FreightWaves NOW

Truckload carrier Pamt Corp. books another loss in Q3, reporting a net loss of $5.6 million for the third quarter, marking its fourth consecutive net loss in a market that continues to hammer the freight industry. The company's consolidated revenue dropped 18% year-over-year, and its truckload unit reported a tough 106.7% operating ratio, exacerbated by its high reliance on the tariff-hampered auto industry. In contrast, Flatbed trends buttress Landstar amid dry van slump, as the company reported strong flatbed volumes even though dry van freight demand remains soft. Landstar reported adjusted earnings per share of $1.22, just one cent shy of consensus estimates, and management noted that potential regulation-induced capacity crunch on the owner-operator population may signal a future market flip. Also covered today, Port Houston completes ship channel dredging amid environmental scrutiny, finalizing its share of the $1 billion Houston Ship Channel Expansion (Project 11) to widen the waterway to 700 feet through Galveston Bay. Port CEO Charlie Jenkins confirmed the project is already delivering measurable gains, improving safety and reducing vessel emissions by allowing ships to move more efficiently through one of the nation’s busiest waterways. Learn more about your ad choices. Visit megaphone.fm/adchoices

DAT, a subsidiary of Roper Technologies, is evolving into an automated, AI-powered freight marketplace, a transformation discussed by executives at the FreightWaves F3 and on the Roper earnings call. This strategic shift is predicated on a series of key acquisitions, including the Convoy tech stack, Trucker Tools, and Outgo, which aim to build capabilities across the entire freight automation workflow, promising savings of $100–$200 per load.  We dive into the immediate crisis caused by federal attempts to restrict non-domiciled CDLs, a pool that has added over 200,000 licenses since 2019, contributing to the "Great Freight Recession". The U.S. Postal Service’s sudden ban on these drivers led to immediate, severe service disruptions and a rapid reversal, highlighting the supply chain's critical reliance on this driver segment.  The program features an update on Union Pacific’s aggressive campaign to secure approval for its $85 billion acquisition of Norfolk Southern, a merger that would create the first U.S. transcontinental freight railroad. This campaign includes strategic political maneuvering, such as a donation to President Trump's White House ballroom project and securing job guarantee backing from its largest labor union. In air cargo news, we cover Kalitta Air's deployment of the first-ever Boeing 777 converted freighters, dubbed the "Big Twin," for dedicated customers like DHL Express and Challenge Group, leveraging their increased volume and fuel efficiency. Finally, we examine Marten Transport's third-quarter earnings, which saw overall profitability maintained despite a loss in the Truckload segment, and discuss how the U.S. reached a trade framework with China even while tensions flared with Canada over a new 10% tariff increase.  Learn more about your ad choices. Visit megaphone.fm/adchoices

The US and China have reached a framework for a new trade agreement, potentially averting the threatened 100% tariff on Chinese imports, even as the U.S. has raised tariffs on Canada by 10%. Accucold has launched a new dual compressor combination refrigerator and freezer designed specifically for the life science, healthcare, and pharmaceutical sectors. These new models, available in two widths, feature independent temperature control across multiple compartments and include user-focused safety features like audible and visual alarms that alert users to temperature excursions, power loss, or door openings. The freight industry is closely monitoring the potential for a severe capacity crunch following increased enforcement of non-domiciled CDL issuance nationwide. FreightWaves founder and CEO Craig Fuller suggests that the emergency rule addressing the improper granting of at least 200,000 non-domiciled CDLs will lead to a significant tightening of truckload capacity across the United States. Learn more about your ad choices. Visit megaphone.fm/adchoices

Salvage experts successfully concluded operations at Hong Kong International Airport after an AirACT Boeing 747-400 cargo jet skidded off the North Runway and into the sea. The team recovered key components, including the tail section, an engine, landing gear, and the flight data recorder, following the accident that tragically killed the two occupants of a security car struck by the plane. This episode conducts a deep dive into two critical market dynamics: the immediate, costly friction building at the U.S.-Mexico border due to the MVE compliance rules, and the paradoxical deepening capacity crunch within the domestic U.S. truckload market. We analyze how, despite the national Outbound Tender Volume Index hitting an all-time October low, capacity is quietly tightening up because it is exiting the market faster than demand is falling off, compounded by systemic safety risks linked to the proliferation of substandard CDL training facilities. The trucking sector is experiencing a significant capacity washout driven by a 30% collapse in long-haul freight, which is shifting market share to the resurgent intermodal sector. This capacity erosion, exacerbated by fears of deportation among non-domiciled and immigrant drivers in key markets like Southern California, is creating localized tightness and spot rate increases, which industry experts believe is laying the necessary groundwork for a potential trucking "super cycle" recovery around mid-2025. The U.S. highway system is facing a critical safety crisis, evidenced by a shocking 40% increase in fatal truck crashes since 2014, stemming largely from systemic flaws in commercial driver training and licensing. This deterioration is linked directly to a February 2022 regulatory change that allowed the proliferation of "CDL mills"—substandard facilities that exploit the self-certification database to issue licenses after minimal instruction, demanding stronger federal oversight and enforcement. A comprehensive reform proposal calls for centralizing the Commercial Driver’s License system under the USDOT to establish a single, standardized Federal CDL with unified training and testing across the nation. To combat fraud and enhance security, the plan mandates the integration of the Federal CDL with the Transportation Worker Identification Credential card for biometric verification and comprehensive background checks, alongside stringent new rules aimed at eliminating fraudulent “chameleon companies” through address restrictions and federalizing apportioned license plate issuance. Despite the severe downturn in truckload demand, with the OTVI down 19% year-over-year, tender rejection rates are trending higher, underscoring the severe speed at which capacity is being removed from the market. The long-haul segment, specifically, has experienced a 30% decline as intermodal offers near-record savings, forcing trucking networks to regionalize and increasing volatility in long-haul tender rejection rates. Learn more about your ad choices. Visit megaphone.fm/adchoices

We analyze CSX's recent Q3 earnings, noting that while adjusted operating income fell 8% due partly to a non-cash write-down and export coal decline, the operational story shows significant strength. The railroad is running better than ever, reporting a 1% growth in overall volume fueled by a robust 5% surge in intermodal traffic, alongside key operational improvements like an 8% decrease in terminal dwell time. Global markets continue to see chaos, as trans-Pacific container freight rates plummet due to overcapacity and worsening US-China trade friction, causing Asia-US West Coast rates to fall to pre-pandemic levels. Furthermore, the UN's International Maritime Organization postponed action on a global carbon tax following US opposition, a delay analysts warn risks stalling green investments and potentially leading to higher future freight rates down the line. Domestic capacity tightness is intensifying at the US-Mexico border, driven by policy changes like the pause on new foreign commercial driver visas and new English proficiency interviews, leading to a massive 18% jump in Laredo’s Outbound Tender Reject Index. Compounding the labor issue, the industry is seeing a strong push to reimplement rigorous CDL training centered on the crucial Smith System’s five key principles, arguing that proactive human override is essential for safety over the current priority of speed of qualification. On the equipment innovation front, Wabash National is expanding its Trailers as a Service platform with the new offering, TaaS Pools, designed to provide short-term, on-demand capacity for maximum flexibility, particularly for 3PLs. Unlike traditional leasing, TaaS Pools includes embedded management and maintenance, backed by TrailerHawk technology, which is critical for guaranteeing trailer uptime when capacity is tight. Learn more about your ad choices. Visit megaphone.fm/adchoices

The proposed transcontinental railroad merger between Union Pacific and Norfolk Southern heads toward a shareholder vote on November 14th, as both companies' boards urge investors to approve the historic transaction. Simultaneously, the shipping industry is navigating major disruptions as Ocean freight rates plummet amid China chaos, causing container rates on key transpacific routes to hit two-year lows due to tariffs and declining demand. We also detail the new legislation introduced in the Senate, which seeks to vacate sentences for mechanics convicted of tampering with heavy-duty truck diesel equipment and remove the EPA's authority over vehicle pollution rules. Proponents of the legislation argue that current regulations unfairly criminalize mechanics for keeping essential vehicles running in harsh climates. Learn more about your ad choices. Visit megaphone.fm/adchoices

This daily market update dives into the relentless push for efficiency and adaptation across the supply chain, beginning with J.B. Hunt’s third-quarter earnings beat. The multimodal giant saw an 18% jump in earnings per share (EPS), driven not by demand, but by surgical cost control that included stripping out $20 million in costs in Q3 as part of an efficiency program aiming for annual savings greater than $100 million. We connect this corporate efficiency focus to the road, examining the surprising resilience of owner-operators. Triumph Capital data shows the average factored invoice size for independent owner-operators actually rose by $16 compared to a year ago, contrasting sharply with a $92 decline for large fleets, which is largely attributed to the O/Os' lower fixed costs and flexibility to pivot to niche segments like Amazon power-only moves. This capacity picture may tighten due to legislation like "Connor’s Law", a companion bill requiring Commercial Driver’s License holders to prove English proficiency sufficient to understand signs, converse with the public, and respond to official inquiries, a measure supported by industry groups like the Owner-Operator Independent Drivers Association. Finally, we explore a fundamental logistical rethink in cross-border e-commerce driven by the abolition of the U.S. de minimis tariff exemption for small-dollar imports, which caused massive shipment backlogs for commercial carriers like UPS due to missing or incomplete documentation. As a response, retailers are seriously considering international postal networks as a compliant and cost-effective alternative, creating an emerging hybrid model utilizing both U.S. warehouses for high-value items and modernized postal channels for low-value goods. We conclude with a provocative signal from California, where Governor Gavin Newsom vetoed SB-34, a bill that would have restricted public funds for port automation projects. Despite fierce union opposition, who called the veto a "betrayal," Newsom argued the bill would hinder port modernization and global competitiveness, confirming that the drive toward technological efficiency continues relentlessly on the West Coast. Learn more about your ad choices. Visit megaphone.fm/adchoices

The Department of Transportation has announced it is withholding over $40 million in Motor Carrier Safety Assistance Program grants from California. This funding cut is a consequence of the state failing to place truck drivers who do not meet the Trump administration’s English Language Proficiency requirements out of service. J.B. Hunt Transport Services saw an 18% year-over-year increase in earnings per share to $1.76 for the third quarter, a result that strongly exceeded analyst expectations. The company is scrutinizing expense lines and has already removed $20 million in costs during the period as part of a program aiming for annual savings potentially greater than $100 million. Following the revocation of the U.S. de minimis tariff exemption, e-commerce shippers are encountering difficulties with new customs requirements, resulting in backlogs of non-compliant shipments at commercial carriers like UPS. Due to this complexity, retailers and logistics partners are taking a second look at international postal networks as a potentially compliant and less expensive route for certain low-value goods. Learn more about your ad choices. Visit megaphone.fm/adchoices

This episode dives into the "extreme contradiction" defining the logistics market, analyzing the profound divergence between financial disaster hitting small trucking firms and surprising pricing resilience in key segments. The U.S. trucking sector is flashing bright red distress signals, marked by an elevated rate of Chapter 11 filings in transportation in October's first 2 weeks, which is accelerating the necessary capacity contraction cycle. We unpack the major paradox between the Truckload and Less-Than-Truckload segments, noting that the TL market saw a "September bounce" driven by shippers consolidating loads to leverage low rates, but the overall recovery remains highly uncertain. In stark contrast, the LTL sector continues to flex massive pricing power, setting a new record for its rate-per-pound component in Q3 because carriers are ruthlessly prioritizing yield over volume, as detailed in the report LTL pricing index hits new high in Q3. Globally, trade flows are running hot, with August volumes hitting a new record high, defying expectations, although global container rates continue to soften due to new tonnage and Red Sea diversions, as discussed in Despite U.S. decline, global container traffic sets new record. Adding sharp uncertainty is the escalating trade war, where New China sanctions on South Korean company aiding U.S. shipbuilding shows geopolitical tensions are now directly targeting critical infrastructure like shipyards. We also look north to Canada, where the long-running dispute between Canada Post and the CUPW continues, resulting in operational delays and a fundamental shift in shipper behavior toward private delivery companies, detailed in Canada Post restarts operations, manages delays from rolling strikes. Tune in to understand how this divergence—from catastrophic small fleet failures to unprecedented LTL yield power—will shape carrier strategy as the third-quarter earnings season gets underway. Learn more about your ad choices. Visit megaphone.fm/adchoices

Less-Than-Truckload pricing power continues to dominate the market, drawing on insights from the latest quarterly report by AFS Logistics and TD Cowen. LTL rates are expected to remain elevated through year-end, following a third-quarter rate-per-pound index that set a record, standing 65.1% above its 2018 baseline. The episode also reviews the higher-than-average rate of transport bankruptcy filings seen in the first half of October. Filings included five companies, ranging from small carriers like G1 Transport (five power units) and Styx Logistics (an Amazon DSP) to larger entities like GEC Transport Solutions (70 power units). Hear about FleetWorks' efforts to modernize freight matchmaking using artificial intelligence, fueled by a recent $17 million funding round led by First Round Capital. CEO Paul Singer noted that AI is the solution to the long-standing inefficiency caused by lack of transparency between brokers and carriers, and the company plans to use the funds to scale engineering teams in San Francisco and Chicago. Don't miss today's lineup on FreightWaves TV, including a new episode of WHAT THE TRUCK?!? with Malcolm Harris, live at noon. Plus, learn how you can join the leaders shaping freight’s future at the F3: Future of Freight Festival in Chattanooga, Tennessee, happening next week. Learn more about your ad choices. Visit megaphone.fm/adchoices