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The trucking industry faces a major disruption as PE-backed flatbed operator Montgomery Transport LLC abruptly filed for Chapter 7 bankruptcy and ceased operations immediately. This sudden shutdown put approximately 1,000 employees out of work, including 600 truck drivers, highlighting the fragility of transportation companies in today’s economy. Global trade flows are shifting as U.S. maritime gateways saw container imports drop 8.4% in September, with imports from China specifically falling 22.9% year-over-year. These declines, which included dramatic drops in goods like aluminum (43.8%) and footwear (33.9%), come amid the restructuring of U.S. trade using tariffs and other economic pressures. Uzbekistan is positioning itself as the next global IT logistics hub, driven by its growing digital economy and expanding U.S. trade relationships. Government initiatives like IT Park Uzbekistan offer compelling incentives, including 0% tax rates for technology companies, and leverage a young, highly literate workforce ready to serve global markets. Learn more about your ad choices. Visit megaphone.fm/adchoices

Enforcement activities by ICE, targeting non-domiciled CDL holders in southern states, have triggered a capacity shock, rerouting trucks to the Midwest and East Coast and causing regional spot rates to spike despite overall soft national freight volume. Globally, the macro picture confirms a rapid cooling, with new data projecting that US import container volumes will fall below the 2 million TEU mark for the remainder of 2025 due to weakening consumer spending and early peak season frontloading. This softening demand occurs as major Chinese carriers, including Cosco and OOCL, make the surprise move of announcing they will not levy surcharges to offset escalating US port fees set to begin October 14th. Looking ahead, significant capital is flowing squarely into automation and freight tech, signaling a long-term industry focus on efficiency and driverless operations. Autonomous trucking company Kodiak AI made its public debut on NASDAQ with a $2.5 billion valuation, while IKEA acquired the logistics tech platform Locus to improve its delivery fulfillment capabilities amidst surging e-commerce sales. Furthermore, back-office automation is accelerating, exemplified by Mentium, which raised a $3.2 million seed round to deploy AI-powered digital workers specifically focused on automating accounts payable processing for freight brokerages. Learn more about your ad choices. Visit megaphone.fm/adchoices

Ocean container rates on the eastbound Trans-Pacific are falling by double digits in a surprise move from China carriers ahead of new US port fees. The ship tax, which begins next week, charges China-owned or operated ships $80 per net tonnage for each voyage to the U.S. and could cost major players like Cosco and OOCL as much as $2.1 billion in 2026. Autonomous trucking company Kodiak AI just debuted on the NASDAQ after successfully combining with Ares Acquisition Corporation II, resulting in a $2.5 billion valuation for the newly public company. Kodiak secured more than $275 million in funding through this de-SPAC transaction, which CEO Don Burnette noted marks an inflection point for the industry as self-driving technology matures toward commercial deployment. Additionally, the Senate confirmed David Fink, a former Pan Am Railways president and fifth-generation railroader, to lead the Federal Railroad Administration. President Trump nominated Fink, stating he would "deliver the FRA into a new era of safety and technological innovation". Learn more about your ad choices. Visit megaphone.fm/adchoices

Dry van rates are surging nationwide, despite weak trucking volumes and low tender rejections, an inversion that points to hard supply contraction driven by behavioral reactions to immigration enforcement efforts. We also analyze the broader, longer-term metrics from the Logistics Managers’ Index, which recorded a September reading of 57.4, marking the seventh consecutive month the index has remained below its all-time average. This confirms slow, steady growth rather than a roaring expansion, and for the third straight month, a "negative freight inversion" occurred where transportation capacity grew faster than transportation pricing. In Washington, Derek Barrs was officially confirmed as the eighth administrator of the FMCSA, a move that industry groups like the American Trucking Associations and the Owner-Operator Independent Drivers Association had been anxious to see confirmed. Furthermore, new research links truck drivers who violate English language proficiency rules to significantly higher safety risks—with inspections involving an ELP violation having two and a half times the number of total non-ELP violations—though the study cautions this is a correlation and not direct causation. We provide a quick carrier pulse check confirming ongoing market pressures, highlighted by San Diego-based Epic Lightning Fast Service LLC permanently closing operations and laying off 116 employees by the end of October due to persistent challenging market conditions. However, there is positive news in the LTL space, as Daylight Transport was named the top overall LTL carrier for the second consecutive year and Old Dominion Freight Line was recognized as the top national carrier for the 16th straight year. Learn more about your ad choices. Visit megaphone.fm/adchoices

The Suez Canal anticipates a recovery following potential Middle East resolutions, with the waterway’s chief indicating that plans to end the conflict in Gaza should pave the way for a substantial return of global shipping traffic in 2025. Attention turns to domestic freight as the Association of American Railroads (AAR) releases its latest analysis. September rail volumes reflect the uneven pace of the US economy, prompting a guarded assessment for consistent tailwinds in rail movement.. Finally, we look at legal implications for government-backed logistics entities as the US Supreme Court is set to hear a potentially far-reaching case. The high court will consider whether the US Postal Service can be sued for allegedly deliberately withholding mail from a resident. Catch the day's lineup on FreightWaves TV, featuring new episodes of Sense Per Mile, WHAT THE TRUCK?!?, and Truck Tech. Additionally, make sure you head over to live.freightwaves.com, as we are less than two weeks away from F3: Future of Freight Festival. Learn more about your ad choices. Visit megaphone.fm/adchoices

Several critical developments are pointing toward a rising cost of uncertainty across the logistics landscape. Analysts are trimming expectations for the back half of the year, with Morgan Stanley significantly cutting earnings per share estimates for most truckload and less-than-truckload carriers due to high shipper uncertainty and continuing industrial contraction.. A major regulatory shift occurred when the U.S. Court of Appeals overturned a key Federal Maritime Commission rule regarding detention and demurrage fees, a ruling analyzed in Demurrage dilemma: court overturns FMC's trucking rule. Specifically, the court found the FMC rule that categorically blocked demurrage charges against motor carriers to be "arbitrary and capricious," potentially opening the door for drayage carriers, who often lack leverage, to be billed for these terminal fees once again. Equipment costs are set to rise after President Trump announced a new 25% tariff on imported medium- and heavy-duty trucks starting November 1st, as reported in Trump to impose 25% tariff on trucks starting Nov. 1. Since the U.S. imports the majority of these trucks from Mexico, the tariff could significantly raise the total cost of ownership for U.S. fleets, potentially slowing down equipment replacement cycles, even if vehicles nominally fall under the USMCA agreement. North of the border, Canada Post is facing a severe labor crisis linked to its deep financial struggles, having incurred losses of $2.7 billion since 2018, leading to a crucial update in Canada Post reduces contract offer to striking workers, warns of job cuts. The postal operator rescinded a $500 to $1,000 signing bonus and is proposing to eliminate lifetime job security for urban employees while aiming to downsize the workforce through attrition, buyouts, and early retirement to facilitate needed modernization. Learn more about your ad choices. Visit megaphone.fm/adchoices

President Donald Trump’s expansion of tariffs, which includes a new 25% duty on imported medium and heavy-duty trucks is set to begin November 1st. This decision follows a federal probe under Section 232 of the Trade Expansion Act and is aimed at protecting U.S. manufacturers like Peterbilt and Kenworth. The broadcast also covers the escalating labor situation at Canada Post, which has presented a scaled-back offer to 50,000 striking mail carriers that increases the likelihood of job cuts. The company's proposed collective bargaining agreement no longer includes a signing bonus due to its deteriorating financial position and plans to eliminate lifetime job security provisions for urban unit employees. Furthermore, the U.S. Department of Transportation has issued an emergency federal order leading to California and Oregon suspending the issuance of non-domiciled CDLs. This crackdown follows an FMCSA audit that found widespread non-compliance, including that more than 25% of California's non-domiciled CDLs were improperly issued. Don't miss the upcoming FreightWaves TV programming, including Loaded and Rolling and Check Call. You can also join the leaders shaping the future of freight at the F3: Future of Freight Festival in Chattanooga, Tennessee, which is just two weeks away. Learn more about your ad choices. Visit megaphone.fm/adchoices

The U.S. Department of Transportation issued an emergency order on September 26th mandating that states immediately stop issuing or renewing non-domiciled commercial learner’s permits and CDLs, targeting licenses often held long after their legal authorization to be in the U.S. had expired. This crackdown follows a nationwide Federal Motor Carrier Safety Administration audit that linked at least five fatal crashes this year to improperly issued licenses. Industry analysis predicts a significant surge in bankruptcies especially among small and mid-size carriers who built their business models on skirting the law by using non-compliant labor willing to run severe hours-of-service violations. Capacity issues are also global, as ongoing geopolitical uncertainty keeps ocean carriers away from the critical Suez Canal choke point. Maersk’s CEO, Vincent Clerc, stated that shipping firms are unlikely to return until security is “reliably restored” due to unacceptably high risks to crews and vessels. This continued rerouting around the Cape of Good Hope has caused container revenue for the Suez Canal Authority to plummet by as much as 60%, locking in elevated costs and longer transit times across the entire global supply chain. Connecting these domestic compliance costs and global operational headwinds, Werner CEO Derek Leathers recently characterized freight rates as "stably horrible" for years in the address, noting that potential tariffs on Class 8 trucks made in Mexico could further inflate equipment costs and cap future capacity. Ultimately, this market reset is being structurally guaranteed not by a sudden demand boom, but by the simultaneous removal of illegal low-cost capacity domestically and persistent geopolitical risk that maintains a high operational cost ceiling globally. Learn more about your ad choices. Visit megaphone.fm/adchoices

The core issue involves whether the safety exception of the Federal Aviation Administration Authorization Act (F4A) shields brokers, like C.H. Robinson, from negligent hiring claims, a question that has caused conflicting decisions across federal circuits. Brokers view this as fundamental to their business model and urgently need the Supreme Court to provide clarity on where the lines are drawn for their legal protection. Turning to infrastructure, the Port of Los Angeles, the busiest U.S. import gateway, has announced plans for a massive new container terminal called the Pier 500 project. This undertaking includes two berths and 3,000 feet of wharf across 200 acres, intended to accommodate ultra-large container ships such as the MSC Irina, which can carry over 24,000 TEUs. This expansion, which is expected to take about 10 years to complete, highlights the significant time required for major port infrastructure to keep pace with the increasing size of global shipping vessels. In the financial sector, we examine Moody’s affirmation of Echo Global Logistics’ corporate family debt rating at B3, which is considered deep into non-investment grade territory. Despite the persistently challenging freight trucking environment, Moody’s held the company's outlook at stable, anticipating that cost saving actions will help offset margin pressure tied to soft freight rates. While leverage remains high, expected to be slightly below 7X debt/EBITDA this year, Echo maintains steady earnings and adequate liquidity. A surprising tech hurdle impacting EV adoption is revealed in a new report showing that nearly one-third of charging attempts fail, leaving the actual First-Time Charge Success Rate (FTCSR) stuck at 71%, despite high charger uptime statistics. This issue stems primarily from fragmentation in the multiple software systems—including the vehicle, charger, and payment network—that must perform a perfect digital handshake to initiate a charge. Furthermore, success rates drop significantly after about three years because older charging stations often cannot be updated to support newer charging protocols.  Finally, the podcast addresses accelerating investment in e-commerce fulfillment, driven by consumers still ordering large items online. Walmart recently announced plans to build a $300 million fulfillment center in Kings Mountain, North Carolina, specifically designed to handle bulky online orders like furniture. This massive 1.2 million square-foot facility is expected to open in 2027, underscoring the ongoing need for specialized infrastructure in the supply chain. Learn more about your ad choices. Visit megaphone.fm/adchoices

The Port of Los Angeles, which handled 10.3 million TEUs in 2024 and forms the busiest U.S. container gateway with Long Beach, plans to build a brand new terminal to accommodate the world's largest container ships. The new Pier 500 project will comprise two berths and 3,000 feet of wharf on 200 acres of land along the Pier 400 channel, with LA currently seeking proposals for a pre-development agreement regarding financial feasibility and other requirements.  In legal news, former Surface Transportation Board member Robert Primus filed a federal lawsuit challenging his August 27th dismissal by President Trump, who removed him without giving a reason. Primus, the sole STB member to vote against the 2023 Canadian Pacific-Kansas City Southern merger, claims his firing violated the law requiring STB members to be removed only for causes like neglect of duty or malfeasance, and he is suing the President, STB Chairman Patrick Fuchs, and the STB.  Walmart announced plans to build a $300 million fulfillment center in Kings Mountain, near Gastonia, North Carolina, which will be a 1.3 million square foot facility expected to open in 2027. This new center is designed to help Walmart serve customers faster, potentially shipping large items, while creating 300 jobs supported by a potential $4 million state job development grant. Learn more about your ad choices. Visit megaphone.fm/adchoices

This episode conducts a deep dive into the current volatility of the freight market, focusing on how agility is the critical metric for survival and success. Using recent ATBS data, we analyze how successful owner-operators are improving their net income, despite rising fixed costs, especially maintenance, by maintaining stability and focusing on calculating their contribution margin. New tariffs on imported heavy-duty trucks are expected to curb new truck orders, leading to a predicted rise in used truck prices due to scarcity. Meanwhile, on global ocean lanes, Asia-to-US West Coast container rates dropped another 15% last week, forcing carriers to blank about 13% of scheduled sailings to stabilize rates amidst ongoing trade risk . Not all global movement is weak, as the Port of Savannah stands out, having handled over 534,000 TEUs in August, due in part to infrastructure adaptation like the new fast-track routing system. We also cover the major policy fight concerning the Union Pacific-Norfolk Southern merger, which BNSF argues will hurt competition and service, while the merging parties claim it will boost volume with single-line options. In transportation technology, Einride achieved the world's first cabless electric fully autonomous cross-border delivery between Sweden and Norway, proving that autonomous systems can manage complex international regulatory requirements through digital integration. Conversely, the ongoing Canada Post strike is presented as a case study in failing to adapt with workers resisting modernization, leading to private carriers scooping up quickly diverted parcel volumes and the postal service's market share plummeting. Learn more about your ad choices. Visit megaphone.fm/adchoices

The Cincinnati Northern Kentucky International Airport just opened an 80,000 square foot airside warehouse designed for non-express general cargo, marking the first completed project at the new CVG Global Logistics Park. This dedicated area for cargo activity separates it from passenger traffic to increase efficiency, and it exists alongside the primary U.S. air hubs for Amazon Air and DHL Express.  The Port of Savannah shows resilience against trade war fears, handling 534,037 TEUs in August, which is a 9% year-over-year increase and the third highest volume in its history. Although container volumes were robust, totaling over 1.01 million TEUs fiscal year to date, the Port of Savannah did see a decline of 14.3% year-over-year in autos and machinery shipments.  We discuss the bleak outlook for the still-waging Canada Post battle, as industry analysts suggest mail carriers on strike are actively jeopardizing their own jobs. Analysts argue that the striking carriers’ demands prevent Canada Post from undertaking necessary restructuring needed to modernize and win back parcel customers who have already fled to courier companies.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Today’s daily update tackles extreme market volatility, starting with the unprecedented regulatory about-face by the California Air Resources Board. CARB has essentially wiped out the two biggest components of their Advanced Clean Fleets rule, including the High Priority Fleets regulation covering fleets over 50 trucks and rules that were set to bar non-ZEV trucks from port operations. We analyze the looming threat of a federal shutdown, noting that while essential safety functions like FMCSA roadside inspections and CBP cargo inspections are expected to continue, critical oversight functions will largely cease. Agencies like the Federal Maritime Commission and the Surface Transportation Board, which handles shipping disputes and vital transportation data, will suspend case processing, potentially leading to increased dwell times at major ports like LA-Long Beach. Moving to efficiency gains, we examine how AI startup Oatway is tackling the “dirty secret of full truckload”—partially filled trailers—by dynamically matching partial shipments with empty capacity on existing FTL run. This innovation optimizes existing infrastructure using machine learning and ELD data, potentially boosting net annual revenue for carriers by up to 30% while cutting shipper costs by up to 50% compared to traditional LTL. In corporate news, Interstate Personnel Services , the parent company of Paschall Truck Lines, is in formal talks to acquire J&R Sugar Trucking, which would create a combined fleet of around 2,000 trucks and 5,000 trailers. This merger strategically adds temperature-controlled refrigerated transport capacity to IPS's existing dry van network, highlighting the current premium placed on reefer capacity. Finally, Texas has halted the issuance of Commercial Driver's Licenses to non-citizens, including DACA recipients and refugees, following a federal directive aimed at tightening commercial licensing rules. Since 2015, Texas has issued almost 52,000 non-domiciled CDLs, and this regulatory move presents an immediate challenge for fleet staffing and recruitment efforts across the state. Learn more about your ad choices. Visit megaphone.fm/adchoices

BNSF Railway claims Union Pacific and Norfolk Southern combination will severely hurt competition and service. BNSF’s position paper argues that the $85 billion deal will force UP to drive up rates and favor high-density lanes, prompting the railway to urge shippers to contact the Surface Transportation Board with their concerns. Trade tensions are mounting in the trans-Pacific maritime sector as Beijing prepares a regulatory volley in response to U.S. charges on Chinese ships. China amended regulations to allow "necessary countermeasures," potentially including fees on vessels or prohibiting U.S.-service ships from entering or leaving Chinese ports, in retaliation for costly U.S. port fees. Finally, we look at the logistics impact of new U.S. duties on construction and home goods materials. The proclamation introduces a 10% tariff on imported softwood lumber and timber, and a 25% duty on imported kitchen cabinets, vanities, and upholstered wood furniture, all effective starting October 14. Critics caution that these tariffs, which the administration states are aimed at protecting the U.S. wood industry, will inevitably lead to higher costs for American consumers and builders. Learn more about your ad choices. Visit megaphone.fm/adchoices

Regulatory whiplash in California as the state effectively held a funeral for the two largest components of the Advanced Clean Fleet Rules, including mandates for high-priority fleets and drayage trucks. Despite the official withdrawal of these mandates by CARB, zero-emission vehicle sales are surprisingly growing in the state, suggesting market momentum is now driven by factors beyond regulatory pressure. The ongoing pricing standoff in the parcel sector, where UPS and FedEx are imposing significant peak season surcharges despite projections for muted demand growth, has heated up. Analysts warn that demanding these high fees in a soft market is short-sighted, leading to a major diversion of volume to alternative carriers like Amazon, Walmart, and independent services like OnTrac. Our brief concludes with the tectonic plates shifting in corporate freight strategy, starting with the massive $85 billion UP-NS merger that is already forcing competitors like CSX to seek its own merger partner after a CEO change. Meanwhile, ArcBest unveiled an ambitious plan to double its adjusted earnings per share by 2028 by targeting a highly optimized, asset-based operating ratio of 87% to 90% through technology and cost controls. Finally, we address the industry's perennial challenge of safety, noting that Wyoming currently tops the list for deadly truck crashes by death rate while Texas leads the nation in total fatalities by volume. These sobering statistics are fueling calls from victim advocates for mandatory safety technology, specifically demanding that all new commercial trucks be equipped with Automatic Emergency Braking. Learn more about your ad choices. Visit megaphone.fm/adchoices

CSX Corp. announced a surprising leadership change, naming Steve Angel as president and CEO, effective last Sunday, succeeding Joe Hinrichs. The move follows activist investor calls for Hinrichs to step down as CSX’s metrics trailed other Class I carriers. California has officially gutted the two largest components of its Advanced Clean Fleets rule that would have impacted trucking in the state. This withdrawal was inevitable after the California Air Resources Board yanked its request for an EPA waiver in the face of the imminent Trump administration. New federal data ranks Wyoming as the deadliest state for truck crashes per capita, followed by New Mexico and Mississippi. You can read more about the findings, based on National Highway Traffic Safety Administration data which also noted that Texas ranked first for the overall total number of fatalities. Tune into FreightWaves TV later today for Check Call with Mary O’Connell and Loaded and Rolling with Thomas Watson. Also, remember that we are less than three weeks away from the Future of Freight Festival (F3) in Chattanooga, Tennessee, so register soon to save money off your ticket. Learn more about your ad choices. Visit megaphone.fm/adchoices

Starting with high stakes legal risks surrounding broker liability, we explore the Supreme Court’s scheduled conference to discuss whether to grant certiorari on two landmark cases, Cox v. TQL and Montgomery v. Caribe II, which hinges on interpreting the safety exception in the Federal Aviation Administration Authorization Act (F4A). We shift gears to financial risks, where dry van contract rates have remained stalled and fell only a marginal 0.3% year-over-year as of early September. This flat rate environment is extremely stressful because the average cost to operate a truck has increased 33% since 2019, compared to only a 17% rise in contract rates over the same period, leading to massive carrier attrition. Operational security is also paramount as cargo theft tactics are becoming incredibly sophisticated, with Mexico serving as the epicenter and accounting for 75% of all North American incidents in Q3. Furthermore, we analyze the surprise leadership shift at CSX, where the board named Steve Angel as the new president and CEO, following activist investor pressure over persistent underperformance metrics compared to other Class I carriers. Finally, we cover the ultimate labor battleground: the fight for driver hours and pay, as the FMCSA proposes pilot programs that could allow for up to 17-hour driving windows. Many drivers argue that the solution is not more hours but mandatory federally-mandated detention pay, suggesting compensation should kick in after just 30 minutes of waiting at docks. Learn more about your ad choices. Visit megaphone.fm/adchoices

All eyes are on Washington today as the Supreme Court is scheduled to discuss whether to grant review in two critical broker liability cases under the F4A. The fundamental issue is whether the safety exception, which allows state action for negligence causing physical harm, extends to third-party logistics providers or brokers. The FMCSA's National Consumer Complaint Database modernization, part of Transportation Secretary Sean Duffy's broader Pro-Trucker Package, has officially gone live with Phase One. This long overdue tech upgrade is mobile-optimized and creates an official federal mechanism for reporting broker complaints, which can directly influence a company's safety ratings and audit priorities. The Surface Transportation Board is seeking more time to review the proposed $85 billion acquisition of Norfolk Southern by Union Pacific. The board has proposed a procedural schedule that slightly tweaks the original timeline and grants the Justice Department and Department of Transportation an extra 15 days to file their official comments. Learn more about your ad choices. Visit megaphone.fm/adchoices

The biggest global shift is the cancellation of the de minimis rule, which previously offered a duty-free pass for low-value parcels but now adds huge friction by requiring formal customs entries. In response to this turbulence, companies like DHL are pouring millions into compliance, hiring over 880 new customs experts and investing heavily in AI and digital platforms to manage the rising complexity. The U.S. trucking market faces a capacity crisis marked by systemic overcapacity—a 54% surge in for-hire carriers since 2018 compared to only a 1.2% rise in freight volume. This environment has enabled dangerous "chameleon carriers" linked to hundreds of deaths, prompting the FMCSA to issue an emergency rule severely restricting non-domiciled Commercial Driver’s Licenses (CDLs). Carriers must prepare for major cost inflation starting October 2025, when the U.S. is set to slap a new 25% import tariff on heavy-duty trucks, hitting an equipment market already reeling from low orders. Adding to regulatory uncertainty, the Department of Justice is seeking to dismiss California's lawsuit over Congress overturning key EPA waivers, even as Automated Manual Transmissions (AMTs) make driving easier but eliminate the traditional mechanical knowledge defining professional skill Learn more about your ad choices. Visit megaphone.fm/adchoices