The strike, organized by the National Chamber of Freight Transportation (CANACAR) and other trucking organizations, calls for demonstrations across Mexico, including Nuevo Laredo, Reynosa, Monterrey, Tijuana and Mexico City.

The protests could disrupt freight transportation through some of North America’s busiest commercial corridors, particularly in Nuevo Laredo, across the border from Laredo, Texas, the nation’s leading inland port of entry.

CANACAR President Augusto Ramos Melo said trucking companies have grown increasingly frustrated with cargo theft, violence against drivers, deteriorating highways, excessive towing fees and regulatory burdens.

The organizations are also protesting proposed changes to Mexico’s 2027 fiscal package that would reduce eligibility for a tax credit covering certain highway toll expenses.

The demonstrations were expected to involve truck convoys and vehicles stationed along highways, near logistics facilities and other strategic freight locations. Organizers have called for peaceful protests, although traffic delays and interruptions to freight movements remain possible.

Mexico’s Interior Ministry urged CANACAR to return to negotiations, saying several other transportation organizations had agreed to talks aimed at preventing disruptions to highways and commercial traffic.

CANACAR maintained its call for demonstrations despite the government’s appeal.

The strike comes amid mounting pressure on Mexico’s trucking industry, which plays a critical role in moving automotive parts, manufactured goods, agricultural products and other freight between Mexico and the United States.

The duration of the protests and their impact on commercial border crossings remained unclear Monday.

Why it matters: An extended trucking strike in Mexico could disrupt cross-border supply chains, delay shipments through major Texas and California trade gateways and increase transportation costs for U.S. importers and manufacturers.

The post Mexican truckers launch national strike over highway security, rising costs appeared first on FreightWaves.

Between Oct. 1 and Dec. 31 U.S. Postal Service mail and package volumes will increase about 40% for the holiday season. 

The carrier has hired more than 10,000 seasonal workers, down from 14,000 last year and from 40,000 just a few years ago. Since 2020, a combination of improved staffing, reduced supervisor vacancies and lowered overtime rates has resulted in a more stable workforce and reduced the need for temporary help, the carrier said in a news release on Thursday.

“We have been preparing all year for this peak season, and we have enough capacity to handle whatever comes our way,” Postmaster General David Steiner said.

Why It Matters: Peak season is when carriers are tested the most and can feel customer backlash if they aren’t prepared to handle the higher volumes.

The postal operator credits new technology, logistics planning and execution for its ability to efficiently handle the influx of mail. Last year, between Nov. 15 and Jan. 9, on-time delivery scores were higher in nearly all service categories, with the best scores being in last mile delivery for shipped and postal consolidators injecting pre-sorted freight at post offices with large back-end receiving facilities to skip upstream postal processing..

The Postal Service installed 164 sophisticated, automated package sorting machines at facilities around the country this year, part of a $40 billion investment plan begun in 2022 to transform the organization’s middle-mile network. It has added a total of 673 high-speed sorters so far, according to the announcement. The machines can handle more and larger parcels than previous-generation machines. 

In fiscal year 2026, ending Sept. 30, the USPS opened 31 sorting and delivery centers and 10 regional processing and distribution centers that work in tandem with 35 local processing facilities. In total since 2022, the Postal Service has opened 182 S&DCs, 19 regional DCs and four standalone regional transfer hubs. 

S&DCs were created to remove duplication and increase efficiency in a network that relied on more than 18,000 destination delivery units — post offices with receiving docks postal officials said are too small, ill-equipped and poorly maintained. The sorting hubs consolidate work once assigned to about 10 DDUs and use small sorter  equipment that can process between 2,500 to 4,300 pieces per hour to serve upward of 200,000 customers daily. 

A better tracking and reporting platform, introduced in 2025, is also helping increase package visibility. The tracking is nearly four times faster than the previous version, often providing updates within a minute of scanning, the USPS said. The platform is connected with other systems that allow customers to get accurate information about the location of their packages using the USPS app or by signing up for messages.

In fiscal year 2026, ending Sept. 30, the USPS opened 31 sorting and delivery centers and 10 regional processing and distribution centers that work in tandem with 35 local processing facilities. In total since 2022, the Postal Service has created 182 S&DCs, 19 regional DCs and four standalone regional transfer hubs. 

S&DCs bring focus and structure to a network that for too long has relied on a haphazard and ever-growing patchwork of destination delivery units (DDUs), many of which are too small, ill-equipped and poorly maintained. With nearly 19,000 DDUs across the country, we were not only operating a costly delivery network but also perpetuating a system that has hindered our ability to evolve with the market as demand for package delivery soared.

The answer to this problem is our new system of S&DCs. Each of these large, spacious, well-equipped facilities — many already owned by the Postal Service or on a long-term lease — typically consolidate the work once assigned to about 10 DDUs. Each S&DC will use the latest automated sorting equipment to serve upward of 200,000 customers daily, bringing new efficiencies to our delivery operation and improving our service performance.

New commercial chief

To improve strategic planning in targeted markets, the quasi-private organization created a Chief Solutions and Strategy Office to analyse the entire enterprise, centralize network planning and identify ways to work more effectively and efficiently. The group is also working more closely with USPS customers to better match their needs with postal solutions, the Postal Service said.

In related news, the Postal Service earlier this month promoted Gary Reblin to chief commercial officer. He has served as chief technology officer since August 2025 after moving up the ranks for 35 years. In a LinkedIn message, Reblin said insights he gained as CTO will help decision making to modernize sales, competitive pricing for parcels, retail stores, delivery and tracking. 

Reblin is credited with helping shape the early partnerships that brought privately transported parcels directly to local post offices for delivery, which continue to serve as an area of revenue growth for the financially struggling organization. 

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The Tokyo-based carrier began flying freighters again for the first time in 13 years in February 2024 and now operates three Boeing 767-300 converted freighters that previously flew for its passenger business. But those aircraft primarily operate on intra-Asia routes.

In a 2035 strategy outlined in March, Japan Airlines said it planned to add large freighters to the cargo business to meet robust demand between Asia, North America and Europe, especially for high-value cargo such as semiconductor manufacturing equipment and pharmaceuticals. 

Towards that end, Japan Airlines has enlisted U.S.-based carriers Atlas Air and Kalitta Air, as well as Cargolux, to operate cargo jets under long-term charter agreements, according to a company news release earlier this month.

Kalitta Air operates Boeing 747-400s on JAL’s behalf six times per week between Tokyo Narita International Airport and Chicago. Kalitta replaced Western Global Airlines, the previous operator on the route. 

Cargolux operates two Boeing 747-400s twice a week between Narita and Luxembourg.

Atlas Air operates twice per week for JAL between Narita and Los Angeles International Airport. Atlas Air subcontracts some of the flights to partner carriers. 

JAL also procured Atlas Air flights to establish a dedicated network for  Nippon Express Group, a major logistics customer to meet the growing demand for AI and semiconductor-related goods. The service operates on a circular route starting from Los Angeles, passing through Narita airport, Taipei, Taiwan, and Singapore and back to Narita before returning to Los Angeles, Nippon Express announced earlier this month. The service began with one flight per week and could be expanded in the future, it said. 

Nippon Express said there is high demand for servers, server racks, semiconductors, semiconductor manufacturing equipment and other electronic componentst between Tokyo, Taipei and Singapore, but there are few airlines operating large cargo jets within Asia, limiting available options. The 747s, with about 100 tons of capacity, will provide a unique and highly valued capability, it said.

A recent analysis by Frost & Sullivan and FedEx quantified the huge production growth in semiconductor and AI-related equipment in the Asia-Pacific region, with an ecosystem of suppliers shipping components back-and-forth. Many end customers are hyperscalers based in North America. Logistics providers and airlines are racing to offer more services for the AI market because it offers very high margins.

Japan Airlines withdrew from freighter operations in 2010 as part of a bankruptcy reorganization. One of the motivations to restart the in-house cargo airline in 2024 was the boom in e-commerce. JAL primarily operates standard-size passenger jets on short-haul routes in Asia, but the planes don’t have sufficient capacity in the lower deck to meet cargo demand. 

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

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The evaluated options: do nothing, purchase an electric tractor, or purchase a Range eTrailer. Record high diesel prices are making fleets look closely at these options – especially refrigerated fleets, which face additional pressure burning diesel in two engines (TRU and truck engine).

Much of the discussion focuses on the decision a fleet can make today: to start building out charging infrastructure (which can be a multi-year endeavor) and get in the queue for a Tesla Semi, or to put in orders for a Range eTrailer, which starts serial production in late 2027.

Download the whitepaper and make more informed decisions that reduce diesel reliance and enable a more rapid impact to your bottom line.

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Revenue increased 22% to $8.97 billion and pre-tax earnings were $527 million, up 53% year over year, the Swiss logistics giant reported last week.

The air and ocean forwarding business outperformed by picking up more business from Chinese retail marketplaces and hyperscalers, taking away market share from competitors in the process. Management also said that its cost savings initiative is moving faster than originally anticipated, with annualized savings of $242 million by year’s end. Better productivity has helped turn increased gross profits into operating profit at a rate of 18.2%, up from 13.4% a year ago. 

Based on the nine-month results, Kuehne+Nagel (SWX: KNIN) raised its full-year outlook for earnings before interest and taxes to $1.88 billion at the midpoint range.

K+N said air cargo volume growth accelerated 7% quarter over quarter and 10% year over year, significantly exceeding overall market growth of about 6% from last year. Air logistics revenue was $2.88 billion, up 38% year over year. EBIT grew 84% during the quarter and is up 35% year-to-date.

Market share capture accounted for about 60% to 70% of the volume outperformance. Demand for logistics solutions supporting cloud infrastructure and semiconductor customers was a key growth driver, with general cargo also strong. A large share of air volume growth came via dedicated freighter aircraft. 

K+N’s commentary dovetails with data and anecdotal evidence from airlines and logistics providers experiencing huge demand for high-tech shipments. 

Executives said they expected to see further volume gains during the peak season, especially in higher-yielding segments.

K+N’s product mix in air cargo is changing. As high-tech shipments begin to dominate, volumes from automakers in Europe have fallen in recent years. And lightweight e-commerce volume fell significantly during the quarter, CEO Stefan Paul said during a briefing for analysts. Global e-commerce traffic has been impacted by new European Union customs fees and the introduction of tariffs for low-value goods in the United States in the past 18 months.

K+N continues to invest in cold chain capabilities for pharmaceutical customers. In September, K+N opened a 37,700-square foot healthcare logistics facility at Frankfurt Airport in Germany, expanding its ability to handle temperature-sensitive pharmaceutical and healthcare products. 

Earlier this year, K+N established a so-called “cool corridor” between Frankfurt and Atlanta using a dedicated Boeing 747-8 freighter operated on its behalf by Atlas Air. The corridor concept is based on providing direct flights on the logistics company’s own-controlled aircraft, with sophisticated refrigerated warehouse facilities on each end of the route to give shippers faster, more reliable transport for specialized products than available by booking through for-hire commercial airlines. 

The new facility is located within a large K+N warehouse at Frankfurt airport, which offers direct tarmac access and quick transfer times to-and-from cargo handling areas to minimize exposure to temperature changes. It can hold products at cool, refrigerated and frozen conditions. 

Why It Matters: K+N is the largest freight forwarder by gross revenue in the world.

Ocean freight

The ocean shipping business returned to growth during the quarter, with EBIT up 55% after falling 11% in the first half since the end of last year. Volumes increased 5% year over year and 6% sequentially. 

Results were driven primarily by market share gains on Asia outbound to the United States as the company made inroads with China-based exporters and in the transatlantic, thanks to a recovery in U.S. import demand.

“We decided roughly a year ago to invest into these new multinational customers coming from China. All of them want to become global and they need support with their uplifts into the markets, whether it is Europe, whether it is Latin America, but as well to a certain degree, of course, outside of the automotive industry, to the U.S.,” Paul said.

It will take two or three years to fully implement all the new master service agreements, which means revenue from this market segment will continue to grow, he added.

K+N expects ocean yields to hold stable at elevated levels through the first quarter of 2027, an outlook that TD Cowen analyst Jason Seidl said in a note was also expressed by DHL Forwarding management in a recent meeting.

K+N contract logistics revenue and pre-tax earnings increased 9% and 7%, respectively, with growth primarily in Europe and the Middle East. The company said it struck deals for 37 new contracts during the quarter, which will result in future revenue gains. Trucking profits increased 40% on stable demand in North America and Europe.

K+N has set a goal of $1.2 billion in revenue from its new long-term logistics deal with Amazon to support construction and operation of data centers, with air, ocean, road and contract logistics divisions all contributing support, Paul said.

In September, K+N inaugurated a new Tech Center in Chennai, India, expanding its global engineering footprint and its ability to develop and scale proprietary digital logistics solutions used to optimize customer supply chains at a time when digital capabilities have become a differentiator in the logistics market. Chennai was selected because of its highly skilled engineering talent and business ecosystem. The company said it expects to hire about 250 tech workers by early 2027 to work on the core digital forwarding platform for managing air and ocean shipments and other projects. 

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

Write to Eric Kulisch at ekulisch@freightwaves.com.

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Jackson most recently led finance and store development at retailer AutoZone, where he has served as CFO since January 2021. FedEx (NYSE: FDX) said his skill set combines disciplined financial management, thoughtful capital allocation, and operational experience to support business growth.

“During Jamere’s six-year tenure at AutoZone, he was a key contributor in helping shape the strategies we implemented to drive record sales, earnings, and earnings per share. I appreciate his many contributions to our success and wish him well in his future endeavors,” said AutoZone CEO Phil Daniele in a statement.

Before AutoZone, Jackson served as executive vice president and chief financial officer of Hertz Global Holdings and as chief financial officer of Nielsen Holdings. Earlier in his career, he held a variety of leadership roles at General Electric, including chief financial officer of a division of GE Oil and Gas. Jackson currently serves on the board for Eli Lilly & Co, where he is chair of the Audit Committee.

Why It Matters: FedEx is a Fortune 100 company and a bellwether of the U.S. economy and global trade.

Jackson joins FedEx as the freight transportation giant executes its Network 2.0 strategy for consolidating separate Ground and Express networks, and streamlining airline operations, during a volatile period for supply chains because of high fuel prices triggered by the Iran war and global tariff proliferation.

FedEx produced strong results for the fiscal year fourth quarter ending on May 1. FedEx grew full-year revenue by 9% to $94.7 billion and adjusted operating income by 17%. The 7.7% adjusted operating margin was the highest margin rate in four years.  

John Dietrich joined FedEx as CFO in August 2023, after leading all-cargo airline Atlas Air. He played a key role in implementing FedEx’s initiative for eliminating billions of dollars in structural costs, the Network 2.0 consolidation strategy, the Tricolor restructuring of the airline to better align capacity with service levels and the planned spin off of FedEx Freight, which have helped the company produce several quarters of solid profit growth. 

Dietrich joined the board of American Airlines in July. 

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

Write to Eric Kulisch at ekulisch@freightwaves.com.

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123Loadboard and Direct Freight are coming together to build a single, stronger independent freight network. The two platforms will continue to operate as customers know them, but behind the scenes they’ll increasingly function as one connected system, letting a broker post freight across both networks from a single workflow, and giving carriers access to a combined pool of freight opportunities.

For Carmelo Messina, Vice President of Sales at 123Loadboard, the logic behind the combination starts with a simple observation about how brokers actually work.

“Freight takes a network. That’s really the starting point for us,” Messina said. “Brokers already have carrier relationships, a TMS, and usually one or more load boards. We’re not pretending those tools are going away. The problem comes when all of those things still don’t produce a truck.”

123Loadboard is closing that gap not by replacing what brokers already use, but by adding another layer of capacity for when the usual network comes up short.

Messina calls this the “capacity gap,” and says it matters more than raw coverage percentages might suggest.

“It’s the load you still can’t cover after you’ve exhausted the obvious options,” he said. “And those loads matter disproportionately. Your customer doesn’t really care that you covered most of their freight. They remember the load that didn’t move.”

Internally, 123Loadboard uses what Messina calls the “90% idea” to illustrate the point. “You wouldn’t tell your customer, ‘Don’t worry, we’re 90% covered,’” he said. “You need confidence that you have somewhere else to turn when the normal options aren’t working.” The company’s shorthand for that idea has become something of a mantra: don’t live and die on one load board.

Messina says that there’s an important distinction between relying on one platform for full coverage and taking advantage of multiple networks. 123 Loadboard isn’t interested in replacing established load boards as a sole provider. 

“Brokers don’t need us to tell them to abandon tools that already work for them,” Messina said. “We think the smarter model is additive.” 

The approach, as Messina describes it, is to layer 123Loadboard and the Direct Freight network on top of existing carrier relationships, TMS platforms, and load boards in order to catch what falls through a broker’s primary workflow. 

“If you’re already getting most of your freight covered, great,” Messina said. “We’re interested in helping with the freight you’re not covering.”

At the most basic level, combining the 123Loadboard and Direct Freight marketplaces simply means more listings in one place. But the bigger opportunity comes in terms of timing, i.e.,  surfacing capacity before a broker is scrambling for it.

“A broker shouldn’t have to wait until they’re desperate for a truck and then start searching everywhere,” Messina said. “We want to make it easier to see potential capacity earlier, reach more of the right carriers, and ultimately give brokers more confidence when they accept freight from their customers.” It’s a philosophy he sums up plainly: cover all bases.

Confidence in your freight network, according to Messina, is more important than an individual load board’s platform. 

“A load board is a tool,” Messina said. “A network is the people, relationships, information, and activity around it.” The fundamentals still matter, he added. Posting the load, finding the truck, and making the connection are mandatory parts of the process. But 123Loadboard’s ambitions extend further. 

“For brokers, it’s about coverage and confidence,” Messina said. “For carriers, it’s about having enough information to decide whether a load actually makes sense for their business. And for both sides, it’s about trust. Who am I doing business with? Can I rely on them? Is this a relationship I want to build?”

One early glimpse of that network-first thinking is Capacity Radar, a concept Messina describes as a look at where freight matching is headed next. Traditional load boards, he noted, are built around explicit signals, such as a posted load or a posted truck. But there’s more information available than that.

“A carrier may have searched a lane, operated there previously, indicated preferred lanes, or generated other signals suggesting that they could be relevant to a particular load,” Messina said. “The idea behind Capacity Radar is to start making those signals useful to brokers.”

Instead of only answering “which trucks are posted right now,” Messina says that the goal is to help brokers answer a more useful question: “Where might I find capacity for this load?” 

The carrier side of the equation gets equal weight in Messina’s telling. More freight opportunities help, but he doesn’t think volume alone solves the carrier’s actual problem.

“A carrier has to work out whether the load is actually worth taking,” Messina said. “What’s the rate? What’s the deadhead? What happens at the destination? Can I find a backhaul? Do I trust the broker? Does this move get me closer to where I need to be?” Those decisions, he said, determine whether a carrier is running a healthy business, which is why 123Loadboard treats the carrier side of the network as a question of decision support and not just listing volume. “More freight matters. Better information about that freight matters just as much.”

Even as 123Loadboard leans into matching technology and data, Messina is emphatic that freight remains a human business. 

“A difficult load isn’t just a row in a TMS,” Messina said. “There’s usually a broker trying not to disappoint a customer and a carrier trying to make the economics of their week work.” Technology, in his view, should clear away unnecessary friction, not substitute for the relationships that freight runs on. “We want technology to make the people in freight better at their jobs, not remove the people from freight.”

That extends to trust, which Messina describes as foundational to the network 123Loadboard is building, particularly as fraud has become a bigger industry concern. 

“There is uncertainty on both sides of every transaction,” Messina said. “Brokers want to know they’re dealing with legitimate, reliable carriers. Carriers want to know they’re dealing with legitimate brokers who are going to pay them and treat them fairly.” 

Scale for its own sake isn’t the goal, Messina added: “A bigger network isn’t automatically a better network. More capacity is valuable. Capacity you can have confidence in is much more valuable.”

Messina says that the combination with Direct Freight is an important step because it strengthens the network. “From there, the opportunity is to make that network smarter through better matching, capacity intelligence, trust signals, and decision support, while keeping real people in the loop,” he said. “We’re not trying to build another place where people stare at more listings. We’re trying to build the network brokers turn to when they need to close the capacity gap, and the network carriers use to make better freight decisions.”

His message to brokers, distilled to three lines: Don’t live and die on one load board. Complete your capacity stack. Cover all bases.

123Loadboard and Direct Freight operate under a shared network, One Freight Network.

Click here to learn more about 123Loadboard.

The post Completing the Capacity Stack appeared first on FreightWaves.

U.S. Under Secretary of State for Economic Affairs Jacob Helberg and Danish Foreign Minister Lars Lokke Rasmussen signed the memorandum of understanding Oct. 22. The agreement establishes a framework for drawing on Danish maritime expertise to strengthen American shipbuilding capacity and create new commercial opportunities for Danish suppliers.

Denmark is home to Maersk (OTC: AMKBY), the world’s second-ranked ocean container line.

The partnership targets workforce training, maritime equipment and technology, and specialized services supporting ship construction, repairs and retrofits. It also calls for exploring local partnerships and joint ventures to help expand and modernize U.S. shipyard capacity.

The State Department described the memorandum as a first step toward a broader maritime partnership, saying it “will help create American jobs, strengthen U.S. security.” The department linked the initiative to President Donald Trump’s executive order on restoring American maritime dominance and the administration’s maritime action plan, which seek to expand shipbuilding capacity, develop skilled workers and strengthen supply chains.

“American shipyards need skilled hands, capital, and speed,” Helberg said in a social media post on X announcing the agreement. He said the partnership would support faster training, Danish investment and “quicker, cheaper builds and repairs.”

For Danish companies, the agreement opens opportunities to supply equipment, technology and services to the American maritime sector. The framework also seeks to strengthen maritime defense-industrial cooperation, including technologies and capabilities with both military and commercial applications.

The Denmark agreement joins a broader U.S. effort to enlist allied investment and expertise in rebuilding domestic shipbuilding capacity. Washington has established shipbuilding partnerships with South Korea and Japan covering investment, workforce development and production technology, while its trilateral ICE Pact with Canada and Finland focuses on expanding icebreaker design and construction capabilities.

The two countries plan to exchange knowledge and best practices on maritime policy and regulatory frameworks, involving government authorities, industry associations and other stakeholders. The State Department and Denmark’s Ministry of Foreign Affairs will lead implementation.

The announcement did not identify specific shipyards, investment amounts, individual projects or an implementation timetable, leaving the commercial scope and pace of the partnership to be developed.

Why it matters: The partnerships will deploy allied investment and expertise to help close workforce and production gaps while strengthening alternatives to China’s dominant shipbuilding industry.

Read more articles by Stuart Chirls here.

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The post Shipbuilding central to new US-Denmark maritime pact appeared first on FreightWaves.

The world’s biggest forwarder (DSV.CO), based in Denmark, posted pre-tax earnings before special items of 6.606 billion Danish kroner ($990.9 million), including $45 million in gains from property disposals. Revenue rose 12.1% year over year to $12.11 billion, while gross profit increased 3.8% to $3.04 billion.

Air and sea business generated $641.7 million in EBIT before special items, up 18.9%, with integration-related cost savings lifting its conversion ratio, or the share of gross profit converted into operating profit, to 45.8% from 38.6%. Contract logistics EBIT climbed 50.3% to $251 million, supported by synergies, improved productivity and capacity utilization.

Trucking remained the weak spot. Its EBIT before special items fell 35.1% to $78.9 million, including $29.3 million in property gains. DSV attributed the decline to lower volumes and productivity after service disruptions linked to the Schenker integration in Europe. Operations normalized toward the end of the quarter, the company said, with attention now shifting to productivity and commercial performance.

DSV said the Schenker integration was generally proceeding as planned, with almost all countries either completed or undergoing integration by the end of the quarter. As part of reshaping the acquired business, DSV announced plans in October 2025 to divest USA Truck, saying the carrier did not fit its mostly asset-light model. It maintained its target of $1.35 billion in annual synergies, but said remaining savings in trucking and some group functions would be delayed into 2027 because of operational issues.

The company narrowed its 2026 EBIT-before-special-items forecast to $3.6 billion to $3.75 billion, from a previous range of approximately $3.53 billion to $3.83 billion. It now expects about $825 million in integration-related special items for 2026, with some costs shifting into 2027. DSV continued to estimate total transaction and integration costs at about $1.65 billion.

DSV reported adjusted free cash flow of $965.9 million for the quarter and said its debt-to-equity fell to 2.5 times. Cash flow benefited from $478.4 million in property disposals, while working capital remained elevated amid higher freight rates and fuel prices. The company also announced a $225 million share buyback, scheduled to run from Oct. 21, 2026, to Feb. 1, 2027.

DSV said its demand outlook remained exposed to macroeconomic uncertainty, including higher energy prices, global inflation, Middle East tensions and trade tariffs.

Why it matters: DSV’s results show that Schenker integration savings are boosting profitability, but disruptions in its European trucking network point up the operational risks of combining two global logistics giants.

Read more articles by Stuart Chirls here.

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Average spot rates from Asia to the U.S. West Coast edged up 0.2% in the week ending Oct. 23 to $8,311 per forty-foot equivalent unit. Rates to the U.S. East Coast also increased 0.2%, reaching $11,525 per FEU.

“This confirms the U.S. trades have peaked and we expect them to soften through the remainder of 2026,” said Peter Sand, Xeneta’s chief analyst, in a note to clients.

The weekly plateau leaves trans-Pacific rates well above earlier benchmarks. West Coast rates were up 18.9% from July 1 and 342% from Feb. 28, which Xeneta uses as its pre-Hormuz crisis benchmark. East Coast rates were up 31.7% and 335%, respectively.

Asia–U.S. East Coast rates also remained more than three times those from Asia to North Europe.

In contrast to the largely flat trans-Pacific market, Asia–North Europe spot rates rose 6.8% during the week to $3,698 per FEU, while rates to the Mediterranean climbed 5.8% to $4,442.

The European increases reversed steady declines since July, even as the continuing return of container shipping services to the Red Sea freed up fleet capacity.

“This is a conundrum because the release of capacity into the global fleet should ease pressure on rates, but we are seeing the opposite,” Sand said.
Major carriers are making a substantial but partial return to the Red Sea and Suez Canal. MSC, CMA CGM, Maersk (OTC: AMKBY)/Hapag-Lloyd and Cosco/OOCL have restored some services; ONE, HMM and Yang Ming have announced returns. 

Strong demand has helped support European rates, according to Xeneta, with volumes shipped from Asia to Europe increasing 12.2% in the first seven months of 2026.

“Disruption such as Middle East conflict brings volatility and sudden shocks, but demand is a powerful upward force for rates,” Sand said. “If demand is not there, then rates will collapse, but it has been strong enough on the European fronthauls to prevent this, even as Red Sea capacity returns.”

Despite the weekly gains, North Europe rates remained 33.2% below July 1 levels, while Mediterranean rates were down 36.7%. Compared with Feb. 28, however, rates were still up 67% into North Europe and 33% into the Mediterranean.

On the trans-Atlantic, North Europe–U.S. East Coast rates slipped 0.2% during the week to $2,963 per FEU, remaining 16% above July 1 and 101% above the pre-Hormuz crisis benchmark.

Why it matters: The diverging trends suggest a return to Red Sea routes alone will not determine how quickly container shipping costs ease. U.S. importers face the prospect of declining rates from still-elevated levels, while strong European cargo demand is supporting renewed increases despite additional vessel capacity becoming available.

Read more articles by Stuart Chirls here.

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The post New ‘conundrum’: Asia-US, Europe ocean rates diverge appeared first on FreightWaves.

Graham informed the board of directors of its intention after more than five years as CEO. 

“Paul delivered landmark reforms under our Post26 Strategy with the support of our shareholders and launched the next phase of our modernisation through our Post30 plan. He has strengthened our role in Australia’s eCommerce economy, enhanced the customer experience and transformed our operations. These strategies have set Australia Post on a clear path to long-term sustainability,” said Chairwoman Siobhan McKenna, in a statement. 

The Australia Post board has launched a search process for the next Group chief executive that will include internal and external candidates. 

“We have worked hard to ensure Australia Post remains one of the very few national postal operators to not require government funding and remain in public hands, while continuing to invest and grow our operations and supporting our team members, licensees and the Australian community. I remain fully focused on delivering our priorities and supporting a smooth handover,” Graham said. 

In fiscal year 2026, ended June 30, Australia Post recorded an adjusted pre-tax loss of US$75.5 million, reflecting the ongoing decline of letter mail volume, rising delivery costs and competitive pressures in the parcel market. Revenue grew 4% to $6.9 billion, led by parcel delivery with 4.8% revenue growth.

Cost management and productivity reforms, including a new delivery model, generated year-on-year cost savings of $132 million. Operating costs were up 3.9% due to wage growth, increased licensee commissions and contractor rates and higher-parcel volume-related costs. Meanwhile, the company invested $290 million across fleet, technology, facilities, parcel locker and regional network expansion, partly funded by proceeds from property sales.

Parcel performance

Australia Post’s parcel volume last year grew 5.3% behind sustained demand in e-commerce transactions. The national post is feeling intense competition from global marketplaces, private equity and international delivery providers continuing to expand their Australian operations. While volume growth remains stable, pricing pressures and the need to keep investing in network capacity, technology and customer experiences have contributed to higher operating costs, driving lower margins to remain competitive, Australia Post said. 

Last year, Australia Post expanded the parcel locker network by 64.3% to 1,510 locker banks, especially in parcel-focused parts of the country.

Australia Post acquired delivery technology platform Rendr, helping to expand delivery options for customers, and also secured a partnership with Vinted when it entered the Australia market, to support the growing re-commerce market. 

Mail service recorded a loss of $44.3 million, partially offset by an increase in postage rates as letter volumes fell a further 14.7% as more communications and transactions are conducted via digital channels.

Mail continues to weigh on Australia Post’s financial performance. The cost of maintaining a nationwide delivery network increases every year even as usage declines. Without postage price increases each of the last four years, the mail business would have lost $350.8 million more than it did. 

Given the downward trend in letter volume and increasing delivery costs, further price increases and efficiencies will be required to ensure essential services, the company said in its financial report.

Why It Matters: Secular declines in letter volumes, private sector parcel competition and financial losses are common themes for global postal operators, including the U.S. Postal Service and Canada Post. Making things even more difficult for these organizations are government rules that restrict management’s ability to make workforce, operational and financial changes needed to achieve financial stability. 

Australia Post continues to roll out new post offices, with the primary aim of making it more convenient for customers to send, collect and return parcels. 

New parcel distribution center and freighter jets

Last week, Australia Post broke ground on a multimillion dollar parcel facility in the southeastern part of Victoria, Australia, to support the growth of e-commerce in the region. The new parcel facility will consolidate Australia Post and StarTrack courier operations from three locations into one modern, purpose-built center, improving efficiency and service for all stakeholders, the postal operator said.

Expected to open in late 2027, the 107,640 square foot facility will feature advanced automation capable of processing up to 5,000 parcels per hour, with greater speed and tracking ability, while creating a safer work space by reducing manual handling. 

Australia Post said it is committed to ensuring rural communities have access to reliable parcel service as online shopping becomes more prevalent.

The investment is part of a broader effort to modernize Australia Post’s network and deliver faster service, with new facilities opening in seven locations in the past year. 

Australia Post is also adding more air mail capacity in partnership with Qantas Freight, which will add three additional Airbus A321 freighter aircraft to its dedicated postal fleet. 

Australians spent a record $17.6 billion shopping online in the third quarter, according to Australia Post’s latest e-commerce report. Online spending grew 17.% year over year.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

Write to Eric Kulisch at ekulisch@freightwaves.com.

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The post Australia Post CEO to retire as financial challenges continue appeared first on FreightWaves.

The reverse logistics challenge

Getting that product back to the company so it can be recycled into new flooring is an exercise in sophisticated reverse logistics and effective use of freight. It comes off the floor seven to 10 years after delivery, often in small lots. By then the owner or tenant may have changed and not be aware that the flooring is recyclable or know who manufactured the product.

To combat this challenge, the Dalton, Ga., flooring maker has implemented a number of steps to make it easier for that product to be returned to Shaw rather than ending up in a landfill. For years, the company has printed a toll-free number and URL on the back of its EcoWorx carpet tile, which launched in 1999, so that demolition teams knows who to contact for product takeback.

“We also have tools within our own operations where we can identify places that we know we have had our products installed,” said Candi Hampton, vice president of global sustainability at Shaw, in an interview with FreightWaves. “That allows Shaw team members to contact them when they’re likely getting ready for renovation to ensure they are aware of our reclamation and recycling services, which are available at no cost to the customer.”

Shaw often needed a full truck or a substantial amount on a truck for it to be cost-effective to bring it back to the company.

Shaw’s answer, worked out in 2022 and 2023, was to run returns through the regional distribution centers that handle its outbound deliveries. Doing so allowed the company to collect smaller quantities from its customers and store it at the distribution center until enough material is collected to transport it to the company’s manufacturing and recycling facility in northwest Georgia. In a November 2023 release, the company cut the minimum for a no-charge EcoWorx pickup in the U.S. under its re[TURN] Reclamation Program from 500 square yards to 100.

The lower minimum fits a market where commercial spaces have shrunk, Hampton said, and floors now mix carpet with hard surfaces and unfinished or polished concrete.

Returns ride the outbound network

Shaw makes 2,700 customer deliveries a day and reaches 99% of the U.S. population in two days or less, according to the company’s supply chain and logistics page. The November 2023 release put its count of regional distribution centers at 30. Shaw ranks 75th on Transport Topics’ 2026 Top 100 Private Carriers list, with 689 tractors and 3,191 trailers.

That network is built around delivery dates. “If you’re building a house and trying to close, it needs to be there on time,” said Sara Martin, Shaw’s vice president of corporate marketing and communications, in a separate interview.

Most of Shaw’s truckload freight moves between its major hubs and its regional distribution centers, FreightWaves noted back in 2021. The regional centers also run local trucks that go back and forth to customers.

Those local trucks now pick up reclaimed carpet tile from customers, and customers near a center can drop it off themselves. Pickup sites still need room for a 53-foot trailer and a live load, under Shaw’s reclamation program guidelines.

“That allows us to consolidate different projects so that we have a larger footprint to then bring back to Georgia on a truck that was coming back empty anyways,” Hampton said.

Shaw still uses a couple of third-party partners where no regional center is close by, but Hampton said the distribution centers are the main route because they are more cost-effective.

Back into the backing

Once a load reaches Georgia, the tile goes into a process that chops it up, melts it and turns it into pellets. Those pellets are blended with other compounded pellets to make new backing. Shaw used to separate the fiber from the backing and use each differently.

“We’ve been able to change that process so that now everything goes into the backing, and we’re able to recycle 100% of that carpet tile back into the backing,” Hampton said.

Hampton said young Shaw engineers who had taken green chemistry classes in college built EcoWorx around principles Michael Braungart and William McDonough were promoting before Cradle to Cradle became a book or a product certification.

“If you design a product and you’re not thinking down the road what it might do at end of life, you likely don’t have very many options,” she said.

Since 2006, Shaw has reclaimed and recycled almost 1 billion pounds of carpet, including EcoWorx, according to the same release.

Recycling carpet tile counts toward a customer’s landfill diversion efforts, and using the recycled content in the manufacturing of a new carpet tile cuts its embodied carbon and the customer’s Scope 3 emissions.

Finding carpet tile installed years ago

Getting customers to send carpet tile back is the harder half. Hampton did not have a return rate to share and said it can be challenging. “There is a lot of miseducation and misperception out there,” she said.

“These products are going down. It might be seven, might be 10 years before the products are coming back up,” Hampton said. “And so the owners may have changed, the end users may have changed. They might not actually know.”

Specifications are one fix. Shaw works with architects and designers to write reclamation into product and building specs, so the instruction is on paper when the tile comes up, Hampton said.

Landfill fees decide where tile comes back

Where carpet tile and other flooring comes back from often depends on what it costs to throw it away. While recycling supports customers’ sustainability priorities, Hampton said returns come easiest where landfills charge high tipping fees: California, New York, Massachusetts and Seattle.

“Places that don’t have massive tipping fees, like Alabama or Mississippi, are harder places to get our products back,” she said.

The contractor tearing out the floor decides where the flooring goes.

“A lot of times they think it’s going to be too hard or too expensive, or it’s just so much easier to throw everything they’re demoing into a single dumpster instead of having to segregate,” she said.

Shaw has hired sustainability specialists for the Seattle and Boston areas and just added one in Dallas. Along with architects and designers, they go directly to contractors and demolition contractors, who aren’t typically the customer Shaw is engaged with when selling its products.

“So being able to have those people that can connect directly to the contractors or the demo contractors, take them step-by-step through the process, walk the space with them, really educate them, has made a huge improvement in our efforts to get product back,” Hampton said.

The post How Shaw backhauls turn old carpet tile into new opportunity appeared first on FreightWaves.

The proposed agreement would succeed the port’s previous collective contract, which covered Jan. 1, 2022, through Dec. 31, 2025. That agreement was ratified in June 2023, more than a year after its effective date.

Contract details were not disclosed.

The Halifax Employers Association represents longshore employers, vessel owners and operators, shipping lines and agents. The previous collective agreement covered three ILA locals: Local 269, representing longshore workers; Local 1341, representing freight and steamship checkers; and Local 1825, representing gear repair and maintenance workers. PSA is the primary container terminal operator; Halifax serves container carriers including CMA CGM, Mediterranean Shipping Co., Ocean Network Express and Atlantic Container Line, along with regional operators such as Eimskip and Tropical Shipping.

The last contract combined higher compensation with provisions intended to improve the port’s efficiency and competitive position. It provided annual wage increases of 4.5%, 5%, 4% and 3.75%, along with increases in pension and welfare trust assessments during the final three years.

It also addressed container-terminal modernization, attendance and greater flexibility in ordering labor, while eliminating the Mid-West Cargo rebate agreement. Employers and union representatives said at the time that those measures were intended to improve efficiency for customers while addressing employees’ needs.

The proposed Halifax settlement comes as the Canadian government works on new port legislation, placing the negotiations within a broader debate over the country’s maritime gateways.

Why it matters: The new agreement offers certainty at a gateway serving not just Atlantic Canada, but central Canada and the U.S. Midwest.

Read more articles by Stuart Chirls here.

Read more:

New ‘conundrum’: Asia-US, Europe ocean rates diverge

New Drewry data shows import demand boosting trans-Pacific rates
Russian diesel tanker heads for U.S. following Trump-Putin deal

Time-definite ocean delivery? Container ship completes new Arctic route trial

How new capacity is raising rates in chaotic ocean market

The post Canada port reaches new longshore union labor deal appeared first on FreightWaves.

Avocado imports generate $641M for US trucking, warehousing

Mexican Hass avocado imports generated an estimated $641.5 million in U.S. transportation and warehousing activity and supported more than 4,150 jobs in fiscal year 2025-26. 

The findings by Texas A&M University researchers highlight the growing importance of cross-border trucking, refrigerated transportation and distribution networks connecting Mexican agricultural producers with U.S. consumers.

The report, The U.S. Economic Contributions of Hass Avocado Imports from Mexico, was prepared by Gary W. Williams, an emeritus professor in Texas A&M’s Department of Agricultural Economics, and Dan Hanselka, an extension program specialist.

Nearly 98% of Mexican avocados entering the U.S. in 2024 were transported by truck through Texas land ports, primarily through Pharr and Laredo.

The analysis, released Wednesday by the Avocado Institute of Mexico, estimated that Mexican Hass avocado imports generated $7.1 billion in total U.S. economic output and supported 37,163 jobs across multiple industries during the fiscal year ending June 2026.

Texas plays a central role in transporting Mexican avocados to U.S. markets.

According to USDA data cited in the Texas A&M report, the Pharr border crossing handled approximately 58.2% of Mexican avocado imports in 2024, while Laredo accounted for another 39.4%.

Once shipments clear the border, avocados move through an extensive network of trucking companies, refrigerated warehouses, wholesalers, distribution centers and food processors before reaching grocery stores, restaurants and other customers nationwide.

The report found that avocado shipments generate additional economic activity through purchases of fuel, equipment, transportation services, repairs and other logistics-related services.

The economic contributions extend beyond companies directly transporting the fruit, supporting businesses throughout interconnected supply chains.

In Texas alone, an estimated $245.1 million in Mexican Hass avocado imports generated $428.9 million in economic output, contributed $265.5 million to the state’s gross domestic product and supported 2,402 jobs across industries.

The study estimated that California, the nation’s largest avocado-consuming state, generated $968.2 million in economic output and supported 5,325 jobs associated with Mexican avocado imports.

Together, Texas and California accounted for only 19% to 22% of the national economic contributions measured in the study, demonstrating how the supply chain extends throughout the country.

The Texas A&M analysis also found that $3.2 billion in Mexican Hass avocado imports during fiscal year 2025/26 contributed an estimated $4.4 billion to U.S. GDP.

The imports also supported $2.4 billion in labor income and generated approximately $1 billion in federal, state and local taxes.

“This report demonstrates the value of a deeply integrated North American supply chain built over decades between Mexico and the U.S.,” said Ron Campbell, executive director of the Mexican Hass Avocado Import Association, in a statement.

“Mexican avocados don’t simply cross the border, they generate economic activity throughout the U.S. economy, supporting transportation and distribution networks, retailers, restaurants and communities across the country.”

GLS US expands parcel delivery network to Texas border market

Regional parcel delivery provider GLS US has expanded its services into El Paso, Texas, strengthening its shipping network across the Western U.S and adding another market along the U.S.–Mexico border.

The expansion, announced Oct. 20, gives businesses in West Texas access to first-, middle- and final-mile delivery services. The new location also can determine international shipping capabilities and parcel transportation for shipments weighing up to 150 pounds.

El Paso is a major U.S.–Mexico trade gateway, supported by manufacturing, distribution and cross-border commerce with neighboring Ciudad Juárez, Mexico.

GLS said its expanded network will serve manufacturers, distributors, retailers and e-commerce businesses seeking improved shipping connectivity throughout Texas and the Western U.S.

The move into El Paso follows GLS US’s expansion into Houston, Austin and San Antonio earlier this year, after entering the Dallas-Fort Worth market in 2025.

GLS US is part of GLS Group, a European parcel delivery company operating in more than 50 countries and handling more than 900 million parcels annually.

Jetco expands heavy-haul operations to serve Gulf Coast boom

Houston-based trucking and logistics provider Jetco has launched a specialized cargo division aimed at growing demand for heavy-haul transportation tied to data centers, power generation, manufacturing and infrastructure projects along the Gulf Coast.

The division combines Jetco’s existing heavy-haul operations, established in 2008, with its expanding freight brokerage business to handle oversized, overweight and over-dimensional cargo.

“Three years ago, we started positioning ourselves to capitalize on the accelerated growth of domestic power, manufacturing, and infrastructure, specifically data centers,” Jetco President Kyle Kristynik said in a statement.

The company has added four specialized trailers this year, including two Faymonville multimax trailers capable of hauling 125,000 pounds each, a Goldhofer trailer rated for 180,000 pounds and a Fontaine hydraulic removable gooseneck trailer with a 55-ton capacity in a 16-foot footprint.

Jetco said the division will combine its own trucks and trailers with prequalified third-party carriers to manage complex industrial shipments.

The company also plans to collaborate with Canadian sister companies Precision Specialized and Scott Woods Transport to support specialized, heavy-haul and out-of-gauge freight movements.

Jetco, which is part of Canadian transportation company The GTI Group, operates from its Houston headquarters and maintains facilities in Pasadena, Freeport and Dallas, Texas.

Why it matters: The report “The U.S. Economic Contributions of Hass Avocado Imports from Mexico,” highlights how Mexican agricultural imports sustain U.S. trucking jobs, refrigerated distribution networks and freight activity far beyond the border.

The post Borderlands Mexico: Avocado imports generate $641M for US trucking, warehousing appeared first on FreightWaves.

Chart of the Week: Contract Rate Change Direction Index – USA  SONAR: CRCD.USA

Shippers who have reset truckload contracts over the past several months are paying about 13% more than the rates they replaced. That is the reading from SONAR’s new Contract Rate Change Direction index (CRCD.USA), which stood at 13.11% on Oct. 22, up from 3.53% a year earlier.

This index measures the average percentage difference between a new contract base rate and the one it replaced within an established shipper-carrier relationship. It counts a change only when the old rate had held steady for more than 90 days, which filters out short-term noise and isolates true bid-cycle repricing. The index is a seven-day rolling average, updated daily.

The metric strips out the effects of temporary route guide waterfalling and contract-plus pricing to show more durable changes in rates. Route guide failures say a lot about market pressure, but the rates they produce can overstate what eventually becomes the sustained cost. 

It is also important to note that the index measures only contracts that are changing. That makes it largely agnostic to volume, and readings can thin out when few contracts are changing. CRCD also does not account for whether a carrier moves up or down in a shipper’s routing guide after a rate change. That gap showed up in 2025: contract resets ran at roughly 3% to 4% starting in late 2024, yet the average contract rate index (VCRPM1) showed flat to slightly lower invoiced rates through most of the year.

Pairing the two indexes shows how successful carriers’ rate increases have been, or not. CRCD leads invoice data directionally, but it does not predict whether increases will stick. That carriers were pushing for increases a year before the recent cycle turned should be a cautionary tale for shippers now navigating a period of extreme rate inflation.

The current 13% reading shows that most contract changes are now landing well into the double digits, nearly a year after tender rejection rates jumped above 9%. As the chart above shows, contract rate changes lag rejection rates, which suggests it takes a sustained period of elevated rejections before contract rate increases follow. With rejection rates averaging close to 13% over the past few months, increases are still coming in above 10%. Note that CRCD is not an annualized rate. It measures the average change in contracts when they move, and a change does not register until it is implemented.

The takeaway for shippers is that carriers are still securing strong rate increases, and the contract rate index (VCRPM1) suggests those increases are sticking. The average increase should moderate as carriers move onto more financially healthy contracts. However, both FMCSA and tender data suggest capacity has not grown meaningfully over the past 12 months despite elevated rates, so it may take time for the curve to flatten.    

About the Chart of the Week

The FreightWaves Chart of the Week is a chart selection from SONAR that provides an interesting data point to describe the state of the freight markets. A chart is chosen from thousands of potential charts on SONAR to help participants visualize the freight market in real time. Each week a Market Expert will post a chart, along with commentary, live on the front page. After that, the Chart of the Week will be archived on FreightWaves.com for future reference.

SONAR aggregates data from hundreds of sources, presenting the data in charts and maps and providing commentary on what freight market experts want to know about the industry in real time.

The FreightWaves data science and product teams are releasing new datasets each week and enhancing the client experience.

To request a SONAR demo, click here.

The post Truckload contract rate increases riding steady above 10% appeared first on FreightWaves.

Shanghai-to-Los Angeles rates increased 2% to $8,007 per 40-foot container, while Shanghai-to-New York rates edged up 1% to $10,166. Drewry expects trans-Pacific rates to remain stable next week, with U.S. import demand continuing to support the market despite an increase in available capacity.

Carriers have announced only two blank sailings on the trans-Pacific for next week, down from six this week, according to figures from Drewry’s Container Capacity Insight. The service tracks scheduled and canceled sailings, effective capacity and port congestion across major trade lanes.

Rates from Shanghai to Rotterdam rose 3% to $3,632 per 40-foot container, while Shanghai-to-Genoa rates increased 5% to $4,152.

Unlike the trans-Pacific, the Asia-Europe trade faces more sailing cancellations next week. Carriers have announced eight blank sailings, up from two this week, tightening available capacity as they seek to put upward pressure on freight rates.

Drewry expects Asia-Europe rates to increase slightly next week as capacity reductions support pricing.

The cuts come as congestion at key Asian ports eases. Vessel waiting times at Shanghai fell from 97 hours in Week 38 to 38 hours in Week 42, signaling a substantial improvement in port operations.

Security risks and attacks on ships continue to affect vessel movements through the Persian Gulf. Only two containerships sailed into the Gulf in Week 42, down from five the previous week. Meanwhile, sailings through the Suez Canal increased slightly, from 54 in Week 41 to 55 in Week 42.

Why it matters: The increase signals continued cost pressure on importers, even as congestion at major Asian ports eases. Strong U.S. demand is supporting trans-Pacific rates, while Asia–Europe carriers are canceling more sailings to tighten available space and bolster pricing, leaving shippers’ costs dependent on both cargo demand and carrier capacity decisions.

Read more articles by Stuart Chirls here.

Read more:
Russian diesel tanker heads for U.S. following Trump-Putin deal

Time-definite ocean delivery? Container ship completes new Arctic route trial

How new capacity is raising rates in chaotic ocean market

No. 2 container line studying US-UK route for nuclear ships

Trans-Pacific facing new booking risks as reliability sinks

The post New Drewry data shows import demand boosting trans-Pacific rates appeared first on FreightWaves.

Roadrunner’s (OTC: RRTS) new service connects shippers across Canada to approximately 40 major metro markets in the U.S. The direct linehaul service is executed entirely by truck, with no shipments touching the railroads.

“We built a proprietary Smart Network for direct, long-haul, metro-to-metro service, delivering fewer handling points, faster transit, real-time visibility, and greater accountability with no unnecessary transfer points to delay shipments or compromise visibility,” said Dave Black, vice president of strategic sales at Roadrunner. “We have focused primarily on strengthening our U.S. network, and we are pleased to announce our next phase of expansion.”

Roadrunner was already serving U.S.-outbound lanes into Canada. Its metro-to-metro, long-haul network utilizes independent drivers and over 40 terminals to provide LTL service to shippers.

The GRI is expected to average 5.9% across general tariff codes and lanes. The announcement follows other recent rate implementations from carriers.

“To support expansion and further investment in better offerings, we’re introducing the GRI to sustain investment in our leading network,” said Nathalie de Champlain, chief transformational officer. “The adjustment addresses increased costs driven by market conditions and supports continued investment in network efficiency and service quality.”

Why it matters? Roadrunner’s new direct, truck-only Canada-to-U.S. service provides LTL shippers with faster transit, fewer handling points and improved visibility across roughly 40 major U.S. metro markets. Additionally, its 5.9% GRI highlights how carriers are adjusting prices to combat rising operating costs and invest in their networks.

More FreightWaves articles by Todd Maiden:

• Knight-Swift again eyes big rate increases as new bid season nears
• Heartland Express sees earnings turnaround in Q3
• Werner Enterprises issues Q3 profit warning

The post Roadrunner announces Canada-outbound service appeared first on FreightWaves.

Operating income increased 27%, to $625 million, as revenue grew 8%, to $3.12 billion, the company said Wednesday. Earnings per share increased 34%, to $2.42. Wabtec (NYSE: WAB) raised its full-year adjusted EPS guidance to a range of $10.85 to $11.05, an increase of 21% to 23.2%, up from the prior outlook of an increase of 18.2% to 21.5%.

“The strength of our performance reflects our momentum across the portfolio, disciplined execution by our teams, and the continued success of our strategic actions. These actions enhance our growth profile, expand margins, and increase the earnings power of the company,” Chairman and Chief Executive Rafael Santana said in a release. “Our teams continue to translate healthy customer demand into profitable growth while investing in technologies that will advance the future of transportation. These investments are strengthening our competitive position and reinforcing Wabtec as a leading industrial technology company.”

Freight segment revenue increased 6.9% in the quarter, with digital intelligence revenue up 24.2% thanks to Wabtec’s acquisition of Frauscher Sensor Technologies and what it said was strong demand.

Wabtec received new locomotive and modernization orders worth $633 million from two Class I railroads. It did not name the railroads.

Growth in North American freight traffic this year has prompted Class I railroads to reactivate stored locomotives, which has led to increased parts orders, Santana told investors and analysts on the company’s earnings call. But Wabtec has yet to see the volume growth translate into orders for new locomotives, he said.

The Freight segment’s 12-month backlog rose 7.5% from a year earlier, to $6.54 billion.

Transit segment revenue increased 11.3%, to $883 million, driven by the acquisition of Dellner Couplers of Sweden and higher original equipment and aftermarket sales. The Transit segment’s 12-month backlog increased 12.2%, to $2.45 billion.

Why it matters: Wabtec’s third-quarter report shows a recovery in railroad equipment use without yet signaling a broad rebound in new-equipment spending.

Subscribe to FreightWaves’ Rail e-newsletter and get the latest insights on rail freight right in your inbox.

Read more:

Union Pacific posts record third-quarter revenue and profits

Norfolk Southern profits rise on higher volume and revenue

Commodity markets whip up railfreight gains

First look: Union Pacific earnings

The post Wabtec earnings rise on higher freight and transit sales appeared first on FreightWaves.

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Mondovi, Wisconsin-based Marten (NASDAQ: MRTN) reported net income of $2.9 million, or 4 cents per share, for the third quarter. The result was a penny higher than the year-ago quarter but 2 cents light of the consensus estimate.

The company said higher fuel and payroll costs, including driver pay increases, were only partially offset by an increase in gains on equipment sales. The net impact was a $3.7-million hit to net income, or 4.5 cents per share.  

Consolidated revenue of $223 million was 1% higher year over year. The 2025 sale of its intermodal unit to Hub Group (NASDAQ: HUBG) presented a $9.9-million revenue headwind during the quarter.

One-way truckload revenue increased 12% y/y to $117 million. Excluding fuel surcharges, revenue was up 4% y/y as revenue per tractor per week (ex-fuel) increased 15% on a 9% smaller fleet.

Marten has been managing truck counts to improve asset utilization. Deadhead was down 30 basis points y/y to 10.7%. Revenue per loaded mile (ex-fuel) increased 14% y/y to $3.02. The unit was unprofitable at a 100.2% operating ratio (ex-fuel), 200 bps better y/y, but 280 bps worse sequentially.

The dedicated segment reported a 9% y/y decline in revenue (ex-fuel) as an 11% decline in the truck count was only partially offset by a 2% increase in revenue per tractor (ex-fuel). Revenue per loaded mile (ex-fuel) was down 2% y/y to $2.41. The unit logged a 97.6% OR (ex-fuel), 360 bps worse y/y and 220 bps worse sequentially.

(Marten does not host a quarterly call.)

“The truckload freight market has sharply tightened since earlier this year as renewed and enhanced enforcement of federal and state law is removing a meaningful amount of noncompliant and unqualified driver capacity from the marketplace,” said Randy Marten, chairman and CEO, in a news release. “We are securing higher pricing from our customers for our premium services while enhancing freight quality across our network within these early stages of the freight market upcycle.”

Brokerage revenue was flat y/y at $39 million as a 15% decline in shipments was offset by a 17% increase in revenue per load. The unit’s OR improved 110 bps to 94.8%, flat with the 2026 second quarter.

Cash flow from operations was $83 million in the first nine months of 2026, a 5% y/y decline. The company maintained a debt-free balance sheet in the period.

The average age of its tractor fleet was 2.5 years compared to 2.2 years in the year-ago quarter.

Shares of MRTN are down 37% since a mid-June peak.

Why it matters? Marten Transport is viewed as a “refrigerated pure play.” It is the only public carrier in the reefer market and its quarterly results serve as a bellwether for the industry.

More FreightWaves articles by Todd Maiden:

• Knight-Swift again eyes big rate increases as new bid season nears
• Heartland Express sees earnings turnaround in Q3
• Werner Enterprises issues Q3 profit warning

The post Cost pressures sink Marten Transport’s Q3 appeared first on FreightWaves.

The investments highlighted continued spending on domestic manufacturing, transportation equipment and consumer goods.

The projects, located in Texas, Illinois, Georgia, Kentucky and Arkansas, include new manufacturing operations for commercial trailers, school buses, commercial cooling systems and bottled beverages.

Hyundai Translead, Carrier Global Corp. and Blue Bird Corp. account for more than $1.5 billion in announced investments and a combined 5,625 planned jobs.

For trucking companies and logistics providers, the projects could eventually generate additional inbound shipments of raw materials and components, as well as outbound movements of finished goods.

The announcements include both projects still in development and recently opened factories.

Hyundai Translead boosts Illinois investment to $600 million

Commercial trailer manufacturer Hyundai Translead announced Thursday that it is increasing its planned investment in two manufacturing facilities in Will County, Illinois, to $600 million, up from the more than $450 million announced in March.

The company also raised its job creation commitment from 2,500 to 3,750 full-time positions.

The additional $150 million investment will support a third production shift and create 1,250 more jobs than originally planned.

Hyundai Translead said the expansion reflects growing customer interest in its Illinois operations and will provide additional manufacturing capacity as the transportation industry recovers.

Hyundai Translead manufactures commercial transportation equipment, including dry van and refrigerated trailers, truck bodies and flatbeds.

The company did not specify which product lines would be manufactured at the Illinois facilities.

Carrier plans $600 million manufacturing center in Fort Worth

Carrier Global Corp. announced Thursday that it will invest more than $600 million over the next three years to establish an advanced manufacturing and engineering center in Fort Worth, Texas.

The project will create 1,500 jobs and occupy more than 1 million square feet at AllianceTexas, a major industrial and logistics development in the Dallas-Fort Worth region.

Carrier (NYSE: CARR) expects the facility to begin operations in 2027.

The plant will manufacture advanced thermal management systems, including air-cooled and water-cooled commercial chillers used in data centers, hospitals, schools and industrial facilities.

Carrier said the investment responds to strong demand for energy-efficient cooling systems and a record backlog in its commercial heating, ventilation and air conditioning business.

The new facility will also include engineering laboratories and workforce development programs.

Blue Bird announces $300 million Georgia school bus factory

School bus manufacturer Blue Bird Corp. (Nasdaq: BLBD) plans to invest approximately $300 million in a new manufacturing facility in Fort Valley, Georgia, creating 375 jobs over the next three years.

The company will convert a former diesel-powered motorhome manufacturing site at 401 Wanderlodge Way into a 1-million-square-foot school bus production facility.

Construction is scheduled to begin in the first quarter of 2027.

The plant will manufacture Type C school buses powered by diesel, gasoline, propane and electricity.

Blue Bird, which was founded in 1927, currently employs more than 1,900 people in Georgia.

Niagara Bottling opens $141 million Kentucky beverage plant

Niagara Bottling celebrated the grand opening Thursday of its new $141 million beverage manufacturing facility in Elsmere, Kentucky.

The 436,000-square-foot facility is located at the C5 Airport East Logistics Center in Kenton County and includes beverage production and distribution operations.

The project will create 60 full-time jobs.

Initially announced in September 2024, the investment has grown by more than $11 million from its original estimate.

Construction began in early 2025 on the 52-acre property developed by CORE5 Industrial Partners.

Niagara Bottling produces bottled water and other beverages for retailers and consumer brands, including sparkling water, flavored water, sports drinks and ready-to-drink beverages.

Primo Brands opens new Arkansas bottled water factory

Primo Brands (NYSE: PRMB) opened a new manufacturing facility Oct. 14 in Hot Springs, Arkansas, aiming to increase production of its Mountain Valley premium spring water brand.

The 200,000-square-foot factory is the company’s first new manufacturing facility since Primo Brands was formed through a merger in 2024.

The company described the project as a multimillion-dollar investment but did not disclose an exact amount.

The facility includes a high-speed retail production line, two large-format production lines and dedicated logistics and warehouse space. The plant will produce Mountain Valley spring and sparkling water.

Primo Brands said the expansion responds to increasing demand for premium bottled water.

The facility’s additional warehouse and logistics capacity will support distribution of the brand’s products to retailers, restaurants and consumers nationwide.

The company did not disclose the number of jobs created by the project.

New and expanding US manufacturing facilities

Why it matters: Five new U.S. manufacturing projects could generate additional freight demand for trucking companies, equipment suppliers and distribution networks as manufacturers expand domestic production.

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Airbus projected that the global fleet of cargo jets will grow 46% by 2045, requiring 2,670 new aircraft — 65 more than in last year’s report. The majority of new freighters will come in the form of replacements for older existing equipment, with nearly 1,100 for growth to accommodate an estimated 3.2% compound annual growth rate in air cargo volumes. Of the total influx, 970 airframes will be factory-built, with 1,700 aircraft entering the fleet as passenger-to-freighter conversions, according to the company’s market forecast released on Wednesday.

A year ago, Airbus said it expected 45% growth in the global freighter fleet, with 2,605 new aircraft combined with 815 existing aircraft. The total fleet estimate in the 2026 report is for 3,460 aircraft, a difference of 40 additional aircraft versus the prior forecast. 

Fifty-seven percent of the demand for 2,670 aircraft will be in medium and large widebody freighters used in long-haul and transcontinental transportation.

Airbus based its estimate of 3.2% growth in air cargo demand on economists’ predictions for global trade to continue growing at a steady pace (2.9% per year). Air cargo growth has exceeded growth in global trade for many years, despite geopolitical, fuel and supply chain turbulence.  Last year, Airbus estimated air cargo would develop at a rate of 3.3% per year. 

The growth projection is better than the 2.3% compound annual growth of the past 20 years, which included two major global economic shocks. The outlook is better than some expected because the impact of tariffs on air cargo demand has been muted, with volumes shifting to different regions rather than declining. 

Asia, a massive hub for industrial and high-tech production, is the fastest growth region for air cargo, at a projected pace of 4%.

Boeing said in its forecast last year that the market would see 2,900 total freighter additions, with the global freighter fleet growing by 67%, including 955 newbuilds, and air cargo traffic growing at 3.7%. Boeing is scheduled to issue its updated forecast next week.

In 2026, air cargo volumes through August were up 4.6% year over year, according to the International Air Transport Association and other market analysts. That’s an improvement from the solid 3.3% growth in 2025, when global trade faced a series of headwinds led by the United States unleashing a series of high tariffs on trading partners, especially China.

The U.S. tariffs on China, including on huge volumes of direct-to-consumer e-commerce packages that previously entered the country duty free, has shifted $750 billion worth of Chinese exports — and air cargo volumes — to other markets since last year. The U.S., in turn, has imported $375 billion from other parts of the world — notably Vietnam, Taiwan and Thailand — more than offsetting the reduction in imports from China. U.S. imports from the rest of the world are up 12% so far this year, according to global trade data compiled by Accenture.. 

Last year, North American air cargo demand dipped 1.1%. In 2026, Chinese exports to the United States are starting to pick up, influenced by tariff waivers and other factors, helping to push up North American air cargo volumes by 5.9% year over year. 

Middle East air cargo volumes have fallen 6.5% year-to-date through August because of the U.S. war with Iran. Connecting cargo traffic through the Middle East is down to 31% versus 38% last year. Europe-Asia traffic is up 3% in that time span as more carriers bypass the Middle East and fly direct between the regions. Central Asia, with transit hubs in Baku, Azerbaijan, and Tashkent, Uzbekistan, has also seen increased growth in freighter traffic.

A big impetus for air cargo has been computers, semiconductors and electronic equipment, which has doubled to 15% of total value from two years ago primarily because of demand by AI hyperscalers to outfit data centers with servers. The equipment is relatively light considering that the high-tech weight share of air cargo is 6.2% and only increased 2.2 points even as demand sharply climbed.

The global freighter fleet has significantly increased to more than 2,350 freighter aircraft in service because the boom in air cargo during the Covid economic crisis led to a spike in passenger-to-freighter conversions and a sharp slowdown in aircraft retirements as carriers held onto assets to take advantage of big market opportunities. Two-thirds of those planes will be replaced in the next 20 years. 

“On average, the fleet is a lot older than what it was just five or ten years ago. And that’s why there is a very strong demand for replacement aircraft, whenever they become available. Cargo airlines will decide to phase out their very old aircraft and then to phase in either new aircraft or converted aircraft,” said Francois Cabaret, head of market forecasts at Airbus, during a virtual briefing for reporters. 

Freighter retirements increased in 2025 to about 75, according to Cirium. 

Cabaret said that most of the demand for aircraft in the 80-ton category will be for new builds because widebody passenger aircraft are flown so many hours during their lifetimes that conversion may not make as much sense, especially with new aircraft that have better range and payload capacity. 

Airbus does not have a conversion program for large jets and is incentivized to sell the new A350, based on the popular A350 passenger jet. Meanwhile, new Boeing 777 conversion forms from Israel Aerospace Industries and U.S.-based Mammoth Freighters have dozens of conversion orders as their first freighters roll out to customers.

Airbus does do aftermarket conversions of its A330-300 medium widebody jet and A321 standard airliner. 

Crawford Hamilton, head of freighter marketing, was adamant that Airbus would make the first customer delivery of the A350F in late 2027, in line with previous company pronouncements. The A350F last month completed its first initial test flight and is scheduled to undergo nine months of additional flight testing, after which European civil aviation authorities are expected to certify the aircraft for commercial use.

In addition to flight testing, Airbus continuously practices loading and unloading the A350 with different types of equipment to develop optimal operating techniques for airlines to use.

Airbus has 115 orders for the A350 from 14 named customers and one unidentified. Boeing has 81 orders for its next-generation 777-8 freighter. 

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

Write to Eric Kulisch at ekulisch@freightwaves.com.

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The Malta-flagged Agioi Fanendes loaded ultra-low-sulfur diesel at Primorsk, Russia’s Baltic Sea oil port, on Oct. 22 and is expected to arrive in the United States Nov. 7, according to LSEG ship-tracking data cited by Reuters. The buyer and seller were not immediately identified.

The voyage is the first identified U.S.-bound shipment under the agreement President Donald Trump announced Oct. 9. It’s reported to be the first U.S. import since the 2022 ban, Reuters reported, although AP quoted maritime analyst  Kpler states that it would be the first Russian diesel delivery since July 2023. Reuters cited LSEG shipping data for the current voyage, but does not identify the last previous delivery or give its arrival date. The AP report does not name the vessel, discharge port or circumstances of that 2023 cargo. 

The diesel-specific sanctions relief is under General License 135, issued October 9, 2026, by the Treasury Department’s Office of Foreign Assets Control (OFAC). It temporarily authorizes Russian-diesel transactions otherwise prohibited under two sanctions programs: the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR Part 587, and the Ukraine-/Russia-Related Sanctions Regulations, 31 CFR Part 589.

Kremlin spokesman Dmitry Peskov confirmed Friday to Reuters that the first tanker under the arrangement had departed and said regular supplies would follow. Russian Deputy Prime Minister Alexander Novak has said additional shipments are planned as Russian and U.S. companies finalize delivery contracts.

The agreement combines U.S. sanctions relief with Russia’s decision to lift its own restrictions on diesel exports. Trump announced an initial release of 300,000 metric tons to U.S. and global markets, followed by 500,000 tons in November and 1 million tons “immediately thereafter,” according to Trump’s executive order.

The shipment comes as Trump seeks to rein in soaring diesel prices ahead of the Nov. 3 midterm elections. Its scheduled arrival, however, falls after Election Day.

“The diesel deal shows that Washington’s Russia policy is now driven by high prices at the pump before the November 3 midterm elections, rather than by any shared trans-Atlantic strategy,” said Matthias Matthijs, senior fellow for Europe at the Council on Foreign Relations.

Mohit Kumar, chief European economist at Jefferies, in an Oct. 12 research note quoted by CNBC, wrote, “Trump is exploring all avenues to bring down diesel prices before the mid-terms.”

At roughly 300,000 barrels, the cargo represents about 7% of the approximately 4 million barrels of diesel consumed by the U.S. economy each day, according to AP. Energy policy experts cited by the news agency said the import agreement was unlikely to substantially reduce fuel prices.

The agreement has drawn criticism from Ukraine, which has urged its partners to tighten restrictions on Russian energy revenue as Putin presses his war against Kyiv. Ukrainian President Volodymyr Zelenskyy called the U.S. decision “a weak decision by strong partners,” AP reported.

Why it matters: The sanctions relief makes Russian diesel easier to trade and transport, potentially increasing Moscow’s export earnings, while offering an uncertain benefit to fuel buyers.

This article was updated Oct. 23 to add details on the last pre-sanction oil shipments, and analyst commentary on the political reason for the sanction relief. A link was also added to the text of Trump’s executive order.

Read more articles by Stuart Chirls here.

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Four and a half years after a grassroots union was voted in by workers at an Amazon warehouse in Staten Island, New York, the battles in court over Amazon’s pushback against the vote continues.

At issue in the latest set of filings in the Fifth Circuit is a National Labor Relations Board decision from April where the NLRB ordered Amazon (NASDAQ: AMZN) to negotiate with the union, which after its successful vote to unionize with no particular national organization is now aligned with the Teamsters as ALU-International Brotherhood of Teamsters (IBT) Local 1, with the ALU standing for Amazon Labor Union.

There were dual filings last week with the Fifth Circuit in the case of Amazon vs. NLRB over the board’s April decision to require Amazon to sit down and bargain with the Teamsters for a contract covering the workers at the facility known as JFK8.

The briefs filed October 16 by Amazon and the Teamsters are vastly different, not just because they are coming at the case as adversaries, but because they take an entirely different approach.

Legal arguments by Amazon

The Amazon brief is more on narrow legal grounds about what the NLRB can and can not do.

The Teamsters brief is a 115-page behemoth that relitigates and reviews the entire history of the Staten Island union and the many of the disputes that have been a hallmark of the contentious relationship between the Teamsters and Amazon.

For Amazon, the battle on Staten Island marks the only time it has ever faced off against a unionization drive at one of its facilities and lost. 

For example, a year later, another attempt at unionization at a separate Staten Island facility failed. 

In a closely-watched 2021 election because it was the first of a kind, Amazon beat back a unionization drive at its facility in Bessemer, Alabama. In that case it was not the Teamsters but the Retail, Wholesale and Department Store Workers Union that sought to represent workers there.

Oral arguments…or not

In the Fifth Circuit case, the two sides are far enough apart that their respective briefs couldn’t even agree on whether there is a need for oral arguments.

“While this Court could deny Amazon’s petition for review and grant the Board’s motion for enforcement without oral argument, the Court may find oral argument useful to address the briefing,” the union said in a fence-straddling statement in its brief.

What did Amazon say? “Amazon agrees with (the union) that the issues raised in its petition can be decided without oral argument.”

Why it didn’t bargain

The Amazon brief is notable also in that it says it has not bargained with the union because it was seeking a court to overturn the NLRB’s certification of the election and the April order for it to negotiate. A lack of bargaining was needed to push the issue to a court, the company said.

“An employer cannot obtain direct judicial review of a decision certifying a union election,” the Amazon brief says. “Instead, the employer must refuse to bargain with the union, be found to have committed an unfair labor practice, and then challenge the certification when it seeks review of that finding.”

The legal term of what Amazon is pursuing in its action against the NLRB is a “test of certification challenge.”

NLRB Edge, a blog about the NLRB written by Matt Bruenig, said in a post following the NLRB decision that the board rejected Amazon’s arguments after “finding that all representation issues raised by Amazon either were or could have been litigated in the underlying representation proceeding, and that Amazon offered no newly discovered evidence or special circumstances justifying reconsideration.”

Was it a big win?

Amazon’s brief does touch on allegations it has leveled against the union. It said the union’s Staten Island efforts “engaged in a campaign marked by threats, coercion and intimidation.” It also said the union “narrowly prevailed” in its election; by contrast, the union touted the win as being a margin of almost 11% of all ballots cast.

But the more legally-oriented question the Amazon action against the NLRB puts before the Fifth Circuit is focused on a union request that beyond just ordering Amazon to bargain, it must engage in an “enhanced remedy.” The union describes the remedy as Amazon reading aloud at a “mandatory meeting”, according to the union, “a notice of employees’ rights under the National Labor Relations Act.”

Although such a reading had been recommended by the NLRB’s General Counsel, the full board rejected that remedy.

Amazon is recommending rejection of that union request because, one, it thinks the election on Staten Island is going to be decertified, making the issue moot.

Second, the “enhanced remedy” of the reading of rights in a test-of-certification case has no precedent in labor law, according to Amazon.

And third, Amazon says the union has not made a sufficient case that the reading is warranted.

The union says if the Fifth Circuit agrees with Amazon’s arguments, “it would be improper to set aside the election.” Instead, it recommends the case be remanded to the NLRB “to provide further rationale for its decision.”

Joint employer case rolls on

Meanwhile, another battle between the Teamsters and Amazon continues to play out before the NLRB.

The fight there is over an April agreement between Amazon and the NLRB’s General Counsel. That agreement was designed to end a process on terms favorable to Amazon in which a lower rung of the NLRB process in Los Angeles had found that Amazon was a joint employer along with a direct service provider, the independently-owned companies that actually deliver products.

That agreement stopped the process that was launched in Los Angeles from getting to the full board.

Amazon has long argued that its DSPs are independent. The Teamsters have argued otherwise and that Amazon is a joint employer with all of them, given their level of control over the delivery companies. It isn’t a stretch to say that in terms of its labor structure, being held to be a joint employer would be almost an existential threat to the way it does business.

The deal struck by the General Counsel ending the process was favorable enough to Amazon that Teamsters lawyers at the time called it an “ambush settlement agreement.”

The NLRB docket on the case has mostly been quiet in recent months. The last substantive entry on it is a letter from Teamsters attorneys who said that unless there is an “immediate reinstatement of these proceedings,” accepting the agreement “will represent the Board’s capitulation to the corporate interests that operate to the detriment of working people across the country, who depend on the Board to effectuate the Act and protect their rights.”

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The $204.8 million award, announced Oct. 19 by Oregon Sens. Jeff Merkley and Ron Wyden and Rep. Val Hoyle, will fund final design and construction of improvements to the Coos Bay Rail Line. The work is intended to increase capacity, improve reliability and prepare the railroad to support the proposed Pacific Coast Intermodal Port, or PCIP.

The funding comes through the U.S. Department of Transportation’s Consolidated Rail Infrastructure and Safety Improvements (CRISI) grants program. Planned improvements include repairing and replacing track, ties, bridges and tunnels, according to Hoyle’s office.

The 111-mile railroad runs from Coos Bay to near Eugene. Its rehabilitation is a critical component of the broader port development, which would create a deepwater container terminal with a ship-to-rail connection.

It’s the first large construction grant for PCIP, which plans significant improvements to handle container volumes.

Port officials described the award as a major step toward developing another West Coast container gateway. 

Kyle Stevens, president of the Oregon International Port of Coos Bay Board of Commissioners, in a statement said the money puts the project “on a path toward constructing the critical rail infrastructure needed to bring a new West Coast container gateway to life.”

The award follows more than $11 million in federal Port Infrastructure Development Program funding announced earlier this year for the Coos Bay rail project, according to the congressional delegation.

The proposed terminal, which would compete for regional business with Portland, Ore., Seattle and Tacoma, Wash., as well as Vancouver and Prince Rupert in western Canada, has a price tag of more than $2 billion and remains years away from opening pending additional funding, permitting and environmental reviews. Development also comes as shifting U.S. tariff and trade policy has seen more headhaul container traffic from Asia routed away from Pacific Northwest hubs and through the British Columbia gateways, for entry into the Midwest U.S. via intermodal rail.

Before the latest award, the project had attracted approximately $70 million in federal funding through four grant programs, along with $160 million from Oregon. NorthPoint Development, the private company slated to operate the container terminal, has invested $25 million, according to local media.

Supporters say the development could generate 2,500 permanent jobs and another 2,500 temporary construction jobs, helping diversify a regional economy affected by the timber industry’s decline. Environmental advocates have raised concerns about dredging and its effects on wildlife, with opponents favoring greater emphasis on industries such as healthcare and tourism.

The project’s next steps include selecting contractors to assist with permitting and review. Proposals are due Oct. 28, followed by environmental reviews and opportunities for public comment.

Subscribe to FreightWaves’ Rail e-newsletter and get the latest insights on rail freight right in your inbox.

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The Association for Supply Chain Management (ASCM) and the Digital Supply Chain Institute (DSCI) released The People Paradox in Supply Chain AI Integration on Oct. 14. Of the supply chain professionals surveyed, 83% said their employees are unprepared to use AI effectively. The 17% who described their workforce as ready reported a 71% AI project success rate. Everyone else reported 28%, and about 64% of that group is still in the pilot or planning stage.

Abe Eshkenazi, CEO of ASCM, said most AI sessions at supply chain conferences run through the same agenda: the challenges, the implementation, and the benefits. Every one of them ends with a reminder not to forget about the people, he said.

“It’s interesting because from our perspective that’s where you ought to start the conversation,” Eshkenazi told FreightWaves.

AI mostly stays in planning

The report scored AI adoption across 13 core supply chain functions on a scale from 1, meaning no AI use, to 5, meaning autonomous execution without human review. The average was 1.94.

Planning functions scored highest, led by demand planning at 2.28 and supply and inventory planning at 2.12. Execution-heavy functions trailed, and returns and reverse logistics ranked last at 1.59.

The report calls this keeping AI on a “short leash” and says companies doing it are using predictive tools as “little more than digital spreadsheets.” Eshkenazi reached for the same image.

“I think we’re using it much more on the analysis and on the predictions as opposed to the doing,” he said, calling it “more of a glorified spreadsheet.”

He sees room for AI to take on “routine transactional decisions where AI can operate within parameters,” with people keeping the higher-risk calls on customer commitments, sourcing, and major disruptions.

“We need to expand the AI authority, but we need to do so with confidence in the technology, and it’s not there right now,” he said.

Skills and ROI top the barriers

Two barriers tied for the top spot at 33% each: a lack of workforce skills and resources, and an unclear business case or return on investment. Poor data quality followed at 25%. Executive skepticism did not make the list of main hurdles.

Eshkenazi compared AI to enterprise resource planning (ERP) systems, which were also expected to revolutionize supply chains.

“The technology solution can’t improve bad process and it can’t improve bad data,” he said.

Companies should use value stream mapping and data analysis to find and fix problem areas before an ERP project starts, he said.

Headcount reduction is too simple a measure of AI’s return, in his view. The better one is response time: how quickly a company can recognize a disruption, weigh alternatives, and act.

“You can’t point to a system and say it made the decision,” Eshkenazi said. “Ultimately, somebody has to own that decision for the organization.”

Involvement drops below the C-suite

The survey found that 82% of C-suite respondents lead, implement, or scale AI initiatives. At the director level, 12% lead AI efforts directly, and half of directors said they are only aware of them. The aware-only share rises to 51% of managers and 70% of staff.

Those breakdowns rest on small samples. The survey collected 144 responses, and 107 met the criteria for analysis. Only 11 respondents were C-suite executives, and the report labels its results by job level as directional.

Few expect AI to replace workers

Only 7% of respondents predict AI will directly replace workers, while 51% expect it to move people toward higher-value decision-making.

Eshkenazi said that shift carries a cost. Supply chain professionals used to build judgment by running the analysis, building the reports, and working the spreadsheets, which taught them to spot exceptions and ask whether the numbers looked right.

“A lot of those foundational activities and experiences are now being taken over by AI, and we’re moving individuals into positions where they have to make decisions and manage without understanding the fundamentals,” he said.

Technology more powerful than companies are using, paired with workers who can’t critically think through what it produces, is “a very dangerous combination for organizations,” he said.

Cyber concerns outpace safeguards

Of those surveyed, 92% expressed significant concern about cybersecurity exposure through AI-enabled suppliers and trade partners. According to the report, the average organization had adopted 2.3 of six standard cybersecurity practices.

Eshkenazi traced the exposure to the visibility push that followed the pandemic, when companies began connecting suppliers, carriers, and brokers on shared platforms.

“It’s exposing them to significant ransomware and cybersecurity risks in their tier-three and their tier-four vendors, where predominantly they don’t have a lot of resources,” he said.

Food distributors on a conference panel in San Antonio described one way that plays out: a compromised carrier email that led to a fraudulent pickup of a cold-storage load.

Calling a tier-four vendor for inventory and delivery status isn’t an option, he said. “Huge opportunity but also significant risk,” he said.

Start with one process

Eshkenazi’s first recommendation is to pick one high-value process, such as a key customer process, supplier, or route, and involve the people who run it.

“Then establish measurable outcomes,” he said. “First, you have to identify where you’re starting from.”

That work has to reach below the leadership level, he said, so employees see AI as a path to more valuable work.

“Just because it’s a technology solution doesn’t make it autonomous and doesn’t make it better if you don’t have qualified processes, if you don’t have knowledgeable workers, and if you don’t have clean data,” Eshkenazi said.

Why it matters: Vendors are selling AI that can act on freight decisions, but most supply chain organizations still use it for analysis. The ASCM and DSCI survey ties that caution to unready workers, unclear returns, and thin cybersecurity safeguards.

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Range Zero Emissions is a dealer group that sells only zero-emission commercial vehicles. Its brands run from Zero Motorcycles up to Class 8 trucks, and it has no tie to Range Energy, the electric-trailer company that shares its name.

The lineup grew in August. Range became an authorized dealer for Hyundai’s XCIENT Fuel Cell, a hydrogen Class 8 truck, with Washington as its primary territory. It also folded Ziegler Truck Group’s zero-emissions business into the Range brand and bought the West Coast operations of Ethero Truck & Energy. Together the two deals moved the company from one Pacific Northwest location into the Midwest and California, Ariens said.

Most commercial truck users run medium-duty trucks, he said, and many of them can charge on the kind of power a small business already has.

“Charging two vehicles on Level 2 is like, do you have a washing machine and an air compressor at your house? If you do, you can install two Level 2 chargers and charge them overnight and go to work every day for your shift,” he said. “You’re good to go if you’re driving less than 150 miles a day.”

The case for medium-duty trucks first

Ariens describes electrification as a progression, from e-bikes and small cars like the Chevy Volt up to Rivians and the Hummer EV. Each step built charging the next one could use.

“We are so focused on Class 7 and 8 that we’re trying to jump a very natural progression of electrification,” he said. “You cannot charge a Class 8 semi on a Level 2. It literally won’t do it.”

Class 8 charging is still early. Tesla, which formally opened its Semi factory in Sparks, Nev., on Sept. 24, expects more than 30 Megawatt Charging System stations by the end of the year.

“It’s years until that’s proliferated, and until all the legacies jump in,” Ariens said.

Medium-duty trucks already have big buyers. “We’ve got FedEx, we’ve got Rivian, we’ve got Amazon,” he said. In September FedEx ordered 2,000 all-electric trucks from Harbinger, one of the brands on Range’s roster.

Most of trucking’s own ranks are small: of nearly 580,000 active U.S. motor carriers, 91.5% operate 10 or fewer trucks, according to American Trucking Associations data drawn from U.S. Department of Transportation figures as of June 2025. FreightWaves has reported on that long tail. Ariens would steer more voucher money their way.

“We should increase the voucher amounts for Class 4, 5 and 6,” he said. “Just get all these small businesses with five trucks or less into their EVs.”

State incentive programs that refill

Federal support for zero-emission trucks is pulling back, Ariens said, at the same time California and Washington run “the most significant medium- and heavy-duty commercial incentive programs in history.”

California’s Clean Truck and Bus Voucher Incentive Project, known as HVIP, has delivered more than $1 billion since its 2009 launch, according to Gov. Gavin Newsom’s office. In May the state added the California Clean Fuel Reward, a rebate for electric medium- and heavy-duty trucks with $250 million available this year and more than $1 billion expected through 2030, funded by the Low Carbon Fuel Standard. FreightWaves broke down how those programs stack in June. Washington launched its Zero-Emission Incentive Program on April 29 with $112 million in vouchers from the state’s Climate Commitment Act.

“These are continuous, recycled funding streams, usually coming from carbon tax credits, designed to refill,” Ariens said. “They’re not one-shot programs.”

Many commercial fleets replace trucks on a five- to seven-year cycle, he said, and a program that refills fits how they buy.

“I’m not going to buy a new truck and get rid of it next month because I want an EV,” he said. “I’m going to life-cycle that truck, get my full depreciation out of it, and then cycle it.”

Once a technology reaches 5% of new adoption, Ariens said, it tends to stick.

“That’s exactly what these government incentive programs are designed to do: help get from zero to 5, which is very hard,” he said.

Where hydrogen fits in Class 8

Ariens calls the battery-or-hydrogen debate binary thinking.

“I think the future of Class 8 is absolutely both,” he said.

Battery-electric works for drayage, he said, because port trucks need less range and can carry a smaller battery. Weight is the trade-off: federal law gives battery-electric trucks a 2,000-pound allowance on the power unit, up to 82,000 pounds gross. Every added pound is a pound of freight the truck cannot haul, Ariens said.

Hydrogen is starting at ports too, because trucks there run consistent daily routes from a single fueling point. Ariens named Long Beach, Oakland and the Vancouver area as the main places a heavy-duty hydrogen truck can fuel today. Shell built a heavy-duty station at the Port of Long Beach, according to the California Energy Commission, and HTEC opened a station for Class 7 and 8 fuel-cell trucks at the port terminal in Delta, British Columbia, in June.

The 30-truck NorCAL ZERO project runs XCIENTs in drayage out of the Port of Oakland and launched in May 2024, according to the California Fuel Cell Partnership. Ariens watched those trucks at a Port of Oakland event in September.

“Those trucks were going by all day, in and out. No big deal,” he said. “Then those trucks are going 300, 400 miles, and it’s, ‘Cool, let’s put one of these in Sacramento.'”

The XCIENT has also moved east. Hyundai’s Metaplant near Savannah, Ga., began running 21 of the trucks in December 2024, and a Rutgers-led pilot at Port Newark in New Jersey planned to start testing six in early 2026, according to Transport Topics.

For all of that, Ariens keeps returning to the smaller trucks.

“That’s my party line, and the thing I stomp my feet about every day,” he said. “Why are we not making it as easy as possible to go to Class 4, 5 and 6, and then Class 7 and 8 will solve its own problem?”

The post Why one zero-emission truck dealer wants big rigs to wait appeared first on FreightWaves.

With the EPA ‘27 engine rules impacting nitrogen oxide (NoX) emissions in heavy duty vehicles getting closer every day, the new rules will have a major impact on anybody who buys new vehicles…like Ryder.

Ryder’s (NYSE: R) third quarter earnings released early Thursday were solid enough that it propelled the stock up 10.49% to $265.53, a gain of 25.22%. It is still below its 52-week high of $284.25 set on June 12. 

With the strong quarter in the books leading to a discussion on the company’s earnings call with analysts about its growth prospects, the concurrent issue is what will be Ryder’s strategy to power that growth with new vehicles.

Ryder’s new truck purchases work side-by-side with its activity in its ChoiceLease business, which is the longer-term leasing of vehicles (as opposed to its Rental segment, which are for shorter-term arrangements.) The price of a new vehicle can kick back into the actions of customers, as one analyst noted who asked on the call, “Are your customers hesitant to be placing orders for ‘27 now? Does this impact you?”

No buying yet

Ryder CEO John Diez said the company had not seen any sort of “pre-buy surge activity with the change in technology.” But that doesn’t mean it isn’t part of the planning process.

Tom Havens, who is the president of Ryder’s Fleet Management Solutions, which includes its leasing and rental activities, said “it’s pretty well understood at this point that price increases are coming in 2027. And despite that, there was not any significant prebuy activity” in the quarter.

Some customers “took advantage of it, but not to any large extent,” Havens added.

Buying EPA ‘27 compliant vehicles now faces the problem of not knowing what the final rule will be. The EPA has rolled out an amendment process to the initial rule, including such measures as noncompliance penalties and a change in the “deratement” rules that would slow or stop a vehicle if its levels of diesel exhaust fluid got too low.

Fleet numbers lower than normal

Analyst Jeffrey Kauffman of Citizens JMP Securities noted that Ryder’s data on the size of its fleet has been below historic norms, particularly for tractors. Adding new tractors, Kauffman said, “is going to be kind of tough over the next six to nine months just because of the EPA mandate.” He asked whether Ryder had secured an adequate number of “slots” with OEMs to fill any increase in the company’s demand. 

Diez said Ryder is “confident we can grow that fleet.” He also said Ryder has “already taken action in the quarter of starting to bring in equipment,” which Diez added is visible in the company’s capital expenditure budget.

But Diez cautioned that utilization of the Ryder fleet “is not yet to screaming red levels like we saw post-COVID, but it will get there if we don’t have fleet, and we’re going to continue adding to meet that demand.”

The rental fleet had utilization of 77% in the quarter, compared to 70% a year ago. For the nine months, that figure stands at 73%. In the second quarter of 2022, the peak of the post-COVID surge, it was 81.6%. 

Used vehicle sales remain a key driver of Ryder earnings. Diez noted that current inventories of used vehicles at Ryder are at 7,300, which he said is at the low end of the company’s target range of 7,000. They were 8,500 a year ago. 

“We’re going to continue to sell through that inventory,” Diez said. The used vehicle market remains tight enough that Diez said Ryder would expect to sell more of its used vehicles through retail rather than wholesale channels, which is generally more profitable. Retail sales accounted for 61% of all used vehicle sales in the quarter, according to Ryder data, compared to 54% in the third quarter a year ago and 56% sequentially with the second quarter.

Bigger retail footprint

But Diez forecast that the retail number will cross the 70% mark in 2027. “We have that lever for us based on the thin inventories we expect to face later next year,” he said. “That’s the biggest hedge against market forces.”

Diez noted that the company had forecast a $40 million used vehicle gain for the year, which would have been up $20 million from 2025. But now with the used vehicle market at its current levels, the CEO projected that the full-year gain on used vehicle sales will be $50 million to $60 million. 

Diez wrapped up the equipment discussion on the call by saying that “when we get back together (on the fourth quarter earnings call), we’ll give you a look at the full year for 2027.”

Ryder’s Dedicated Transportation Solutions (DTS) segment is the window into the market for drivers, as it needs to either hire new drivers to service its dedicated customers or take steps to retain the drivers at companies whose fleet responsibilities  have been turned over to DTS.

John Sensing, the president of both DTS and contract logistics segment Supply Chain Solutions (SCS), said DTS has been seeing “about a mid to single digit wage increase in certain regions” at DTS.

The unit has what Sensing called “annual CPI openers” that passes on wage increases directly to customers. But he added there also are “driver wage indices” used by Ryder “that allow us if we see a drastic change to go back and open discussions with these customers.”

Sensing also stressed that Ryder’s experience in the driver market is not necessarily indicative of the broader competition for drivers. The DTS operation often works in highly specialized areas, he said, and “80% of our jobs are home every day or every night. So that’s very attractive.”

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Daimler Truck North America has accused a former fleet supervisor and his wife of misappropriating nearly $3.8 million over more than five years through an alleged scheme involving corporate credit cards, falsified expense reports and unauthorized purchases.

The lawsuit, filed Oct. 12 in Washington County Circuit Court in Oregon, names former Daimler employee Terry S. Watson and his wife, Krystal Watson, as defendants. The case, No. 26CV57242, remains open, according to court records.

In a 15-page complaint obtained by FreightWaves, Daimler alleges the couple misappropriated approximately $3.78 million between July 2020 and November 2025, using company funds to pay for vacations, home improvements, restaurants, personal fuel purchases and other expenses.

Daimler is seeking approximately $6.59 million in damages under Oregon’s racketeering law, along with other relief.

Daimler Truck North America, headquartered in Portland, manufactures commercial vehicles under the Freightliner, Western Star and Thomas Built Buses brands, among others.

Watson joined Daimler in March 2016 and was a Level 5 Fleet Supervisor in the Portland when he was terminated in November 2025, according to the complaint.

The company alleges Watson used his position to approve improper spending, falsify expense reports and conceal personal purchases by categorizing them as legitimate business expenses.

The complaint was first reported by The Oregonian/OregonLive.

Lawsuit alleges another manager helped approve expenses

According to the complaint, Watson began coordinating with his then-manager, identified by the pseudonym John Smith, around July 2020 to use company funds for personal purchases.

Daimler alleges Smith approved Watson’s corporate credit card expenses and that Watson sometimes divided invoices to keep individual charges below thresholds requiring higher-level approval.

The lawsuit also alleges Watson falsely categorized purchases under expense categories such as “Materials/Tools” and “Safety Equipment.”

In at least one instance, Watson allegedly impersonated Smith while speaking with a vendor to authorize a personal vehicle expense on Smith’s corporate credit card.

Smith moved to another position in January 2024 and was no longer responsible for approving Watson’s expenses, according to the complaint. Smith is not named as a defendant in the lawsuit.

The complaint further alleges that in February 2024, Watson arranged for a subordinate, identified by the pseudonym James Doe, to obtain a corporate credit card.

Watson then allegedly used the subordinate’s card to continue making personal purchases, submitted expense reports using Doe’s credentials and approved the charges as Doe’s supervisor.

Personal spending included vacations, landscaping and Uber Eats

The lawsuit alleges Watson and his wife used Daimler funds for thousands of personal expenses between 2020 and 2025.

Those purchases allegedly included vacations, schools, restaurants, food delivery services, household cleaning, landscaping, construction projects and fuel for personal vehicles.

Beginning in 2022, Watson allegedly hired contractors to perform construction and landscaping work at the couple’s Hillsboro, Oregon, residence, instructing vendors to bill Daimler for the work.

The complaint also alleges Watson diverted company fuel cards for use by family members and friends, including purchases of gasoline and car washes for personal vehicles.

Krystal Watson allegedly participated by using Daimler-issued credit cards and emailing receipts to her husband for inclusion in falsified expense reports.

By October 2025, she was allegedly using another employee’s corporate credit card for near-daily Uber Eats purchases.

Daimler alleges that an internal investigation began in November 2025 after the company identified suspicious expenses on the subordinate employee’s corporate credit card.

The investigation allegedly uncovered a broader pattern of unauthorized spending dating back more than five years.

Daimler seeks millions under Oregon racketeering law

The complaint includes eight civil claims, including fraud, breach of fiduciary duty, conversion, unjust enrichment, civil conspiracy and violations of Oregon’s Racketeer Influenced and Corrupt Organization law.

Daimler alleges the defendants engaged in thousands of incidents involving falsified expense reports and unauthorized purchases between July 2020 and December 2025.

The company is seeking approximately $6.59 million in treble damages under the racketeering claim, as well as attorneys’ fees and other relief.

The complaint also seeks to recover funds or property allegedly transferred to Krystal Watson through a claim under Oregon’s voidable-transactions statutes.

The allegations are contained in a civil complaint and have not been established in court. The Watsons have not been found liable.

Why it matters: The Daimler Truck North America lawsuit raises questions about internal financial controls at one of North America’s largest commercial truck manufacturers, including allegations that another manager approved improper expenses and that company credit cards were used to conceal personal spending.

The post UPDATE: Daimler Truck sues former fleet manager over alleged $3.8M embezzlement appeared first on FreightWaves.

The event, held Oct. 27-28 at The Signal at Chattanooga Choo Choo, will feature keynote presentations, fireside chats, technology demonstrations and discussions about how companies are applying new tools to transportation and logistics. 

Registration and ticket options are available through the official F3 website. Published group rates range from $895 to $1,095 per person, depending on group size, while bundled tickets cost $1,895 for F3 and the Brokerage Compliance Symposium or $1,995 for F3 and the Awards Dinner, which is scheduled for Oct. 26. 

The Freight Brokerage Compliance Symposium will take place the day before F3, on Oct. 26, from 8:45 a.m. to 4 p.m. at The Signal. The separate event will cover carrier liability, fraud, Federal Motor Carrier Safety Administration rules, cargo theft, insurance and other compliance risks. Registration costs $495, plus taxes and fees, and is required separately from F3 unless attendees purchase a bundle.

For freight technology companies and their customers, a central question is how emerging tools translate into practical improvements in day-to-day operations.

AI adoption moves beyond the hype

Artificial intelligence features prominently in this year’s agenda, with sessions examining both its potential and the challenges of putting it to work.

A discussion titled “Beyond the Hype: What AI in Freight Actually Delivers When the Noise Dies Down” is scheduled for 2 p.m. Oct. 28. Prasad Gollapalli, founder and CEO of Qued, will join FreightWaves founder and CEO Craig Fuller to examine the practical value of AI in the industry.

At 2:20 p.m. on the same day, Nilkanth Patel of Pallet and FreightWaves’ Julie Van de Kamp will discuss lessons from AI deployment, including decisions about whether to build technology internally or buy it from outside providers.

Another discussion, “Beyond AI: How Autonomous Execution Is Redefining Freight Operations,” is scheduled for 4:15 p.m. Oct. 27. Robert Nathan of Envoy AI and Van de Kamp will explore how AI and autonomous software can execute freight workflows rather than simply provide information or recommendations.

Autonomous trucking and freight data

Autonomous trucking will also feature heavily in the program. A roundtable titled “The State of Autonomous Trucking: From Yards to Highways” is scheduled for 2:45 p.m. on Oct. 27. Brett Suma of Bot Auto, Earl Adams of PlusAI and Mike McGahn of Forterra will join FreightWaves’ Thomas Wasson to talk about the technology’s development and potential applications.

The agenda also includes a Tesla Semi ride-along opportunity from 10 a.m. to 5 p.m. Oct. 27 and from 10 a.m. to 3 p.m. Oct. 28 at The Signal, offering attendees a closer look at the electric truck.

Freight data is another major theme. SONAR, FreightWaves’ freight market data and analytics platform, will host a session titled “Beyond the Dashboard: The AI-Powered Future of Freight Data” from 4 to 4:45 p.m. Oct. 27 in the Barber Boardroom at the Hotel Chalet. The session will be led by a member of SONAR’s team.

Other SONAR sessions include “Bid Season Blastoff: Turn Market Intelligence into Better Bids” on Oct. 28, followed by “Put the Data to Work: SONAR Use Cases You Can Steal,” which will focus on applying freight data to business decisions.

Rapid-fire technology demonstrations are also scheduled throughout both days, giving companies an opportunity to show attendees how their products work.

Awards to be announced

The F3 Awards Dinner will open the week on Oct. 26, from 5 to 9 p.m. at The Signal. FreightWaves will recognize its 2027 FreightTech 100 honorees and announce the FreightTech25, while also announcing the Shipper of Choice winners.

The 2027 FreightTech 100, announced in September, includes 100 companies selected for innovation across freight and supply chain technology. More than half of this year’s honorees did not appear in the 2026 FreightTech 100, reflecting constant innovation in a market that includes transportation management systems, shipment visibility, fleet technology, AI and automation.

An independent panel of more than 80 industry executives ranks the 2027 FreightTech 100 companies to determine the FreightTech25.

The awards dinner will also feature the announcement of the FreightTech Vanguard Award winner, which recognizes logistics pioneers, founders and companies whose technologies have had a lasting impact on transportation and the supply chain. 

The awards provide one view of which companies are gaining recognition across the industry. The festival’s sessions and demonstrations offer another: a chance to hear how operators and technology providers are approaching the challenges of implementing new tools.

Together, the events will give attendees an opportunity to assess where freight technology is making progress, where practical questions remain and which developments could shape transportation and logistics in the coming year.

Why this matters

Freight technology companies face growing pressure to prove their tools can deliver measurable results, from improving efficiency to reducing costs. F3 will bring technology providers and freight operators together to discuss how AI, autonomous trucking and data analytics are being applied across the industry, offering a look at which innovations are moving toward real-world adoption.

The post F3 preview: AI, autonomous trucking and freight technology take center stage appeared first on FreightWaves.

Federal prosecutors have uncovered an alleged cargo theft conspiracy involving at least 24 freight shipments and millions in stolen merchandise. Investigators say suspects took control of established trucking companies and used their identities to secure legitimate freight contracts. Drivers then collected shipments from distribution facilities, but the cargo never reached its intended destinations. Authorities estimate that thefts involving one defendant exceeded $12 million in retail value.

The U.S. Attorney’s Office for the District of Connecticut announced federal charges against Nursulton Khaydarov on October 21. Khaydarov, 33, is a citizen of Uzbekistan and lawful permanent resident of the United States. Prosecutors accuse him of participating in a conspiracy that targeted interstate shipments from California and other locations. He pleaded not guilty during an appearance in federal court in Bridgeport, Connecticut.

According to federal investigators, the operation began around September 2025 and involved multiple motor carriers. Participants purchased trucking businesses or otherwise assumed control of their existing operations. They obtained U.S. Department of Transportation numbers, motor carrier identification numbers, business email accounts and ownership identities. The group then impersonated previous owners to negotiate transportation agreements with freight brokers.

How the alleged carrier takeover scheme worked

The suspects relied on established business identities rather than creating entirely new trucking companies. Prosecutors contend that these arrangements allowed participants to exploit existing reputations and relationships within the freight industry. Brokers negotiated interstate transportation contracts with individuals posing as legitimate carrier representatives. After drivers collected the merchandise, the shipments disappeared before reaching their scheduled delivery locations.

The scheme resembles a growing problem involving the buying and selling of established trucking companies. Some operators acquire existing businesses to obtain operating histories, established credentials and relationships with freight brokers. Older authorities may pass routine vetting more easily because their federal records already show years of activity. FMCSA has warned against buying, selling or leasing operating authority outside legitimate corporate transactions.

For freight brokers, the challenge extends beyond confirming an active DOT number or valid insurance. Recent ownership changes, updated contact information and unfamiliar email domains can warrant additional verification. Insurance changes and inconsistencies between registration records also deserve closer examination. An established operating history means little if brokers cannot verify who actually controls the company.

The indictment describes additional steps participants allegedly took to conceal their activities. Prosecutors accuse the group of switching tractor license plates and using burner phones with encrypted messaging applications. Court records also describe efforts to defeat electronic shipment tracking systems. Investigators contend that participants provided false explanations about delayed or missing freight after completing pickups.

Federal investigators also documented ransom demands involving stolen shipments. According to the indictment, participants requested cryptocurrency or electronic transfers in exchange for returning merchandise. An FBI affidavit identifies approximately $121,000 in cryptocurrency that Khaydarov’s Coinbase account received across 33 transactions. Those payments occurred between November 2025 and May 2026, although investigators did not establish that every transfer represented ransom.

The stolen merchandise covered several categories of commercial freight. Prosecutors identified hard drives, stereo equipment, clothing, electronics and computer equipment among the missing products. Other shipments contained food items, nicotine products and additional consumer goods. Investigators attributed more than $12 million in estimated retail losses to thefts involving Khaydarov personally.

Multiple driver identities uncovered

Federal court documents also describe several fraudulent driver’s licenses connected to Khaydarov. Authorities identified five different names appearing on those documents. Each license displayed his photograph with altered facial features. Investigators also confirmed that he possessed a valid New Jersey commercial driver’s license.

One documented incident involved a pistachio shipment departing Terra Bella, California, for Laredo, Texas, on December 19, 2025. Investigators reported that the driver presented an Illinois license identifying him as Sayid Makhmudarov. State motor vehicle records showed no matching license, and photographs connected that document to Khaydarov. California’s pistachio industry has faced growing concerns over cargo theft, particularly during harvest season when high-value shipments enter transportation networks.

On May 18, police in Ontario, California, located a tractor-trailer associated with suspected cargo thefts. During a traffic stop, Khaydarov identified himself using his valid New Jersey driver’s license. Officers discovered suspected counterfeit identification and a nicotine product matching merchandise from an earlier theft. Police impounded the equipment, and FBI agents subsequently searched the tractor under a federal warrant.

Federal authorities arrested Khaydarov in Ontario, California, on June 1, 2026, following a criminal complaint. A grand jury in New Haven, Connecticut, returned an indictment on September 22. The indictment charges him with conspiracy, which carries a maximum prison sentence of five years. He has remained in custody since his arrest.

Federal investigation continues across multiple agencies

The FBI leads the investigation with assistance from several federal and local enforcement partners. Participating agencies include Homeland Security Investigations, IRS Criminal Investigation and the U.S. Department of Transportation’s Office of Inspector General. Police departments in Fullerton and Ontario, California, also contributed investigative resources. Assistant U.S. Attorneys David T. Huang and Larysa J. Kern are handling the prosecution.

U.S. Attorney David X. Sullivan and FBI Special Agent in Charge P.J. O’Brien announced the charges. Khaydarov has pleaded not guilty, and the charges are allegations. Investigators have not publicly identified the affected carriers, brokers, shippers or distribution facilities. Authorities also have not disclosed how participants acquired control of the trucking businesses.

The announcement leaves the recovery status of the stolen merchandise unresolved. Anyone with relevant information can contact the FBI’s New Haven Field Office at 203-777-6311.

Why It Matters

This case shows how criminals can exploit established carrier identities to obtain freight through legitimate brokerage transactions. Existing DOT numbers, operating histories and business email accounts cannot independently establish who controls a transportation company.

CFCO

In my opinion, this case reinforces why verification must go beyond an active DOT number. The Certified Fraud Compliance Officer (CFCO) course teaches a five-layer process to identify inconsistencies before freight changes hands. Technology helps, but trained employees must know what to question and when to stop.

Click here for more articles on cargo theft and freight fraud by Phil Brink.

Nearly $1M in Pokémon and sports cards vanish from FedEx truck, driver discovers missing lock – FreightWaves

Failed CDL exams, $3,000 payments and Bluetooth cheating scheme lead to federal charges – FreightWaves

25 charged after drug ring used unsuspecting truckers to haul cocaine from California to Florida – FreightWaves

The post Feds charge driver in alleged $12M cargo theft scheme built on hijacked carrier identities appeared first on FreightWaves.

“Our third quarter was strong with steady execution, making notable improvements to our network while delivering solid results,” Chief Executive Mark George said on the railroad’s earnings call. “We have an outstanding team of thoroughbreds who remain focused on the fundamentals: operating a safe, reliable railroad, serving our customers, growing the business, and improving productivity across the network.”

Operating income increased 5% to $1.15 billion, as revenue grew 14% to $3.52 billion. Fuel surcharge revenue was responsible for 8 of the 14 points of revenue growth. Earnings per share rose 7%, to $3.37.

The railroad’s (NYSE: NSC) operating ratio was 67.4%, up 2.8 points from a year ago largely due to higher fuel costs. Adjusted for the impact of ongoing costs related to the February 2023 derailment and hazardous materials release in East Palestine, Ohio, and expenses related to the proposed merger with Union Pacific (NYSE: UNP), the operating ratio was 65.4%.

Overall volume was up 3% for the quarter, with merchandise, intermodal, and coal volume all up 3%.

“Demand for rail service is growing with encouraging trends in areas such as domestic intermodal and chemicals,” George said. “The current macro environment is tightening the truck market, and that helps rail be more competitive. And what you saw in the quarter is us capturing the increased customer demand.”

Chief Commercial Officer Ed Elkins said NS is broadly optimistic for the rest of 2026. High fuel prices tied to the Middle East conflict are boosting energy-related traffic. But NS is watching whether prolonged high gas prices eventually soften consumer demand.

A tight truck market and high fuel costs favor highway-to-rail conversions in forest products, consumer products, and domestic intermodal, Elkins said. International intermodal remains weighed down by trade uncertainty. Manufacturing has expanded nine straight months, industrial development is ahead of last year, and vehicle production looks modestly positive. Coal is expected to grow, led by exports and supported by utilities replenishing depleted stockpiles.

NS has rolled out new online customer tools that speed responses to rate requests and provide better shipment visibility. 

“The result is more accurate and more actionable shipment information, enabling customers to plan more effectively, operate more efficiently, and ultimately make decisions with greater confidence,” Elkins said. “As these capabilities continue to scale, our goal is simple: Make Norfolk Southern the easiest railroad to do business with so that we win more freight in competitive markets.”

Key operational metrics were down compared to a year ago but improved over the second quarter, when spot crew shortages led to congestion. Terminal dwell improved 3% and train speed was up 5% compared to the second quarter. On-time train originations improved 18%.

“Our railroaders managed another demanding quarter, overcoming significant weather and operating disruptions while remaining focused on serving our customers and operating safely,” Chief Operating Officer Brian Barr said.

The intermodal service composite was 84%, down from 92% a year ago. Merchandise trip plan compliance was 74%, down from 80% a year ago. Compared to the second quarter, merchandise plan compliance rose 6 points, while the intermodal metric declined by a point.

“We entered the quarter with a clear plan to recover network fluidity by improving originations, reducing dwell, increasing velocity, and getting the railroad back on schedule,” Barr said. “We delivered sequential improvement across those foundational measures.”

The improvements in the quarter came despite weather-related disruptions in August.

“On our network’s high-speed corridor, the team quickly restored infrastructure, removing hundreds of downed trees, repairing multiple washouts, and handling widespread power outages by activating strategic reroutes and repositioning resources,” Barr said. “While the historic wind and rain interrupted some of our July momentum, it did not derail our progress.”

One way NS reduced dwell was by redesigning car connections at terminals, which eliminated handlings. The changes removed 95 crew starts per week and took 200 cars per day off the network, while the railroad absorbed 3% carload growth, Barr said.

NS also consolidated smaller trains between Birmingham, Ala., and Macon, Ga., saving 14 crew starts per week while reducing locomotive needs. Shifting 50 daily switch cars from Enola, Pa., to Allentown Yard freed up Enola crews for road service and moved the switching to a yard with a lower cost per car. It also opens up yard capacity in Enola, Barr said.

The railroad’s personal injury and train accident rates continued to show improvement through the first nine months of the year. The train accident rate was at a record low for the railroad.

Subscribe to FreightWaves’ Rail e-newsletter and get the latest insights on rail freight right in your inbox.

Read more:

Commodity markets whip up railfreight gains

First look: Union Pacific earnings

First look: Norfolk Southern earnings

CSX profit jumps on volume and revenue growth

New York short line wins $11.2 million federal rail grant

The post Norfolk Southern profits rise on higher volume and revenue appeared first on FreightWaves.

The new data answers a question shippers have long had to estimate on their own: how much more does a load cost when the primary carrier says no?

Key takeaways

• Routing Guide Premium (RGP2.USA, RGP3.USA) shows the median percentage change in the all-in cost a shipper pays its provider when a load is accepted on the second or third tender instead of the first.
• Routing Guide Acceptance Share (RGAS1.USA, RGAS2.USA, RGAS3.USA) shows what share of accepted loads is accepted at each tender position, from first tender through fifth and beyond.
• Contract Rate Change Direction (CRCD.USA) shows the average percentage change between new and previous contract base rates, signaling where contract pricing — and bid pressure — is heading.
• All three dataset groups update daily on a 7-day rolling average.
• SearchCarriers now supports up to 200 carrier watches per user, email notifications, inspection search and equipment lookup by VIN or plate.

New datasets: routing guide performance and contract rate trends

All three new dataset groups measure shipper-to-provider costs — the rates shippers pay to the brokers and carriers that move their freight. They are not carrier operating costs or broker margins.

Each dataset updates daily using a 7-day rolling average and is available now in SONAR.

Routing Guide Premium (RGP2.USA, RGP3.USA)

Routing Guide Premium measures the median percentage increase or decrease in all-in transportation costs — base rate, fuel and accessorial charges — that a shipper pays its provider on a later tender compared with the initial tender.

• RGP2.USA: premium paid when a load is accepted on the second tender vs. the first
• RGP3.USA: premium paid when a load is accepted on the third tender vs. the first
• Why it matters: it puts a dollar-based percentage on routing guide failure, so shippers can see the true cost of freight slipping past their primary provider

As of Oct. 20, 2026, loads accepted on the second tender cost shippers a median 22.02% more all-in than first-tender loads. Third-tender loads cost 26.44% more. Both premiums spiked above 30% around the December holidays, early February and late June into July.

Routing Guide Premium (RGP2.USA, RGP3.USA) and Contract Rate Change Direction (CRCD.USA), Oct. 2025–Oct. 2026. Source: SONAR.

Routing Guide Acceptance Share (RGAS1.USA, RGAS2.USA, RGAS3.USA)

Routing Guide Acceptance Share measures the percentage of accepted loads at each tender position, from the first tender through the fifth and beyond.

• RGAS1.USA: share of loads accepted on the first tender
• RGAS2.USA / RGAS3.USA: share accepted on the second and third tenders
• Why it matters: it shows how efficiently routing guides are performing and how often freight falls to backup providers — where the premiums above apply

As of Oct. 20, 2026, 89.05% of accepted loads were accepted on the first tender, below the 12-month average of 91.60%. Second-tender acceptances made up 6.84% and third-tender 4.11%.

Routing Guide Acceptance Share by tender position (RGAS1.USA, RGAS2.USA, RGAS3.USA). Source: SONAR.

Contract Rate Change Direction (CRCD.USA)

Contract Rate Change Direction measures the average percentage change between new and previous contract base rates that shippers pay providers. It only counts changes where the prior contract rate was stable for more than 90 days, filtering out short-term noise.

• Positive values: new contract rates are resetting higher than the rates they replace
• Why it matters: it helps shippers, brokers and carriers spot contract pricing trends and potential bid timing pressure

As of Oct. 20, 2026, CRCD.USA stood at 12.58%, meaning new contract base rates averaged about 12.6% above the rates they replaced. That is well above the 12-month average of 8.34%, and the index has climbed steadily since late 2025 (see chart above).

How the three datasets work together

Combined, they show both how often a routing guide breaks and what it costs when it does — the core inputs for deciding when to rebid.

SearchCarriers: expanded carrier monitoring and qualification tools

SearchCarriers now does more than a one-time carrier check. New monitoring and search tools let brokers and shippers keep watching a carrier after onboarding and pull safety and equipment details in seconds.

Carrier watchlists

• Add carriers to a personal Company Watches list by company name or USDOT number
• Track up to 200 carriers per user, or add many at once with Bulk Import
• Choose what to monitor for each carrier: inspections, contact info, reported trucks, reported trailers, reported drivers, MCS-150 overdue status, for-sale monitoring and out-of-service orders — or select All updates

SearchCarriers Company Watches: monitor carriers by USDOT number and pick the changes that trigger alerts. Source: SONAR SearchCarriers.

Email notifications

• Get an email when a watched carrier changes, based on the alert types you selected
• Add and verify a notification email in settings to turn alerts on
• Why it matters: changes such as a new out-of-service order, updated contact details or an overdue MCS-150 can signal risk or possible fraud — and now reach your inbox instead of waiting for the next manual check

Inspection search

• Search for a specific carrier inspection to pull up its details quickly
• Supports faster safety and compliance reviews during qualification and audits

Equipment lookup by VIN or license plate

• Search by VIN or license plate to see available information on a truck or trailer
• Helps confirm that the equipment showing up at the dock matches the carrier you booked

What this means for carrier qualification

Carrier qualification no longer ends at onboarding. With watchlists, alerts, inspection search and equipment lookup, teams can:

• Monitor continuously rather than re-vetting carriers by hand
• Catch red flags earlier, such as out-of-service orders or contact changes
• Verify equipment against the carrier of record before freight is loaded
• Reach safety and compliance data faster during audits and claims

Frequently asked questions

What is a routing guide premium? A routing guide premium is the extra all-in cost a shipper pays its broker or carrier when a load is accepted on a backup tender instead of the first tender. SONAR’s RGP2.USA and RGP3.USA measure the median premium for second- and third-tender loads, including base rate, fuel and accessorials.

Do the new SONAR datasets show carrier costs or shipper costs? They show shipper-to-provider costs: the rates shippers pay brokers and carriers. They do not measure carrier operating costs or broker margins.

What is routing guide acceptance share? Routing guide acceptance share is the percentage of accepted loads at each tender position. SONAR’s RGAS1.USA tracks the first tender, with RGAS2.USA and RGAS3.USA tracking the second and third tenders.

How does SONAR measure contract rate changes? CRCD.USA measures the average percentage change between new and previous contract base rates. It only counts changes where the prior contract rate was stable for more than 90 days.

How often do the new datasets update? All three dataset groups update daily using a 7-day rolling average.

How does SearchCarriers help with carrier qualification? SearchCarriers lets users watch up to 200 carriers, get email alerts on changes like out-of-service orders or overdue MCS-150 filings, search specific inspections, and look up equipment by VIN or license plate.

See the new data in SONAR

Routing Guide Premium, Routing Guide Acceptance Share and Contract Rate Change Direction are live in SONAR today, alongside the expanded SearchCarriers tools.

Request a SONAR demo to see what your freight costs when it moves past the first tender.

The post SONAR launches new routing guide and contract rate data, plus expanded SearchCarriers monitoring appeared first on FreightWaves.

“Union Pacific’s third-quarter results demonstrate our ability to safely deliver the service we sold our customers while efficiently handling 6% volume growth,” Chief Executive Jim Vena said on the railroad’s (NYSE: UNP) earnings call today.

Operating income increased 15%, to $2.94 billion, as revenue grew 15%, to $7.19 billion. Earnings per share rose 16%, to $3.49.

The railroad’s operating ratio was 59.1%, a 0.1-point improvement compared to a year ago. Workforce productivity, measured by car-miles per employee, improved 5%.

Overall volume was up 6% for the quarter. Premium volume — which includes intermodal and automotive traffic — was up 9%. Industrial products traffic grew 6% in the quarter, while bulk volume was flat.

“Domestic intermodal delivered its fifth consecutive record quarter in both volume and revenue. Our foundation of service combined with strong business development and the deployment of buffer resources enabled 13% volume growth,” said Kenny Rocker, executive vice president of marketing and sales. “International intermodal volumes improved 8% versus last year driven by strong West Coast import volumes and business wins.”

The carrier offered a positive outlook for fourth-quarter volume, as high fuel prices and tight truck capacity will continue to drive conversions of truckload freight to rail. The lone exception is coal volume, which will remain under pressure due to low natural gas prices and high utility stockpiles.

Rocker expects a third straight year of record domestic intermodal volume.

Overall volume growth prompted UP to shift some capital spending planned for next year into this year. UP now expects to spend $3.5 billion on capital projects this year, up from $3.3 billion.

UP’s key operational metrics improved slightly compared to last year, with car miles per day up 1%, average train speed flat, and terminal dwell down by 2%. Train length grew 2%, to an average of 9,969 feet.

“Operating discipline and consistent execution of the fundamentals drove another quarter of record workforce productivity, record train length, and record fuel consumption,” said Eric Gehringer, executive vice president of operations.

The railroad said its employee personal injury and train accident rates improved compared to the three-year rolling average but did not provide specifics.

Subscribe to FreightWaves’ Rail e-newsletter and get the latest insights on rail freight right in your inbox.

Read more:

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Commodity markets whip up railfreight gains

First look: Union Pacific earnings

First look: Norfolk Southern earnings

CSX profit jumps on volume and revenue growth

The post Union Pacific posts record third-quarter revenue and profits appeared first on FreightWaves.

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Since 1994, many courts interpreted the Federal Aviation Administration Act (FAAAA) to shield brokers from state-law negligent hiring lawsuits, finding that such claims were preempted since they related to a broker’s services in arranging transportation. In May, the Supreme Court closed that door. In Montgomery v. Caribe Transport II, LLC, the justices ruled unanimously that freight brokers can face negligent hiring and carrier-selection claims under state law, meaning a broker who knew, or reasonably should have known, that a carrier had safety problems can no longer treat the matter as someone else’s responsibility. A unanimous decision that sent a clear signal to the industry that safety is everyone’s job, not just the motor carrier’s.

The ruling does not create strict liability for brokers, and it does not change the underlying safety requirements carriers must meet. What it changes is the burden of proof. A broker’s carrier-selection process (which would include what it knew, when it knew it, and what it did in response) is now far more likely to be scrutinized after an accident. That makes the broker’s documentation of due diligence part of their legal exposure.

The scrutiny cuts both ways for carriers. A clean public record of things like current authority, active insurance, or an acceptable FMCSA safety rating may no longer be evidence that a broker did enough. Brokers now have reason to look past those baseline checks toward carriers who can demonstrate an active, ongoing safety management program such as a video telematics program that identifies and addresses risks and documents the results of changes. Two carriers can look identical on paper and still represent very different levels of risk. A documented safety program makes a carrier choice more defensible for the broker later.

That is a notable shift in emphasis. For years, a safety record was treated as a compliance checkbox. Carriers would maintain the broad strokes of compliance to stay on the road, but would rarely use safety records to actively market or to win freight. Under the standard taking shape now, a documented safety record is a necessary credential. It’s proof that a carrier can offer a broker, an insurer, or a court that it took safety seriously prior to an incident. It is a competitive advantage in broker selection of a carrier.

A few practices separate a proactive safety management program from a reactive one. Fleets that have gone through this transition tend to build in an adjustment period before formal coaching begins, so early reviews reflect real driving patterns rather than first-week unfamiliarity with a new system. They pair event review with consistent, documented coaching conversations, rather than letting footage accumulate without follow-up. They unify compliance data and safety performance data rather than managing elements such as hours-of-service records and driving-behavior data as unrelated metrics.

The ruling also lands in the context of other changes in freight risk. Insurance underwriters have been reassessing carrier risk profiles for several underwriting cycles now, and nuclear verdicts in trucking litigation have already pushed premiums higher industry-wide. Montgomery adds another layer of exposure on top of that trend, and carriers able to point to an active, documented safety program are better positioned heading into renewal conversations, not just broker conversations.

None of this requires predicting exactly how state courts will apply Montgomery over the next few years. It requires recognizing that the standard of proof has changed, and that “documented safety performance” is a higher bar than bare-minimum compliance.

Lytx® has spent 15 years in the DOT compliance space, helping fleets manage ELD compliance, improve safety scores, and build the kind of documented safety programs that brokers, insurers, and shippers are increasingly expecting to see. The company is hosting a webinar on Oct. 27 at 10 a.m. PST aimed at carrier safety, risk, compliance, and legal leaders, focused on how to make an existing safety program demonstrable. You’ll hear what brokers are looking for, what a defensible safety record looks like in practice, and what the fleets staying ahead of this are doing differently. Registration is available here.

This article is provided for general informational purposes only and does not constitute legal advice or a legal opinion.

The post Safety Should Be Provable, Not Just Compliant appeared first on FreightWaves.

A tractor-trailer carrying fresh tomatillos arrived at California’s Otay Mesa port of entry from Mexico on October 14. The commercial shipment had a delivery destination in the United States. During an inspection, U.S. Customs and Border Protection officers discovered nearly 1,600 pounds of methamphetamine mixed with the produce. Authorities estimated the narcotics’ street value at approximately $2.5 million.

Federal officials also took immigration action against the truck driver. CBP confirmed that authorities served the motorist with a visa cancellation. The agency cited Section 212(a)(2)(C)(i) of the Immigration and Nationality Act as the legal basis. That provision concerns individuals whom authorities know or have reason to believe participated in illicit drug trafficking.

The statute also covers individuals who knowingly assisted, conspired in or colluded with traffickers. Immigration authorities can apply this provision without securing a criminal conviction. However, CBP has not disclosed what evidence supported the driver’s visa cancellation. Investigators have not publicly established whether the driver knowingly participated in transporting the narcotics.

Federal agencies announce $2.5 million seizure

CBP announced the discovery on October 16 during a news conference involving multiple federal law enforcement agencies. Participants included the Office of Field Operations, Border Patrol, Air and Marine Operations, and Homeland Security Investigations. The original announcement did not disclose any action against the driver.

Earlier this month, CBP reported another major methamphetamine seizure at Texas’ Laredo World Trade Bridge. Officers discovered approximately 3,396 pounds concealed within a commercial shipment of salt. Authorities valued those drugs at $30.4 million, roughly $8,900 per pound compared with $1,560 at Otay Mesa. CBP confirmed that California’s $2.5 million estimate reflected San Diego-area street values but did not fully explain the difference.

Following the announcement, FreightWaves contacted CBP for additional information about the inspection and trucking operation. The agency declined to explain what prompted officers to examine the shipment. Investigators also withheld details about the concealment method.

Investigation leaves carrier involvement unresolved

CBP has not identified the motor carrier or established publicly whether anyone involved knew about the narcotics. Authorities also declined to confirm whether officers arrested the driver or transferred him to Homeland Security Investigations. The agency declined to provide additional information about potential criminal charges, citing the ongoing investigation.

Why it matters

Commercial drug seizures raise important questions about cargo security, carrier accountability and shipment oversight. Consistent verification procedures and documented custody help transportation professionals identify discrepancies and establish responsibility when authorities uncover illegal freight.

Click here for more articles on cargo theft and freight fraud by Phil Brink.

Failed CDL exams, $3,000 payments and Bluetooth cheating scheme lead to federal charges – FreightWaves

25 charged after drug ring used unsuspecting truckers to haul cocaine from California to Florida – FreightWaves

California trucking owner pleads guilty in $2.1M identity theft scheme – FreightWaves

The post CBP seizes $2.5M in meth hidden in tomatillo truck at Otay Mesa; driver’s visa canceled appeared first on FreightWaves.

The mixed signals come as fleets navigate regulatory uncertainty, rising equipment costs and shifting investment priorities ahead of the 2027 model year.

U.S. trailer net orders reached 43,059 units in September, up 78% from August and 385% year over year, FTR reported. The total was the highest since December 2022 and marked an unusually strong start to the 2027 trailer ordering season.

Meanwhile, North American Class 8 truck orders totaled 19,172 units in September, down 7% from a year earlier and 15% month over month on a seasonally adjusted basis, according to ACT Research.

The contrasting results highlight a divergence in commercial vehicle demand as carriers prioritize trailer replacements while delaying some heavy-duty truck purchases amid uncertainty over federal emissions regulations and future equipment costs.

Trailer orders jump as fleets prepare for 2027

FTR said September’s trailer orders reflected substantial pent-up replacement demand following an extended period of weak equipment purchasing.

The research firm said earlier openings of 2027 trailer order books and expectations of additional tariff-related price increases may be prompting carriers to accelerate equipment purchases.

September 2026 equipment orders at a glance

FTR also suggested that the conclusion of the Class 8 truck pre-buy cycle and uncertainty surrounding the Environmental Protection Agency’s 2027 nitrogen oxide emissions requirements could be shifting some near-term fleet spending from trucks toward trailers.

Dan Moyer, senior analyst for commercial vehicles at FTR, said industry feedback indicates fleets are becoming more active in equipment planning.

“Rising quote activity and more requests for proposals indicate that fleets are becoming increasingly active in equipment planning,” Moyer said in a statement.

Class 8 truck orders show mixed signals

While U.S. trailer orders surged in September, research firms reported conflicting trends in North American Class 8 truck demand.

FTR Transportation Intelligence reported preliminary September Class 8 net orders of 21,300 units, up 18% from August and 3% year over year. However, ACT Research reported final September orders of 19,172 units, down 7% from a year earlier and 15% month over month on a seasonally adjusted basis.

Despite the differing estimates, both firms pointed to uncertainty surrounding the Environmental Protection Agency’s 2027 emissions regulations and truck pricing as factors influencing fleet purchasing decisions.

How the September figures compare

Medium-duty truck orders remain resilient

Demand for medium-duty commercial vehicles remained stronger than the Class 8 segment in September.

ACT reported North American Classes 5-7 truck orders of 20,297 units, up 27% year over year.

The research firm said medium-duty demand may be benefiting from dealer inventory stocking ahead of anticipated regulatory changes and higher equipment prices in 2027.

The growth in medium-duty orders contrasts with the weakness in Class 8 purchases, underscoring differences in purchasing patterns across commercial vehicle segments.

Why it matters: Fleet replacement demand is strengthening, but conflicting truck order estimates and unresolved emissions regulations complicate the outlook for commercial vehicle manufacturers. 

The post US trailer orders soar 385% as Class 8 truck market sends mixed signals appeared first on FreightWaves.

New or enhanced automated facilities are now operating in Denver, St. Paul, Minnesota; Syracuse, New York; and Portland, Oregon, UPS (NYSE: UPS) said this month in a news release highlighting how it has prepared for peak season.

Automation projects are part of a multiyear initiative to re-architect how parcels move through UPS’s distribution system in an effort to lower structural costs and restore margins. The strategy is to improve efficiency and focus on higher-yield segments over lightweight B2C shipments from large retailers as parcel volume growth slows from pandemic-era highs.  

The network transformation involves closing 200 manual sort facilities over five years and consolidating activity into larger, modern facilities able to handle more shipments from larger catchment zones. The downsizing also has led to the elimination of 30,000 positions. 

Warehouses outfitted with smart package technologies – autonomous guided vehicles, automated sort systems and systems that prioritize processing for specific customer requirements without manual intervention – improve sorting speed, package flow, accuracy and capacity. The automated systems reduce manual touches and help simplify the movement of packages through the facility, according to management. 

The company is targeting about $3 billion in annual cost savings by 2028 from the restructuring. 

As of July 1, 68.5% of U.S. volume flowed through an automated facility compared to 64% the year prior. The cost per piece in an automated handling facility is about 28% lower than a conventional facility with mechanical systems, which spreads out unit costs and drives operating leverage, executives said during a presentation on the company’s second-quarter results.

The facilities in Denver, St. Paul and Syracuse continued to operate while modernization upgrades were completed in phases, UPS spokeswoman Karen Tomaszewski Hill explained in an email. UPS temporarily closed the Portland facility on Swan Island and shifted operations to other locations during construction. 

UPS also announced it is hiring 100,000 seasonal employees nationwide, as it does each year to ensure smooth operations during peak season. Amazon, by comparison, this week said it is hiring over 300,000 people for seasonal, part-time, and full-time roles across its U.S. core logistics network nationwide this holiday season. Amazon is now the largest parcel delivery company in the United States.

The parcel freight giant said it expects to deliver more than four billion RFID-enabled packages by the end of 2026 after completing the installation of sensors in all package delivery vehicles in the spring. The technology was previously rolled out to U.S. delivery stations and UPS Stores. RFID labels are on every package shipped from The UPS Store.

Radio frequency identification is a tracking technology suited for closed-loop environments, like an integrated package network controlled by a single company. RFID tags are cheap, but the infrastructure to read the signals is expensive. UPS previously reported it has invested more than $100 million so far to deploy RFID.

UPS is working with many customers to add RFID printers at their facilities and in the process of adding RFID readers at regional hubs. It also plans to equip aircraft with the devices.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

Write to Eric Kulisch at ekulisch@freightwaves.com.

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The post UPS automates 4 additional facilities ahead of peak shipping season appeared first on FreightWaves.

The Omaha-based railroad (NYSE: UNP) earned $2.08 billion, or $3.49 per diluted share, compared with $1.79 billion, or $3.01 per share, a year earlier. Adjusted earnings of $3.53 per share exceeded the $3.47 consensus estimate compiled by Zacks Investment Research.

Operating revenue increased 15% to $7.2 billion, while freight revenue excluding fuel surcharges rose 6%. Total revenue carloads grew 6% to 2.29 million. Intermodal volume increased 11% to 956,000 containers and trailers, and intermodal revenue climbed 27% to $1.52 billion. Industrial volumes rose 6%, while bulk traffic was essentially flat.

“Union Pacific’s third quarter results demonstrate our ability to safely deliver the service we sold to our customers while efficiently handling 6% volume growth,” Chief Executive Jim Vena said in the earnings release.

Operating income increased 15% to $2.94 billion. The reported operating ratio improved slightly to 59.1% from 59.2%, although the adjusted ratio deteriorated 30 basis points to 58.8%. Higher fuel prices added 140 basis points to the ratio, the company said. Workforce productivity improved 5%, while average terminal dwell declined 2% to 19.9 hours.

Union Pacific reaffirmed its forecast for high-single-digit growth in reported earnings per share for 2026 and updated its capital spending plan to $3.5 billion. Vena also pointed to upcoming steps in the Surface Transportation Board’s review of the railroad’s proposed merger with Norfolk Southern (NYSE: NSC).

Why it matters: Union Pacific’s earnings show how intermodal growth and pricing gains are supporting profits even as higher fuel costs pressure operating efficiency.

Subscribe to FreightWaves’ Rail e-newsletter and get the latest insights on rail freight right in your inbox.

Read more articles by Stuart Chirls here.

Read more:

First look: Norfolk Southern earnings

CSX profit jumps on volume and revenue growth

New York short line wins $11.2 million federal rail grant

Autonomous railcar technology earns $16M federal grant

Union Pacific CFO to retire

The post First look: Union Pacific earnings appeared first on FreightWaves.

The railroad (NYSE: NSC) said revenue rose 14%, to $3.5 billion, on a 3% increase in volume. Higher fuel surcharges accounted for eight percentage points of revenue growth. Income from railway operations increased 5%, to approximately $1.2 billion, while diluted earnings per share rose 7%, to $3.37.

Adjusted earnings per share increased 10%, to $3.62, excluding merger-related expenses and effects of the East Palestine derailment, along with restructuring and other charges in the year-earlier comparison. Adjusted operating income rose 7%, to approximately $1.2 billion.

Despite the earnings growth, Norfolk Southern’s operating ratio, a key indicator of efficiency, worsened 2.8 percentage points, to 67.4%. Its adjusted operating ratio increased 2.1 points, to 65.4%, underscoring pressure on margins even as revenue reached a quarterly record.

Chief Executive Mark George said productivity improvements helped earnings, while tighter trucking capacity increased rail’s appeal to shippers.

“Demand for rail service increased during the quarter, as a tighter trucking market highlighted rail’s competitive advantages and underscored the opportunity for a more efficient, capacity-enhanced freight network,” George said in the earnings announcement.

“We remain focused on investing in a stronger, more resilient rail network that can support growth we see on the horizon,” he said.

Why it matters: Norfolk Southern is benefiting from a tighter trucking market, but stronger freight demand is not translating into better margins.

Subscribe to FreightWaves’ Rail e-newsletter and get the latest insights on rail freight right in your inbox.

Read more articles by Stuart Chirls here.

Read more:

CSX profit jumps on volume and revenue growth

New York short line wins $11.2 million federal rail grant

Autonomous railcar technology earns $16M federal grant

Union Pacific CFO to retire

CSX eliminates more than 100 management positions

The post First look: Norfolk Southern earnings appeared first on FreightWaves.

For the week ending Oct. 17, total U.S. weekly rail traffic was 540,135 carloads and intermodal units, up 8.5% from the same week a year ago, according to the Association of American Railroads.

Carloads totaled 232,120 units, up 3.5%, and intermodal volume of 308,015 containers and trailers was 12.6% better y/y.

Nine of the 10 carload commodity groups posted an increase compared with the same week in 2025.

Metallic ores and metals used in steelmaking and other production led all gainers, up 14.5%. Domestic raw-steel production increased 4.1% from the previous week, the latest American Iron and Steel Institute figures show. Petroleum and related products improved 8.8%, and grain was ahead 7%.

Nonmetallic minerals such as sand and stone was the only category to retreat, down 3.2% y/y.

For the first 41 weeks of 2026, U.S. railroads posted cumulative volume of 9,374,717 carloads, an increase of 2.7%, and 11,687,964 intermodal units, up 4.6% from 2025. Total combined traffic for the first 41 weeks of 2026 was 21,062,681 carloads and intermodal units, an improvement of 3.7% y/y.

North American rail volume for the week on nine reporting U.S., Canadian and Mexican railroads totaled 339,034 carloads, a gain of 3.2%, and 392,681 intermodal units, up 10.8% y/y. Total combined weekly rail traffic in North America was 731,715 carloads and intermodal units, up 7.2%. North American rail volume for the first 41 weeks of 2026 was 28,828,693 carloads and intermodal units, up 3.2% compared with 2025.

Subscribe to FreightWaves’ Rail e-newsletter and get the latest insights on rail freight right in your inbox.

Read more articles by Stuart Chirls here.

Read more:

First look: Union Pacific earnings

First look: Norfolk Southern earnings

CSX profit jumps on volume and revenue growth

New York short line wins $11.2 million federal rail grant

Autonomous railcar technology earns $16M federal grant

The post Commodity markets whip up railfreight gains appeared first on FreightWaves.

It was a solid third quarter for Ryder, with improvement in just about every metric compared to the third quarter of 2025.

The numbers have been good enough that Ryder (NYSE: R) raised its full-year outlook for 2026. With three quarters in the books, there’s only so much higher it can go. But the company in its third quarter earnings release said it is raising its non-GAAP earnings per share estimate for the year to $14.85-$14.05. In the company’s second quarter earnings, that estimate was $14.40-$14.80. The non-GAAP return on equity forecast was nudged up to 18% to 19% from a flat 18% in the previous forecast three months ago. 

Revenue was up in every sector at Ryder. Its Fleet Management Solutions (FMS) segment, which includes its flagship vehicle rental and leasing activities, rose 10%. Supply Chain Solutions (SCS), a contract logistics provider, saw its revenue rise 9%. Dedicated Transportation Solutions (DTS), which is a dedicated carrier that contracts its service out to shippers, increased its revenue 6%.

Earnings before tax at FMS rose 21%. At SCS they were up 7%. But at DTS, that measure fell 5%, due to what Ryder said was “(reflecting) lower operating revenue and a prior year workers’ compensation insurance benefit, partially offset by cost savings from strategic initiatives.”

Used vehicle sales, which Ryder has been trying to restructure the company so that its earnings are not so tied to that market, were strong nonetheless. Used vehicles sold rose to 5,100 from 4,900 a year earlier. But it was the price where the company really benefited from that market, with used tractor prices rising 19% from a year ago, and used trucks climbing 5%.

Prices were improved sequentially as well. For used trucks, the jump from the second quarter was 6%. For tractors, it was 15%.

Used vehicle sales are reported in Ryder’s earnings as a net cost based on provisions for used vehicle sales made by the company. The figure for the third quarter was a net negative $17 million, wider than the positive $3 million a year earlier and negative net $7 million in the second quarter. That is a benefit to the company to have that negative number larger.

In a rapid note put out soon after the release of the earnings, Citi’s Ben Mohr described Ryder’s number as “better than expected,” and highlighted the 77% rental utilization rate. The company’s target is 80%, Mohr said.

He added that the $17 million net benefit on used vehicle sales was wider than the expected $10 million.

On the DTS performance which came up short of the prior year, Mohr said he saw a benefit from tightening driver markets. “DTS is likely facing elevated driver hiring costs/wages/bonuses on ongoing driver market tightening, which should drive a partial offset of shippers outsourcing more to DTS,” he said.

Ryder’s conference call is at 11 a.m. Thursday.  The company’s stock is up 29.8% in the last year, but is down about 12.5% for the three months up slightly in the last month. The first numbers out of the gate at about 9:40 a.m. EDT showed a positive reaction to the earnings, with Ryder up 5.92%, or $14.22, to $254.53.

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The post First look: almost all strong numbers in Ryder’s third quarter earnings appeared first on FreightWaves.

“On the pricing front, our spot pricing trended better than public indicators in the quarter, staying well above contractual rates that continued to accelerate throughout the period,” said CEO Adam Miller in a news release. “Similarly, our tender rejection rates continue to run at levels two to three times that of the broader market measures.”

Knight-Swift (NYSE: KNX) reported third-quarter adjusted earnings per share of 83 cents Wednesday after the market closed. The result was 51 cents higher than the year-ago quarter and 7 cents better than analysts’ expectations. (Management’s EPS guidance range was 71 to 77 cents.)

Revenue of $2.2 billion was up 14% year over year (plus-8% y/y excluding fuel surcharges) and slightly ahead of the $2.17 billion consensus estimate.

TL margins turn the corner

The company’s TL unit reported a 6.5% y/y revenue increase, excluding fuel. Revenue per tractor (ex-fuel) was up 11% y/y while the average tractor count was down 4%.

Knight-Swift has been culling its truck fleet through the downturn to improve asset utilization. Loaded miles per tractor increased 1%, which was an eighth straight y/y improvement. Deadhead was down 170 basis points y/y to 12.1%. Revenue per loaded mile (ex-fuel) increased 10% y/y. (The metric was up by a mid-teen percentage in its over-the-road service.)

An 89.2% adjusted operating ratio (inverse of operating margin) was 700 bps better y/y and in line with the midpoint of management’s guidance range. U.S. Xpress, which was acquired in 2023, operated at a low-90% adjusted OR in the quarter while Knight-Swift’s legacy brands operated at 88%. Management noted that one-way margins exceeded dedicated margins in the period. (Approximately 29% of Knight-Swift’s TL fleet operates under dedicated contracts.)

The carrier is meaningfully pricing freight above cost inflation. During the first quarter, an increase in revenue per total mile (ex-fuel) lagged the increase in cost per mile (net of fuel surcharges) by 90 bps. The spread flipped to 390 bps positive in the second quarter, with rate gains outpacing cost inflation by 840 bps in the third quarter.

The company is again calling for 650 to 750 bps of y/y TL margin improvement in the fourth quarter, implying an 85.9% adjusted OR (330 bps better sequentially). Its guidance also calls for revenue to increase y/y by a low-double-digit percentage (ex-fuel).

It said it will look to selectively grow the fleet, but acknowledged “sourcing quality drivers is as challenging as it has been in years.” Knight-Swift’s new bid season kicks off next month and it will ask for “at least double-digit [rate] increases” for starters, Miller said on Wednesday evening call with analysts.

“I think we’ll start the bid season with the idea of probably low-to-mid double digits and see how it develops from there.”

National LTL map may be completed organically

Knight-Swift entered the less-than-truckload market in 2021 when it acquired AAA Cooper. It added Midwest Motor Express later that year and Dependable Highway Express in 2024. It has opened over 50 locations organically over the past five years, including four new locations in May.

However, it still needs to fill in the Northeast portion of the map to complete a true national network. It said Wednesday it has already chosen a few locations in the region and plans to add terminals organically at a “very deliberate” pace.

Revenue at the unit was up less than 1% y/y (ex-fuel) as tonnage increased 3% and revenue per hundredweight (ex-fuel) fell 1%. Increases in weight per shipment (+5%) and length of haul (+6%) had mostly offsetting impacts on yield.

Revenue per shipment (ex-fuel) increased 4% y/y. Contractual rate renewals were up by a mid-single-digit percentage.

The LTL unit booked a 91.4% adjusted OR, 80 bps worse y/y. A $4.6-million decline in gains on sale was a 130-bp y/y margin headwind.

The company’s fourth-quarter outlook calls for a high-single- to low-double-digit y/y increase in revenue (ex-fuel), with 100 to 200 bps of y/y margin improvement, implying a 93.6% OR at the midpoint of the range.

Other Q3 takeaways

The logistics unit reported 120 bps of y/y margin improvement to a 93.1% adjusted OR. Brokerage gross margin increased 110 bps y/y to 18.9% (350 bps better sequentially) as the company “maintained a disciplined approach to profitability and carrier selection.”

The intermodal unit booked a second straight operating profit (97.8% adjusted OR). Load counts increased 13% y/y to the highest level in over five years and revenue per load was 15% higher (up 5.5% y/y ex-fuel).

Knight-Swift issued fourth-quarter adjusted EPS guidance of 78 to 84 cents, which bracketed the 82-cent consensus estimate at the time of the print.

The third-quarter adjusted EPS number benefitted y/y from a $22-million reduction in net interest expense (10 cents per share), a lower tax rate (5 cents per share) and a slight increase in gains on equipment sales (1 cent per share). However, the other income line was down $3.5 million y/y (2 cents per share).

Why it matters? Knight-Swift is the nation’s largest asset-based TL carrier and serves as a bellwether for market trends. The company’s third-quarter results highlight that the market has transitioned from a cyclical downturn to a structural recovery.

More FreightWaves articles by Todd Maiden:

• Heartland Express sees earnings turnaround in Q3
• Werner Enterprises issues Q3 profit warning
• J.B. Hunt experiences growing pains in Q3

The post Knight-Swift again eyes big rate increases as new bid season nears appeared first on FreightWaves.

The project extends the collaboration Einride announced Sept. 21 to build its next-generation driving system on Nvidia’s Hyperion platform. Adapting Alpamayo is designed to shorten development cycles and reduce the cost of extending the Einride Driver to new vehicle types and routes, Einride said. Neither company disclosed financial terms.

New vehicle types are already on Einride’s schedule. Einride, DAF, and TNO are defining and testing how to integrate Einride’s autonomous system into DAF’s electric truck platform through 2026, with software integration and commissioning scheduled for 2027.

Einride had more than 5,400 driverless hours in contracted customer operations across six autonomous deployments in the U.S. and Europe as of June 30, according to its first-half 2026 results. The company tied the Alpamayo decision to that record.

“Our advantage has always been running autonomous freight in the real world, for real customers,” said Henrik Green, Einride’s chief technology officer.

What Alpamayo is built to do

Nvidia introduced the Alpamayo family at CES in January. It described Alpamayo 1 as a 10-billion-parameter vision language action model that uses video input to generate driving trajectories with reasoning traces.

The Alpamayo models “serve as large-scale teacher models” that developers fine-tune and distill into smaller models for their own driving systems, Nvidia said. In May, Nvidia launched Alpamayo 2 Super, a 34-billion-parameter teacher model built to be distilled into compact models that run on DRIVE AGX Thor, Hyperion’s in-vehicle computer. The release does not say which Alpamayo model Einride will use.

The company will post-train and distill Alpamayo on its proprietary operational data. In shadow mode, the model runs live without controlling the vehicle. Its outputs are compared against Einride’s driving planner and human driver performance while existing safety systems stay in full control.

PlusAI also adapting Alpamayo for trucks

Einride said it plans to be the first trucking company to deploy Alpamayo on Hyperion. PlusAI said in March it is adapting Alpamayo for heavy-duty trucking on Level 4 trucks built on Nvidia’s DRIVE AGX Hyperion platform. It expects fully driverless commercial operations on those factory-built trucks to begin in 2027.

Einride’s claim turns on what counts as deploying. Green described the company’s position in narrower terms.

“Being the first trucking company in this engagement gives us the opportunity to help shape the model for freight,” he said.

Nvidia framed the Alpamayo work as exploratory.

“By combining Nvidia Alpamayo and Nvidia Halos safety system with Einride’s real-world freight data and safety engineering on Hyperion, we’re exploring how reasoning-based AI can help trucks navigate complex driving conditions and accelerate development for new routes and vehicle types,” said Rishi Dhall, Nvidia’s vice president of automotive.

Why it matters: Einride is betting that Nvidia’s Alpamayo, trained on its own freight data, can cut the cost of putting the Einride Driver on new trucks and routes. In shadow mode, the model won’t control a vehicle, and a live road evaluation is planned for late 2027.

The post Einride’s autonomous trucks to learn from Nvidia’s Alpamayo appeared first on FreightWaves.

Operations teams have more visibility than ever, but they can’t act on it fast enough. The warning signs are often already in the data while acting on them still falls to managers, who chase alerts, call drivers, and check every fix by hand. That work eats hours every week and breaks down as operations grow.

For fleets, the decision rests on how much alert follow-up to hand over to software. Bennett Family of Companies, which began running Agents before the launch, started with Agents that notify its own staff and do not reach drivers.

“We did some things that did not communicate out to the drivers, and I think, for me, that was very intentional because I wanna build the trust,” Jared Whitson, senior director of safety and compliance at Bennett, said during a Motive fireside chat Sunday night at MCE. “I wanna build the trust in the product.”

Companies including Carvana, NovaSource Power, SPATCO Energy Services, Bennett Family of Companies, and Bulk Environmental & Industrial are already building and deploying Motive Agents across their operations.

What carriers already have to catch

Federal rules already make driver fatigue and vehicle condition parts of the carrier’s job. 49 CFR 392.3 bars a motor carrier from requiring or allowing a fatigued driver to operate, and 49 CFR 396.7 forbids running a truck in a condition likely to cause a crash or breakdown.

Failing to maintain that level of compliance has a direct impact on a carrier’s bottom line. Emily Parsons, a staff product manager for Agents at Motive, cited a Motive figure at the event: 47% of fleets have had delayed maintenance lead to a breakdown or an out-of-service event.

“A fault code fires, it sits in a dashboard, and by the time someone opens a ticket, a small issue oftentimes has already turned into a big one,” she said.

With Agents, a fleet picks a trigger and a response from guided workflows or ready-to-use templates in minutes, no technical expertise required, according to the release. The customer sets the threshold and the action; the Agent applies that rule continuously and consistently. Templates cover idling, fault codes, and fatigue, and one Agent can combine several triggers and actions, Motive said in a blog post.

When a fault code meets a fleet’s criteria, an Agent automatically opens a work order in Motive Maintenance and marks the vehicle out of service. Motive says each fault code comes with an AI-generated explanation, a severity level, and recommended actions.

Other agents flag driver fatigue, and idling Agents prompt drivers to shut off the engine and notify managers when idling passes a set threshold. Weather Agents can warn drivers about storms on active routes. Parsons said Motive data shows collision rates can rise as much as 40% in winter months. That is the promise of physical AI in fleet operations: connecting what hardware and software sees in the real world to what teams need done next.

“Our customers don’t need another alert. They need action,” Hemant Banavar, Motive’s chief product officer, said in the release. “The data that prevents collisions and breakdowns already lives in Motive. Agents put it to work the moment it matters, so teams can grow without adding headcount.”

Motive’s estimates and recent funding

Motive estimates organizations lose $46 billion to preventable issues such as downtime, compliance violations, and unproductive idling, and spend 860 million hours on tasks that could be automated. In the release, Motive said 42% of respondents to its 2026 ROI Report, an online survey of 351 of its North American customers, named operational inefficiencies, including excess administrative work, as a top concern.

The launch comes about six weeks after Motive raised more than $1.3 billion from General Catalyst and withdrew its IPO filing. The company said then that annual recurring revenue had passed $600 million, up 30% year over year, across nearly 100,000 customers — from small fleets to Fortune 500 enterprises — giving it one of the largest datasets in fleet management to train its AI.

Driver calls and goal setting come later

Some features are not live yet. Today, Agents alert managers by email, text, or app notification and reach drivers through in-cab voice messages, the blog post says. Calls to drivers from Atlas, Motive’s AI assistant, through AI Dashcam Plus arrive later this year.

Building an agent in plain language and setting a goal such as fewer collisions are slated for early next year. Motive also offers a library of pre-built Agents that require no setup and are available today. These Agents cover coaching and maintenance among others. Motive says Agents are included in existing Motive plans, while certain premium actions are available as add-ons. The release does not include pricing.

Bennett starts with alerts to its staff

Bennett has Motive’s AI Dashcam Plus in its vehicles but hasn’t yet enabled driver-facing Agent actions through the in-cab camera, Whitson said. Its first agent alerts asset management, the shop, and safety when a company truck with a critical fault code enters the geofence at its McDonough, Georgia, home office.

Whitson also set up an alert that notifies him when a driver logs three critical telematics events within 24 hours. Each agent is set up on a single screen: a user picks the conditions, then the action, he said. For now, Bennett’s agents report to people in the office.

Whitson noted that approach lets Bennett build confidence with back-office Agents before extending them to drivers. He said each company will decide how far to let Agents take action on its behalf. “I think it’s foolish not to make products earn that trust. But I do think that once it’s earned, then to keep up and to be competitive, then those are decisions that you’re going to have to make.”

“My team’s days are often spent running reports, cross-referencing them, and reacting to problems,” Whitson said in the press release. “Without Agents, safety management at scale is a massive challenge with inefficient, manual processes across nearly every team responsibility. Motive Agents allow us to handle that work the moment something happens — a one-time setup, and from that point forward the platform executes. Agents, and Motive’s vision for it, will let us reallocate resources toward things like field safety coordination, meaningful corrective actions, and training that ultimately lead to safer roads and money saved in collision costs.”

A scaled safety program across 15 Agents

Motive gave another customer use case example. A moving and storage company with roughly 230 vehicles is running 15 Motive Agents across its safety program. One flags patterns, including repeated speeding, unsafe lane changes, drowsiness over a rolling five-day window and auto-notifies the driver and coach when a threshold is hit. Others escalate crashes and near-misses to management by email, in-app, and SMS. The company estimates it’s saving 20 hours a week of manual event review.

HOS monitoring with a built-in buffer

A 35-vehicle fencing and guardrail contractor set up an HOS Agent that escalates as a driver nears their limit: an in-cab voice message at 60 minutes out, then a joint alert to driver and coach at 30. The 60-minute buffer gives drivers time to find safe parking and pull over legally. Most self-correct after the first message, so managers aren’t flooded with alerts. Monthly violations dropped from about 85 to 10 in September, approximately an 88% reduction.

Why it matters: A fault code that sits in a dashboard can turn into a breakdown or an out-of-service truck. Agents are built to act on those alerts automatically, closing the gap between spotting a problem and fixing it. It gives safety and maintenance teams more time for the decisions that require human judgment: field safety coordination, driver coaching, and more. Motive notes that puts them ahead of a broader industry shift from monitoring to automation.

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Direct costs such as retailer chargebacks, expedited freight and dispute management make up $10 billion to $11 billion of that total, according to The $100 Billion Supply Chain Penalty: OTIF’s Total Economic Impact. Cleo attributes the other $85 billion to $90 billion to losses that rarely appear in financial reporting: lost shelf space, smaller retailer orders, excess inventory and manufacturing inefficiencies.

Retailers fine suppliers when orders miss the delivery window or arrive short. Walmart requires suppliers to deliver on time and in full on 98% of orders or pay a fine of 3% of the cost of goods, when the retailer tightened its standard in 2020.

“A missed delivery can cost a manufacturer its next order, its shelf space, and ultimately its standing with a retailer. The chargeback captures only a fraction of that damage,” Cleo President and CEO Mahesh Rajasekharan said in the release.

How retailer OTIF programs work

Walmart’s U.S. OTIF program began in July 2017, and Amazon and Target have similar standards, according to the 2020 FreightWaves article. Retailers do not measure OTIF the same way. A 2019 McKinsey study found no standard industry definition.

Cleo’s report counts a delivery as successful only if it arrives by the agreed date or within the delivery window and contains the full quantity ordered. It says retailers including Walmart, Kroger, Target, Costco and Publix set thresholds often above 95%, while industry benchmarks put many manufacturers at 85% to 91%.

A supplier at 99% against a 95% requirement generally earns no extra financial benefit, according to the report, while one at 94% can face chargebacks and lower scorecard ratings. Strong performers can win better shelf placement or promotional support, but the report says those benefits are rarely written into contracts, so suppliers often invest only enough to meet the minimum.

Most of Cleo’s $100 billion estimate comes from what follows a miss. Retailers use supplier performance to decide shelf placement, promotions and order allocation, the report says, so a weaker scorecard can shrink a supplier’s future business.

Larger suppliers pay more in penalties

Cleo’s model shows direct costs rising as a share of revenue with company size. They run 0.5% to 1% of revenue for manufacturers with $100 million to $500 million in sales and 2.5% to 3% for those with $3 billion to $5 billion. Indirect costs move the other way, from 15% to 16% of revenue at the small end to 10% to 11% at the top.

Midsize manufacturers, with $300 million to $1 billion in revenue, face the greatest risk-adjusted exposure, the report says, because they carry high indirect costs and fast-rising direct penalties.

Freight costs peak in the fourth quarter

Cleo estimates that 40% of expedited shipments happen in the fourth quarter, when promotional and holiday demand peaks. Between 5% and 15% of shipments to major retailers need expedited logistics, the report says.

Many OTIF failures start before a truck is loaded. Inaccurate forecasts, purchase orders sent late and promotional spikes push suppliers into expedited shipping or last-minute production changes, according to the report.

Air freight costs five to 10 times the standard rate, team drivers 1.5 to two times and less-than-truckload consolidation two to three times, according to Cleo. Suppliers should lock in capacity reservations and carrier commitments 90 to 120 days before the fourth quarter, the report advises.

What chargeback disputes cost

Cleo puts annual spending on chargeback disputes at $1.16 billion across the U.S. and Canadian CPG industry, covering deduction analysts, compliance managers, third-party platforms and recovery consultants.

Citing industry estimates, the report says 60% to 70% of disputed chargebacks are written off, and 20% to 30% of successful recoveries can go to recovery-service fees. It puts the fully loaded cost of a deduction analyst dedicated to a single retail channel at $80,000 to $120,000 a year.

Cleo’s recommendations

The report estimates that a 5- to 10-percentage-point improvement in OTIF performance could recover $11 billion to $23 billion across the market. It recommends that manufacturers measure direct and indirect OTIF costs together and give one executive with profit-and-loss responsibility ownership of the total.

Of the five approaches the report weighs, dispute-recovery and reporting tools require limited investment but do little about root causes. Logistics technology such as routing optimization and carrier visibility can significantly reduce on-time failures but may leave demand-planning problems unresolved, it says.

Cleo sells software in another of the five, supply chain orchestration. In February it launched Chargeback Prevention, which flags orders, shipments and invoices at risk of missing trading-partner service levels. The release says the research draws on industry benchmarks, publicly documented retailer programs, labor and logistics cost data, and scenario-based modeling.

Organizational fragmentation is the most common failure in OTIF programs, according to the report.

“The deeper problem is fragmented accountability: logistics tracks delivery performance, finance tracks deductions, and sales tracks lost business, while the connections between them go unaddressed,” Rajasekharan said. “CEOs need to make OTIF a shared business priority, with clear ownership of its full financial impact.”

Why it matters: Cleo’s estimate places about 90% of the cost of missed retail deliveries outside the chargebacks suppliers track, in lost shelf space, orders and inventory. The figures come from modeling by a company that sells chargeback-prevention software.

The post Late, short deliveries cost food and CPG makers $100 billion appeared first on FreightWaves.

Operating income increased 44%, to $1.57 billion, while revenue increased 12%, to a record $4.02 billion, the company said Wednesday. Earnings per share increased 54%, to 57 cents. Adjusting for the impact of a one-time goodwill impairment in the third quarter of 2025, operating income was up 25% and earnings per share rose 30%.

The railroad’s (NASDAQ: CSX) operating ratio was 60.9%, an 8.8-point improvement from a year ago, as expenses declined 2%. CSX set what it called an all-time U.S. quarterly record for fuel efficiency, at 0.92 gallons per 1,000 gross ton-miles.

Productivity improved 6% for the quarter, when measured by million gross ton-miles per employee, with overall rail employee headcount down 6.2% compared to last year.

“The progress we continue to make on productivity has helped drive substantial growth in profitability, earnings, and free cash flow. Our goal is to be the best performing railroad in North America, and the entire CSX team is responding to that challenge,” Chief Executive Steve Angel said on the railroad’s earnings call.

The results and outlook for the rest of the year prompted the railroad to raise its revenue growth forecast to high single-digits, up from prior guidance of mid-single-digit growth.

“As we move into 2027, we will be focused on ensuring we have sufficient resources across the network to support a growing business, which will include adding to our train and engine employee pipeline,” Angel said. “We remain committed to sizing our workforce to the needs of a safe, reliable, and efficient railroad.”

Overall freight volume increased 5% for the quarter. Intermodal was up 7%, merchandise was up 3%, and coal was up 2%.

The intermodal volume growth was due entirely to domestic shipments, as international traffic declined slightly.

“Reduced trucking availability, high truck rates, and elevated diesel costs continue to benefit our intermodal segment,” said Maryclare Kenney, the railroad’s chief commercial officer.

New service offerings are attracting truckloads off the highway, she said, including interline service with BNSF through Birmingham, Ala., and with CPKC through Myrtlewood, Ala. Double-stack operations, made possible by completion of the Howard Street Tunnel clearance project in Baltimore in the spring, have helped with volume growth in the I-95 Corridor.

CSX has experienced congestion at its Fairburn terminal outside Atlanta and is making investments in track, switching, and processing capacity to handle increased intermodal volume.

Export coal tonnage increased 7% for the quarter, while domestic coal tonnage declined 3% as increased metallurgical coal volume was not enough to offset a downturn in utility coal traffic.

Key operations metrics declined for the quarter amid higher volume. Average train velocity was off by 2%, while terminal dwell increased 12%, compared to a year ago.

The railroad’s service metrics declined compared to a year ago, with intermodal and carload trip-plan compliance falling 10 points each. Intermodal on-time performance was 83% for the quarter, while carload was 73%.

“We are handling more volume safely and efficiently, but we know our network can perform better,” Angel said.

Angel praised former Chief Operating Officer Mike Cory, who announced his retirement on Oct. 12. The railroad’s two operations senior vice presidents, Doug Ryhorchuk and Casey Albright, now report directly to Angel.

“Most people think of me as an operating CEO, and that’s what I like to do,” said Angel, who joined CSX a year ago after leading industrial gas company Linde. “If you go back into my early days, I actually ran manufacturing operations for GE, and I installed one of the first lean production systems in the United States back in Nineties. So operations always has been in my blood.”

Safety performance improved for the quarter, with the personal injury rate down 17% and the train accident rate down 5%. It was the seventh straight quarter of improvement in the injury rate, and the fifth consecutive quarter of improvement in the train accident rate.

Why it matters: CSX grew traffic and profits while spending less, but deteriorating service raised questions about whether its leaner operation could keep up.

This article was updated Oct. 22 to correct that earnings per share improved by 57 cents.

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