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CO.LAB calls for startups in Sustainable Mobility Accelerator program

Photo of Chattanooga, Tennessee

CHATTANOOGA, Tenn. — The Company Lab (CO.LAB) recently announced it is looking for its next cohort of companies to become part of its Sustainable Mobility Accelerator program.

The program runs for six weeks, during which participants work in-market, focusing on customer acquisition strategies and pilot implementations. While relocating permanently to Chattanooga isn’t required, several past participants have established operations in the city after completing the program.

Tasia Malakasis, CEO of CO.LAB, spoke with FreightWaves about the company’s 16-year history of helping startups scale through its unique accelerator program.

The accelerator, part of CO.LAB’s 16-year history of supporting entrepreneurship, now focuses specifically on mobility innovation, capitalizing on Chattanooga’s unique freight ecosystem where an estimated 85% of the nation’s goods pass through its highways.

“About three years ago, we made the decision to focus on what we believe very strongly is the competitive advantage for this region,” Malakasis told FreightWaves. “The way we define sustainable mobility is the future-forward movement of people, goods, energy and data.”

What distinguishes CO.LAB from traditional accelerators is its corporate matching approach. “The differentiator for this program hinges on the fact that we don’t accept a team into our program unless we can match them with a corporate partner for potential pilot or first-class customer opportunities,” Malakasis explained.

“The difference is we’re going to get you into a market and help you scale, meaning we’re making those customer connections and getting you here for a pilot. So, it’s a very different model, and I think that’s one that’s incredibly distinctive and very supportive for a startup,” added Malakasis.

Chattanooga is known as the “Silicon Valley of Freight,” a moniker given by Revolution founder Steve Case due in part to its unique concentration of freight, technology and supply chain companies.

The city ranks first in the nation among all metropolitan cities regarding the volume of freight moving through it by truck, according to a study by Cambridge Systematics. Through this “Freight Alley,” it is estimated that over 80% of all U.S. freight travels through Chattanooga due in part to the convergence of three Interstates – I-75, I-24 and I-59.

For CO.LAB, this concentration of industry expertise and freight has created fertile ground for mobility startups seeking to connect with established companies. Another benefit is the intersection of energy and telecommunications infrastructure via the Tennessee Valley Authority and EPB, Chattanooga’s electric power board.

Through EPB’s gig-speed and quantum-enabled grid, the city is home to the country’s first commercial quantum network. That infrastructure hosts the nation’s largest urban testbed for connected vehicle infrastructure, with 120 smart intersections spread across the city. These intersections contain advanced technology being tested through research initiatives at the University of Tennessee at Chattanooga.

CO.LAB’s ultimate vision is to establish Chattanooga as one of the top destinations for mobility innovation in the United States.

For this latest cohort, CO.LAB is looking for startups with traction (post-revenue or in-market pilots) in these specific areas:

  • Connected & Autonomous Vehicles (CAVs)
  • Supply Chain, Logistics & Freight Tech
  • Smart Infrastructure & Intelligent Traffic Systems
  • EVs, Charging, Battery Tech & Grid Optimization
  • AI/IoT for Urban Mobility & Infrastructure
  • Micromobility & Mobility-as-a-Service (MaaS)
  • Mobility Data & Predictive Analytics

To apply, visit https://thecompanylab.org/sustainable-mobility-accelerator/

Trade expert predicts 200% surge in tariff-fraud crackdowns

Container ship at port

As another round of tariffs kicked into gear on Thursday, trade expert Rennie Alston warned importers that regulators will be doubling down on ensuring that the growing list of tariffs imposed by the Trump administration are properly paid.

“Today every importer is paying more tariffs than they did prior to 12:01am this morning -– it’s challenging to stay abreast of them,” Alston, CEO of customs consultant Alston Group, told attendees at a supply chain summit hosted by Jarrett, a 3PL. 

Alston speaking at Jarrett’s supply chain summit Thursday. (Photo: Jarrett)

Alston was referring to the latest slate of tariffs the administration announced last week that went into effect on Thursday. Along with those and previous tariffs, Alston said, has come a level of compliance scrutiny from the government – specifically the U.S. Department of Justice (DOJ) – that he has not seen before.

“What is new, over the last year, is direct communications from the Department of Justice on issues in which the [customs compliance] matter is referred from customs to the Department of Justice for immediate enforcement action.”

Alston, a licensed customs broker and an advisor to the administration as a member of U.S. Customs and Border Protection’s Commercial Customs Operations Advisory Committee, said that CPB is more closely scrutinizing import documents to check for accurate information on merchandise value, origin country, or whether importers are disguising the country of origin through transshipments.

“Circumvention of tariffs in my professional opinion will be the number one revenue generating penalty that supersedes valuation and record keeping [penalties], which had been the number one and two [penalty categories] over the last 20 years,” Alston said.

“I anticipate that Department of Justice activity is going to increase by 200% as a result of tariffs and the reaction of the trade community.”

Kirti Reddy, a partner with the law firm Quarles & Brady, told FreightWaves earlier this year that the speed and size of the new taxes on America’s trading partners would likely generate a higher number of cases prosecuted under the False Claims Act.

“Especially with the tariffs being so steep, companies and individuals might be inclined to figure out how they’re going to meet their costs” by circumventing compliance, she said.

One such evasion tactic “evolving right before our eyes,” Alston said, is Modified Delivery Duty Paid, or MDDP – “a blatant scam” from CBP’s perspective, he said.

“It is where a company talks you into allowing someone else to be the importer of record, and the foreign supplier says, ‘don’t worry about the entry, I’ll be the importer, you just keep buying from me and don’t worry about what I declare to customs’.”

This is fraud, Alson warned, emphasizing the responsibilities of all involved in the transaction no matter whose name was on the fraudulent declaration.

Customs brokers can help importers understand the ramifications of misinterpretations on customs documents, he said, because CPB takes the position that such compliance errors are intentional.

“Understand that your actions are critical to your company’s ability to sustain itself, because penalties could be far beyond the value of the merchandise.”

Click for more FreightWaves articles by John Gallagher.

Opposing strategies put brokerages on top

The recent earnings reports from C.H. Robinson and RXO provide a unique look into how two prominent players in the freight brokerage industry are navigating a challenging market. While both companies have faced similar market conditions, each has adopted unique strategies that reflect different priorities and approaches to maintaining profitability and growth.

C.H. Robinson reported a boost in profitability despite a drop in total revenue, attributed to the divestiture of its European Surface Transportation business. Their adjusted operating margin saw a notable increase, rising to 31.1%, a significant leap from earlier periods. Additionally, productivity gains have been significant at C.H. Robinson, as evidenced by an 11.2% reduction in headcount while maintaining a steady revenue stream. C.H. Robinson remains focused on increasing efficiency and effectiveness through a leaner workforce and the implementation of advanced technologies, such as agentic AI.

On the other hand, RXO has embraced a growth-oriented strategy, particularly evident in its Less-Than-Truckload (LTL) operations. While their revenue experienced a noteworthy increase compared to the previous year, RXO’s gross margins declined slightly from 19% to 17.8%. Despite the compression in margins, RXO’s decision to invest heavily in its LTL segment has paid off, with volume growth soaring by 45% year over year. 

This strategic focus on LTL is seen as a key driver for their future profitability due to its stable EBITDA contributions across market cycles. RXO has successfully leveraged technology to improve productivity and reduce costs, aligning with its overarching strategy to scale profitably.

When directly comparing the performance of the two companies, each showcases distinct strengths in particular areas. C.H. Robinson has excelled in maintaining profitability by reducing personnel costs and maintaining a sharp focus on technology to navigate the freight market. On the other hand, RXO’s strategy has been characterized by aggressive growth in specific segments and has shown an ability to adapt rapidly to new market opportunities, as seen in their expanding LTL business.

Both companies have emphasized the role of technology in gaining a competitive edge, yet their implementations differ. C.H. Robinson continues to capitalize on its tech stack to differentiate itself in the marketplace. By doing so, it manages to weather market fluctuations while enhancing productivity internally and externally. 

Meanwhile, RXO pursues technological integration through acquisitions, such as the merger with Coyote Logistics, to streamline operations and gain efficiency, which has enabled them to improve brokerage margins incrementally despite a tough market.

The opposite approaches offer lessons in resilience during uncertain economic times. C.H. Robinson’s focus on internal productivity and efficiency contrasts with RXO’s strategy of expansion and technological integration for scaling operations. 

Both paths have yielded tangible benefits, but the overall success will depend largely on how these strategies align with future market conditions.

Leadership perspectives have become the North Star for each company’s future guidance. At C.H. Robinson, CEO Dave Bozeman has been leading through a phase of consolidation, emphasizing a disciplined reduction in headcount without compromising operational capabilities. This positions C.H. Robinson to potentially capitalize quickly on any market upturn. 

RXO’s Drew Wilkerson, on the other hand, is navigating the company through a period of expansion, particularly in sectors like LTL that he believes could offer sustained growth and less volatility compared to traditional freight segments.

Both companies are giants in the 3PL and freight broker industry. They represent a broader picture of what others in the space are dealing with, just without the over $1 billion in revenue on a balance sheet. 

Q2 earnings season has continually shown that those getting creative with solving problems, adopting new technology, and focusing on efficiency remain at the head of the pack. 

Savannah containers post best FY since pandemic

The Georgia Ports Authority moved 5.7 million twenty foot equivalent container units (TEUs) in fiscal year 2025, an increase of 8.6% or 450,000 TEUs compared to the previous fiscal year.

The fiscal period ending June 30 was the Port of Savannah’s second-busiest year on record, after the pandemic year of FY2022, when GPA handled 5.76 million TEUs.

“Georgia Ports continues to grow U.S. East Coast market share and with the shifting trade patterns in Asia and  India, that bodes well for our future,” said Griff Lynch, president and chief executive of Georgia Ports, in a release.  

Savannah’s volume grew at a 4.5% compound annual growth rate for fiscal year-to-date compared to 2016, ahead of the 2.7% increase for the entire U.S. container port market.

Savannah moved 410,400 TEUs in June as GPA terminals averaged more than 475,000 TEUs per month in the fiscal year. March, April and May each totaled more than 500,000 TEUs.

The Port of Brunswick ro-ro hub handled 870,775 units of autos and heavy equipment in FY2025, unchanged from the record 2024 fiscal year.

The authority will start construction in the current fiscal year on the new $100 million Colonels Island Berth 4, slated to open in 2027.

In the past decade, Georgia ports have completed $3.2 billion in infrastructure projects and over the next ten years, GPA plans to invest another $4.5 billion in capacity improvements, including five big ship berths in the next eight years. Two big ship berths are currently being upgraded in Ocean Terminal, and will be ready 2027-2028. Three big ship berths are planned for Savannah Container Terminal from 2030-2034.

In fiscal 2025, GPA completed $470 million in projects, including:

  • Brunswick: Roll-on/Roll-off expansion that added 640,000 square feet of warehousing in support of processing autos and heavy equipment, and 122 acres of ro/ro storage.
  • Savannah: Garden City Terminal Warehouse to streamline Customs  inspections by doubling warehouse space and expanding refrigerated cargo capabilities.
  • Savannah: Eight new ship-to-shore cranes, the largest on the U.S. East Coast.

Also in fiscal year 2025, the GPA Board approved an additional $472 million for new projects, including:

  • Brunswick: Colonels Island Southside Rail Phase 1
    • Doubles rail capacity from five to 10 trains per week. Increases port’s annual rail capacity from 150,000 autos to more than 340,000.
  • Brunswick: Colonels Island Berth 4
    • Adding a fourth berth for ro/ro cargo to meet growing demand.
  • Savannah: Ocean Terminal Redevelopment
  • Will add annual capacity of 1.5 million TEUs, and a highway overpass to Route 17, designed to keep terminal truck traffic from impacting local neighborhoods.

Find more articles by Stuart Chirls here.

Related coverage:

Maersk raises guidance on higher Q2 volumes 

Container rates unmoved by latest tariff deadline

Shipbuilder sued by owner, operator of ship in deadly Baltimore bridge collapse 

China trade fight weakens Matson earnings

LTL proving to be big growth engine at RXO

In a freight market that is not offering any help to its truckload operations, 3PL RXO Inc. has found a short-term savior: its growing LTL business.

In a quarterly earnings report that on major financial numbers reflected the reality of the ongoing freight recession, RXO executives in their earnings call with analysts boasted of the big gains it is making in its push to grow LTL activities on both an outright basis and as a percentage of the company’s total operations.

RXO’s (NYSE: RXO) overall brokerage volume growth was up 1% year over year, which CEO Drew Wilkerson noted still exceeded the Cass Freight Index, which contracted more than 3% for the quarter.

But for RXO, its LTL brokerage volume was up by 45% year-on-year, and it follows a 26% growth in the first quarter.

“We continue to win in this area because we make LTL shipping easy for our customers,” Wilkerson said.

The CEO said RXO has made a push in its LTL operations by investing in “cutting edge technology that improves productivity and reduces costs for our team while giving LTL customers complete visibility.”

Wilkerson said RXO has relationships with “nearly all the LTL providers in North America.”

“Growing our LTL business is a key part of our company strategy, because it provides a stable source of EBITDA with strong margins across market cycles,” he said.

In his comments on the call, Jared Weisfeld, RXO’s chief strategy officer, said LTL activities were 32% of all brokerage volume in the second quarter. That was up 1,000 basis points from a year ago, he said, and was the highest level in RXO history.

Not surprisingly, when phone lines were open to questions from analysts, one of the first was about the ongoing trend of LTL being a growing share of the RXO business.

Wilkerson said the change grows out of “the relationships we have on the truckload side. These are customers who have been with us a really long time, and they’re large customers, and they come to us and they say, LTL is a small piece of our overall transportation spend. I’m working with a few of the national players, but I’m having to go into different platforms, and I’m having to look for claims, lost shipments, damages, all of those things.”

Familiarity with RXO platform a key plus

But Wilkerson said since these customers are familiar with RXO and in particular its online platform RXO Connect, they see that as a logical step to move some of their LTL business–which might be a small percent of their overall freight spend–onto that platform. 

“They think if we can put everything on RXO Connect and now we can start capitalizing on some of the capacity from the regional players as well, this can be something that gives us better visibility,” he said.

Wilkerson also drove home the message that the latest numbers are not an aberration. “LTL is going to be part of our growth story for a long time,” he said. “We’re just getting started.

He reviewed the company’s data. LTL volume recently had been just about 10% of overall brokerage volume. It’s now more than 30%. “I want that volume to get up over 50%,” he said.

What he described as the inherent stability of LTL relative to truckload “adds to margins.” Gross profit per load, according to Wilkerson, “doesn’t have the volatility that truckload does. So it’s good stable EBITDA for us as a book of business.”

Wilkerson brought in an unusual benchmark for the LTL business: the price of a candy bar. Snickers, in particular. 

The Snickers analogy

An analyst noted that despite the excitement about LTL, its gross profit per load has moved down slightly in recent months, according to a table in RXO’s presentation. The size of the gross profit per load was not disclosed, but the graphic on its movement showed LTL brokerage volume at RXO soaring and gross profit moving down slightly in the last two quarters.

“I don’t think you can walk outside of your office in New York and buy a Snickers bar for how little gross profit per load is down whenever you look at it sequentially,” Wilkerson said.

(The author of this article, not having bought a Snickers bar in New York recently despite residing a train ride away from Manhattan, is unaware of how much it costs. But you can buy a box of 40 of them on Amazon for $51.90 before any shipping or taxes. You can also do the math).

But that is a positive, Wilkerson said. “That’s the beauty of the LTL business,” he said. The RXO chart showing little change in the gross profit per load shows that “it is very, very stable on what it does.”

Some of the RXO LTL business that it has recently onboarded, Wilkerson said, has been for relatively short length of haul distances. “So that means your revenue per load comes down, and therefore the gross profit per load is a little bit lower on those, but it’s still a good margin percentage,” he said. “It’s highly automated and accretive.”

Among other key points made on the call:

–With the completion of merging the technologies of both RXO and the legacy Coyote Logistics brokerage–acquired by RXO in the third quarter of last year–efficiencies are starting to develop in many areas. Weisfeld said the company’s “buy rate”–what it pays to secure capacity–has improved by about 30 to 50 basis points “in a period where rates were inflationary. So that yield is a significant cost avoidance.”

–Truckload brokerage volume declined 12% year on year, Wilkerson said. But he said truckload gross margin was 14.4% in the quarter, which was above the midpoint of the company’s projections. Gross profit per load in truckload was up 7% sequentially, which Wilkerson said was the strongest sequential increase at RXO in three years. It is expected to rise in the third quarter as well. Technology enhancements and the productivity gains that go along with that are the primary drivers of that improvement, he added.

Weisfeld said a slowdown in automotive activity accounted for about 25% of the decline in truckload brokerage volume. “RXO is uniquely exposed to the current automotive headwinds,” he said.  

–The split between contract and spot business at RXO was 73% for contract and 27% for spot. “We continue to operate in a prolonged soft freight environment with minimal spot opportunities,” Weisfeld said. 

More articles by John Kingston

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Turning Daily Log Audits into a Weekly Ops Advantage

Let’s cut through the noise. Daily log audits aren’t just about keeping the DOT off your back. They’re a goldmine for small fleets and owner-operators who want to run leaner, smarter, and more profitably. Most carriers treat logs like a chore—something to scribble down, file away, and pray nobody checks. That’s a mistake. Done right, those logs can show you exactly where your operation’s leaking money, wasting time, or missing opportunities. This isn’t about compliance for compliance’s sake. It’s about turning a daily task into a weekly edge that keeps your trucks moving and your margins growing. You don’t need a staff of analysts or fancy dashboards—just a plan, an hour a week, and the discipline to follow through. That’s how small carriers build big leverage.

Why Logs Are More Than a DOT Checkbox

You already know logs are mandatory. FMCSA wants your hours of service tracked, your duty status clear, and your ELD data clean. But here’s what most small carriers miss: logs aren’t just for regulators. They’re a real-time snapshot of your operation. Fuel stops, detention times, deadhead miles, driver habits—it’s all there. Every data point tells a story about your profitability.

If you’re only auditing to avoid a violation, you’re leaving money on the table. Smart carriers use logs to:

  • Spot inefficient driver behavior
  • Capture detention pay they’re owed
  • Tighten up their best-paying lanes
  • Catch safety risks before they hit CSA scores
  • Identify where time is lost in daily workflows
  • See how different routes and loads impact overall efficiency

That’s a real-world strategy, not just red-tape compliance. Think of logs as your fleet’s operational mirror. You can’t fix what you don’t track.

The Problem With How Most Carriers Handle Logs

Most small fleets handle logs reactively. The driver submits the log, someone skims it—maybe—and moves on. Or worse, you don’t look at anything until a DOT audit comes knocking.

Here’s what’s happening when you don’t audit proactively:

  • Unlogged detention time eats your revenue
  • Long fuel stops waste drive time
  • HOS violations ding your CSA score
  • You miss patterns that show lane inefficiencies
  • Driver behavior trends go unnoticed until they cause issues
  • Compliance mistakes become habits

A simple log review can uncover drivers adding unnecessary stops, shaving hours off the drive week. That’s money lost—and it adds up fast. You can’t afford to leave that kind of visibility unused.

Make Auditing a Weekly Habit, Not a Daily Grind

You don’t have time to babysit logs daily—and you don’t need to. Set a weekly system: one hour every Friday. Why Friday? Because it’s before driver settlements, before invoices go out, and before next week starts. It sets you up to fix problems before they hit your bottom line.

Here’s what to check:

  • HOS Compliance – Look for 11-hour rule issues, unassigned drive time, missed off-duty entries.
  • Detention – Is dock time getting logged? If not, you can’t bill for it.
  • Fuel/Break Trends – Are drivers losing 15–20 minutes at every stop?
  • Lane Review – Are your trucks burning time on deadhead miles or inefficient stops?
  • Drive vs. On-Duty Hours – Are you maximizing drive time legally?
  • Log Completeness – Are edits made? Are they explained? Are signatures present?

Use a spreadsheet or TMS dashboard. The tool doesn’t matter—consistency does. If you make it a weekly rhythm, it becomes a habit that pays.

Turn Logs Into a Driver Coaching Tool

Logs aren’t just compliance—they’re coaching tools. Don’t turn audits into lectures. Use them to coach drivers with data they can act on. Make it about improvement and performance—not punishment.

How to approach it:

  • Pull logs for one driver per week
  • Highlight a pattern—like long breaks or idle time
  • Show how fixing it improves their paycheck
  • Keep it short, clear, and dollar-focused

If a driver trims 15 minutes off daily fuel stops and runs one more load per month, that’s money in their pocket. Speak in dollars, not discipline. Show drivers how their logs are tied directly to their earnings. That’s what gets buy-in.

Catch Detention Pay Before It Disappears

If it’s not logged, you won’t get paid. Period. Small fleets lose thousands yearly from detention time that never gets documented. If your logs don’t show it, your invoices won’t either.

What to do:

  • Train drivers to log detention the moment it starts
  • Use clear ELD entries with time stamps
  • Cross-check BOLs against logs weekly
  • Invoice with screenshots if needed
  • Follow up on unpaid detention with supporting data

This is the low-hanging fruit most carriers miss. Audit and follow up. It’s your money—go get it. Even recovering half of what you’re owed could cover your fuel bill for a week.

Use Logs to Optimize Your Lanes

Your logs tell you where your trucks are really going—not just where you booked the load. That’s gold if you know how to read it. Lane profitability doesn’t just come from rate-per-mile—it comes from time efficiency.

Here’s how:

  • Review all log data by lane
  • Spot repeat deadhead zones and low-paying lanes
  • Compare gross revenue per mile per route
  • Match drive time to profit, not just distance
  • Track detention patterns by customer or shipper
  • Shift your dispatching based on what the data shows

This is how you stop chasing spot loads and start building dependable lanes that pay. You’re not guessing—you’re dispatching based on fact, not feel.

Protect Your Safety Score—Before DOT Checks It

Every violation is avoidable—if you catch it before enforcement does. Your logs are your defense line. Most small carriers get hit not because they’re reckless, but because they’re not checking proactively.

Audit for:

  • 14-hour rule violations
  • Pre-trip inspection entries
  • Unexplained ELD edits
  • Split sleeper missteps
  • Logging inaccuracies that signal falsification

Fix it before it hits your record. Your insurance, broker trust, and FMCSA standing depend on it. One violation might not seem like much—but a pattern will crush your safety score.

Build a Simple System That Scales

You don’t need an office full of staff to make this work. You just need a system that fits your operation and grows with it. If it works for one truck, it can scale to five.

Start with this:

  • Google Sheet with weekly review columns
  • Friday 1-hour log audit on the calendar
  • Checklist for compliance, fuel, detention, and lanes
  • Shared digital storage for ELD reports
  • Simple tracking for coaching conversations and patterns
  • One owner or dispatcher dedicated to follow-through

One truck or ten—this works if you work it. It’s not about being perfect. It’s about being consistent.

Final Word

Don’t treat daily logs like DOT insurance. They’re your clearest window into how your business actually runs. Weekly audits aren’t extra work—they’re how you find lost money, protect your score, and tighten operations. Your logs show where time is wasted, where money leaks, and where smarter decisions live.

If you’re serious about building a business that survives tight markets, broker pressure, and regulatory heat, then audit your logs. Turn them into coaching. Into pay recapture. Into smarter dispatching. Into operational clarity.

In 2025, the carriers who grow aren’t the ones who buy more trucks—they’re the ones who get more out of every mile. It starts with an hour. Every Friday. No excuses. Build the habit. Build the system. Then watch it pay.

Maersk raises guidance on higher Q2 volumes 

Maersk said second quarter container volumes were 4.2% higher from the same period a year ago, and raised its forecast for full-year earnings.

A.P. Moller-Maersk A/S, parent company of the world’s second-largest shipping line, reported revenue grew 2.8% in the quarter ended June 30 to $13.1 billion from $12.8 billion a year ago. Operating earnings (EBIT) fell to $845 million from $963 million.

Ocean revenue rose to $8.57 billion from $8.37 billion. EBITDA was $1.44 billion from $1.41, and EBIT came in at $229 million, down from $470 million.

Copenhagen-based Maersk (OTC: AMKBY) cited geopolitical uncertainty and continued rate pressure for weaker profit, but noted continued strong results in marine terminals, volume growth in ocean shipping, and increased profitability in logistics & services. It said all segments were benefiting from continued operational improvements and lower costs.

Resilient market demand outside of North America led Maersk to raise its full-year 2025 financial guidance for pre-tax earnings (EBITDA) to $8 billion to $9.5 billion from $6 billion to $9 billion, and EBIT to $2 billion to $3.5 billion from unchanged to $3 billion. It left capital expenditures for 2024-2025 and 2025-2026 unchanged at $10 billion to $11 billion. 

Global container volume has been revised to between 2% and 4% from -1% and 4%. Disruptions in the Red Sea from renewed threats against shipping Houthi militia is expected to last through 2025.
 

“We have had a strong first half of the year, driven by consistent follow-through on our operational improvement plans and the successful launch of the Gemini Cooperation [with Hapag-Lloyd],” said Maersk Chief Executive Vincent Clerc, in the release “Our new east-west network is raising the bar on reliability and setting new industry standards. It has been a key driver of increased volumes and solid delivery of our ocean business. Even with market volatility and historical uncertainty in global trade, demand remained resilient.”

Ocean shipping saw volumes grew 4.2% from a year ago, mainly driven by exports out of Asia. Freight rates improved in the quarter, while still being under pressure both sequentially and compared to 2024. The Gemini tie-up that began in June saw schedule reliability above the 90% target.

Find more articles by Stuart Chirls here.

Related coverage:

Container rates unmoved by latest tariff deadline

Shipbuilder sued by owner, operator of ship in deadly Baltimore bridge collapse 

China trade fight weakens Matson earnings

Panama ports sales challenge could turn into Trump win
 

Cargojet navigates tariff turbulence, maintains revenue growth 

A blue-tailed Cargojet aircraft takes off from a runway with mountains in the background.

Cargojet’s core transportation revenue from a domestic Canada overnight network, dedicated contract carriage and charter flights increased 7% year over year in the second quarter amid a rise in U.S.-fueled trade barriers, but management said it is cautiously optimistic it can maintain volumes in the near-to-medium term despite global trade uncertainty. 

Transport revenue came in at $148.7 million, with a 14% increase in domestic revenue and 22% growth in charter revenues outpacing a 9.6% decline from aircraft-as-a-service contracts, according to results published Wednesday night. The bundled lease business was down 15% in the first quarter. Cargojet (TSX: CJT) said revenue from its domestic network, which co-loads freight from multiple customers in 16 cities, benefitted from e-commerce and B2B growth, as well as rate escalators in customer contracts. 

Reflecting the economic uncertainty from trade tensions with the United States, domestic revenues were down 2.4% from the first quarter. The decline in revenue from leased aircraft with crews was largely due to lower shipment volumes from Europe amid U.S. tariff threats of up to 50%, but trans-atlantic business constitutes a small portion of overall revenue, the airline said.

Adjusted earnings before interest, taxes, depreciation and amortization was $58.3 million, up 1.4% compared to the same quarter the previous year. Management said its adjusted profit margin of 34% was the result of strong operating efficiencies and cost management as flight hours declined 10%. Cargojet posted a smaller net loss of $2.3 million as it used cash to invest in more freighter aircraft.

Analysts called the results solid considering the turbulent macroeconomic environment.

“I’m not expecting that this is going to be a huge, huge bumper season. It’s a season of adjustments,” Executive Chairman Ajay Virmani told analysts.

The company separately announced a long-term extension of its flying contract with DHL Express. Virmani said it made sense to renew the strategic partnership two years early by lowering the share price DHL needs to pay to exercise a stock buy and that motivates DHL to give Cargojet more business so it can reach the revenue target for executing its warrants. The replacement warrants were on the growth side, indicating DHL intends to grow volume and put Cargojet first in line for new business, he explained.

“During tough economic times, consumers often substitute a product with a lower cost item, but we expect the volumes to remain resilient. Our Q2 results clearly demonstrate that such behavior is playing out and that e-commerce is still strong and has a long runway of growth ahead of it in Canada. That said, we did see some weakness in our European ACMI (aircraft, crew, maintenance, and insurance) routes after Liberation Day, but we remain optimistic that after the EU-U.S trade deal and our new DHL agreement, air cargo flows will reemerge in the coming quarters,” said co-CEO Jamie Porteous on Thursday’s earnings conference call.

Cargo airlines, including Cargojet, might see a spike in parcel volumes this month as shippers rush to beat the United States’ Aug. 29 date for ending the de minimis exemption for all nations, which allowed small-dollar shipments to enter the country with no need to pay duties and minimal paperwork, Virmani said.

Cargojet said it recently took advantage of market conditions to buy three converted Boeing 767-300s and one factory-built 767-300, the latter of which is scheduled to join the operational fleet this quarter. 

Cargojet now operates 43 Boeing 767 and 757 freighter aircraft after adding two used 767-300 passenger aircraft this year that were modified to carry cargo containers. A third 767-300 aircraft remains under conversion and is expected to be delivered in the fourth quarter. 

The company said it will sell two older 767-300 aircraft during the third quarter to improve cash flow and its debt leverage ratio. It will also return an older 767-200 to its lessor in the first quarter of 2026. 

During the call, management announced that Gord Johnston, who has served as executive president, strategic partnerships, since early 2024, has been promoted to chief commercial officer. The new role will streamline sales processes and generate new revenues by improving capacity utilization in key lanes, including backhaul lanes, by leveraging spot market opportunities and interline relationships with other airlines, co-CEO Pauline Dhillon said.

In June, Cargojet hired Aaron McKay, who previously worked at Canadian passenger airline WestJet, as chief financial officer. He replaced Scott Calver, who departed in March. 

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

Write to Eric Kulisch at ekulisch@freightwaves.com.

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How Improper Driver Files Are Triggering Surprise Audits

If you’re running a trucking business, especially as a small fleet owner or solo carrier, you need to understand this clearly: the fastest way to trigger a compliance audit from the FMCSA is to have incomplete or improperly maintained driver qualification files. It doesn’t matter if your trucks are running on time or if your loads are delivered perfectly. If your driver files are a mess, you’ve got a target on your back—and that target could cost you everything. This article walks you through the specific issues that trigger audits, breaks down the exact requirements for compliant driver files, and gives you an execution-ready process to keep your operation clean, legal, and protected.

The Real Risk of Missing Paperwork

Let’s clear something up: the FMCSA isn’t auditing you because your truck is old, your trailer has a scratch, or your logo is faded. They’re auditing you because something in your documentation—usually your driver files—raised a red flag. That red flag might be a failed roadside inspection, a crash report, or even a single missing piece of information when you were onboarded as a new entrant.

Here’s what most small carriers get wrong:

  • They assume the driver file is just a job application and a copy of a CDL.
  • They don’t update files regularly when licenses are renewed or medical cards expire.
  • They treat compliance like a one-time setup, not a living process.

That mindset is how good carriers get blindsided. You think you’re good until an audit notice shows up. And by then, it’s already too late.

What the FMCSA Looks For

Driver Qualification Files (DQFs) are not optional. The FMCSA has very specific guidelines about what must be in every driver’s file. If even one of these components is missing or out of date, you could face a fine, conditional rating, or worse. Here’s what your DQF must include:

  1. Driver’s Application for Employment
  2. Motor Vehicle Record (MVR) from each state the driver held a license in the past 3 years
  3. Road Test Certificate or equivalent
  4. Medical Examiner’s Certificate and verification of National Registry
  5. Annual MVR Review
  6. Annual Certificate of Violations
  7. Record of Safety Performance History from previous employers (past 3 years)
  8. Drug and Alcohol Testing Records (for CDL drivers)

Every single one of these documents must be accurate, current, and accessible.

Top Compliance Violations That Trigger Audits

Here’s where most small carriers slip up:

  • Expired medical cards
  • Missing annual reviews
  • Incomplete safety performance verifications
  • Missing drug and alcohol records
  • Failure to update files when a driver changes states or gets a new license

You may think these are small errors—but they’re not. The FMCSA has a zero-tolerance stance on missing documentation. And once they find one issue, they’ll dig deeper. A single missing MVR could snowball into a full-blown compliance review.

How Driver File Mistakes Multiply Risk

Let’s say you get pulled for a roadside inspection and the officer flags your driver for a missing medical certificate. That report gets logged into FMCSA’s system. Now your company gets flagged for a potential compliance review. Then they find that your driver hasn’t had an annual MVR review. Then they see you don’t have drug testing documentation on file. Now you’re in violation of multiple federal rules, not just one.

What started as one missing document turns into a full audit. And every violation you rack up increases your chances of being downgraded to a Conditional safety rating—which will destroy your chances of landing better freight, higher-paying lanes, or favorable insurance.

Building a Bulletproof Driver File System

You don’t need to overcomplicate this. But you do need a system. The most dangerous thing you can do is try to “remember” to update files. Compliance isn’t memory-based—it’s process-based. Here’s a system you can start using today:

Step 1: Create a Standard Driver File Checklist

Every time you onboard a driver—whether it’s your first or your fifteenth—use the same checklist. It should include:

  • Application for Employment
  • MVRs from all states in the past 3 years
  • Medical Card and verification
  • Road Test Certificate or CDL equivalent
  • Safety Performance History (3 years)
  • Drug and Alcohol Records
  • Certificate of Violations (annually)
  • Annual MVR Review

Post this checklist in your office. Save it to your onboarding folder. Make it a non-negotiable part of hiring.

Step 2: Set Recurring Reminders for Expiring Documents

Don’t wait for expiration dates to sneak up on you. Use Google Calendar, Trello, or a compliance management tool to set reminders 60, 30, and 7 days before any critical document expires.

Key dates to track:

  • Medical Examiner’s Certificates
  • CDL Expiration
  • Annual MVR Reviews
  • Annual Violation Certifications

Step 3: Conduct Internal File Audits Every Quarter

Every 3 months, block off an hour to review all active driver files. Check for:

  • Missing documents
  • Expired certificates
  • Incomplete verifications

This is the step most small fleets skip—and it’s the reason they get burned. Don’t assume your files are fine. Audit them like the FMCSA would.

Step 4: Store Files Securely and Accessibly

You need to be able to produce any document within 48 hours of an audit notice. That means:

  • Digital backups of all driver files (PDFs or scanned copies)
  • Organized folder structure by driver name and year
  • Secure cloud storage with restricted access

Avoid storing files only on one laptop or in a single office drawer. Redundancy matters here.

Highlighter Moments: Compliance Execution You Can Act On

  • Build a standardized driver file checklist today—don’t wait until your next hire.
  • Create automated reminders for document expirations. Manual tracking leads to failure.
  • Schedule quarterly internal audits to catch errors before the FMCSA does.
  • Digitize and back up all compliance files. Don’t let a hard drive crash ruin your records.

What to Do If You Find Gaps in Your Driver Files

Don’t panic—but don’t delay either. The moment you discover a missing or outdated document, address it immediately. Here’s what to do:

  1. Gather the Missing Information: Reach out to the driver, prior employers, or your medical examiner.
  2. Document Your Correction: Keep notes on what was missing, when you fixed it, and how you verified the update.
  3. Review All Other Files: If one file had an issue, others probably do too. Audit everything.
  4. Reinforce Your System: Add steps or reminders to prevent the same mistake from happening again.

Final Word

Your trucks can run clean. Your loads can be delivered on time. Your drivers can do everything right on the road. But if your back office—especially your driver qualification files—is out of order, it won’t matter. Compliance is the foundation that keeps your business legal, insurable, and operational.

You can’t afford to treat driver files as an afterthought. Every piece of paperwork is a line of defense against audits, fines, and lost revenue. Small fleet owners don’t have the luxury of missing details. The carriers that survive are the ones that build systems, follow them consistently, and treat compliance like a core part of the business—not a burden.

Take this seriously now, and you’ll avoid getting blindsided later. Set up your system. Run your checks. Keep your files clean. That’s how you stay in the game.

Grain, automotive keep U.S. rail traffic ahead of 2024

According to Association of American Railroads statistics, rail traffic for the week ending Aug. 2, 2025, was 513,529 carloads and intermodal units, a 2.9% increase over the same week a year earlier. That figure included 233,805 carloads, up 6.4%, and 279,724 containers and trailers, up 0.2%.

While all categories except petroleum saw gains, the only double-digit increases were grain, 25.7%, and motor vehicles and parts, 10.2%.    

Through 31 weeks of 2025, traffic totalled 16,162,611 carloads and intermodal units, a 3.8% increase over the same period in 2024. The 31-week figure includes 6,828,409 carloads, up 2.8%, and 8,334,202 intermodal units, up 4.7%.

The most recent data from the Intermodal Association of North America showed mixed results, as BNSF, CSX (NASDAQ: CSX) and Union Pacific (NYSE: UNP) saw weekly improvements, while Mexico’s GMXT (OTC: GMXTF) and Norfolk Southern (NYSE: NSC) were below previous-year levels. 

Intermodal is sure to be affected by new U.S. tariffs that were imposed Thursday on scores of countries, with levies ranging from 15% to as much as 50% for Brazil, after that country was hit with an additional 40% Wednesday. The U.S. has come to trade agreements with a number of countries, including China, but hit key trade partners with higher tariffs including India, 25%, Taiwan,  20%, Thailand, 19%, and Vietnam, 20%.

“I continue to believe that the balance of the year will be challenging, with more downside risk than upside for intermodal,” said consultant Lawrence Gross.

North American volume for the week ending Aug. 2, from nine reporting U.S., Canadian, and Mexican railroads, was 700,660 carloads and intermodal units, up 3.6% over the corresponding week in 2024. The 337,571 carloads was a 4.5% increase, while the 363,089 intermodal units, up 2.7%.

For the year to date, North American volume is 20,943,417 carloads and intermodal units, a 2.9% increase over the first 31 weeks of 2024. That includes 5,035,654 carloads and intermodal units in Canada, a gain of 1.6%, and 745,152 carloads and intermodal units in Mexico, a decline of 5.1%.

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