immediate vehicle impoundment and a $50,000 civil penalty on the carrier if an undocumented immigrant is taken into custody. The Office of Commercial Vehicle Enforcement must issue an out-of-service order to the motor carrier, prohibiting them from operating any vehicles owned, leased, or operated by that carrier in Florida until the violations are corrected and penalties are paid. The bill also allows for cross-state enforcement, making carriers subject to penalties if they were issued an out-of-service order by another state or FMCSA within the past 12 months. The revenue from penalties collected under the bill will go to the Highway Safety Operating Trust Fund, specifically to fund training and technology necessary to enforce the bill. The structure of this bill makes it clear that carriers are responsible for verifying their drivers' qualifications. The $50,000 penalty does not fall on the driver but rather on the carrier, making the out-of-service order a company-threatening event for small fleets. Carriers need to review their driver verification process and ensure that they can withstand roadside stops in states with tightened enforcement standards. Florida is not alone in this approach; other states are implementing or considering enhanced enforcement frameworks. The FMCSA's March 16 Final Rule has created a federal compliance floor that multiple states are building upon. The public safety argument for the bill is real, and so is the regulatory accountability argument.

A decision by the National Labor Relations Board (NLRB) that has been viewed–and used–by unions including the Teamsters as an easier route to organize workers without a secret ballot election has taken a blow in a federal circuit court. In a decision handed down last week in the Sixth Circuit, a divided appellate court ruled that the NLRB had overstepped its authority in establishing its Cemex standard in August 2023, in a ruling that coincidentally involved truck drivers at Cemex Construction Materials Pacific. When it was announced, the NLRB touted it as a “new framework for union representation proceedings.” The Sixth Circuit is the first federal court to reject the NLRB’s Cemex standard. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot('/21776187881/FW-Responsive-Main_Content-Slot1', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668545404-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1709668545404-0'); }); Cemex’s conclusion held that where the NLRB board finds an employer engaged in unfair labor practices, it can issue a “bargaining order,” requiring the employer to negotiate a contract with the workers that had sought a union. The Cemex decision went further than an earlier NLRB standard known as Gissel, which allowed the NLRB to order an election to resolve an employer’s unfair labor practices but with tighter guidelines than Cemex. In its ruling, the Sixth Circuit held that the Cemex standard is an “NLRB decision that upended over 50 years of precedent and called for the Board to issue a bargaining order as the default remedy once it set aside an election.” Unionization drive at Brown Forman In the case before the Sixth Circuit, liquor producer Brown Forman (NYSE: BF-B) brought suit against the NLRB for its ruling in a case involving the Teamsters at the company’s Woodford Reserve facility in Kentucky. The union had sought to organize workers there. A unionization drive that looked like it was going to succeed in an election was derailed by the company’s various promises and policy changes, like higher pay, which the NLRB found–and the Sixth Circuit agreed with–constituted unfair labor practices, coming as the election loomed. The union lost the election. Coming out of that defeat, the Teamsters filed an unfair labor practices action against Brown Forman. As the law firm of Foley Lardner described what happened next , that action taken by the union against Brown Forman at the NLRB was successful. (Ironically, the Sixth Circuit decision, even in an action that would be seen as damaging to union organizing, agreed that Brown Forman had engaged in unfair labor practices). window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot('/21776187881/fw-responsive-main_content-slot3', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767553440-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767553440-0'); }); The NLRB, Foley Lardner said, then used the Cemex standard to tell the distiller that it “should be required to recognize the union as the employee’s representative and should also be required to bargain with the union over terms and conditions of employment. The Board agreed and ordered Brown-Forman to recognize and bargain with the union — despite it having lost the election.” Giving NLRB more power In a commentary on the Sixth Circuit decision , the Ohio-based law firm of Benesch said the Cemex decision allows the NLRB, if it finds unfair labor practices, “to recognize and bargain with the union. In effect, the decision expanded the circumstances under which the NLRB could impose bargaining orders without requiring a successful election – an action which previously was reserved for serious, ‘hallmark’ violations” under the Gissel precedent.” Gissel Packing, an NLRB standard that had guided cases like Brown Forman earlier, was pushed aside by Cemex. While there was not an authorization card majority presented to Brown Forman in the case before the Sixth Circuit, the law firm of Michael Best said in an online commentary about Cemex, “when a union claims majority support through authorization cards and demands recognition, the employer is required either to voluntarily recognize the union or promptly file a petition for a Board‑conducted election.” window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot('/21776187881/fw-responsive-main_content-slot4', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668086344-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1709668086344-0'); }); In handing down its ruling, the Sixth Circuit reviewed the differences between Cemex and Gissel. “While the Gissel standard instructs the Board (and reviewing courts) to order an election when a fair one is possible—staying true to the preferred method of effectuating Congress’s ultimate goal of preserving employees’ preferences—the Cemex standard looks only at whether a previous election was not fair,” the court said. “Under Cemex, the Board no longer evaluates whether it could still use an election to measure contemporaneous employee sentiment regarding unionization.” Rulemaking is required The legal core of the Sixth Circuit ruling is that the NLRB overstepped its authority in creating Cemex through “adjudication” rather than a rulemaking process. The NLRB does have “policymaking power” granted to it by Congress, the Sixth Circuit said. But it also needs to “follow precise procedural requirements. That includes publishing a notice of the proposed rule in the Federal Register, allowing interested parties the opportunity to submit comments, and, after considering relevant public feedback, promulgating the rule with a statement that includes the basis and purpose.” In another section of its ruling, the Sixth Circuit said “despite the NLRB’s best efforts to minimize the novelty of creating a new, adjudication-based standard that did not resolve the parties’ dispute, Cemex was an exception, crossing the boundaries of adjudicatory authority.” The ruling is not a sweeping change that impacts the NLRB’s decision-making authority. It is now a precedent for the Sixth Circuit, which consists of Kentucky, Tennessee, Ohio and Michigan. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot('/21776187881/fw-responsive-main_content-slot5', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767778941-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767778941-0'); }); As Benesch noted, “The legality of the Cemex framework is still being litigated in multiple circuits, and likely will be targeted by the current NLRB, meaning the governing standard could change further.” Teamsters using authorization cards The Teamsters have been celebrating organizing wins through various news releases on its website. But few of those victories appear to have been achieved through a traditional election, as most are not backed up with an NLRB record of an election. That suggests that the submission of authorization cards by the rank-and-file is leading the Teamsters to claim victory. For example, the Teamsters web page has a press release posted last month that said workers at Temco Logistics in Lithonia, Georgia, which does work primarily for Home Depot (NYSE: HD) , had decided to join the Teamsters. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot('/21776187881/fw-responsive-main_content-slot6', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767872042-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767872042-0'); }); There is an NLRB record of an election for Temco. But it is for an election that was to be held this Friday but is now under protest from Temco. Whether that election occurs doesn’t change the fact that the Teamsters, to a certain degree, already claimed victory despite no vote being held, presumably through submission of authorization cards. The lack of an election does not mean the unionization that the Teamsters are claiming has no basis. But that basis appears to be the Cemex precedent, and it has now taken a hit. An email to the Teamsters had not been responded to by publication time. The Michael Best analysis of the ruling reiterated the limited geographic reach of the decision on Cemex. “It does not invalidate the framework nationwide,” the law firm said. “Nevertheless, the ruling represents an important early appellate check on the Board’s recent approach and introduces meaningful uncertainty regarding the future of Cemex.” More articles by John Kingston Derek Barrs defends FMCSA’s bold moves at TCA What’s going on at the Louisiana staged truck accident trial? Amazon defrauded: guilty plea in $3M+ fraud involving trailers

The closure of the Strait of Hormuz by Iran has effectively trapped 10 Maersk ships in the Persian Gulf, its chief executive said. In separate interviews with CNN and the Wall Street Journal, Vincent Clerc said the Danish carrier’s ships “cannot get out,” are “stuck in the Upper Gulf” and cannot leave the region. As a safety measure, Clerc said the vessels have been grouped offshore and away from ports under attack. At least one ship is under contract to the U.S. government’s Military Sealift Command, according to data on maritime identification websites. Even if a ceasefire allowed vessel traffic to begin moving, Clerc said it would take a week to 10 days for the world’s second-largest liner ( MAERSK-B.CO ) to resume normal operations. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot('/21776187881/FW-Responsive-Main_Content-Slot1', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668545404-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1709668545404-0'); }); Clerc’s comments underscore the frustrations of shipping lines who have requested and repeatedly been denied naval escorts by the Trump administration. Carriers have been told in briefings that the Strait is still too dangerous for transit. Iran on Wednesday used unmanned boats to attack two tankers, and also deployed missiles and drones to attack ports, airports and other landside targets in the Gulf region. A ONE container ship sustained damage from unidentified projectiles. Maersk is prioritizing the safety of crews, ships, and customers’ cargo, said Clerc, and will only restart voyages if that safety is guaranteed. Shipping executives gathered in Connecticut for an industry conference said that the Iran war has idled 10,000 merchant crew and hundreds of vessels in the Persian Gulf. Mariners have little choice but to stay with their ships, since most airlines have suspended flights into and out of the area. Maersk, like others major carriers, has suspended or re-routed some services to and from Gulf states and is rerouting vessels via alternate hubs, to stage cargo until the strait is re-opened. It has also assessed shippers with a number of emergency surcharges. The closure of Hormuz and related disruptions in the Red Sea have had “profound” effects on global shipping and supply chains, Clerc said, and that Maersk is in “uncharted territory.” Bunkering terminals in Asia and the Middle East could risk running dry amid the disruption of fuel supply chains, and he warned added costs for diversions and delays will be passed on to customers. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot('/21776187881/fw-responsive-main_content-slot3', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767553440-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767553440-0'); }); Read more articles by Stuart Chirls here . Related coverage: US Navy won’t escort strait shipping: Report window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot('/21776187881/fw-responsive-main_content-slot4', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668086344-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1709668086344-0'); }); EXCLUSIVE: 10,000 ships crews trapped by Strait of Hormuz blockade Iran war leads largest shipping line to terminate Mideast Gulf voyages, levy $800 charge Kelly: U.S. maritime ‘critical’ to national, economic security

Mudflap has acquired Parade, an artificial intelligence capacity platform, in a deal that promises to revolutionize the logistics industry. The terms of the acquisition remain undisclosed, but it is expected to pair Mudflap's extensive fuel network with Parade's cutting-edge capacity management and carrier relationship platform. This move could potentially disrupt the status quo in the freight brokerage space. The acquisition marks a significant milestone for Mudflap, which has already established itself as a major player in the fintech sector. With over 515,000 drivers on its network, Mudflap provides fuel discount solutions to fleets via a mobile app and fuel card. Its recent venture capital round in December further solidified its position in the market. Parade, on the other hand, has been making waves in the capacity management space with its innovative platform. Founded in San Francisco in 2015 by Anthony Sutardja, Preet Sivia, and Tony Wu, Parade has facilitated more than $40 billion in total cumulative freight transactions. The company's platform is designed for brokerages and 3PLs, providing a specialized tool that integrates with existing TMS platforms. Parade's latest funding round was a $17 million Series B on September 14, 2023, led by I Squared Capital with participation from several other investors. This significant investment has enabled Parade to expand its operations and further develop its platform. With 48 employees, Parade is poised for continued growth in the capacity management space. The acquisition of Parade by Mudflap is a strategic move that could have far-reaching implications for the logistics industry. As freight brokerage becomes increasingly complex, platforms like Parade's are essential for brokers to navigate the intricacies of capacity management and carrier relationships. This deal could potentially streamline processes and reduce costs for brokerages. As one of the largest fintech companies in the Palo Alto/Menlo Park area, Mudflap has a reputation for innovation and disruption. Its acquisition of Parade further cements its position as a leader in the industry. With this move, Mudflap is poised to expand its offerings and provide even more value to its customers. Parade's platform is designed to integrate with existing TMS platforms, making it an attractive solution for brokerages looking to upgrade their capacity management capabilities. This integration could potentially reduce costs and increase efficiency for brokerages, making Parade a highly sought-after platform in the industry. The acquisition of Parade by Mudflap marks a significant development in the logistics industry. As companies continue to invest in technology and innovation, it is likely that we will see even more consolidation in the space. The future of freight brokerage looks bright, with platforms like Parade playing a crucial role in shaping the industry's future. As the logistics industry continues to evolve, platforms like Parade are essential for brokerages to navigate the complexities of capacity management and carrier relationships. With Mudflap at the helm, Parade is poised to take on even greater challenges and continue to grow as a leader in the industry.

Global supply chain SaaS provider Descartes reported another record financial performance Wednesday after the market closed. The company also announced the acquisition of an e-commerce solutions provider. Descartes ( NASDAQ: DSGX ) reported earnings per share of 52 cents for its fiscal fourth quarter ended January 31. The result was 9 cents higher year over year. Consolidated revenue of $193 million came in 15% higher y/y. Services revenue was also up 15% to $180 million (organic growth in services revenue was approximately 8%, excluding foreign exchange fluctuations). Management said on a Wednesday evening call that it continues to help customers navigate rapidly changing tariff rules. It also said an internal tariff duty and recovery team is already working with clients even though a refunding mechanism hasn’t been established. “Our customers continue to face tariff uncertainty, both in the future tariff landscape and the potential recovery of some previously-paid tariffs,” said Descartes CEO Ed Ryan in a news release. “A rapidly changing geopolitical landscape also continues to impact shipping and supply chains,” creating “forecasting, pricing, planning and execution challenges for shippers, carriers and logistics services providers alike.” He touted the company’s Global Logistics Network, which has been critical in providing customers with “timely, accurate and reliable data and solutions” to enhance decision making. Table: Descartes’ key performance indicators The company reported record adjusted earnings before interest, taxes, depreciation and amortization of $89 million in the quarter, which was 18% higher y/y. It recorded an adjusted EBITDA margin of 46%, which was 1 percentage point higher y/y. Descartes generated $76 million in cash flow from operations in the quarter, a 25% y/y increase. The company ended its fiscal year with $357 million in cash and an untapped $350 million line of credit. It said there are numerous AI-powered platforms with unique offerings in the market, many of which it believes are suitable M&A targets. Descartes also announced Wednesday that it acquired OrderMine, a UK-based company providing forecasting and planning tools for e-commerce companies. The purchase price was $2.3 million. Descartes commenced a share buyback plan in December, allowing it to repurchase up to 10% of its outstanding common shares. Shares of DSGX were off 0.7% in after-hours trading on Wednesday. More FreightWaves articles by Todd Maiden: Full enterprise sale of Forward Air ‘unlikely,’ report says ArcBest awaiting LTL demand inflection Old Dominion ‘encouraged’ as declines moderate in February

More than 80% of Lufthansa Cargo’s scheduled flights will proceed on Thursday and Friday despite a planned strike by unionized pilots over pension and pay demands, Deutsche Lufthansa AG. Pilot union Vereinigung Cockpit called for a 48-hour strike at Lufthansa Airlines and the group’s cargo airline over a change in a pension provision. Lufthansa said it will be able to operate more than 50% of its originally scheduled flights, with long-haul services available at up to 60% of the full schedule. Lufthansa Cargo will operate more than 80% of its all-cargo flights. The company said it will compensate for the capacity reduction by substituting flights by other group airlines and partner carriers. It will also utilize larger aircraft on strike days to accommodate more passengers. Lufthansa Cargo operates 12 large Boeing 777 freighter aircraft and four standard Airbus A321 converted freighters. It also manages freight carried in the bellies of passenger aircraft at sister carriers Lufthansa Airlines, Austrian Airlines, Brussels Airlines and ITA Airways. Lufthansa Cargo also is responsible for marketing the capacities of six 777 freighters in the AeroLogic joint venture with DHL Express. The Lufthansa Cargo website shows 10 rotations that have been canceled , including Beijing, China, to Frankfurt, Germany, on Friday. Deutsche Lufthansa board member Michael Niggemann called the Vereinigung Cockpit union strike “completely incomprehensible” on its merits and “especially not at a time when we are experiencing a new level of geopolitical uncertainty with the war in Iran and passengers worldwide are affected.” Niggemann stated that Lufthansa Airlines offers a strong pension package that compares favorably with other group airlines and the industry writ large. “This company pension scheme has even been further improved over the past two years with a significant increase in pensionable remuneration for our pilots. Given the low margin at Lufthansa Classic, which in itself would not allow for investment in new aircraft, there is no scope for further increases. Strikes will not change this,” he said. “The path of escalation chosen by the Vereinigung Cockpit union is not the right one. Instead of further worsening the development opportunities for Lufthansa Classic through strikes, we should rather enter into discussions about modernization and the future size of the fleet, which will have a direct and immediate impact on the career prospects of pilots.” The union said flights to several Middle East destinations will be excluded from the work stoppage. It said Lufthansa hasn’t made a counter proposal since the last strike on Feb. 12. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. Write to Eric Kulisch at ekulisch@freightwaves.com . RELATED STORIES: DHL offers unusual truck-air transport between China and Europe Air freight rates expected to rise as Iran war escalates

Forward Air, a leading provider of trucking services, has been exploring various options for its assets following months of investor pushback. The company launched a strategic review in January 2025 to assess potential opportunities for maximizing value. This move was prompted by concerns over the acquisition of Omni Logistics and the overall capital allocation strategy. As a result, Forward Air's shares have experienced significant fluctuations, with a recent decline of 17% on Wednesday, outpacing the declines seen in its public trucking peers. The review process has been ongoing for several months, during which time Forward Air has evaluated various options, including the sale of part or all of the company. The company's financial adviser, Goldman Sachs, has been working closely with management to explore these opportunities. However, it appears that the potential full-company sale is now considered unlikely by market analysts. Investing.com reported that Clearlake Capital and Apollo Global Management are no longer bidding for the entire company, adding fuel to speculation about the uncertain fate of Forward Air's strategic review. The news sent shockwaves through the industry, with investors and analysts taking notice of the potential implications for the company's future. As a result, shares have continued to decline, highlighting the uncertainty surrounding Forward Air's prospects. Forward Air has been working closely with its financial adviser to evaluate various options for maximizing value. The company has stated that it is nearing the conclusion of its review process and will provide an update to the market when there is news to share. However, this lack of clarity has contributed to the volatility in Forward Air's shares, making it challenging for investors to make informed decisions. The contentious merger with Omni Logistics was a major factor in prompting the strategic review. The deal's structure, which bypassed a shareholder vote, raised concerns among some investors and activists. As a result, Forward Air's capital allocation strategy has come under scrutiny, highlighting the need for greater transparency and accountability in the company's decision-making process. Goldman Sachs has played a key role in facilitating the review process, working closely with management to explore various options. The financial adviser's expertise has been instrumental in helping Forward Air navigate this complex period, but its efforts have not been enough to alleviate investor concerns. The uncertainty surrounding Forward Air's strategic review has significant implications for the company's future prospects. Investors and analysts will be watching closely as the situation unfolds, hoping for greater clarity on the company's plans and direction. In the meantime, shares remain volatile, reflecting the uncertainty and risk associated with Forward Air's uncertain future. As the review process nears its conclusion, Forward Air must navigate a complex web of investor expectations and analyst scrutiny. The company's ability to deliver value to shareholders will be critical in determining its long-term prospects. With Goldman Sachs' support, Forward Air is well-positioned to emerge from this challenging period with a clear plan for growth and success. The future of Forward Air remains uncertain, but one thing is clear: the company must prioritize transparency and accountability in its decision-making process. By doing so, Forward Air can build trust with investors and analysts, paving the way for a more stable and prosperous future.

With a fleet comprised almost entirely of alternating current (AC)-powered locomotives, Norfolk Southern is poised to take advantage of the benefits offered by this technology. The upgrades, which are being carried out in partnership with Progress Rail, will enable the carrier to operate fewer engines per train, improve reliability by 40%, and increase haulage capacity by 55%. These improvements will not only enhance the overall efficiency of Norfolk Southern's operations but also contribute to a more sustainable rail network. ['The conversions of DC-powered locomotives to AC units will feature individual axle control for superior traction, as well as advanced engine management systems. The remanufactured engines will produce 4,300 horsepower and be paired with 16-cylinder EMD 710 engines. This combination of technology will enable Norfolk Southern to reduce its fuel consumption by 3% while extending the life of its locomotives by at least 20 years.', ["The upgrade of AC-powered locomotives is part of Norfolk Southern's broader strategy to modernize its fleet and drive safe, reliable, and efficient operations. By partnering with Progress Rail, the carrier is able to leverage the expertise of a leading manufacturer in the rail industry. This collaboration will enable Norfolk Southern to take advantage of the latest technologies and best practices, ultimately benefiting its customers and contributing to a more resilient rail network.", ["The acquisition of new locomotives, including 40 ES44AC units from Wabtec, is also part of Norfolk Southern's efforts to streamline its fleet and reduce the number of engine models. This move will enable the carrier to operate with greater efficiency and consistency, while also providing its customers with a more reliable and sustainable rail service.", ['The benefits of upgrading to AC-powered locomotives extend beyond operational efficiency. The technology offers several advantages over DC-powered systems, including higher tractive effort at low speeds and continuous running without overheating or burning out. These improvements are particularly significant for carriers operating long-haul routes, such as those on the western long-haul routes operated by Union Pacific.', ["The upgrade of AC-powered locomotives is a significant investment in Norfolk Southern's future. By modernizing its fleet and leveraging the latest technologies, the carrier is able to drive growth, improve sustainability, and enhance its competitiveness in the rail industry. This move will also have a positive impact on the environment, reducing greenhouse gas emissions and contributing to a more sustainable transportation network.", ["The partnership between Norfolk Southern and Progress Rail is a testament to the strength of collaboration in the rail industry. By working together, carriers and manufacturers can leverage each other's expertise and resources to drive innovation and improvement. This partnership will enable Norfolk Southern to take advantage of the latest technologies and best practices, ultimately benefiting its customers and contributing to a more resilient rail network.", ['The upgrade of AC-powered locomotives is an important step towards creating a more efficient and sustainable rail network. As carriers continue to evolve and adapt to changing market conditions, it is essential that they invest in the latest technologies and best practices. By doing so, they can drive growth, improve sustainability, and enhance their competitiveness in the industry.', ['The benefits of upgrading to AC-powered locomotives will be felt across the rail network, from carriers like Norfolk Southern to shippers and passengers alike. As the rail industry continues to evolve, it is essential that carriers prioritize innovation and improvement. By doing so, they can drive growth, improve sustainability, and enhance their competitiveness in a rapidly changing market.']]]]]]]]

Thousands of ships' crews and hundreds of vessels are trapped in the Persian Gulf as the war in Iran spread to the Strait of Hormuz shipping lane. The region has become a hotspot for military activity, with the United States and Israel attacking Iranian targets on February 28. This escalation has resulted in a significant increase in naval patrols and mine-laying operations, making it increasingly difficult for ships to navigate the area. As a result, many shipping executives are unwilling to risk the safety of their crews in this potentially deadly crossing. The situation is further complicated by the lack of accurate information coming out of the region, with reports of convoys forming to exit the area being false. The fire aboard one unidentified ship north of Oman in the Strait of Hormuz had been extinguished and the crew was evacuating, according to an alert from the United Kingdom Maritime Trade Operations. A bulk carrier and container vessel reported being hit by suspected projectiles, with no injuries sustained during the incidents while damage investigations were underway. The UKMTO has emphasized that these incidents are a stark reminder of the risks faced by ships operating in this region. With tensions running high, it is essential for shipping companies to exercise extreme caution when navigating the Strait of Hormuz. The executives said reports of ships turning off their Automatic Identification System (AIS) tracking and forming convoys to exit the region were false. This has led to concerns that some vessels may be attempting to avoid detection or escape the area altogether, which could have serious consequences for global trade. The lack of transparency in this situation is a major concern, with many shipping executives calling for more accurate information to be shared by governments and other stakeholders. The trapped ships include hundreds of dry bulk vessels, as well as crude oil and natural gas tankers, and container vessels. These vessels are now facing significant challenges in terms of accessing fuel and supplies, with the war having shut down bunker operations at Fujairah, one of the United Arab Emirates' busiest bunkering centers. The situation is further complicated by the fact that many ships are unable to access the necessary equipment and resources to navigate safely through the region. The meeting was told that eight maritime workers have died in attacks since the war began, while seven U.S. military personnel have perished. These tragic losses highlight the human cost of this conflict and underscore the need for greater caution and vigilance when navigating the Strait of Hormuz. The situation is also having a significant impact on global trade, with many shipping companies reevaluating their routes and operations in response to the increased risk. The war marks the first time the strait has been closed to global shipping since the 1980s, when Iran blocked Iraqi ships during their war. This blockade has significant implications for global trade and supply chains, with the potential to disrupt oil shipments and exacerbate fuel shortages. The situation is further complicated by the fact that many ships are unable to access the necessary equipment and resources to navigate safely through the region. United States Central Command said its forces overnight eliminated 16 Iranian vessels laying mines in the strait area. At the same time, Iran launched drone and missile attacks on Gulf land targets, while Tehran threatened to attack banking centers in Dubai and elsewhere in the region. This escalation of military activity is making it increasingly difficult for ships to navigate the area, with many shipping executives calling for greater transparency and cooperation from governments and other stakeholders. There have been 10 suspected attacks on merchant shipping in the region since the United States and Israel attacked Iran on February 28. These incidents highlight the growing threat posed by this conflict and underscore the need for greater caution and vigilance when navigating the Strait of Hormuz. The situation is also having a significant impact on global trade, with many shipping companies reevaluating their routes and operations in response to the increased risk. The lack of accurate information coming out of the region is complicating efforts to manage safe vessel operations. Shipping executives are calling for greater transparency and cooperation from governments and other stakeholders to ensure that ships can navigate the area safely and efficiently. Until this situation is resolved, many shipping companies will be forced to reevaluate their routes and operations in response to the increased risk posed by the Strait of Hormuz blockade.

Mexico's heavy-vehicle industry has posted sharp year-over-year declines in production, exports, and sales in February, signaling continued weakness across the country's truck manufacturing sector. The declines also offer a window into the broader North American freight cycle. Mexico is a key production hub for tractor-trailers used by U.S. fleets moving goods across the U.S.-Mexico border. The downturn reflects weakening demand in Mexico's domestic trucking market, which has now posted more than a year of declines. Industry officials say the market has been in a prolonged contraction. The Mexican Association of Automotive Distributors (AMDA) coordinator of economic studies, Cristina Vázquez, said the market has accumulated 14 consecutive months of decline in the Mexican market in year-over-year terms. Retail sales in February totaled 2,303 units, down 38.9% from a year earlier, while wholesale sales reached 1,836 units, a 27.3% decline compared with February 2025. For the first two months of 2026, the industry produced 13,767 heavy vehicles, representing a 50.5% decline from the same period last year, while exports totaled 12,925 units, down 42.6% year over year. Industry officials say the downturn reflects weakening demand in Mexico's domestic trucking market, which has now posted more than a year of declines. The industry is facing a complex environment marked by adjustments in domestic demand and volatility in international markets. Strengthening competitiveness and recovering the internal market will be key for the sector going forward. Manufacturing declines were widespread across the heavy truck sector. Of the 6,974 heavy vehicles produced in February, about 6,739 were cargo trucks and tractor-trailers, while 235 were passenger buses. Cargo vehicles account for the vast majority of Mexico's heavy-vehicle production, representing more than 97% of total output during the first two months of 2026. Despite the sharp annual decline, exports rebounded slightly compared with January. Mexico exported 7,849 heavy vehicles in February, up more than 50% from January, according to data from Mexico's National Association of Bus, Truck and Tractor-Trailer Producers (Anpact). The U.S. accounted for 91.3% of shipments in February, followed by Canada (5.7%) and Colombia (2.6%). The industry is navigating a volatile global environment that continues to affect demand. Rising imports of used trucks from the U.S. are undercutting new-vehicle sales in Mexico. Industry representatives warned that the imbalance between new and used truck purchases has become a major distortion in the market. Rising fuel prices and geopolitical uncertainty also pose significant challenges for the industry. Guillermo Rosales, executive president of AMDA, said the heavy-vehicle sector is facing multiple economic headwinds, including tariff volatility and fuel price volatility. Despite the slowdown, Rosales said the industry expects demand to eventually stabilize as freight activity improves. The outlook for the remainder of 2026 will depend heavily on freight demand, investment trends, and cross-border trade activity across North America. Industry leaders say the sector must adapt to changing market conditions to remain competitive.

DACA stands for Deferred Action for Childhood Arrivals, a program created in 2012 to provide temporary protection and work authorization to young adults who were brought to the United States as children. The eligibility criteria are strict, requiring applicants to have arrived in the US before their 16th birthday, continuously resided here since June 15, 2007, and meet certain education and background requirements. This distinction is critical, as DACA recipients did not make the decision to come to the US and are now facing uncertainty about their ability to work. The program grants a temporary, renewable work authorization and protection from deportation for two-year periods at a time, but does not provide a path to citizenship or access to federal benefit programs. In the trucking industry, this issue is particularly relevant, as many drivers rely on non-domiciled CDLs to operate commercial vehicles. These licenses are issued by states where drivers are domiciled, but federal regulations allow for their issuance to certain individuals who cannot establish domicile in a state due to immigration status. The FMCSA has long allowed states to issue non-domiciled CLPs or CDLs to foreign nationals who are lawfully present and authorized to work. For DACA recipients, this pathway made sense, as they hold valid work authorization and have Employment Authorization Documents issued by the federal government. On September 26, 2025, US DOT Secretary Sean Duffy announced 'emergency action' to restrict eligibility for non-domiciled CDLs. The FMCSA published an Interim Final Rule, effective September 29, 2025, which narrowed who could hold a non-domiciled CDL or Commercial Learner's Permit. The new rule only applies to holders of three specific visa types: H-2A temporary agricultural workers, H-2B temporary non-agricultural workers, and E-2 treaty investor visa holders. Everyone else, including refugees, asylees, humanitarian parolees, and DACA recipients, would no longer be eligible to obtain, renew, or have reissued a non-domiciled CDL. This change has significant implications for the trucking industry, with estimates suggesting that up to 194,000 people could lose their jobs if the rule fully takes effect. The operational complications extend beyond individual drivers, as fleet owners and carriers must audit their driver pools for compliance. The FMCSA argues that the new rule is about safety, specifically about verifying foreign driving records of non-domiciled applicants. However, opponents argue that there is no data connecting immigration status to unsafe driving, and that the distinction being drawn is purely an immigration classification, not a safety classification.

The latest deal announced by Redwood Logistics is expected to significantly enhance its managed transportation offering by incorporating the expertise of Stridas, a specialized provider in data-driven optimization for the spirits and consumer packaged goods industries. This acquisition marks a strategic move by Redwood to strengthen its position in the market and capitalize on growing demand for managed transportation solutions. With this deal, Redwood aims to provide shippers with a more comprehensive solution for their logistics needs. ["The financial terms of the transaction were not disclosed, but the deal is expected to have a substantial impact on Redwood's bottom line. The acquisition is part of Redwood's broader strategy to build a comprehensive, integrated logistics platform that can cater to the evolving needs of its customers. By combining Stridas' expertise with its own capabilities, Redwood is well-positioned to address the growing demand for managed transportation solutions.", ["Stridas was founded in 2012 and has been focused on re-engineering freight networks to generate savings for enterprise customers. The company's robust freight brokerage network provides a range of services, including less-than-truckload and multiple truckload offerings. This expertise will be highly valuable to Redwood as it looks to expand its managed transportation offerings.", ["Redwood Logistics' CEO Mark Yeager highlighted the deal's timing and strategic fit. He noted that the freight market is at an inflection point and shippers are looking for a durable, integrated partner who can provide predictable costs and navigate rate volatility. This aligns with Redwood's own approach to managed transportation, which uses data and technology to make smarter decisions.", ['The acquisition addresses growing demand for managed transportation solutions as shippers seek to move away from spot market exposure to consolidated provider relationships. By integrating Stridas with its proprietary platform, RedwoodConnect, Redwood can offer customers a more comprehensive managed transportation experience that compounds in value over time.', ["Redwood's latest acquisition comes just a week after it acquired EELCO, a customs brokerage and warehousing provider based in Laredo, Texas. This move signals a broader strategy by Redwood to build a comprehensive logistics platform that can cater to the evolving needs of its customers. The acquisitions demonstrate Redwood's commitment to providing shippers with a more integrated solution for their logistics needs.", ["The integration of Stridas with RedwoodConnect is expected to enable a more seamless experience for customers, who will be able to access a range of managed transportation services through a single platform. This aligns with Redwood's modern 4PL approach, which emphasizes the use of data and technology to make smarter decisions.", ["Redwood's CEO Mark Yeager noted that Stridas' expertise and managed transportation capabilities align seamlessly with Redwood's approach. He highlighted the potential for the two companies to work together to provide a more comprehensive solution for customers. This collaboration has the potential to drive significant value for shippers who are looking for a durable, integrated partner.", ["The acquisition of Stridas is part of a broader trend in the logistics industry, where companies are consolidating their offerings and building comprehensive platforms. Redwood's latest move demonstrates its commitment to this approach and positions it well to capitalize on growing demand for managed transportation solutions.", ['The deal was advised by Republic Partners, which acted as the exclusive financial adviser to Stridas on the transaction. The acquisition is expected to have a significant impact on the logistics industry, driving consolidation and innovation in the managed transportation space.']]]]]]]]]

Diesel prices are skyrocketing, with the current price hovering around $5 per gallon. The geopolitical situation driving this increase shows no signs of a quick resolution, leaving owner operators to wonder how they can survive in this new market reality. However, by controlling two key areas - station selection and fuel consumption - owners can make a significant impact on their bottom line. The first lever is station selection, where the difference between the most expensive and least expensive diesel along any given corridor can run as high as 50 cents per gallon. This may not seem like a lot, but for drivers who fill up twice a week, that's an extra $45 to $75 every time, adding up to significant savings over time. Using tools like GasBuddy and Waze, which provide real-time diesel prices by station along your route, can help owner operators make informed decisions about where to fuel. The discipline is actually using these tools before you pull in, not after you're already at the pump wishing you had checked. The regional piece matters just as much as the app. Different parts of the country carry structurally different diesel prices, with California being among the most expensive markets due to state fuel taxes and blend requirements. By knowing which regions you'll be driving through or near, you can adjust your fueling strategy accordingly. Carrying fuel strategically is also key. If you're rolling out of a high-cost region and know you're 200 miles from a significantly cheaper market, buy enough to get there - not a full fill. This simple change can save you money on diesel costs. The second lever is burn rate, where the range between good fuel economy and poor fuel economy for the same truck on the same route can be as much as a mile per gallon or more. At current diesel prices, one mile per gallon difference across 2,500 miles of weekly driving is roughly $200 in fuel. Speed is the biggest variable here, with aerodynamic drag increasing exponentially with speed. Dropping from 70 miles per hour to 65 burns meaningfully less fuel, while dropping to 62 or 63 on open highway burns even less still. Treating your cruise control like a performance statement instead of a fuel economy tool can save you money. Idle time is also a significant fuel draw, with an idling diesel engine burning somewhere between 0.8 and 1.0 gallons per hour doing nothing. Reducing idle time through the use of APU units, bunk heaters, and proper pre-planning around overnight temperatures and parking can save you money. Tire inflation is often overlooked but is crucial to fuel economy. Under-inflated tires put more rubber contact on the road than properly inflated ones, leading to increased rolling resistance and more fuel consumption. Checking your tire pressure with a gauge and comparing it against recommended PSI can make a significant difference in your fuel economy. By implementing these strategies, owner operators can make a real impact on their bottom line. The goal is not to become obsessive about fuel prices but to be intentional and treat every controllable cost line as if it matters. By doing so, they can protect their cash position and stay ahead of the competition in this high-fuel environment.

A Connecticut man has pleaded guilty to wire fraud in connection with a scheme to defraud Amazon by making false claims for trailer movements that didn’t actually take place. The scheme, which began in December 2019 and continued through early 2021, involved Nasir, the principal of Pak Express Transport, a company registered in Connecticut in 2019. This elaborate scheme allowed Nasir to submit false invoices to Amazon Logistics, claiming he had made middle-mile transportation that he had not actually completed. The indictment alleges that Nasir devised and intended to devise a scheme to obtain money and property through fraudulent pretenses, resulting in losses of over $3 million for the company. The case highlights the importance of security measures in place to prevent such scams. Amazon Relay's geo-fence capability is designed to detect suspicious activity, but Nasir managed to evade this by using a manual override to misrepresent completed trailer movements. This allowed him to continue submitting false invoices and collecting payment. Nasir set up 23 trucking companies that registered with Amazon Logistics, including Pak Express, which was one of the companies he used to submit false claims. He also misappropriated identifying information from other transportation companies, using this to create fake accounts. The use of stolen identifying information by Nasir raises concerns about the security of online registration systems. It is essential that these systems are regularly updated and monitored to prevent such scams in the future. Despite his efforts to evade detection, Nasir was eventually caught and charged with wire fraud. His guilty plea has resulted in a restitution payment of $3.547,090.93, which he must pay as part of his sentence. The fact that Nasir successfully pulled off this scam over 1,000 times highlights the need for increased vigilance and security measures in the transportation industry. It is essential that companies like Amazon Logistics take proactive steps to prevent such scams and protect themselves from financial losses. Nasir faces a maximum sentence of 20 years for his crimes, with sentencing set for May 29. He was released on $300,000 bond pending his sentencing. The guilty plea marks the end of an elaborate scheme that has resulted in significant financial losses for Amazon Logistics. The case serves as a reminder that even the most sophisticated schemes can be uncovered through diligent investigation and enforcement. It also highlights the importance of holding individuals accountable for their actions and ensuring that they face consequences for their crimes. As the transportation industry continues to evolve, it is essential that companies like Amazon Logistics remain vigilant and proactive in preventing scams like this one. By doing so, they can protect themselves from financial losses and maintain the trust of their customers.

MATS is not just any trade show, it's a unique opportunity for small carriers and owner-operators to connect with industry professionals who can help them navigate the challenges of running their business. With over 70,000 industry professionals attending the event, it's a chance to build relationships that can make all the difference in terms of finding new shippers, operators, and service providers. The show has been running since 1972, and it's clear that it's an event that the rest of the industry's calendar organizes itself around. The fact that large carriers have infrastructure that small carriers replace with relationships is a harsh reality, but MATS provides a chance to change that trajectory. By attending the show, small carriers can build their network and gain access to resources and expertise that can help them stay competitive. MATS is not just about seeing new equipment or meeting vendors; it's about building meaningful connections with people who understand your business. The relationships you make at MATS are not manufactured in a load board or Facebook group, but rather in the hallways, over coffee, and during dinner conversations. The show floor may seem overwhelming, but by knowing what you're walking into and having a specific agenda, small carriers can get the most out of their time. Giving before asking, picking targets, and going deep are key strategies for building real relationships at MATS. Networking is not just about collecting business cards or attending surface-level conversations; it's about treating the entire three-day window as an event and following up within 48 hours to turn connections into business relationships. The operators who consistently show up to MATS year after year are doing so because they understand that building a business on relationships rather than transactions requires patience and consistency. By investing time in those relationships, small carriers can compound their efforts and build a network that will carry them through the next hard stretch. MATS is not just about finding new opportunities; it's about being prepared to take advantage of them. By doing their homework before arriving at the show and having a clear plan, small carriers can make the most out of their time and turn MATS into a valuable investment in their business. The spaces outside the show floor matter more than you think. Hotel lobbies, restaurants, and panel sessions are all networking environments that can provide opportunities for meaningful connections. By being proactive and engaging with others during these events, small carriers can build relationships that go beyond the show floor. By treating MATS as a comprehensive event rather than just a trade show, small carriers can turn their investment into a valuable return on time and resources. The fact that large carriers have infrastructure that small carriers replace with relationships is a harsh reality, but MATS provides a chance to change that trajectory. By attending the show and building meaningful connections with industry professionals, small carriers can gain access to resources and expertise that can help them stay competitive in an ever-changing market.

In The Tempest , Shakespeare wrote, “what’s past is prologue,” meaning history sets the context for the present and dictates future events. Except, apparently, when it comes to transcontinental railroads. In an exclusive interview with FreightWaves, Union Pacific Chief Executive Jim Vena fired back at critics of his blockbuster merger with Norfolk Southern, insisting it won’t have the lasting price and service issues that have accompanied past transportation consolidations even as it reshapes the U.S. supply chain. “People have to quit looking backwards and look at what’s possible,” Vena said by phone from UP’s Omaha headquarters. Union Pacific (NYSE: UNP ) has faced withering criticism from industry observers who declared the math supporting the $85-billion transaction with NS (NYSE: NSC ) didn’t add up. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot('/21776187881/FW-Responsive-Main_Content-Slot1', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668545404-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1709668545404-0'); }); Jim Vena Bur Vena said it was a “mistaken view” to see it just through the numbers.“You have to look at the quality aspect, as well. The people and companies that manufacture and produce the goods we consume every day, we want to be able to give them a better rail system, one that allows them to compete against the world.” At the same time, numbers are at the crux of the merger proposal: 1.4 million truckloads converted to intermodal in 36 months, and 2 million truckloads diverted to rail annually. More numbers: The railroads say the merger will shave up to 2 days off a typical 5 to 7 day journey for railcars moving from coast to coast. That’s a radical game-changer making rail competitive with transcontinental freight moving by truck; some industry executives have said privately that the time savings could be even greater. The single-line route will also open up the Midwest watershed, where rail has long grappled with a tangle of competing lines and interchange issues. The questions surrounding UP-NS only intensified after the Surface Transportation Board in December rejected the initial merger filing as incomplete, and made explicit requests for more information including forward-looking market data and agreement details. The companies expect to file an updated application in April. Vena defended not including some data for competitive reasons — “you have to be careful you don’t give everything away to your competitors” — and repeated assertions that the vast majority of growth in the long term will come from taking share away from trucks. But some analysts took issue with the railroads in the application categorizing dray-to-rail conversions and rail-to-rail market share shifts as growth, instead of just truck-to-rail and the opening of all-new markets. Vena fairly bristles at the critiques, and questions some credentials. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot('/21776187881/fw-responsive-main_content-slot3', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767553440-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767553440-0'); }); “It’s always easy to be on the negative side if you’re not out to deliver,” said Vena, pointing out that UP is atop industry analytics for efficiency, revenue and safety. “Our people are comfortable with what’s there and the data we have calculated.” The company also redacted Schedule 5.8, which specifies “Materially Burdensome Regulatory Conditions” that would allow UP to walk away from the deal. “With a transaction as large as ours, there will always be protection for both sides,” says Vena, who compared it to the contract terms for the 17 homes he and his family have lived in during his railroad career. “At some point we have the right to walk away, we have an out. But, there’s no walking away without a penalty. If the STB had told us to put it [the terms] out, we would have. We asked them to keep it confidential; it’s up to them. Why would you ever tell your competitors the financial details? It’s ridiculous, it really is. They would love to see what we have.” The STB recently proposed a reset of reciprocal switching rules, which if approved would give some shippers a choice of rail carriers. Vena says that’s not a condition to scrap the merger. “I’m all for reciprocal switching, it gives optionality. I’m glad the STB came out with that reset.” Asked about UP’s recent history of dismal growth, Vena says a focus on service can help optimize what the railroad can do, and answer the STB’s ‘higher bar’ requirement that a merger not only preserves competition, but enhances it. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot('/21776187881/fw-responsive-main_content-slot4', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668086344-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1709668086344-0'); }); “We’re a strong and well-run company,” says Vena. “Today, we have a low double-digit share of freight that is is moved every day in America. That’s a of tonnage. At the end of the day, we have to ask, does it make movement of goods more competitive? It will be better for the customer, and better for the country. We have to deliver more optionality and be able to take trucks off the highway, and that’s what we’re doing. To make shippers more competitive in the markets they’re in, we need to understand that market, and we need to win with our customers.” Long term, Vena says, “50% of UP’s business is intermodal, and the merger will bring that segment to a whole new level of capability, so you need to tackle that, that’s where the growth is. We continue to work with customers to open up new markets, and spend capital to give them optionality. We’ve developed a steel plant in Phoenix, new chemical plants in Louisiana, new facilities across the network for intermodal.” Vena said UP will continue to be efficient with its outlay for motive power, continuing to rebuild older locomotives rather than buy new. Union Pacific and Wabtec in later 2025 signed an agreement worth about $1.2 billion to modernize UP’s AC4400-series locomotives, the fourth such rebuild program since 2018. That will bring the carrier’s total to 1,700 rebuilt units. “We’re still spending a lot to modernize, from the frame up, like new,” says Vena, a former locomotive engineer. “That is way more cost- effective, delivers onboard components, fuel efficiency, and reliability, we’re very comfortable doing that. If there was a product that was substantially better we’d buy it. The plan is to continue to modernize.” Vena pointed out that the railroad has 1,500 ‘excess’ locomotives. Still, the recent history of transportation mergers among airlines and railroads isn’t a study in customer-facing benefits where fares, rates and choices are concerned. Vena points out that railroads have succeeded despite the structural limitations of a heavily-regulated, capital-intensive industry. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot('/21776187881/fw-responsive-main_content-slot5', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767778941-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767778941-0'); }); “The cost structure of railroads over the past 20 years is nowhere near inflation,” he says. “Our customers are very large and very sophisticated companies — Cargill, Exxon, ADM, Chevron, Walmart, Fedex, UPS — major internationals, and they push every year to help them be better in the marketplace. We always ask, ‘What service are we providing, and how can we make that better?’ My God, as a business, where do we go? Always look to be operationally efficient in how you use your assets, faster, with more fluidity, and less touch points [per railcar].” As for service issues, Vena said that, sometimes, the railroad has to work with what it’s given. “Railroads aren’t precision operations because customers aren’t always precise, and you don’t know what they’re going to give you on a daily basis. People need to get off of this ‘driven by OR [operating ratio]’ thinking, that’s not what drives us.” Asked about Ancora, the activist investor that forced leadership changes at NS and CSX (NASDAQ: CSX ), Vena says, “At the end of the day, companies that are well-operated that fulfill and look for the greatest opportunity to deliver for shareholders and customers, and be the best in the industry, no activist will ever be able to take that company on. The American system of capitalism makes people look at companies that aren’t performing in the marketplace. It keeps your feet to the fire, to deliver as a CEO, that’s your job. window.googletag = window.googletag || {cmd: []}; googletag.cmd.push(function() { googletag.defineSlot('/21776187881/fw-responsive-main_content-slot6', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767872042-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); }); googletag.cmd.push(function() { googletag.display('div-gpt-ad-1665767872042-0'); }); As far as NS, “There are always going to be activists who are not being fair about what they’re doing. Shareholders vote and decide whether management has a good plan or not. The outcome of the [Ancora] campaign was that the management team proved to shareholders they had the right plan moving ahead. “There is not another system that’s better.” Related coverage: Intermodal lags carloads in latest U.S. rail freight data Why an obscure rail tax credit should matter to truckers Wabtec, Progress Rail settle anti-trust lawsuit

The Mediterranean Shipping Co. has announced that it will divert all cargo destined for the Arabian Gulf region due to ongoing military tensions in the area. The company has also imposed a mandatory surcharge of $800 per container on affected shipments to cover deviation costs. This move comes after recent attacks by US and Israeli forces on Iranian targets, leading to a significant escalation of the conflict. As a result, MSC is redirecting cargo to safe ports, prioritizing the security and safety of its vessels and crew. The order affects all types of cargo, including containers already released for stuffing that were intended for export to Gulf ports. These containers will be diverted to the next available safe port of discharge, where they will be discharged and made available for local delivery and recovery. MSC is taking this measure to mitigate potential risks associated with the current situation. The company's decision is a response to the increasing instability in the region, which has resulted in Iranian forces effectively closing the Strait of Hormuz to global traffic at the gulf's entrance. While some locally-based ships continue to navigate the strait, the situation remains precarious for international shipping. MSC's actions demonstrate its commitment to protecting its vessels and crew from potential threats. The mandatory surcharge of $800 per container is intended to cover deviation costs associated with the diversion. However, shippers are responsible for all discharge-related expenses, including handling and storage, as outlined in the bill of lading terms. This includes a clause for 'special circumstances' that has been triggered by the current conflict. To ensure compliance with MSC's new procedures, customers seeking onward forwarding must book their shipments through new channels with their usual agency. This measure is designed to maintain continuity in cargo operations while minimizing potential disruptions. By doing so, MSC aims to minimize the impact of this diversion on its customers and the global supply chain. The decision by MSC has significant implications for the shipping industry, particularly in terms of security and logistics. As tensions in the region continue to escalate, it is likely that other shipping companies will follow suit, taking similar measures to protect their vessels and crew. This could lead to increased costs for shippers, as well as longer delivery times and potential disruptions to global supply chains. The situation in the Arabian Gulf highlights the vulnerability of international shipping to conflict and instability. The Strait of Hormuz, a critical waterway for global trade, has been effectively closed to traffic due to Iranian actions. This development underscores the need for greater cooperation and security measures among nations to mitigate such risks. As the situation continues to unfold, it is essential to monitor developments in the region and assess their impact on shipping operations. The actions taken by MSC demonstrate a commitment to prioritizing safety and security, while also minimizing potential disruptions to cargo operations. By doing so, the company aims to maintain continuity in its services and support its customers during this challenging period. In conclusion, the decision by Mediterranean Shipping Co. to divert cargo from Iran-touched Gulf ports is a response to the escalating conflict in the region. The mandatory surcharge of $800 per container and new booking procedures are designed to mitigate potential risks and ensure continuity in cargo operations. As the situation continues to evolve, it will be essential to monitor developments and assess their impact on shipping operations.

A coalition of 24 U.S. states has filed a lawsuit against the Trump administration seeking refunds of tariffs they argue were imposed unlawfully. The lawsuit adds to a growing wave of legal challenges from companies such as Nintendo and Costco, as well as importers affected by the duties. This development could lead to a significant shift in the way tariffs are enforced in the United States. The plaintiffs include Arizona, California, Colorado, Connecticut, Delaware, Illinois, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Oregon, Rhode Island, Vermont, Virginia, Washington and Wisconsin. These states argue that the administration unlawfully imposed broad tariffs without congressional authorization, violating the Constitution's provision that Congress holds the power to levy duties and taxes on imports. State officials contend that the law was intended only for narrow use during balance-of-payments crises tied to currency instability – circumstances they argue do not exist today. The states also claim that the tariffs are already raising procurement costs for state governments and increasing prices on imported goods and components used by public agencies. The complaint filed by the states argues that the administration improperly used Section 122 to impose sweeping tariffs after the Supreme Court struck down similar duties imposed under IEEPA. According to the filing, President Trump imposed a 10% tariff on most imports beginning February 24 and later signaled plans to increase the rate to 15%. This move has significant implications for U.S. trade policy and could determine whether importers receive billions in tariff refunds. The states' lawsuit names Trump, the U.S. Department of Homeland Security, U.S. Customs and Border Protection, and several federal officials as defendants. The outcome of this case could reshape the way tariffs are enforced in the United States and have far-reaching consequences for businesses and consumers alike. Meanwhile, gaming giant Nintendo filed a lawsuit against the U.S. government on Friday seeking refunds for tariffs it paid on imported products. Nintendo argues that the administration unlawfully used IEEPA to impose tariffs on goods imported from multiple countries. The company's lawsuit adds to the growing list of companies seeking refunds for illegally collected tariffs. Nintendo manufactures many of its gaming consoles and accessories overseas, primarily in Vietnam and China, making the company particularly exposed to the tariffs. With over 1,000 companies filing similar lawsuits, the stakes are high for this case and its potential impact on U.S. trade policy. The growing number of lawsuits seeking refunds for illegally collected tariffs highlights the significant challenges facing the Trump administration's trade policies. As the case moves forward, it will be crucial to determine whether the administration's actions were lawful or not. Ultimately, the outcome of this lawsuit could have significant implications for U.S. trade policy and the global economy. The decision on whether importers receive billions in tariff refunds will directly affect sourcing costs for retailers, manufacturers, and logistics providers.

ArcBest reported flattish metrics for February as it awaits a more meaningful turn in less-than-truckload demand. Results at its asset-based segment appeared to decelerate from January, but the prior-year comparison was skewed by a particularly weak January 2025. The company’s asset-based unit, which includes LTL subsidiary ABF Freight, recorded no year-over-year change to revenue per day for February, according to a filing with the Securities and Exchange Commission. A 2% y/y increase in tonnage (entirely driven by higher weight per shipment) was offset by a 2% decline in revenue per hundredweight, or yield. (Higher shipment weights and lower fuel surcharges were headwinds to the yield calculation.) ArcBest’s ( NASDAQ: ARCB ) final results for January came in a little better than previously disclosed. Tonnage was 9.9% higher y/y versus its initial expectation for an 8% increase , which was provided on a quarterly call at the end of January. The notable y/y deceleration in volume growth during February was due to January’s easy prior-year comp (negative-9.2%). On a two-year-stacked comparison, tonnage was up 0.7% in January and flat in February. (Its daily revenue and yield metrics were close to flat on a two-year look as well.) Table: Company reports The company said on the January call it had taken on more dynamically priced truckload shipments—pushing shipment weights higher but dragging yields lower—due to weakness across the manufacturing and housing sectors. ArcBest previously forecast first-quarter tonnage per day to increase by 4% to 5% y/y, which would be flat to up 1% on a two-year-stacked comparison. Quarter-to-date, tonnage is up 6% y/y. Manufacturing activity was modestly in expansion territory for a second straight month in February. The Purchasing Managers’ Index registered a 52.4 reading during the recent month, which was 20 basis points lower than January. (A reading above 50 signals expansion while one below 50 indicates contraction.) The dataset has largely been in negative territory for over three years. The new orders subindex—an indicator of future activity—came in at 55.8. (Inflections in PMI data usually lead LTL volumes by a few months.) The asset-based unit reported a 3% sequential yield increase in February (revenue per shipment was 2% higher) “due to pricing gains” and a step up in fuel surcharge revenue. Contract pricing renewals averaged 5% in the fourth quarter, the highest increase in six quarters and up 9.5% on a two-year-stacked comparison. ArcBest reiterated its prior asset-based operating margin guidance for the first quarter. The unit normally sees 260 bps of sequential deterioration, but the company expects to curb the degradation to just 100 to 200 bps this year given cost actions and the lower starting point (“softer-than-normal fourth quarter”). The guide implies a 97.7% adjusted OR at the midpoint, 180 bps worse y/y. Cost headwinds from expanding the network (800 incremental doors) and adding labor to support higher volumes will abate as throughput ramps. The company is also using training and better technology to improve efficiency and lower expenses. The asset-light segment, which includes truck brokerage, is now expected to see adjusted operating income “of up to $2 million” in the first quarter versus the prior outlook calling for a loss of up to $1 million. The unit operated at breakeven in the fourth quarter, as AI-enabled automation is helping to remove structural costs. Asset-light per-day revenue increased 10% sequentially in February as shipments grew 7% and revenue per shipment increased 3%. “We remain committed to maintaining yield discipline, managing costs, and positioning the segment for sustainable, long-term profitability,” the filing said. Shares of ARCB were off 2.5% at 11:24 a.m. EDT compared to the S&P 500, which was down 0.5%. More FreightWaves articles by Todd Maiden: Old Dominion ‘encouraged’ as declines moderate in February Saia’s tonnage declines moderate in February LMI: Freight market recovery in ‘full-swing’

WASHINGTON — A predictably enthusiastic reception greeted Arizona Senator Mark Kelly as he brought his campaign for legislation aimed at revitalizing American maritime fortunes to a gathering of U.S. port executives on Capitol Hill. Introduced in April 2025, the bi-partisan SHIPS for America Act proposes a comprehensive approach for oversight and funding to update U.S. maritime strategy. It addresses making U.S.-flag vessels globally competitive to rebuilding domestic shipbuilding capacity and training a new maritime workforce. The legislation is co-sponsored by Sen. Todd Young (R-Ind.), and Rep. Trent Kelly (R-Miss.) and Rep. John Garamendi (D-Calif.). “The maritime industry matters to our entire economy,” said Kelly in a keynote address to the American Association of Port Authorities Legislative Summit March 5. Acknowledging his adoptive home state has no ports, “and it doesn’t matter where you live. It has an effect on you.” The Democratic son of a suburban police chief traces his personal maritime connections to his grandfather, who served in the Merchant Marine aboard a Liberty ship during World War 2. At the U.S. Merchant Marine Academy Kelly worked on cargo ships and graduated with a third assistant engineers license. He went on to serve as a fighter pilot in the U.S. Navy flying combat missions in the Gulf War before he and his twin brother, Scott, were selected as astronauts in 1996. Kelly, 62, flew four shuttle missions for NASA. ”I understand how critical the maritime industry is to our national and economic security,” he said. “More than 80% of goods imported into this country come by sea, through our ports, making the maritime domain critical to our economic well-being. The problem is, as a country, we do not have a coherent national maritime strategy. And we haven’t had one for decades, as far as I can tell.” More than 99% of cargo ships calling American ports are owned, controlled and built overseas, Kelly said, with fewer than 100 U.S.-flag vessels operating in international commerce. Kelly pointed out that China has spent a generation implementing a comprehensive national maritime strategy, and operates more than 5,500 vessels in international commerce. Chinese shipyards, he said, hold 62% of the global order book for merchant vessels, while American builders hold less than 1%. Furthermore, Kelly said, Chinese entities have invested hundreds of billions of dollars around the world in strategic ports and technologies deeply rooted in global commerce. “Now, to be clear, I do not believe that the United States should want or seek conflict with China,” said Kelly, who has been mentioned as a possible presidential candidate in 2028, “and I do not think it’s inevitable. But I do believe the best way to avoid conflict is for the Chinese to understand that any conflict will hurt them much more than it will hurt us.” To that end the United States needs to be doing a lot more in the maritime domain. “As a nation, we need to develop a national maritime strategy,” Kelly said, to applause. The Trump administration recently released its own Maritime Action Plan that Kelly said includes some of the same elements of the SHIPS act. But it also includes a tax on cargo arriving aboard foreign-flag ships unloading at U.S. ports, and on imports coming through ports of entry on land. There is agreement that, in toto, a revival of the U.S. maritime sector is a long-term project that will require years of commitment and investment before meaningful results are realized. Said Kelly, “I use the word ‘maritime’ intentionally. We can’t just be focused on shipyards, ports or ships or workforce. This can’t be seen just as a problem that can be solved by the Navy or the Coast Guard, or the Maritime Administration. “We need a whole-of-industry and a whole-of-government approach to this.” Importantly, Kelly said the bill is fighting a timeworn sentiment in Washington that maritime is a zero-sum game. “Congress does something to help shipyards, it hurts ports. If Congress does something to help ports, it hurts mariners. So people often think about this, and that’s simply not true. I’ve been following the maritime industry since the 1980s, and these battles were happening back then. And what we have to show for it? Not much. We have fewer ships and we have less competitive shipyards. Ports are no longer state of the art; some are falling apart, and every aspect of the industry is facing workforce challenges. “If the American maritime industry isn’t willing to unite around a comprehensive strategy to seriously compete on a global scale, then everybody in the industry will stop,” said Kelly. “But here’s the good news: For the first time. In nearly 50 years, there is a bipartisan consensus here in Washington, right now, that we need to do more to strengthen the American maritime industry. And that means we have a chance. All of us here, we have a chance to work together to get this done.” The 300-page SHIPS bill has had a Senate hearing and Kelly expects one soon in the House of Representatives. “I believe we have an opportunity to get something done this year,” said Kelly. “You have a bi-partisan, the majorities in Congress and the administration, all on the same page. That doesn’t happen often, especially right now. But it will only be successful if the maritime industry sets aside the turf battles and unites to work together to advance our shared goal.” Kelly joked that, “I’m a guy who used to have to climb into a rocket ship built by the lowest bidder. That forces you to be an optimist. But I know we can get this done.” Kelly encouraged ports and their stakeholders to review the legislation, and make suggestions to improve it. The act includes helping ports and port terminal operators divest from Chinese-built ship-to-shore crane, which have been cited as a potential security risk by the U.S. Trade Representative. “I fully understand how critical it is to make sure that U.S. ports are globally competitive. None of us benefit If cargo destined for the United States is diverted to ports of Canada or Mexico. I get that. Because the global maritime industry really needs a strong American presence on the high seas. The United States is the strongest military in the world, and the world’s largest economy. “Why shouldn’t our maritime industry be the same?” Kelly said that the maritime system underpinning global trade was developed by the United States, but is threatened by China’s dominant power at sea. “In any industry, the Chinese target predominance,” said Kelly. “Their strategy is to make the entire global industry dependent on Chinese state control, and they’ll engage in unfair market practices. They’ll do whatever it takes to make that happen. I don’t think any of us want to see that happen to the maritime industry. Because every aspect of the U.S. maritime industry — workers, ports, shipyards and ship owners — would be so much more worse off.” Passage of the SHIPS act is a “win-win,” Kelly said. “We’ll address a critical vulnerability for our national defense, and counter Chinese influence in the global economy. And, we’ll do all of that while reinvesting in our economy, by bringing more jobs and more manufacturing back to the United States. “America has always been a maritime nation. And working together, I know that we can reclaim our maritime heritage. We cannot wait another decade or two because at some point, this gets really, really hard to fix.” Read more articles by Stuart Chirls here . Related coverage: Here’s where container rates will go in extended Iran war As shipping contract talks begin, Suez Canal traffic “flowing normally,” absent major lines VIDEO: Iran attacks refineries; CMA CGM shuts down all cargo bookings to Middle East World’s largest shipping line suspends all cargo to Middle East

The trucking industry is a complex and competitive market, with small carriers and owner operators facing numerous challenges. A constant stream of outreach, advertising, promises, and pitches from various companies can make it difficult for new carriers to make informed decisions. This is often referred to as the 'marketing machine' that the industry relies on. The most critical window for a new carrier is not the first difficult month of operation but the first 48 hours after their DOT number gets applied for. During this time, companies across the industry are monitoring new authority applications as a lead source, creating a psychological environment that feels urgent even when it isn't. This can lead to carriers feeling pressured to make decisions quickly without fully understanding the implications. Landrum emphasizes that most of the decisions made during this initial period are not time-sensitive and should be approached with caution. Carriers who select factoring companies or fuel cards under pressure may inadvertently lock themselves into terms that don't serve them well for months or years. It's essential to slow down and take time to evaluate options side by side. Understanding what you're committing to and for how long is crucial. The right partners will still be there in two weeks, even if it feels like the urgency is manufactured by volume of outreach rather than real operational deadlines. The messaging that performs best in this space taps directly into the emotional state of new owner operators, who are stepping into something genuinely exciting – ownership, autonomy, and the chance to build something on their own terms. However, there's a specific form of misleading messaging that Landrum finds particularly damaging, which centers on freight availability. Companies often make it appear as though all you need to do is get a truck and you'll get loaded, which isn't true. The freight market is not as simple as it seems, and carriers should be aware of this before making any decisions. This type of messaging exploded during COVID when new authority applications were astronomical, and companies profited from the surge in activity. Landrum stresses that factoring companies cannot make money unless their clients make money, which means they're strictly generating revenue off your business activity. If you don't have all the details, making a decision early can inadvertently lock you into terms that don't serve you well. The marketing technology available to companies reaching trucking audiences has grown dramatically, but much of it misses the mark entirely with the audience it's trying to reach. Carriers are looking for people who understand their business and will respond in a timely manner, not just slick interfaces or flashy marketing campaigns. One of the most consistent patterns Landrum identified is the gap between what carriers are sold and what they actually receive – not because companies are lying outright but because the messaging is calibrated to resonate with a feeling rather than describe reality. Carriers need to understand that getting a DOT number and purchasing authority is not the same as building a company. Landrum emphasizes the importance of having a business plan, which includes understanding how to find freight, set rates, and manage cash flow. Without this foundation, carriers are more likely to fail. The excitement of entrepreneurship is real, but it's essential to structure your business carefully before entering the industry. The trucking community is genuinely unusual in that small carriers view each other as a community rather than competitors. This means that carriers can get honest answers about what it's like to work with specific companies by looking within their own networks and communities. Ultimately, success in the trucking industry requires patience, persistence, and a clear understanding of your business needs. Carriers should slow down when the pressure to decide feels urgent, ask questions they're afraid to sound naive, and read what they're signing. By doing so, they can build something real and avoid falling prey to misleading marketing tactics.

The trucking industry was on the cusp of recovery, with spot rates climbing and excess capacity bleeding out of the market. However, a recent surge in fuel prices has put that progress back into question. Crude oil is currently trading between $100 and $111 per barrel, while diesel prices are at $4.60 nationally and expected to reach $5 soon. This sharp increase in fuel costs will have a ripple effect throughout the industry, impacting small carriers who need to read it like one. The trucking industry's foundation for recovery was already thin, with carrier exits accelerating through 2023 and 2024 due to weak profitability, high insurance costs, and elevated financing expenses. The demand side of the equation never really showed up, with consumer spending shifting toward services after the pandemic and manufacturing remaining soft. This has left small carriers who survived 2023, 2024, and 2025 by cutting costs to the bone, deferring equipment purchases, and accepting rates that left almost nothing for savings or reserve. As fuel prices rise, the cash flow gap between revenue and expenses widens, posing a genuine solvency risk for many carriers. With freight revenue arriving in 30 to 45 days after load completion, the timing of payment creates an additional challenge. To mitigate this impact, small carriers need to review their fuel surcharge structures, communicate them clearly, and enforce them starting immediately. This will help ensure they don't lose money on every loaded mile due to fuel price increases. Carriers also need to assess their cash positions and available credit options. Understanding what is available and at what cost can make a significant difference in making informed decisions from a position of choice rather than desperation. Furthermore, carriers should review their load selection criteria using current fuel prices, not historical ones. This will help identify the minimum rate per mile below which they are losing money on every load, ensuring they don't accept loads that destroy their business. The recovery that the trucking industry could see has not evaporated, but the demand catalyst needed to translate supply-side gains into actual rate recovery and margin rebuilding has been delayed. If oil stabilizes or retreats as the Iran conflict de-escalates, the macro damage to consumer spending and freight demand may be manageable. However, if the Strait of Hormuz disruption persists for weeks rather than days, and oil prices stay elevated through the second quarter of 2026, recovery could be pushed back into late 2026 or possibly even 2027. Carriers who survive will need to protect their cash position aggressively, enforce fuel surcharges without apology, and avoid accepting rates that destroy their business.

The price of crude oil has surged to over $100 per barrel, with diesel prices rising by 22 cents per gallon over the past week alone. This is a 75-plus percent increase in just 30 days, making it one of the fastest price shocks on record. The rapid rise in fuel costs is having a devastating impact on small carriers and owner-operators who are struggling to absorb the increases. ['The brutal winter of early 2026 created massive demand for heating oil across the Northeast, leaving diesel inventories thinner than normal when the price shock hit. This has resulted in a structural supply problem that existed before the conflict in Iran, with diesel prices now rising faster than crude and gasoline.', ['JP Morgan has framed the shift clearly: the market has moved from pricing in a theoretical geopolitical risk premium to dealing with tangible, operational supply disruptions - refinery shutdowns, export constraints, and shipping routes in active conflict zones. The diesel versus WTI crack spread has risen to approximately $70 per barrel, indicating a critically tight supply of refined product relative to demand.', ['Large carriers have systematic fuel surcharge schedules that automatically adjust with EIA published diesel prices every Monday. They built those schedules after 2008 and know exactly how to pass fuel cost increases through to shippers within days. However, small carriers do not have these protections in place and must absorb the increase in real time.', ['The breakeven impact deserves honest attention. If you have not calculated your cost per mile recently, this week is the week to do it. Fuel alone is not your only exposure here - tire prices, lubricants, and certain parts are petroleum-derived products that will also be affected by the surge in crude prices.', ["A fuel surcharge is not a favor you ask a shipper for during a crisis; it's a standard industry mechanism that exists specifically because fuel is a volatile input cost that neither carrier nor shipper can control. The EIA publishes national average diesel prices every Monday, and carriers must use this number as their reference point.", ['The conversation with shippers and brokers needs to happen now, not after diesel hits five dollars. Once you are in a rate environment where everyone is having that conversation at the same time, you are competing for surcharge recovery against every other carrier in the market simultaneously.', ["If you are running exclusively off load boards with no direct shipper relationships, this is the moment the load board can work against you. Brokers will be under pressure from shippers to keep rates contained even as fuel climbs. Some will hold; others won't. You need to know your floor - the rate below which you are physically losing money on the load after fuel.", ['The geopolitical situation adds an additional variable that makes this shock different from a domestic demand surge. If the Strait of Hormuz remains functionally disrupted, and if the Iran conflict extends rather than de-escalates quickly, this is not a two-week spike that normalizes. It is a multi-month structural shift in energy costs.', ['Plan for persistence, not a quick recovery. The current fuel shock will have far-reaching consequences for small carriers and owner-operators who must adapt to a new reality of rising fuel prices and uncertain market conditions.']]]]]]]]]

The trial of attorneys Jason Giles and Vanessa Motta, who are charged with orchestrating staged truck accidents in the New Orleans area, has begun. The jury trial is expected to run for three to four weeks, according to reports from NBC New Orleans affiliate WDSU. This case marks a significant development in the ongoing investigation into the staged accident scheme, dubbed 'Operation Sideswipe' by federal prosecutors. ["The King Law Firm, where Giles worked, is also a criminal defendant in this case. The firm's attorney, Rick Simmons, presented an opening statement arguing that the firm obtained good results from cases and that referrals came from the success of the firm and advertising. He pressed the jury to find a distinction between legitimate crashes and staged crashes, suggesting that Giles and the firm did their due diligence when allegations of suspicious activity were raised.", ["Vanessa Motta's attorney, Sean Toomey, presented an opening statement claiming that Motta was fully at fault in her involvement with Sean Alfortish, who is accused of murder. Toomey argued that Motta was a 'baby naive lawyer' with 'terrible taste in men,' but not a criminal. The referrals she received from Alfortish were coming to her because of his relationship with the larger scheme.", ["The testimony of Danny Keating, one of the defendants who pleaded guilty and is now scheduled to be sentenced next month, has been a significant part of this trial so far. Keating claimed that he was approached by Damien Labeaud, another defendant, and Jason Giles at the start of the scheme, when he was 'short on cash' after going through a divorce.", ["Keating testified that he kept $100,000 to $150,000 in cash at his home for payments, and admitted to having involvement in at least 120 wrecks. However, it's worth noting that this number may be exaggerated, as the U.S. Attorney's office currently lists indictments of 49 persons, with some incidents described multiple collisions per indictment.", ["The trial has also revealed more dollar figures, including $119,000 in payments to murdered potential witness Cornelius Garrison, according to a CPA and tax preparer for Sean Alfortish. This testimony highlights the extent of the scheme's financial motivations.", ["It remains to be seen how this trial will play out, but it's clear that the staged accident scheme has had far-reaching consequences for those involved. The fact that no other defendants have gone to trial so far suggests that the prosecution is building a strong case against Motta and Giles.", ["The trial of Motta and Giles marks a significant milestone in the ongoing investigation into 'Operation Sideswipe.' As the trial continues, it will be interesting to see how the jury responds to the evidence presented by both sides.", ['Ultimately, this trial has the potential to shed light on the inner workings of the staged accident scheme and the individuals involved. The outcome will have significant implications for those affected by the scheme, as well as for the trucking industry as a whole.']]]]]]]]