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The ‘ingenious strategy’ behind most truckers’ least favorite week of the year: International Roadcheck

truck fallen over

International Roadcheck Week is hardly the sexiest topic in trucking, but it is a darn-tootin’ important one. Inspectors in the U.S. and Canada halt tens of thousands of trucks for vehicle inspections for a few days every summer or early fall. They remove thousands of trucks and drivers from the road; in 2021, 16.5% of inspected vehicles were put out of service along with 5.3% of drivers.

It’s uncommon for truck drivers to actually get their vehicles inspected at random during most of the year. To avoid International Roadcheck Week, many truckers simply don’t drive during that period of time — which, presumably, means more unsafe vehicles and drivers on the road outside of the inspection blitz. It’s a question that ate at Andrew Balthrop, a research associate at the University of Arkansas Sam M. Walton College of Business. 

Around 5% fewer one-person trucking companies are active during International Roadcheck Week. But Balthrop and his fellow researcher, Alex Scott of the University of Tennessee, found a major upside to the inspection blitz — even with all the folks who avoid it. According to their working paper published in March 2021, vehicles are safer a month before and after the inspection period. There’s a 1.8% reduction of vehicle violations, according to Balthrop and Scott’s analysis. Surprise inspection blitzes don’t result in the same uptick of compliance. 

I caught up with Balthrop about his research last week at FreightWaves’ Future of Supply Chain conference, and we chatted again on the phone this week about his findings on International Roadcheck Week.

Enjoy a bonus MODES and a lightly edited transcription of our phone interview: 

FREIGHTWAVES: For our readers who are not aware of what Roadcheck Week actually is, can you explain a little bit about what it and why it is important to drivers and companies?

BALTHROP: “The International Roadcheck is part of an alliance between the inspectors in Canada and the ones in Mexico and the U.S. to have a unified framework for making sure trucks are safe to operate. That should make it easier to go across borders when you have this kind of unified structure.

“In the U.S., one of these CVSA inspection blitzes is the International Roadcheck that happens for three days in the summer. Usually it’s a Tuesday, Wednesday and Thursday. And usually it’s the first week in June.

“And in it, they focus on Level One inspections, the North American Standard Inspection where they inspect the driver records, the hours of service, the licensure and I believe medical records as well. Then they inspect the truck. It’s an in-depth inspection where the inspector will actually crawl under the truck to look at various things. And these inspections, from the data that I’ve seen, take about a half an hour on average.

“During the Roadcheck Week, they’ll do about 60,000 inspections, so 20,000 a day. They’re going to pull over a lot of trucks, and this can cause a little bit of congestion at the weigh stations and the roadside inspections localities as the inspectors are doing these inspections.”

Roadcheck Week doesn’t catch all truck drivers, but it has a long-lasting benefit to safety

FREIGHTWAVES: So, can most drivers kind of expect to be pulled over? How likely is that?

BALTHROP: “There’s 1 million or 3 million trucks on the road, somewhere around there on any given day. With 20,000 inspections, most drivers still will not get inspected, but there’s going to be a higher proportion of drivers inspected. 

“You’re more likely to get inspected on these days. If you don’t have a recent inspection on your record, or if you have a bad recent inspection on your record, you’re more likely to be pulled over on these days.”

FREIGHTWAVES: Your research focused on that it’s just unusual that this inspection is announced, that it’s planned. We were talking before about how normally, if you’re trying to assure quality or compliance, you would not announce an inspection in advance. It would be more of a surprise-type situation. 

Can you walk us through why that’s so unusual, or what’s the rationale that you see behind announcing it in advance?

BALTHROP: “It is unusual, and on the surface, it doesn’t make much sense, but it turns out to be kind of an ingenious strategy. So I’ll walk through it here. 

“Over the course of a year, there’ll be 2 million inspections of 3 or 4 million trucks out there. The average rate of inspections is pretty low. It’s not uncommon for truckers to go years without having an inspection. With this low inspection intensity, the FMCSA has sort of a problem of, how does it get anybody to abide by the regulations?

“I’m a jaded economist, and I don’t worry or consider too much ethics and morality and all that kind of stuff. It comes down to incentives for drivers to follow these inspections. The incentives do guide behavior. So, how could the FMCSA incentivize drivers to follow these regulations more closely and adhere to the standards?

“They do this by announcing the blitz. This does two things. On one side, it allows everybody to prepare in advance. There’s a bunch of anecdotal evidence out there that people do prepare for these blitzes in advance. They will have their trucks inspected beforehand for any problems. They’ll time maintenance and upkeep in advance to make sure that their vehicles are in order. “They’ll be a little bit more cognizant of the driver-side regulations. One thing we notice in our study is that hours-of-service violations really drop during these extensions, because people see them coming. They don’t fudge the books in any way.”

Owner-operators can evade Roadcheck Week. Big carriers, not so much.

BALTHROP: “The issue with the announcement, on the flip side, is that it allows people to just dodge the inspection entirely. For a long time, people have talked about how owner-operators and smaller carriers time their vacations for this particular time. They could do this for a couple reasons. To avoid the hassle is a nice way to put it, but it also allows you to be noncompliant to avoid the high-intensity inspections.

“You have this balance here that on one side you get the behavior you want with people complying with regulations. That’s the behavior the FMCSA wants. But on the flip side, you get a bunch of people that are kind of outright dodging inspections.

“When you compare these two things on balance, the policy is actually pretty effective because you get a lot of people focused on maintaining their trucks and obeying the rules during that particular week. Especially with the vehicle maintenance stuff, that lasts a long time. 

“In our research, we saw that vehicle violations, a month before and up to a month afterwards, is when you still notice your vehicle violations. That trucks are kind of better maintained around these blitzes.

“The ingenious aspect of it is that the FMCSA, by concentrating their inspection resources all at one time and announcing it, they’re making it clear that they’re serious about enforcing these regulations and everybody prepares for it. For the number of inspections that are happening, you get fewer tickets than you would have otherwise expected.

“The FMCSA, they’re putting people through a little bit of a hassle, but they’re not having to write a bunch of tickets to get people to comply. They’re not really punishing a whole bunch of people because, by making this apparent that this is going to happen, people comply and the FMCSA gets what they want essentially without having to come down on carriers too hard.”

A convenient time for a vacation, indeed

FREIGHTWAVES: OK, interesting. And how does this pattern of shutting down, how does that compare for an owner-operator versus a driver for a big fleet?

BALTHROP: “If you’re a motor carrier with thousands of power units, you can’t just pack up and not do business on a particular day. They just don’t have that option. So they get inspected at a higher intensity, and you see the larger carriers kind of more focused on making sure that they’re prepared for these inspections. With so many inspections, the larger carriers are going to be inspected at higher rates. You can really damage your reputation if your equipment isn’t in order on this particular day. 

“Versus the smaller carriers, especially if you’re talking about a single-vehicle fleet, an owner-operator type, it is not that difficult to just not work for those three days. And so you see a lot about that. 

“In terms of what the roadway composition looks like, if we look at inspection data and relative to a typical day with the usual inspections, on these Roadcheck days, you have about 5% fewer owner-operators on the road than you otherwise would expect.”

FREIGHTWAVES: Wow. And when you say owner-operators, you also mean just like fleets with just —

BALTHROP: “One-vehicle fleets.”

FREIGHTWAVES: OK, that’s interesting.

BALTHROP: “You know, you see a little bit of effect with the smaller fleets, below six vehicles, but it basically disappears by the time you get to a hundred vehicles.

“This effect is being driven by smaller carriers staying off the road in terms of avoidance. You see this goes also how you would expect; it’s also older vehicles that stay off the road. This is correlated with carrier size. The larger carriers use newer vehicles and owner-operators tend to use some of the older vehicles. But it’s particularly the older vehicles that are off the road.

“This makes intuitive sense. Older vehicles are more costly to keep compliant. Maintenance is more costly, and they’ve been around longer so there’s time for more stuff to have broken essentially.

How a truck driver gets stopped for inspection

FREIGHTWAVES: Can you explain a little bit more, the idea of having this inspection history and why it would benefit a larger or small carrier?

BALTHROP: “Getting flagged for inspection is sort of random, but not totally. If somebody notices something obviously wrong with your truck, that’s ground for a more in-depth inspection. Or if you get pulled over for some other reason, this can be grounds for inspection of some type. 

“But there’s also the inspection selection service. The computer program that is random, that it randomly flags people in for inspection, but it’s based on your inspection history.

“So if your firm hasn’t been inspected recently, or if your carrier doesn’t have a very dense inspection history, you’ll be more likely to trigger that system to pull you in and have you inspected. If you have a dense inspection history, you’re less likely to get inspected.”

FREIGHTWAVES: So how do you get pulled over for inspection? As a person who only drives a passenger car, my main interaction with being pulled over is, I’m driving down the freeway or wherever, and I get stopped by the police. How does it work for a truck driver? How does getting pulled over or inspected work in that way?

BALTHROP: “The law is that you cannot pass a weigh station without pulling in and getting weighed. At that point they may flag you to be inspected. Now, in the past decade or two, there’s been a bunch of electronic devices that are installed in cabs. You may have heard of PrePass or Drivewise. This allows you to pass weigh stations. 

“I don’t have data on how many trucks have the in-cab devices. But from a trucking perspective, they’re so convenient that you don’t have to stop every time you cross a state line. I think the vast, overwhelming majority of trucks have some sort of one of these electronic devices. The DOT inspectors at these roadside inspection points have a dial they can twist essentially about how many people they want to inspect. 

“So during the roadcheck inspection week, they’ll crank that dial all the way up and pull everybody over. And if they get too backed up, they might crank it back down a little bit and so on.”

FREIGHTWAVES: OK, interesting. It reminds me of a highly sophisticated E‑ZPass.

A $10 million-plus expense to trucking companies every year … but it’s worth it if just one fatal crash is avoided

FREIGHTWAVES: Zooming out, when we hear about large truck crashes, something like a vehicle maintenance issue is not really the most sexy explanation. But just looking at the FMCSA data, in 29% of all truck crashes, a major factor is brake problems. So it seems like a lot of the truck crashes on the road are caused by vehicle maintenance, versus something like the driver using illegal drugs or some other sort of more dramatic explanation. Can you speak a little bit to why this sort of vehicle maintenance is important for safety in preventing large crashes?

BALTHROP: “We did a little bit of a back-of-the-envelope cost benefit analysis of this. Let me try and make sure I remember it clearly, but we have it in the paper that the cost of this on one side is that you have the compliance costs the firms are undertaking, and then you have to add to that the delay costs from doing this, and then the cost of the inspection itself, having to pay federal inspectors to do this.

“On the benefit side, it reduces crashes. So when we add up, just looking at the cost of what an inspection is, we don’t have a good idea of how to measure the compliance cost. It’d be fun to measure the delay cost, but I don’t have good enough price data on that to get at that cost. 

“But if you look at what the cost of an inspection is, it is something like $100 or $120 is what you would pay to have one of these inspections done privately. A lot of people do this in the run-up to inspections, and have it done privately so that you can fix whatever the problems are and be sure that you would pass the FMCSA inspection.

“With that $120 figure, if you aggregate that up to 60,000 inspections or whatever, and you take that in comparison, I’m going to give you a bad figure here, it’s on the order of $10 million. That is about the value of a statistical human life. Looking at this economically, it’s worthwhile if it saves one human life. If you identify just one faulty brake system that would’ve resulted in an accident, you’re getting some value out of the program. 

“When you add those other costs in there, we’re going to need to save a couple of lives, but in terms of cost benefit analysis with this kind of stuff, we’re usually looking at orders of magnitude differences in cost and benefits to say something for sure. 

“If you can save just a couple lives, this program will pay for itself.”

Time to start inspecting in the winter

FREIGHTWAVES: Then one last question: Is there any rationale for this program happening in the summer? 

BALTHROP: “I think part of it is that for the inspectors this gets much harder and much more miserable to do in winter conditions.”

FREIGHTWAVES: That makes sense.

BALTHROP: “Inspectors are less productive. One of the things that we talk about in the paper, that they have in addition to the International Roadcheck, is that they have Brake Week where they focus a little bit more on brake inspections. You have Operation Safe Driver a little bit later on in the summer, usually in September, where it’s a little bit more focused on passenger vehicles and how they drive around these trucks.

“But there’s not one in the winter time. There’s an unannounced brake check that usually happens in May, a surprise inspection that’s just one day. But you’re right in pointing out that it might be worthwhile having one of these in the wintertime. You have this periodic high-intensity inspection that kind of incentivizes everybody to be compliant through the summer. 

“But there’s nothing in the winter, so that’s an area. But if I was managing the FMCSA, that would be one of the first questions I ask, ‘Why don’t we have one of these in the wintertime?’”

FREIGHTWAVES: That makes sense. Maybe they can do it in the South or something. Maybe a Miami January inspection … 

That’s it for this special bonus MODES. Subscribe here if you’re not already receiving MODES in your inbox every Thursday. Email the reporter at rpremack@www.freightwaves.com with your own tales on International Roadcheck Week or any other trucking topics. 

Why the Northeast is quietly running out of diesel

The nozzle of a diesel fuel pump is inserted into the tank of a commercial truck as its driver looks on the bankground.

The East Coast of the U.S. is reporting its lowest seasonal diesel inventory on record. And some trucking companies appear spooked.

The East Coast typically stores around 62 million barrels of diesel during the month of May, according to Department of Energy data. But as of last Friday, that region of the U.S. is reporting under 52 million barrels. 

The sharp increase of diesel prices has been a major stressor in America’s $800 billion trucking industry since the beginning of 2022. According to DOE figures, the price per gallon of diesel has reached record highs — a whopping $5.62 per gallon. It’s even higher on the East Coast at $5.90, up 63% from the beginning of this year. 

When relief is coming isn’t yet clear, and experts say higher prices are the only way to attract more diesel into the Northeast.

“I wish I had some good news for the Northeast, but it’s bedlam,” Tom Kloza, global head of energy analysis at OPIS, told FreightWaves. 

2022 has seen record-setting diesel prices. (SONAR)

Everyday Americans don’t fill up their cars with diesel, but the fuel powers our nation’s agriculture, industrial and transportation networks. More expensive diesel means the price of everything is liable to increase. Trucks, trains, barges and the like consumed about 122 million gallons of diesel per day in 2020. 

Patrick DeHaan, a vice president of communications at fuel price site GasBuddy, reported that retail truck stops are hauling fuel from the Great Lakes to the Northeast, calling it “extraordinary.” We’ve also seen anecdotal reports from truck drivers posting company memos:

Pilot Flying J and Love’s, two of America’s largest truck stops, told the Wall Street Journal yesterday that they were not planning to restrict diesel purchases, but were monitoring low diesel inventory.

Not unlike every other supply chain crunch we’ve seen in the past few years, the cause of the Northeast’s diesel shortage is multifaceted. A yearslong degradation of refineries is rubbing against the Gulf Coast preferring to ship its oil to Europe and Latin America.

Here’s a breakdown:

1. The East Coast has lost half of its refineries. 

As Bloomberg’s Javier Blas wrote on May 4 (emphasis ours): 

In the past 15 years, the number of refineries on the U.S. East Coast has halved to just seven. The closures have reduced the region’s oil processing capacity to just 818,000 barrels per day, down from 1.64 million barrels per day in 2009. Regional oil demand, however, is stronger.

Rory Johnston, a managing director at Toronto-based research firm Price Street and writer of the newsletter Commodity Context, told FreightWaves that refining is a “thankless industry,” with intense regulations that have limited the opening of new refineries. The Great Recession of 2008 led to several East Coast refineries shuttering, but there have been more recent shutdowns too. One major Philadelphia refinery shuttered in 2019 after a giant fire (and it already had declared bankruptcy), and another refinery in Newfoundland shut down in 2020.

2. It’s a financial risk to bring diesel to the Northeast.

The Northeast has increasingly relied on diesel from the Gulf region. Much of that diesel travels to the Northeast through the famous and much-adored Colonial Pipeline. You may remember the 5,500-mile pipeline from last year, when a ransomware attack shuttered it for nearly a week!  

It takes 18 days for oil to travel on the Colonial Pipeline from its source in Houston to New York City (or, more specifically, Linden, New Jersey), Kloza said.

That’s a long enough time to prioritize Colonial pipelines financially risky for traders — or, as Kloza said, “incredibly dangerous” — thanks to a concept called “backwardation.”

Backwardation refers to the market condition in which the spot price of a commodity like diesel is higher than its futures price. It’s only gotten stronger over time in the diesel market, Kloza said. So, a company could send off a shipment of diesel and find that it dropped by $1 per gallon in the time the diesel traveled from the Gulf Coast to New York — er, New Jersey. That could mean hundreds of thousands or more in lost profits, so traders often avoid such a fate.

“We’re not in an era where there are any U.S. refiners or big U.S. oil companies who would ‘take one for the team’ and bring cargo in where it’s needed,” Kloza said. 

The desperation is showing in New England and the mid-Atlantic regions. New England diesel retail prices are up 75% from the beginning of 2022, per DOE data. In the mid-Atlantic, diesel is up 67%. 

It’s not worth the risk, even amid ultra-high prices. As FreightWaves’ Kingston reported last week, the spread between a gallon of diesel in the Gulf Coast and its New York harbor price is usually a few cents. Last week, that swung up to 66 cents.

But that uptick still isn’t justifying moving oil to the Northeast — particularly when traders can make so much more money selling diesel abroad. 

3. Of course, we can blame COVID and the crisis in Ukraine. 

The catalyst for this diesel shortage, of course, is the ongoing conflict in Ukraine — particularly Europe’s desperation for diesel after weaning off Russian molecules. 

As CNBC reported in March, Europe is a net importer of diesel. Europe consumed some 6.8 million barrels of diesel each day in 2019; Russia exported some 600,000 barrels per day of that. Today, Europe has only eliminated one-third of its Russian diesel, so prices are expected to continue to climb amid that transition. Latin America, too, has been clammoring for U.S. diesel.

The Gulf Coast has been happy to provide such diesel, amid “insane” prices for diesel abroad, said Johnston. Waterborne exports of diesel from the U.S. Gulf Coast hit record highs last month, according to oil analytics firm Vortexa. (The records only date back to 2016.)

Naturally, COVID is also to blame for the Northeast’s run on diesel. Those refineries still retained on the East Coast scaled back during the pandemic due to staffing issues. It takes six months to a year to reignite refineries that were previously shuttered, Kloza said.

The ‘everything shortage’ endures

It’s been a tale as old as, well, last year. An industry is quietly hampered by supply issues for years, or even decades, and COVID pulls back the curtains on its unsteady foundation. It’s particularly jarring for commodities we never thought about before, like shipping containers or pallets, but that quietly underpinned our livelihood all along. 

Recall the Great Lumber Shortage of 2020? Big Lumber had unusually low stockpiles of wood by the summer of 2020, thanks to a vicious 2019 in the lumber industry shuttering sawmills and the spring of 2020 sparking staffing issues. (There was also a nasty beetle infestation.) Those in lumber expected the pandemic to slow the economy, not ignite online shopping, construction and housing mania. It meant lumber went from around $350 per thousand board feet pre-pandemic to a crushing $1,515 by the spring of 2021. The lumber price roller coaster persists today.  

In diesel, there’s no beetle infestation, but there are plenty of other headaches. It all means higher fuel prices on the East Coast, particularly the Northeast, to lure molecules from the Gulf Coast. And, down the line, probably more expensive stuff for you. 

Do you work in the trucking industry? Do you want to say that you hate or love MODES? Are you simply wanting to chitchat? Email the author at rpremack@www.freightwaves.com, and don’t forget to subscribe to MODES.

Updated on May 13 with the latest comments from truck stops.

Exclusive: Central Freight Lines to shut down after 96 years

Nearly, 2,100 employees will be laid off right before Christmas. Central Freight Lines is the largest trucking company to close since Celadon ceased operations in 2019.

Waco, Texas-based Central Freight Lines has notified drivers, employees and customers that the less-than-truckload carrier plans to wind down operations on Monday after 96 years, the company’s president told FreightWaves on Saturday.

“It’s just horrible,” said CFL President Bruce Kalem.

A source close to CFL told FreightWaves that CFL had “too much debt and too many unpaid bills” to continue operating, despite exploring all available options to keep its doors open.

Kalem agreed.

“Years of operating losses and struggles for many years sapped our liquidity, and we had no other place to go at this point,” Kalem told FreightWaves. “Nobody is going to make money on this closing, nobody.” 

Central Freight will cease picking up new shipments effective Monday and expects to deliver substantially all freight in its system by Dec. 20, according to a company statement.

A source familiar with the company said he is unsure whether CFL will file Chapter 7 or “liquidate outside of bankruptcy,” but that the LTL carrier has no plans to reorganize.

The company reshuffled its executive team nearly a year ago in an effort to stay afloat, including adding the company’s owner, Jerry Moyes, as CFL’s interim president and chief executive officer. Moyes remained CEO after Kalem was elevated to president in July.

“I think it was surprising that there wasn’t a buyer for the entire company, but buyers were interested in certain pieces but not in the whole thing,” the source, who didn’t want to be identified, told FreightWaves. “Part of it could have been that just the network was so expansive that there was too much overlap with some of the buyers that they didn’t need locations or employees in the places where they already had strong operations.”

Third-party logistics provider GlobalTranz notified its customers that it had removed CFL as “a blanket and CSP carrier option immediately, to prevent any new bookings,” multiple sources told FreightWaves on Saturday.

CFL, which has over 2,100 employees, including 1,325 drivers, and 1,600 power units, is in discussions with “key customers and vendors and expects sufficient liquidity to complete deliveries over the next week in an orderly manner,” a CFL spokesperson said. Approximately 820 employees are based at the company headquarters in Waco.

Despite diligent efforts, CFL “was unable to gain commitments to fund ongoing operations, find a buyer of the entire business or fund a Chapter 11 reorganization,” another source familiar with the company told FreightWaves.

Kalem said the company had 65 terminals prior to its decision to shutter operations. 

FreightWaves received a tip from a source nearly two weeks ago that CFL wasn’t renewing its East Coast terminal leases but was unable to confirm the information with CFL executives. 

Another source told FreightWaves that some of the LTL carrier’s West Coast terminals had been sold recently, but that no reason was given for the transactions.

At that time, Kalem said the company was “working to find alternatives” and couldn’t speak because of nondisclosure agreements. He said executives at CFL, including Moyes, were trying to do everything to “save the company.”

“Jerry [Moyes] pumped a lot of money into the company, but it just wasn’t enough,” Kalem said.

Kalem said he’s aware that a large carrier is interested in hiring many of CFL’s drivers but isn’t able to name names at this point. 

“Central Freight is in negotiations to sell a substantial portion of its equipment,” the company said in a statement. “Additionally, Central Freight is coordinating with other regional LTL carriers to afford its employees opportunities to apply for other LTL jobs in their area.”

As of late Saturday night, Kalem said fuel cards are working and drivers will be paid for freight they’ve hauled for the LTL carrier until all freight is delivered by the Dec. 20 target date.

“I’m going to work feverishly with the time I have left to get these good people jobs — I owe it to them,” Kalem told FreightWaves. “We are going to pay our drivers — that’s why we had to close it like we’re doing now. We are going to deliver all of the freight that’s in our system by next week, and we believe we can do that.”

During the outset of the pandemic, Central Freight Lines was one of four trucking-related companies that received the maximum award of $10 million through the U.S. Small Business Administration’s Paycheck Protection Program (PPP). This occurred around the time that CFL drivers and employees were forced to take pay cuts, a move that didn’t go over well with drivers.

“It all went to payroll,” Kalem said about the PPP funds. “Yes, our employees and drivers did take a pay cut over the past few years, and we gave most of it back, even raised pay over the past several months, but it just wasn’t enough to attract drivers.”

FreightWaves staffers Todd Maiden, Timothy Dooner and JP Hampstead contributed to this report.

Watch: Central Freight Lines’ impact on the LTL market

FreightWaves CEO and founder Craig Fuller reacts to the Central Freight Lines news:

“With Central struggling for many years and unable to reach profitability, it makes sense that they would want to liquidate while equipment and real estate are fetching record prices.”

Central Freight Lines statement

Here is the statement given by Central Freight Lines to FreightWaves late Saturday after reports surfaced of its impending closure:

“We make this announcement with a heavy heart and extreme regret that the Company cannot continue after nearly 100 years in operation. We would like to thank our outstanding workforce for persevering and for professionally completing the wind-down while supporting each other. Additionally, we thank our customers, vendors, equipment providers, and other stakeholders for their loyalty and support.

“The Company explored all available options to keep operations going. However, operating losses sapped all remaining sources of liquidity, and the Company’s liabilities far exceed its assets, all of which are subject to liens in favor of multiple creditors. Despite diligent efforts, the Company was unable to gain commitments to fund ongoing operations, find a buyer of the entire business, or fund a Chapter 11 reorganization. Given its limited remaining resources, the Company concluded that the best alternative was a safe and orderly wind-down. As we complete the wind-down process, our primary goal will be to offer the smoothest possible transition for all stakeholders while maximizing the amount available to apply toward the Company’s obligations.

“Central Freight is in negotiations to sell a substantial portion of its equipment. Additionally, Central Freight is coordinating with other regional LTL carriers to afford its employees opportunities to apply for other LTL jobs in their area. Discussions are ongoing and no purchase of assets or offer of employment is guaranteed.”

Brief history of Central Freight Lines

1925Founded in Waco, Texas, by Woody Callan Sr.
1927Institutes regular routes in Texas between Dallas, Fort Worth and Austin.
1938Dallas facility opens as world’s largest freight facility.
1991Receives 48-state interstate operating authority, expands into Oklahoma.
1993Joins Roadway Regional Group and begins service in Louisiana.
1994Expands into Colorado, Kansas, Missouri, Illinois and Mississippi.
1995Consolidation of Central, Coles, Spartan and Viking Freight Systems into Viking Freight Inc. is announced. Central’s Waco corporate HQ starts closure.
1996Becomes the Southwestern Division of Viking Freight Inc.
1997Investment group led by senior Central management purchases assets of former CFL from Viking Freight and reopens as a new Central Freight Lines.
1999Expands into California and Nevada.
2009CFL Network provides service to Idaho, Utah, Minnesota and Wisconsin.
2013Acquires Circle Delivery of Tennessee.
2014Acquires DTI, a Georgia LTL carrier.
2017Acquires Wilson; new division created with an increase of 80 terminals.
2020Wins Carrier of the Year from GlobalTranz.
Acquires Volunteer Express Inc. of Dresden, Tennessee.
Source: Central Freight Lines

Warehouse cramming is about to begin — Freightonomics

nVision Global, is a leading Global Freight Audit, Supply Chain Management Services company offering enterprise-wide supply chain solutions. With over 4,000 global business “Partners”, nVision Global not only provides prompt, accurate Freight Audit Solutions, but also providing industry-leading Supply Chain Information Management solutions and services necessary to help its clients maximize efficiencies within their supply chain. To learn more, visit www.nvisionglobal.com

Warehouse space is at a premium right now and with peak season right around the corner, shippers are starting to scramble for space. 

Zach Strickland and Anthony Smith look into what shippers are doing to prepare for the end-of-year crunch. They welcome Zac Rogers from Colorado State University to the show to talk through the industry tightness. 

The three also talk about the latest Logistics Managers Index results and what they mean for the fourth quarter of 2021. 

You can find more Freightonomics episodes and recaps for all our live podcasts here.

Seasonality pushing rejections and rates higher ahead of the Fourth

This week’s DHL Supply Chain Pricing Power Index: 75 (Carriers)

Last week’s DHL Supply Chain Pricing Power Index: 70 (Carriers) 

Three-month DHL Supply Chain Pricing Power Index Outlook: 70 (Carriers)

The DHL Supply Chain Pricing Power Index uses the analytics and data in FreightWaves SONAR to analyze the market and estimate the negotiating power for rates between shippers and carriers. 

The Pricing Power Index is based on the following indicators:

Load volumes: Absolute levels positive for carriers, momentum neutral

The Outbound Tender Volume Index at 15,980 is nominally higher now than basically at any point in the past 12 months with the exception of the week prior to Thanksgiving/Black Friday last year. OTVI captures all electronic tenders, including rejected ones, so when accounting for the rejection rate, we can get an even more accurate look at volumes. 

OTVI rose through the back half of May into the national holiday and has risen even further since. Throughout the back half of May and into the middle of June, tender rejections declined substantially. Meaning, current volume throughput is actually understated when comparing OTVI now to OTVI in November 2020. After adjusting for rejected tenders, the accepted outbound tender volume index is just 2.2% below the 2020 peak in November. At that time, OTVI surged towards 17,000, but the rejection rate moved in-kind towards its natural ceiling of 28%. So, the total accepted freight tenders in mid-June is comparable to the peakiest of peak seasons in 2020. Incredible. 

However, since the middle of June, tender rejections have begun increasing again heading into Independence Day, a time when many drivers spend time off the road with their families. The move higher in OTVI this week has been driven primarily by higher rejection rates, rather than higher freight demand. 

Over the past month, the drivers of freight volumes have continued to be imports and from just about every port. The west coast continues to provide seemingly non-stop container ships, while Houston, New Orleans, Miami and Savannah are seeing very strong throughput as well. 

It is van volumes that are driving freight markets higher right now. The Reefer Outbound Tender Volume index has tumbled 25% since its all-time high in the weeks after the polar vortex in February. Since Memorial Day, ROTVI has fallen another 10.5%. This is likely a factor of declining grocery demand, but I would expect the trend to reverse course in the near future as summer festivities accelerate. 

Dry van volumes pushed higher in the back half of May and into June while reefer volumes have declined significantly. 

SONAR: VOTVI.USA (Blue); ROTVI.USA (Green)

The congestion at our nation’s ports has spread from Los Angeles and Long Beach to Oakland, California. The California coastline is a parking lot of container ships, most of which are full to the brim with imports, awaiting berth. As detailed in the economic section, there are some signs that the reversion is underway with Americans paring back spending on pandemic superstar categories in favor of airlines, lodging and entertainment. But spending remains strong despite the moderation, and low inventory levels offset much of the decline that will occur from slowing demand. Real inventories are 3% higher now than pre-pandemic, but real sales growth is far outpacing inventory growth, leading to the lowest inventory-to-sales ratio in decades. 

On the manufacturing side, the ISM Manufacturing PMI expanded in May after declining in April. We’ve been in expansionary territory for 12 consecutive months. New orders, production, imports/exports and employment are all growing. The major issues should come as no surprise: Deliveries are slowing, backlogs are growing and inventories are too low. 

In all, there are many, many catalysts to keep freight demand strong for the foreseeable future. Americans are traveling and spending on services at a high clip, but the high savings rate is enabling it to occur without a massive detriment to goods spending. 

SONAR: OTVI.USA (2021 – Blue; 2020 – Green; 2019 – Orange; 2018 –  Purple)

Tender rejections: Absolute level and momentum positive for carriers

After declining steadily from mid-March to mid-May, the Outbound Tender Reject Index has reversed course heading into Independence Day. This is typical for a national holiday as carriers selectively choose loads to bring drivers closer to home. OTRI now sits above 25% for the first time in June. 

One of our newest indices in SONAR gives us the ability to compare markets on as close to an apples-to-apples basis as possible. FreightWaves’ Carrier Trend Market Score indices are divided into two perspectives – shipper/broker and carrier. The scores are positioned on a scale from 1-100 and have values measuring van and refrigerated (reefer) capacity. The higher values represent more favorable trends for whichever perspective. For instance, a value near the high-end of the range would suggest very favorable conditions for carriers in our carrier capacity trend score index. 

For the past several weeks, capacity disparities have been driven by import volumes. The markets with the tightest carrier capacity coincide with the nation’s busiest ports. Ontario, California, Savannah, Georgia, and Atlanta all have carrier capacity trend market scores of 100. 

SONAR: Capacity Trend Market Score (Carriers – VAN)

By mode. Reefer rejection rates tumbled from it’s all-time high in March to under 35% in mid-June before popping higher over the past two weeks. Reefer rejections are still quite high from a historical standpoint at 38%, but are significantly lower than just three months ago when reefer carriers were rejecting half of all electronically tendered loads. 

SONAR: VOTRI.USA (Blue); ROTRI.USA (Orange)

Dry van tenders make up the majority of all tenders, so the van rejection rate mirrors the aggregate index closely. Van rejections have surged from ~23% to ~26% over the past two weeks. 

Yes, one-in-four loads being rejected is not ideal, but it’s better than 30%. I am unaware of any meaningful signals that capacity is being added at a rate that would change my outlook. With so many catalysts for demand, and many constraints on drivers including the Drug & Alcohol Clearinghouse, driver training school closures and continued government unemployment benefits, the outlook is tight throughout this year and into 2022. That’s not to say we won’t see improvement as consumers revert to pre-pandemic spending habits and drivers enter or reenter the market. But I’m not expecting any quick reversal of this environment; there are simply too many catalysts driving volume and suppressing capacity. 

SONAR: OTRI.USA (2020/21 – Blue; 2020 – Green; 2019 – Orange)

Freight rates: Absolute level and momentum positive for carriers

Throughout June, spot rates have moderated while contract rates have pushed higher. The Truckstop.com dry van rate per mile (incl. fuel) has fallen from $3.21 to $3.11 since the beginning of June, while FreightWaves van contract rates have risen from $2.50 to $2.59/mile, exclusive of fuel. 

I still believe the Truckstop.com dry van national average will not retest the post-vortex surge pricing that brought spot rates up to an all-time high of $3.30. But, there aren’t many catalysts to bring spot rates down anytime soon either. Demand is unwavering with continued strong consumer goods demand, humming industrial recovery and a potentially cooling, yet still sizzling, hot housing market. And carriers can’t fill enough trucks to keep up with demand. 

Prior to the seasonal movements we’re seeing in tender rejections, routing guides generally had been improving through Q2. We should continue to see a convergence between spot and contract rates, but spot rates will remain historically very elevated throughout the summer as demand simply outstrips capacity. 

SONAR: TSTOPVRPM.USA (Blue); VCRPM1.USA (Green)  

Economic stats: Momentum and absolute level neutral

Several economic releases this week are worth noting.

Weekly jobless claims were released Thursday and give us one of the best close-to-real-time indicators of the overall economy.  This week, the data was again very promising as the labor market continues on a bumpy but trajectorially stable recovery path. 

First-time filings totaled 411,000 for the week ended June 19, a slight decrease from the previous total of 418,000 but worse than the 380,000 Dow Jones estimate, the Labor Department reported Thursday. Initial claims have held above 400,000 for consecutive weeks after falling to a pandemic low of 374,000 three weeks ago. As things stand, the current level of initial claims is about double where it was prior to the Covid-19 pandemic. 

The good news on the jobs front is that continuing claims are on the decline, falling to 3.39 million, a drop of 144,000. That number runs a week behind the headline claims total.

Initial jobless claims (weekly in May 2020-May 2021)

At the time of writing, the newest weekly data for the week ending May 29 had not been updated in SONAR. This week, claims fell from 405,000 to 385,000. 

SONAR: IJC.USA

Consumer. Turning to consumer spending, as measured by Bank of America weekly card (both debit and credit) spending data, total card spending (TCS) in the latest week accelerated to 22% over 2019. This is the first time in June that TCS has topped 20% over 2019, but spending has been running up 16-19% consistently on a two-year comp for months. For contect, the average pre-pandemic two-year growth rate was about 8% (from 2012 to 2019). 

The Bank of America team highlighted service spending in the nation’s two largest state economies, California and New York, which are now fully reopened. Spending at restaurants is now well above 2019 in both states, and the team believes there is more capacity for spending to accelerate in the states that were slower to reopen given pent-up demand. 

There was also a notable acceleration in spending on clothing this week, according to Bank of America. It could be a reversal from some softening in the early weeks of June, or an indication of people refreshing wardrobes ahead of a return to work, more travel and vacations. One tepid statement for freight markets from this week;s report: Leisure spending is on the rise and durable goods spending is flatlining.  

FreightWaves’ Flatbed Outbound Tender Reject Index, both a measure of relative demand and capacity, moves directionally with the ISM PMI. 

SONAR: ISM.PMI (Blue); FOTRI.USA (Green) 

Manufacturing. Over the past two weeks, regional manufacturing surveys have reported generally positive readings amid logistical challenges. The New York Fed’s Empire State business conditions index declined 6.9 points to 17.4 in June, retreating from strong readings the past two months. The Empire State Index is a diffusion index with a baseline of zero; any reading above zero indicates improving or expansionary conditions. 

Delivery times lengthened to a new record during the month, new orders and shipments fell, and inventories entered negative territory. The supply chain and transportation challenges are as visible upstream as downstream, but overall the manufacturing sector is handling. Growth continued throughout the second quarter in both the Empire State and Philly Fed indices. 

The Philadelphia Federal Reserve’s business activity index edged lower to a still robust 30.7 in June from 31.5 in the prior month. Unlike NY, the pace of shipments growth accelerated in the Philly region during June. The employment subcomponent rose to a very healthy 30.7 from 19.3 last month, the regional bank said. 

Record-long lead times, wide-scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products are continuing to affect all segments of the manufacturing economy, but demand remains strong. 

For more information on the FreightWaves Freight Intel Group, please contact Kevin Hill at khill@www.freightwaves.com or Andrew Cox at acox@www.freightwaves.com.

Check out the newest episodes of our podcast, Great Quarter, Guys, here.

Project44 acquires ClearMetal to strengthen predictive tools

Project44, a leader in real-time visibility of the global supply chain, announced on Thursday it has acquired ClearMetal, a San Francisco-based supply chain planning software company that focuses on international freight visibility, predictive planning and overall customer experience. The terms of the acquisition were not disclosed.

ClearMetal, founded by top software engineers and data scientists from Stanford, Google and other Silicon Valley elites, has created a “continuous delivery experience” that leverages proprietary machine learning algorithms that can forecast supply chain disruptions. 

In an interview, Jason Duboe, chief growth officer at project44, explained that bringing in ClearMetal’s elite team is essential for the company’s future predictive solutions.

“Their team construct is fundamentally different. When you look at their data science, machine learning and computer science background, they are best in class,” he said. “Applying the team to solve really interesting challenges, starting with highly predictive ETA and deeper exception management to create more predictive analytics is really a key component here.”

Project44 recently acquired Ocean Insights to gain global supply chain vessel visibility and has announced it has expanded its truckload tracking services within Asia. Bringing on this new team of engineers will allow the company to capitalize on strong predictive tools, strengthening the supply chain of its customers.

“We’re going to be expanding deeper into Asia, and from a port perspective, getting data much earlier than competitors,” explained Duboe. “Our freight forwarder integrations will give us much deeper visibility from an end-to-end perspective in these regions.”

Along with the acquired skills the ClearMetal team will bring to project44, it brings a large book of customers, including large CPGs, retailers, manufacturers, distributors and chemical companies. These advanced use cases will strengthen the predictive planning tools, and project44 continues to expand into different customer markets.

“What we gain from ClearMetal is a holistic platform for anybody that joins the platform in the future,” said Duboe. “They have large customers with incredibly demanding and advanced use cases. So when it comes to order and inventory, functionality, supplier onboarding, and moving upstream into those processes, we can capture exceptions earlier on.”

Click here for more articles by Grace Sharkey.

Related Articles:

Project44 expands real-time visibility into China

Project44 reels in Ocean Insights in ‘largest acquisition in visibility space’

‘Project44’s vision has always been global’

Borderlands Mexico: Truck exports to U.S. fall in March

Borderlands Mexico is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week in Borderlands: Truck exports to U.S. fall in March; Mexico’s Port of Manzanillo posts record Q1 container volumes; and GM, SAIC weigh Mexico production amid tariff shifts.

Truck exports to U.S. fall in March

Mexico’s heavy-duty truck sector showed continued weakness in March, with production and exports falling year over year despite signs of a sequential recovery, as U.S. demand remains the dominant driver of cross-border shipments.

Mexico produced 12,617 heavy-duty trucks in the month, a 6.6% decline compared to March 2025, according to data from the country’s statistics agency INEGI.

Exports totaled 10,625 units, down 5.9% year over year, underscoring softer freight equipment demand across North America.

Industry leaders pointed to a mix of structural and cyclical pressures impacting production and exports, including:

  • Weak freight demand and cautious fleet investment
  • Elevated inventories across North American carriers
  • Competition from used truck imports into Mexico

Guillermo Rosales, president of Mexican Association of Automotive Distributors (AMDA), said the sector is still recovering from a sharp downturn that began in 2025.

“The industry is facing a pronounced contraction in production, exports and domestic sales,” Rosales said during a news conference on Monday.

He added that policy measures aimed at fleet renewal and limiting used truck imports could help support production and export demand later in 2026.

Despite the declines, industry officials pointed to a month-over-month rebound in both production and exports as a potential early signal of stabilization following a weak start to 2026.

U.S. remains dominant export market

The U.S. continued to anchor Mexico’s heavy-duty truck exports, accounting for 92% of shipments during the first quarter, or 21,661 units, according to INEGI.

That dependence highlights how closely Mexico’s truck manufacturing sector is tied to U.S. freight cycles, fleet investment and replacement demand.

Officials from ANPACT emphasized that exports remain heavily concentrated in Class 8 and cargo units, with diesel trucks continuing to dominate production and outbound shipments.

“Our principal export product is cargo equipment,” Rogelio Arzate, president of Mexico’s National Association of Bus, Truck and Tractor-Trailer Producers (Anpact) said during the monthly briefing, noting that nearly all exported units in March were freight-focused vehicles.

The 16 members of Anpact in Mexico are Freightliner, Kenworth, Navistar, Hino, International, DINA, MAN SE, Mercedes-Benz, Isuzu, Scania, Shacman Trucks, Foton, Cummins, Detroit Diesel, Daimler Buses Mexico and Volkswagen Buses.

Exports mirror freight market softness

Export volumes also reflect broader freight market conditions, particularly in the U.S., where carriers have been cautious about adding capacity.

Mexico exported 10,625 units in March, down 6% from 11,288 units in the same month in 2025. On a quarterly basis, exports fell 30.3% to 23,550 units, signaling a sharp pullback in cross-border equipment flows.

Still, ANPACT officials noted that monthly export volumes have been rising since January, climbing from about 7,800 units in February to over 10,600 in March.

Freightliner was the top truck producer and exporter in Mexico in March, producing 8,366 trucks, a 1.4 year-over-year increase. The truck maker exported 8,097 units during the month, a 2.8% year-over-year decrease.

International Trucks Inc. was the No. 2 producer and exporter during February, manufacturing 2,990 trucks, a 2.7% year-over-year decrease. The truck maker’s exports fell 17.7% year-over-year to 2,359 units during the month.

Mexico Heavy-Duty Truck Production & Exports – March 2026

Key totals (INEGI):

  • Production: 12,617 units (-6.6% YoY)
  • Exports: 10,625 units (-5.9% YoY)
  • U.S. share of exports (Q1): 92%

Top OEM production (March):

  • Freightliner: 8,366 units
  • International: 2,990 units
  • Kenworth: 748 units
  • Isuzu: 192 units

Top OEM exports (March):

  • Freightliner: 8,097 units
  • International: 2,359 units
  • Kenworth: 169 units

Mix:

  • Cargo trucks dominate production (~97% of output)
  • Diesel remains primary powertrain across production and exports

Mexico’s Port of Manzanillo posts record Q1 container volumes 

Mexico’s busiest Pacific gateway, the Port of Manzanillo, handled a record 1,007,594 TEUs during the first quarter, marking a 2.9% year-over-year increase and the highest Q1 total ever recorded at a Mexican port.

The results underscore Manzanillo’s growing role as a key Pacific trade hub, particularly for export-driven supply chains linking Mexico with Asia and the U.S.

According to the ASIPONA, exports drove much of the growth, accounting for 45% of containerized cargo and rising 9.1% compared to last year. Imports made up 41% of volumes, slipping 1.1%, while transshipment activity represented 14%, declining 3.9%.

Containers dominated overall throughput, representing roughly 75% of total commercial cargo at the port. Bulk segments also remained significant, with mineral cargo—including iron pellets, copper concentrate and fertilizer inputs—making up 14%, and agricultural bulk shipments such as soybeans, wheat and barley accounting for 7%. 

General cargo, including machinery and steel products, represented the remaining 4%.

GM, SAIC weigh Mexico production amid tariff shifts

General Motors and its China-based joint venture SAIC-GM-Wuling are in advanced talks to launch vehicle production in Mexico, a move that could reshape North American supply chains as automakers respond to new import tariffs, according to Mexico Business News.

The potential shift follows recent Mexican tariff measures targeting Asian imports and comes as roughly 64% of GM’s vehicle sales in Mexico are sourced from China, making localization an increasingly strategic option.

Executives from the joint venture recently visited GM’s Toluca plant to evaluate manufacturing capabilities, identifying opportunities for product optimization and potential local production.

The move aims to position Mexico as a key production hub tied to Chinese-backed operations in North America, as rising tariffs and trade tensions push automakers to rethink sourcing and manufacturing strategies.

Spot to contract rate spread contraction tests 3PLs

Chart of the Week:  Spot to contract rate spread (excluding estimated spot fuel costs above $1.20/gal) SONAR: RATES12.USA

The spread between spot and contract rates suggests that the past few months may have been among the most challenging periods for non-asset-based logistics companies to navigate in recent history. The rapid shift in market conditions following long periods of stability can be the hardest to weather from a procurement standpoint — though that doesn’t mean it is all doom and gloom for 3PLs.

Freight brokerages are the quintessential middlemen of the freight market. They act as transportation management departments for many businesses throughout the U.S., while also bridging the gap between shippers and an extremely fragmented and opaque carrier environment on the transactional side. These two functions ebb and flow in importance with the market, with transactional — or spot market — functions becoming more prevalent during periods of tightening.

During periods of relative stability, when spot rates are low and stable relative to contract — as was the case for the three years prior to the recent market shift — 3PLs deliver value by managing shipper transportation networks and negotiating on their behalf with carriers. This function is widely known as managed transportation.

While a shipper may see a single rate for a lane over a 12-month cycle, the 3PL can leverage its expansive carrier network to find the best fit and cost. These rates tend to align more closely with spot rates because they draw from a much larger pool of carrier options, particularly smaller fleets with lower overhead.

This model’s weakness is exposed when the market turns volatile or spot rates expand rapidly. Carriers who were getting $2.30 per mile suddenly receive multiple calls to run the same lane at $2.70. In that scenario, there is little chance of covering the lane with a carrier who has no prior relationship or familiarity with it.

Brokers often have to scramble, and many end up covering loads at a loss — particularly when they are caught off guard by shifting market conditions. A rapid change like the one seen in recent months is the hardest to manage given the short window for discovery and adaptation.

There is a bright side, however. As the market tightens, asset carrier networks become strained, leading them to reject customer loads in the form of tender rejections. Many of those rejected loads flow to the spot market, where brokers can find carriers to cover them at rates not previously locked in. This tends to drive higher revenues, though not necessarily higher margins in the near term.

As the market adjusts and contract rates reset to higher levels, it becomes easier for brokers to operate profitably without relying as heavily on transactional opportunities. If the market loosens rapidly — as it did in 2022 — that is typically when brokers see their best profitability, though the longer-term outlook becomes less appealing as the need for their services diminishes alongside stabilizing capacity and falling rates.

This dynamic is visible in JB Hunt’s recent earnings from their ICS/brokerage division: revenues were up 20% year-over-year, but margins fell 330 bps. This should not be read as a long-term signal of distress, but rather as a normal result of a tightening market. Brokers reporting flat margins in Q1 2026 are the overachievers. As contracts get renegotiated, margins should recover in this environment.

It is a continuous balancing act for the 3PL — near-term underperformance can actually signal longer-term success, and vice versa.

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.

Gord Magill wrote the book trucking needed

First, Gord Magill is a friend and a fellow driver with decades of tenure behind the wheel. I bought this the day it came out. I actually bought a second, so Gord could sign the second while at the Mid-America Trucking Show. That means you should apply whatever weight you think appropriate to the fact that I’m about to tell you it is one of the best books written about the trucking industry in a very long time, and that every carrier owner, fleet manager, compliance professional, broker, shipper, policy maker, and working driver in this country should read it. I am telling you that because I believe it, not because Gord asked me to say it. Gord didn’t pay Freightwaves or me for this article/review. This is just professionals telling you that this is real trucking professionals highlighting the real issues of our industry and why the State of our highways is an outrage.

“End of the Road: Inside the War on Truckers” is written by Magill, a third-generation trucker who has driven the ice roads of northern Canada, the deserts of the Australian Outback, and the highways of the continental United States. The third-generation part is important to me, as someone raised by blue-collar farmers and workers born in the 1930s and 1910s. If you meet his father, you immediately know you’re dealing with real, very genuine, passionate people. These are the types of people I try to keep in my very small circle for very good reasons. Gord is Canadian by birth, an American citizen now living in upstate New York, and he has been in a truck cab in some form or another for more than 30 years. That biography is the book’s entire argument for its own credibility. This is not a consulting firm’s white paper. It is not a policy analysis from someone who has spent their career in a Washington office building, wondering why carriers struggle to find drivers. This is a man who knows what it costs to get a CDL, what it costs to lease a truck, what it feels like to be surveilled for 11 hours at a stretch, and what it means to watch your profession get systematically dismantled by people who have never sat in a truck seat.

The book opens with the Freedom Convoy, the trucker-led 2022 protest in Canada that drew global attention and, in Magill’s telling, drew the most aggressive government response to peaceful political dissent in Canadian history. He participated in it. Why were truckers the ones who led it? His answer sets the thesis of everything that follows. Truckers did not emerge from nowhere in 2022. They emerged from decades of accumulated grievance, from a profession that had been methodically squeezed, surveilled, undermined, and lied to, until the Canadian government’s vaccine mandate was simply the last straw that broke what had already been badly bent.

From there, Magill takes you back to the Motor Carrier Act of 1980, which deregulated trucking rates and removed many of the controls that had kept the industry structured, predictable, and capable of sustaining a middle-class livelihood. He is fair about it. He acknowledges that the pre-1980 system had cartel-like qualities that were not entirely healthy. He traces what deregulation actually produced over the decades that followed: a relentless race to the bottom on rates, wages, and standards, driven by corporate interests that understood that flooding the driver supply was the most reliable way to keep labor costs suppressed. In inflation-adjusted terms, driver wages today are roughly half what they were 40 years ago. That is the intended result of a sustained policy campaign, and Magill names the players, the mechanisms, and the money behind it with the kind of specificity that makes the book genuinely uncomfortable reading.

The big lie at the center of all of it, the one Magill returns to throughout the book and dismantles thoroughly, is the driver shortage. I have been saying versions of this for years in this column and to anyone in the industry who will listen. There is no driver shortage. There has never been a driver shortage. There is a shortage of people willing to drive a truck, with wages artificially suppressed by a combination of corporate lobbying, government-funded CDL school proliferation, and the systematic importation of foreign labor explicitly intended to keep the supply of bodies behind the wheel high enough to hold rates low. Gord describes the American Trucking Associations, with characteristic bluntness as a corporate group that masquerades as a truckers’ organization while consistently working against the interests of actual truckers, as the loudest voice pushing the shortage narrative for decades. OOIDA has been saying the same thing Magill says. Lewie Pugh, OOIDA’s executive vice president, endorsed the book specifically because Magill’s argument aligns with what drivers and owner-operators have known from the inside for years.

The sections on CDL mill fraud and the systematic debasement of training standards read like a companion piece to my own investigative reporting in this publication. Magill traces how a credential that was once tied to something resembling an apprenticeship, where carriers invested in training new drivers and expected something real in return, became a transactional commodity that can be obtained through schools whose primary business model is collecting government-funded enrollment payments for bodies that are barely qualified to back a trailer into a dock. I have documented specific networks of fraudulent ELDT providers and medical examiners in this column. Magill explains exactly why those networks exist and who benefits from them. 

The surveillance chapter documents in detail how the combination of ELDs, forward- and cab-facing cameras, GPS tracking, and fleet management software has transformed the truck cab from one of the last genuinely independent workspaces in American labor into what he accurately describes as a virtual prison. The technology is sold as a safety tool. In many cases, it functions as a cost-extraction and liability-deflection tool for carriers and their insurers, while simultaneously destroying the autonomy that attracted many drivers to the profession in the first place. The data on driver retention and industry attrition support him. The average driver age is pushing 55. Young people are not choosing this career in the numbers the industry needs, and Magill makes a compelling case that the surveillance culture is a significant factor. I will say this for surveillance, we have a very different driver persona today than we had even ten years ago and an entirely different driver persona than we had 20 or more years ago. That change in driver persona is one reason I have encouraged in-cab technology. The drivers we now have on the road, enabled by reduced barriers to entry, absolutely need to be monitored. If we’re going to continue to place unqualified drivers in the cab, some level of surveillance will be necessary until we restore professionalism and barriers to entry. That’s me talking, not Gord. 

The immigration material is the part of the book that will generate the most debate, and I think Magill handles it more carefully than the people who will critique him for it will give him credit for. He argues that the immigration pipeline into commercial driving was deliberately engineered to undercut wages and depress standards, and that the people who engineered it knew exactly what they were doing and did not care about the safety consequences. The crash data, the CDL issuance fraud, the enforcement gaps, all of it connects to the economic argument, not the nativist one. The immigration chapter reads as naturally continuous with everything the Trump administration has been doing with FMCSA’s CDL audit campaign over the past year, not because Magill predicted the politics but because the underlying conditions he describes were producing inevitable enforcement pressure that anyone paying attention could see coming.

Matthew Crawford, who wrote “Why We Drive,” called this book one of the most illuminating he has read and potentially the most enraging. I think that is right. What makes it enraging is not Magill’s tone, which is measured and often darkly funny, as people who have spent 30 years watching a slow-motion institutional failure tend to be. What makes it enraging is the clarity with which he demonstrates that none of this was accidental. The wage compression, the standard debasement, the surveillance apparatus, the CDL fraud ecosystem, the fake shortage narrative, all of it traces back to identifiable decisions made by identifiable people and institutions pursuing identifiable financial interests. The truckers who got run over in the process were not collateral damage. They were the point.

If you have driven a truck, managed drivers, set rates, booked freight, underwritten motor carrier liability, or written a regulation that touches this industry, this book is about you and about the system you are operating in. Gord Magill wrote it for the drivers first. The people who most need to read it may be the ones who have spent their careers on the other side of the dock door. You can find “End of the Road: Inside the War on Truckers” by Gord Magill on Amazon and wherever books are sold. It is a bestseller in transportation. Given everything happening in this industry right now, that is not a surprise, but it is long overdue.

SONAR Launches Sitreps:

Expert-Authored Situation Reports Integrated Directly Into the Freight Intelligence Platform

SONAR Research team delivers deep market analysis on macro forces reshaping freight and supply chain — with live data built in

SONAR, the leading real-time freight market intelligence platform, today announced the launch of SONAR Sitreps — a new research product that delivers deep, expert-authored situation reports on the topics most critical to freight and supply chain professionals. Sitreps are available immediately to all current SONAR subscribers at no additional cost.

SONAR Sitreps are authored by SONAR’s internal team of market experts and executives — analysts who work with SONAR’s proprietary data signals every day — and are built directly into the platform so users can move from reading analysis to examining live market data without leaving their workflow.

“We’ve always believed that context and expertise are what separate intelligence from noise. SONAR gives the industry the most precise data available — now we’re pairing it with the research and interpretation that allows our customers to truly act on what the market is telling them.”— SONAR Research Team

Each SONAR Sitrep is delivered in three integrated formats:

  • Live Research Dashboard — SONAR data signals mapped in real time to the report’s thesis, updated continuously as market conditions evolve
  • Detailed Written Report — a full situation report covering the analytical thesis, data evidence, and market implications, exportable as a PDF
  • PowerPoint Overview — a presentation-ready slide deck for executive briefings, customer conversations, and internal strategy sessions

Three Sitreps are available at launch, reflecting some of the most consequential macro developments currently affecting freight markets:

  • US Industrials & the Iran War Premium — How the Iran conflict is widening, not narrowing, the US industrial cost advantage, and what STVIF.USA and FTI.USA confirm about the industrial freight mix
  • Fuel Surcharges in US Trucking: Mechanics, Math & Market Signals — The EIA-vs.-OPIS basis risk and cadence mismatch creating $0.08–$0.18/mi in avoidable FSC leakage, quantified through FUELS.USA and MPG.USA
  • AI Data Center Construction & The Freight Demand Shock — The largest privately-funded infrastructure program in American history and its confirmed impact on freight demand, already underway

Subscribers can access SONAR Sitreps immediately by logging into the SONAR platform at sonar.surf and navigating to the new Sitreps tab in the main navigation.

About SONAR

SONAR is the leading real-time freight market intelligence platform, providing carriers, shippers, brokers, and financial professionals with the most comprehensive and precise data signals available in the freight industry. SONAR’s proprietary indices — including OTVI, OTRI, HAUL, and hundreds of others — give subscribers an unmatched view of supply, demand, capacity, and pricing across all major freight modes. Learn more at gosonar.com. Current customers can access sitreps at https://sonar.surf/sitreps

DOT cuts funding to NY, cites non-domiciled CDL policies

(An analysis of the decision by the DOT to withhold funds from New York can be found in the FreightWaves Playbook here.)

The battle over CDLs issued to non-citizens and non-domiciled drivers heated up on at least two fronts this week, with the U.S. Department of Transportation (DOT) taking aim at the state of New York.

Separately, a lawsuit filed in federal court in Florida sought to reinstate CDLs that had been cancelled for 19 people who were considered non-domiciled in Florida.

DOT Secretary Sean Duffy said in a prepared statement released Thursday that the Federal Motor Carrier Safety Administration (FMCSA), which is part of DOT, would withhold roughly $73 million from New York because it had not revoked what it said were illegally issued non-domiciled commercial learner’s permits and CDLs.

Move follows an audit from last year

In December, the DOT said it had conducted an audit that found that more than 50% of CDLs issued in New York to non-domiciled had been improperly issued.

When the DOT announced its findings, it said a FMCSA audit had sampled 200 records and found 107 “were issued in violation of federal law.”

Among the FMCSA findings were that CDLs had been issued to foreign drivers “without providing any evidence that it had verified their current lawful presence in the U.S.”

The action announced Thursday was the reaction to those findings. 

In a prepared statement, FMCSA administrator Derek Barrs said “New York’s continued refusal to fix these failures undermines that mission, and we will not allow federal dollars to support a system that falls short of the law.”

In the letter sent by FMCSA to New York Gov. Kathy Hochul and Mark Schroeder, the state’s motor vehicles commissioner, Barrs said New York’s response to the December complaint was that the state “continues to dispute the legal and procedural merits of FMCSA’s determination of noncompliance. New York asserted that the determination is without merit and stated that it declined to take corrective action.”

“New York’s arguments are without merit,” Barrs said in his letter. “States must require proof of lawful presence, in the form of an unexpired (Employment Authorization Document) or foreign passport, and must ensure the expiration date of the CLP or CDL does not exceed the expiration date stated on the driver’s lawful presence documents. This is not a new requirement.”

As a result of its findings, Barrs said in the letter that New York would have  $73,502,543 withheld from New York’s National Highway Performance Program and Surface Transportation Program Block Grant funds. That is 4% of its allotment, Barrs said. 

State association plays it down the middle

The Trucking Association of New York (TANY) released a statement that did not overtly praise or criticize either the federal government or New York State.

It said the decision by FMCSA was “deeply concerning and carries consequences that extend well beyond the trucking industry.”

The loss in funding will impact infrastructure projects, TANY said. It also suggested that there was nothing wrong with New York’s laws as written. 

“New York’s CDL framework already requires compliance with strict federal standards, including verified work authorization, completion of entry-level driver training, and adherence to safety regulations governing driving behavior and controlled substances,” the TANY statement said. 

But then it added: “These standards must be consistently enforced, and the integrity of the CDL program must be upheld. Ensuring strong oversight and accountability is essential to maintaining a level playing field for law-abiding drivers and carriers while protecting public safety and preserving economic opportunity.”

The association said it “stands ready to work with state and federal partners to restore compliance and rebuild confidence.”

Pushing back in Florida

The lawsuit involving Florida drivers was filed Wednesday in U.S. District Court for the Southern District of Florida. The plaintiffs are 19 individuals identified only by their initials. The defendants include Barrs, Duffy, FMCSA, the DOT and Dave Kerner, the executive director of Florida Highway Safety and Motor Vehicles.

The plaintiffs, according to the suit, either held or had applied new or renewed non-domiciled CDLs or CLPS by Florida. They are all domiciled in a foreign country, according to the lawsuit but operate commercial vehicles in the Sunshine State.

The suit cites recent changes in federal law regarding non-domiciled CDL holders, as well as similar policies in Florida to stop processing applications from non-domiciled applicants seeking new or renewed licenses.

“The combined effect of the Federal Defendants’ and State Defendants’ actions has been catastrophic for Plaintiffs: they cannot work, they cannot earn a living, they face financial ruin, and they have been deprived of vested property and liberty interests without due process of law — all without any individualized determination of fault, misconduct, or safety

concern,” the suit says.

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FedEx pilots to vote on tentative contract after union endorsement

Side view of a FedEx plane at night with an empty pallet on the tarmac next to the plane.

The board of the FedEx pilots’ union on Thursday signed off on a tentative contract agreed to by its negotiating team and the company last week, and will now present it to rank-and-file members for a ratification vote.

The Air Line Pilots Association said the FedEx Master Executive Council voted to advance the five-year contract to a vote with a positive recommendation. The decision was expected. Balloting will open on May 12 and close on June 9, ALPA said in a news release. If ratified, the tentative agreement will become the new collective bargaining agreement between FedEx (NYSE: FDX) and its 5,000 pilots, effective June 29. 

Pilots will receive a 40% increase in their hourly pay and other benefits, along with back pay (up to $150,000 for captains and $102,500 for first officers) to account for delayed raises during negotiations, according to a copy of the agreement posted on a union website. Starting in 2028, they will receive 3% annual raises. 

Pilots will have a lot of topics to review in deciding how to vote on the proposed contract. The agreement covers everything from vacation, hours of service, and scheduling to medical standards and passenger airline travel to departure bases. 

It took five years of difficult talks and the help of the National Mediation Board to reach a tentative agreement. The sides worked out a deal in 2023, but the pilots voted against it.

In fiscal year 2025, ended May 31, revenue inched up to $87.9 billion, while adjusted operating income inched down to $6.1 billion with a 7% operating margin. Adjusted diluted earnings per share were $18.19 compared to $17.80 in 2024. 

Through the 2026 fiscal year third quarter, ended Feb. 28, revenue was up 6% to $69.7 billion. Operating income increased 14% to $3.9 billion.

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

Write to Eric Kulisch at ekulisch@freightwaves.com.

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USPS imposes strict May 1 deadline on non-domiciled CDL drivers for mail transport

The U.S. Postal Service has drawn a hard line on driver eligibility for its massive linehaul network. In a letter dated April 16, 2026, Chief Logistics Officer and EVP Peter Routsolias notified all suppliers that effective May 1, non-domiciled holders of Commercial Driver’s Licenses (CDLs) may not transport mail under Postal Service contracts or ordering agreements unless they have been screened and badged by the U.S. Postal Inspection Service (USPIS).

“Suppliers must ensure that any driver assigned to Postal Service work has satisfied all applicable screening and clearance requirements before performing service,” the letter states. “It is the supplier’s responsibility to provide the required forms and information for clearance processing.” Suppliers with questions are directed to contact their designated Administrative Official.

The directive enforces a phase-out first announced in January 2026, when USPS said it would work with contracted providers to eliminate unvetted non-domiciled CDL operators, citing alignment with Department of Transportation safety initiatives and recent audits of non-domiciled licensing practices.

The policy arrives after a rocky history. In late October 2025, USPS briefly halted loading of trailers pulled by non-domiciled CDL drivers. The result was immediate chaos: canceled loads, missed trips, and delayed sorts across a network that moves roughly 55,000 truckloads and nearly 2 billion miles annually. On a supplier call, Routsolias admitted the agency had underestimated the scale of the Postal Service’s reliance on non-dom CDLs. “We didn’t understand the magnitude of how many people were using non-domiciled CDLs, and quite honestly, the amount of omits was astronomical,” he said. Service impacts forced a rapid reversal.

Capacity pressures have only intensified. Major contractor 10 Roads Express, which handled significant USPS volume, is shutting down in early 2026 after losing key contracts, removing thousands of drivers and tractors from the market. Office of Inspector General reports and industry investigations have long highlighted vetting gaps, hours-of-service violations, and fatal crashes involving some mail-hauling contractors, lending urgency to the safety push.

Carriers now have just two weeks to complete USPIS screening or find replacement drivers. While the goal is improved accountability, the move risks further tightening an already strained third-party capacity base at a time when USPS faces ongoing cost and service challenges. Transportation providers must act quickly to protect their mail-hauling business.

Prologis ups 2026 outlook as warehouse demand strengthens

Photo of a Prologis facility

Industrial warehouse operator Prologis said its pipeline is at an all-time high even after record lease signings in the first quarter. Among the deals inked were new contracts representing 64 million square feet of logistics space.

The San Francisco-based real estate investment trust said on a Thursday call with analysts that March was a very strong signing month, even with the added overhang of the U.S.-Iran conflict. High energy prices and interest rates are not deterring customers’ leasing intentions. It noted particular strength in Dallas, Houston and Atlanta, and in markets across the Midwest. It also said that its portfolio of properties exceeding 500,000 square feet is currently 98% leased, implying rents for this segment are about to step higher.

Prologis (NYSE: PLD) reported first-quarter consolidated revenue of $2.3 billion, which was 7% higher year over year and ahead of a $2.12 billion consensus estimate. Core funds from operations (FFO) of $1.50 per share were 8 cents higher y/y and 1 cent better than analysts’ expectations.

Table: Prologis’ key performance indicators

New development starts equaled $2.1 billion in the first quarter, $850 million of which was tied to logistics customers. Approximately 75% of the logistics starts were speculative, “reflecting improving fundamentals and our confidence in the need for new supply across many of our markets.”

New leases commenced increased 3% y/y to 66.7 million square feet.

Average occupancy improved 40 basis points y/y to 95.3%, which was in line with the fourth quarter. Occupancy normally steps down sequentially into the first quarter—the seasonally weakest of the year. The Prologis portfolio outperformed the U.S. market, which carried a 7.5% vacancy rate in the period.

Management is encouraged by market fundamentals as the U.S. construction pipeline sits at just 1.7% of supply compared to a 10-year average of 2.6%

Net effective rent change on Prologis’ portfolio of multiyear leases was 32% in the quarter and remains on pace to reach 40% for full-year 2026. Net effective rent change was 50% last year.

Lease mark-to-market (resetting in-place rents to current market rents) was estimated at 17%, or $750 million in future net operating income. Mark-to-market was negatively impacted during the quarter as 40% of the leases that rolled were in softer markets like Los Angeles and Seattle.

Prologis increased its 2026 outlook.

Core FFO is now forecast to a range of $6.07 to $6.23 per share, a 1% increase at the midpoint. The guide assumes average occupancy of 95% to 95.75% (25 bps higher on the low end of the range) and development starts between $3.5 billion and $4.5 billion (a $500-million increase at both ends of the range). Development starts also include new data center construction.

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Logistics layoffs top 800 as contracts unwind across trucking, warehousing

More layoffs have hit supply chain-related companies across the United States, signaling that while trucking spot market conditions have stabilized in some lanes, contract freight — particularly in dedicated and warehouse-linked operations — remains under pressure.

Recent WARN filings, company disclosures and media reports show 829 job cuts tied to contract losses, facility closures and shifting supply chain strategies across multiple states over the last three weeks.

Contract churn drives warehouse job cuts

Saddle Creek Logistics Services is laying off 168 workers at its New Caney, Texas, facility near Houston, with cuts effective June 11 after a customer opted to bring operations in-house. The affected roles are primarily forklift operators and warehouse workers.

The move follows earlier 2026 layoffs by Saddle Creek, including 151 workers in Bessemer, Alabama, highlighting a broader trend of shippers reevaluating outsourced logistics networks.

Similarly, Ryder System is exiting warehouse operations in Waterloo, Iowa, after a contract was not renewed. The closure will result in 153 layoffs by July 24, though the company said it will help transition workers to the incoming logistics provider.

Trucking firms cut drivers, dockworkers after lost business

In the trucking sector, Day & Ross USA is eliminating 149 jobs across five states following lost business tied to contract negotiations in 2025.

About 100 of those cuts are at its Hamilton, Ohio, facility, including 36 dockworkers and 54 drivers. Another 32 employees are being laid off in Utica, Michigan.

Fuel hauler Sentinel Transportation LLC is also reducing headcount, cutting 126 employees across 25 locations in California in permanent layoffs. The company, a subsidiary of Phillips 66, operates more than 30 terminals nationwide.

The cuts reflect continued softness in certain freight segments, particularly contract freight tied to industrial and energy demand.

Multi-state closures hit regional logistics networks

Legacy Supply Chain Operations is closing four facilities across Alabama, Kentucky and Tennessee, eliminating 133 jobs. The company did not disclose a reason for the closures in state filings.

Meanwhile, last-mile delivery provider Pave It Forward Logistics abruptly shut down operations March 31, laying off 100 workers in Lebanon, Tennessee, according to local reports. Employees were reportedly given no severance or transition support.

Freight market signal: volatility persists

The layoffs cut across warehousing, dedicated contract carriage and last-mile delivery — segments closely tied to shipper demand cycles and contract stability.

A common thread: customer decisions.

  • Shippers bringing logistics in-house
  • Contracts not being renewed or renegotiated
  • Facility consolidations across regional networks

For freight markets, the trend reinforces a familiar pattern in the downcycle: capacity exits not only through bankruptcies, but also through incremental job cuts tied to contract churn.

Layoffs spread across trucking, warehousing as contracts shift

CompanySegmentLocationEmployees laid offReason
Saddle Creek Logistics ServicesWarehousing / 3PLNew Caney, Texas168Client took operations in-house
Ryder SystemWarehousing / LogisticsWaterloo, Iowa153Contract non-renewal; warehouse closure
Sentinel Transportation LLCFuel tanker trucking25 locations in California126Permanent layoffs / workforce reduction
Day & Ross USATrucking / TransportationFive states; about 100 in Hamilton, Ohio; 32 in Utica, Michigan149Lost business after contract negotiations in 2025
Legacy Supply Chain Operations3PL / Supply chainFour locations in Alabama, Kentucky and Tennessee133Facility closures; reason not disclosed
Pave It Forward LogisticsLast-mile deliveryLebanon, Tennessee100Ceased operations
Total layoffs listed: 829 across trucking, warehousing, fuel hauling, 3PL and last-mile delivery.

Canada Post mobilizes to end home delivery, close post offices

A man and a woman check a letter they removed from a Canada Post community mailbox.

Canada Post on Thursday said it has started preliminary work to end home delivery and rationalize its retail network, part of a broad operational restructuring aimed at turning around an insolvent institution with an outdated business model.

After initial consultations with postal unions, the national post is moving to convert the remaining 4 million addresses that receive door-to-door delivery to community mailboxes and reduce the number of post office locations. The long-sought reforms were made possible by the tentative contract agreement in December with the Canadian Union of Postal Workers, following acrimonious negotiations and strikes over two years, and an endorsement from the government of Canada.

Nearly three out of every four Canadian addresses already receive their mail and parcels through some form of centralized delivery. Canada Post is converting approximately four million addresses that still receive door-to-door delivery to locked community mailboxes. The national conversion program is expected to take about five years and result in annual savings of about US$291.6 million, with different areas moving to community mailboxes each year, the postal corporation said.

More than 80% of parcels delivered by Canada Post fit into a community mailbox’s individual compartment or a dedicated parcel compartment. Parcels that don’t fit, or that require a signature, are delivered to the door or held for pickup at a nearby post office.

About 136,000 addresses in 13 communities across the country, including British Columbia and Ontario, will be part of the initial conversion to community mailboxes in late 2026 and early 2027, according to a notice. Most of the addresses selected for the startup phase are adjacent to areas that already receive delivery to community mailboxes. Dense urban core areas pose greater challenges and will be transitioned in the later stages of the program. 

Residents with functional limitations accessing community mailboxes can receive free support from a program that offers accommodations, such as sliding trays, Braille features on compartments or keys, or a more accessible compartment. In some cases, weekly home delivery may be provided on a seasonal, temporary or permanent basis. 

Retail streamlining

Canadians visit post offices less frequently and make fewer in-store purchases, resulting in a 30% drop in retail revenue since 2021. Usage is also uneven across the network. Canada Post said its initial efficiency effort will involve consolidation of post offices in urban and suburban areas that are currently over-served. Decisions on which facilities to eliminate will be based on market studies of each location and region to identify where changes to the network are most warranted, while prioritizing service where it’s needed most.

Canada Post promised to engage with communities, unions and employees as it identifies suitable locations for community mailbox sites and for retail cuts. 

Rank-and-file letter carriers are scheduled to vote between April 20 and May 30 on whether to approve the tentative labor agreement written by CUPW and management negotiators.

The CUPW negotiating committee urged members on Thursday to approve the deal, saying it is the best possible outcome under difficult circumstances. The government’s endorsement of a national commission’s recommendations for changing the postal charter tilted the negotiations in Canada Post’s favor, said Lana Smidt, one of the union’s lead negotiators, in a letter to members.

The tentative agreements give union workers the job security they need to oppose Canada Post’s transformation plan without being subject to layoffs, she said. The economy, which has gotten worse since the tentative agreement was announced in December because of the U.S. and Israel war against Iran. Smidt said that the new contract helps workers by tying wages to the Consumer Price Index, which will maintain purchasing power until 2029. 

“Despite the big challenges we faced, we have achieved gains, and we’ve beaten back massive rollbacks. We’ve renewed … urban job security, secured improvements to the short-term disability program, higher pay for injury on duty leave, and a new work measurement system for rural letter carriers. On top of that, we have secured wage increases above the national rate of inflation, among other improvements.

“The tentative agreements are not perfect. But, in the current context, postal workers have reason to be proud of what they have achieved,” Smidt wrote.

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

Write to Eric Kulisch at ekulisch@freightwaves.com.

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