California trucking company, affiliate file for Chapter 11 bankruptcy

A family-owned California trucking company, which provided earthwork, excavation and demolition services, along with its affiliated company, recently filed for Chapter 11 bankruptcy protection, citing cashflow issues after defaulting on its factoring agreement.

Miranda Logistics Enterprise Inc. of Los Angeles, and sister company, Grit & Gravel Inc., recently filed for bankruptcy protection in the U.S. Bankruptcy Court for the Central District of California.

In its 21-page petition, Miranda Logistics lists its assets as up to $50,000 and liabilities as between $1 million and $10 million. The company states that it has up to 99 creditors and that funds will be available for distribution to unsecured creditors.

FreightWaves has reached out to Miranda Logistics and Grit & Gravel’s bankruptcy attorney Sean O’Keefe for comment.

The three largest creditors with nonpriority unsecured claims against Miranda Logistics are Mission Valley Bank (MVB) of Sun Valley, California, owed nearly $3.5 million; MCB Trucking of Mission Hills, California, owed nearly $263,000; and 818 Trucking of San Francisco, owed $234,000. Miranda Logistics is disputing these claims, according to the petition. It also owes several California-based trucking and equipment companies, according to its bankruptcy filing.

In its petition, Grit & Gravel lists its assets as up to $50,000 and liabilities as between $1 million and $10 million. The company states that it has up to 99 creditors and that funds will be available for distribution to unsecured creditors. The company lists its top three creditors as Mission Valley Bank, owed nearly $2.5 million; Clean Harbors Environmental of Dallas, owed almost $673,500; and MCB Trucking is owed nearly $181,000.

The family-owned companies were founded in 1992 by Marco Miranda, who serves as CEO and chief financial officer, and his sister, Stephanie Miranda, co-founder and chief operating officer.

According to Stephanie Miranda’s declaration in the bankruptcy case, the entities entered into a factoring agreement in March 2023 with MVB. She claims that although “MVB purports to purchase the [companies] receivables, one hundred percent of the ‘risk of loss’” remains with the Miranda Logistics and Grit & Gravel.

“If the vendors that owe the receivables purchased by MVB fail to pay these debts, [Miranda Logistics] is still obligated to pay MVB 100% of the shortfall,” she stated in court filings.

At the time of the bankruptcy filing, Miranda said that Miranda Logistics owed around $2.8 million under the factoring agreement with MVB, which secured liens against the entity’s receivables and equipment, totaling around $10.6 million, according to court documents.

She estimated that the logistics company’s gross revenue for 2024 was around $18.5 million and recorded a net income of around $1.2 million.

Court filings state that startup costs and the expenses the companies incurred to support its rapid growth caused cashflow shortfalls, which caused Miranda Logistics and Grit & Gravel to a default under the factoring agreement with MVB, which initiated collection action against the companies.

In December 2024, the companies claim they became aware that MVB was contacting its customers and demanding that they remit their payments directly to MVB instead of Miranda Logistics and Grit & Gravel, Miranda claims in court documents, which forced the entities to file for Chapter 11 bankruptcy protection as it was unable to make payroll to its employees, amounting to around $27,000. The Mirandas also own a payroll company, Staffers Unlimited Inc., also based in Los Angeles. The company did not file for bankruptcy protection.

A court date is set for Jan. 28 after Grit & Gravel filed its motion in federal court to dismiss its Chapter 11 case, claiming MVB’s pre-petition collection action “froze a material part of [its] receivables and effectively deprived [it] of the ability to continue business operations,” according to court filings.

After its receivables were frozen, Grit & Gravel claims it was forced to cease operations and terminated its employees on Dec. 28, 2024.

A creditors’ meeting is slated for Jan. 29

Miranda Logistics operated 40 power units, and had 25 drivers, according to the Federal Motor Carrier Safety Administration’s SAFER website.

Miranda Logistics trucks had been inspected 18 times, and six had been placed out of service in a 24-month period, resulting in a 33% out-of-service rate. This is significantly higher than the industry’s national average of around 22.3%, according to FMCSA.

The trucking company’s drivers had been inspected 20 times over the same 24-month period, none of its drivers being placed out of service. The national average is around 6.7%, according to FMCSA.

U.S. Bankruptcy Judge Vincent Zurzolo has slated a status hearing for Miranda Logistics and Grit & Gravel for Feb. 13.

Do you have a news tip or story to share? Send Clarissa Hawes an email or message @cage_writer on X, formerly known as Twitter. Your name will not be used without your permission.

Covenant Logistics Group Q4 earnings: First look

Covenant Logistics Group reported $251 million in freight revenue during the fourth quarter, with truckload operations increasing 3% to $190 million.

Chattanooga, Tennessee-based Covenant (NASDAQ: CVLG) reported adjusted earnings per share of 49 cents in the quarter, inline with analysts’ estimates of 49 cents.

The company posted total revenue of $277 million in the quarter, a 1% year-over-year increase compared to the fourth quarter of 2023, and missed Wall Street estimates of $283 million.

“We are pleased to report fourth quarter earnings of 24 cents per diluted share and non-GAAP adjusted earnings of 49 cents per diluted share, on 27.9 million weighted average diluted shares outstanding after giving effect to our recent 2-for-1 stock split,” Covenant Logistics Chairman and CEO David R. Parker said in a news release. “These results mark the end of another successful year despite a challenging general freight environment, and I could not be happier with how our team has planned and adjusted throughout the year.”

Freight revenue per tractor per week increased 2% year-over-year to $5,444. The expedited truckload segment revenue decreased 6% to $98.6 million, while dedicated segment revenue rose 17% to $91.7 million.

Covenant’s managed freight segment saw revenue of $62.2 million in the fourth quarter, a decrease of 5% from the same time last year. The warehousing segment had revenue of $24.3 million during the quarter, a 1% year-over-year decrease.

Covenant will hold a conference call to discuss results with analysts at 10 a.m. Friday.

Covenant Logistics Group	Q4/24	Q4/23	Y/Y % Change
Total revenue	$277.3	$273.9	1.2%

Truckload combined:
Revenue	$190.4	$184	3.4%
Freight revenue (ex fuel)	$164.4	$150.3	9%
Revenue per total mile	$2.48	$2.31	7.3%
Revenue/tractor/week	$5,444	$5,344	1.8%
Adjusted OR%	93.6%	91.4%	2.4%

Managed freight:
Revenue	$62.2	$65	(4.3%)
Adjusted operating income	$5,152	$2,748	87%
Adjusted OR%	91.7%	95.8%	(4.2%)

Expedited freight:
Revenue (ex fuel)	$83.8	$84.4	(0.7%)
Adjusted operating income	$6,676	$7,024	(4.9%)
Adjusted OR%	92%	91.4%	0.6%

Adjusted earnings per share	$0.49	$0.55	(10.9%)

Covenant Logistics Group key performance indicators. Revenue and operating income in millions.

First look: CSX profit falls in Q4

CSX Corp. today reported fourth-quarter 2024 operating income of $1.11 billion that fell compared to $1.32 billion in the prior year period.

Revenue totaled $3.54 billion for the quarter, off 4% year over year as declines in fuel surcharge and coal revenue offset higher pricing, merchandise volume and volume growth in intermodal.

Net income was $733 million, or $0.38 per diluted share, compared to $882 million, or $0.45 per diluted share, in the same period a year ago. Fourth-quarter results for Jacksonville-based CSX (NASDAQ: CSX) include a pre-tax, non-cash goodwill impairment charge of $108 million.

Total volume of 1.58 million units for the quarter was 1% higher compared to the fourth quarter of 2023.

For the full year 2024, operating income of $5.25 billion was down 5% from the previous year. Net income for the year was $3.47 billion, or $1.79 per share, compared to $3.67 billion, or $1.82 per share, in 2023.

Adjusted for the goodwill impairment charge, operating income was $1.21 billion for the quarter and $5.35 billion for the year. Adjusted net income was $815 million, or $0.42 per diluted share, for the quarter and $3.55 billion, or $1.83 per diluted share, for the full year.

“While 2024 had its challenges, I am proud of how the ONE CSX team responded. We managed through substantial impacts from major hurricanes and the Key Bridge outage early in the year and remained focused on delivering industry-leading customer satisfaction,” said Joe Hinrichs, president and chief executive officer, in a release. “We will remain disciplined in delivering safety, service, and operating efficiency performance as we invest in the strength and capabilities of our network this year, and we look forward to delivering on the profitable growth opportunities ahead of us.”

Find more articles by Stuart Chirls here.

Related coverage:

Union Pacific profit up 7% in Q4, forecasts similar growth in 2025

Fuchs to lead Surface Transportation Board

Union Pacific official tells shippers of plans for online, security improvements

Truck Leasing Task Force blasts lease-purchase programs

Truck Leasing Task Force blasts lease-purchase programs

(Source: The Federal Motor Carrier Safety Administration’s Truck Leasing Task Force)

The Federal Motor Carrier Safety Administration’s Truck Leasing Task Force (TLTF) delivered a scathing report on lease-purchase (LP) programs managed by motor carriers in the trucking industry. The TLTF’s findings described the programs as tools of “fraud and driver oppression,” arguing that LP programs have a detrimental impact on individual drivers, the trucking workforce, and national transportation safety.

The report highlighted that approximately 5.7% of the 3.5 million interstate CDL drivers are affected by predatory lease-purchase programs, with over 200,000 drivers experiencing significant financial and professional harm. The TLTF found no substantial evidence supporting the claim that lease-purchase programs are a viable pathway to truck ownership, noting that “driver success is rare enough that programs seem designed to ensure failure for the overwhelming majority of drivers.”

One challenge according to the report is that lease purchase drivers take home less pay than company drivers. When looking at labor cost comparison and driver compensation as a percentage of total revenue the report notes, “Lease-purchase drivers in this case earned less than 1/3 of the average per mile compensation in the industry. To be clear, that is not less than 1/3 of the compensation of the best-paid employees, that is 1/3 of the average.”

Another issue is that LP programs rarely end up with the driver owning the truck. According to the TLTF, “less than 1 in 100 drivers who participate in a lease-purchase end up owning the truck.” In another instance, in litigation cases reviewed by the TLTF, lease-purchase drivers were found to earn as little as 11.3% of their generated revenues. The report added, “lease-purchase contracts appear to be drafted with only the motor carrier’s profitability and mitigation-of-risk in mind,” the report states, highlighting the exploitative nature of these agreements.

Key recommendations from the task force include an outright ban on lease-purchase agreements. Recognizing the challenges of such a ban, TLTF also proposes enhanced congressional oversight, stringent record-keeping mandates by the FMCSA, and targeted audits by the Department of Labor to ensure compliance with labor regulations. Additionally, the report advocates for greater transparency in contract terms and the development of educational materials to inform drivers about the pitfalls of these programs.

Knight-Swift reports Q4 growth but costs from acquisitions and rapid growth prove a drag

Knight-Swift Transportation reported its fourth-quarter performance with operating income reaching approximately $78 million, a 326.4% increase year-over-year improvement. Total revenue for Q4 was $1.9 billion, reflecting a 3.5% decrease compared to the same quarter in 2023. This growth was primarily driven by a 16% improvement in the truckload segment which recorded a 92.2% adjusted operating ratio, a 170 basis point improvement y/y, and 340 bps higher than Q3.

The improvement in the truckload segment operating ratio came despite lower revenue. FreightWaves’ Todd Maiden wrote, “truckload revenue fell 4.4% year over year to $1.1 billion as average tractors in service declined 6% to 22,208 units, which was partially offset by a 1.7% increase in revenue per tractor (excluding fuel surcharges).”

Knight-Swift continues to overhaul its U.S. Xpress fleet which it acquired in July 2023. Maiden adds, “that operation has shifted to a terminal network approach with shorter lengths of haul but higher revenue per mile. An annual run rate of $180 million in cost synergies has been achieved, but there are more opportunities available as it continues to swap out leased equipment for owned assets. Miller also said the unit has a sizable rate opportunity given the recent changes.”

CEO Adam Miller commented, “while current freight market conditions have been choppy, we are encouraged by customer sentiment, seasonal spot rate progression, the continued erosion of capacity, and early bid season activity — all of which point to a more balanced market than we have seen in roughly three years.” Miller added that so far in bid season, the company is asking for mid-single-digit rate increases, which is an improvement from the low to mid-single-digit range it was asking for in Q3.

The company also significantly expanded its LTL network despite challenges in the LTL segment due to integration costs from the acquisition of Dependable Highway Express, which provided 14 terminals. 37 terminals were added organically, totaling a combined 1,430 doors, representing over 30% growth.

Market update: Trailer orders up in December but underwhelming orders season

December saw a notable increase in U.S. trailer net orders according to data from FTR Transportation Intelligence and ACT Research. FTR reported net trailer orders rose 11% month-over-month to reach 25,334 units—the highest monthly total since October 2023. Year-over-year, orders grew by 7%. Despite this uptick, the overall 2025 order season remains underwhelming, with total trailer net orders for September to December 2024 decreasing by 32% compared to the previous year, averaging just 18,994 units per month.

Dan Moyer, senior analyst of commercial vehicles at FTR, noted that one reason for lower trailer orders came from fleets focusing on buying tractors instead. Moyer said, “in 2024, North American Class 8 net orders rose 11% y/y while U.S. trailer net orders declined by 27% y/y. For-hire fleets (and, probably, private fleets, too) have prioritized investments in new power units over trailers, likely driven by reduced profitability or shifts in trade cycles. This trend looks like it is continuing as North American Class 8 net orders are up 8% y/y during the 2025 order season so far while U.S. trailer net orders for the same period fell 32% y/y.”

ACT Research’s preliminary data showed an increase in net trailer orders by approximately 3,500 units from November to December 2024, totaling 24,300 units, though this figure remains 3% lower than December 2023. Jennifer McNealy, director of CV market research and publications at ACT Research, added in the report, “this brings full-year 2024 activity to 163.5k units, competing against a better 2023 order environment (236k) and fuller backlogs. That said, December’s net orders of -3% are an improvement when compared to Q4’s -24% or the full-year drop of 31%, meaning the worst of the downturn is clearly in the rearview mirror, and while not ‘good,’ indicated movement toward ‘better.’”

SONAR spotlight: Rare winter storms bring potential for atypical seasonal spot rate gains

Summary: The first weeks of the year historically bring declines in dry van spot market rates, but a rare severe winter storm impacting parts of South Texas and the Gulf Coast, and extending through the Florida Panhandle brings the potential for higher rates. As it stands, the current trend for daily and weekly spot rates is downward movement. The SONAR National Truckload Index 7 Day Average fell 6 cents per mile all in w/w from $2.52 on Jan. 13 to $2.46. The NTID, which is the daily movement in spot rates that feeds the NTI 7-Day Average, trended down six of the past seven days, suggesting further spot rate declines in the short term. The development to watch will be if heavy snowfall, a blizzard in the Gulf Coast and icy roads are enough volatility to raise rates, or if capacity shifting to avoid the brunt of the severe weather depresses rates in larger markets.

For carriers and their drivers, the challenge is that winter storm warnings are in areas that are less prone to snowfall, with many drivers preferring to operate below I-40 to avoid the cold and winter weather. Based on week-over-week changes, it appears outbound tender rates are falling to a greater extent in markets directly affected by or adjacent to the winter storms, as carriers accept more tenders to cover the cost of repositioning assets out of affected markets. The Dallas and Fort Worth markets are a good example, with Houston and Austin, Texas, posting tender rejection rate increases while Dallas and Fort Worth see rapid declines relative to the size of their markets.

The Routing Guide: Links from around the web

Big jump puts benchmark diesel price back at August levels (FreightWaves)

Regulatory freeze among Trump’s first actions (Overdrive)

Trump administration could sideline female truckers’ anti-harassment agenda (FreightWaves)

ATA forecasts growth after two years of decline (Commercial Carrier Journal)

FMCSA allows fleets to self-certify maintenance training with TMC RPs (Commercial Carrier Journal)

Used truck sales surge in December, capping the year on a high note (Commercial Carrier Journal)

Most recent episode

The lease-purchase contract prison

Welcome to the WHAT THE TRUCK?!? Newsletter presented by Truck Parking Club. In this issue, FMCSA wants to ban lease-purchase contracts, driver privacy win, trade under Trump, and more.

Predatory?

The lease-purchase problem — Trucking lease-purchase contracts are under fire as the Truck Leasing Task force calls them a system to harm drivers. FreightWaves reports, “the 51-page report, issued by the Federal Motor Carrier Safety Administration’s Truck Leasing Task Force (TLTF), was sent to Congress and to the U.S. transportation and labor departments on Friday.”

“Conservatively, over 200,000 truck drivers have been affected by predatory truck lease-purchase programs.” – Truck Leasing Task Force Public Court Data Subcommittee

What is a lease-purchase contract? They act similar to rent-to-own deals where you pay a down payment as well as a monthly payment. At the end of the term you own the truck.

However, you can’t do whatever you like with the vehicle and are typically forced to run freight from whomever you leased the truck from.
Therein lies the rub. Critics of the programs say it is a scam and you’re paying a carrier to move freight for them.

Kaitlyn Long, task force member and chief economist for the International Brotherhood of Teamsters, says that it isn’t just a bad deal for the lessee, it also harms the industry. She told the subcommittee that lease-purchases are problematic for the following reasons:

– The current system is set up to harm drivers.
– There is a financial incentive for trucking companies to continue the practice.
– It harms the entire supply chain and drives down wages.
– Litigation is currently a driver’s only avenue for relief.
– Driver education needs improvement.

Why does it drive down wages? It lowers the barrier of entry. In fact, many drivers argue that becoming an employee driver is a far better deal for truckers.

Can anything be done about it? Even the task force thinks it may be difficult to get congress to act on a ban, but they do provide some recommended alternate actions. You can read all about those here.

OOIDA’s Lewie Pugh will be on WHAT THE TRUCK?!? this Friday to discuss this issue as well as Trump’s order to freeze FMCSA regulations.

A win for driver privacy?

Lytx

BIPA – Three years ago a class action lawsuit was filed against Lytx for violating Illinois’ biometrics law with their inward facing dashcams. Now FreightWaves reports, “the settlement in the case is $4.25 million.”

Well the exact size of the class in unknown, anybody who drove a vehicle in Illinois “equipped with a Lytx DriveCam Event Recorder (‘DriveCam’), and for whom machine vision and artificial intelligence (‘MV+AI’) was used to predict distracted driving behaviors” is eligible.

Lytx denies any wrongdoing but the court found them liable for collecting and storing biometrics like a driver’s facial geometry. In addition, drivers were not informed about how long these biometrics would be stored for. The lawsuit states that it amounts to constant AI surveillance.

What’s more is that this could open the door to more BIPA lawsuits. The law firm of Troutman Pepper Locke wrote in a blog post that the courts could, “see a panoply of putative class actions, leaving countless companies scrambling to develop workable defenses.”

Read the full story here.

Gimme shelter

KBZK

Blown away – Nearly the whole country has been besieged with a cold front this week that saw historic snow falls stretch across the Gulf of America. While places like New Orleans and Pensacola were scrambling to get ready for the snow, the midwest was whipped with wicked winds.

“They are worried about their safety, they are worried about their health. So we ask them not to drive into this risky weather.” – Moti Balyan

On Tuesday, 70mph gusts shut down I-90 in both directions through Livingston, Montana. That’s when new truckstop owner, Moti Balyan, sprang into action.

According to KBZK, “Moti owns a one-stop shop off I-90—a diner, casino, gas station, and truck stop all rolled into one.” He’s only been in town a month, but has seen I-90 shut down three times. He says that he is happy to let drivers stop at his location as it keeps everyone safe.

Moti told KBZK that with more wind in the forecast, drivers should pull off at his stop. “When they are so frustrated, they are tired. We have nice clean restrooms, we have showers, we have food, we have a casino, we have a C-Store. So we have all the facilities for the people to stop by here. And we are fortunate we are able to serve the people.”

Meanwhile, in New Orleans

WTT Friday

OOIDA to Trump: Ditch the speed limiter mandate – Friday on WHAT THE TRUCK?!? OOIDA’s Lewie Pugh talks about why his organization is urging President Trump to ditch the speed limiter mandate. We’ll also find out what the freeze on FMCSA rulings means for drivers and fleets.

Surfact is building the next generation of freight trackers. We’ll meet their CEO and founder, Per Magne Helseth.

LoadPartner is making your next TMS open-source. We’ll find how they’re breaking down the walls on closed systems with their platform when Garrett Allen and Chase Osbourne drop by.

Plus, all the latest headlines, trends and viral weirdness since our last show.
Catch new shows live at noon EST Mondays, Wednesdays and Fridays on FreightWaves LinkedIn, Facebook, X or YouTube, or on demand by looking up WHAT THE TRUCK?!? on your favorite podcast player and at 5 p.m. Eastern on SiriusXM’s Road Dog Trucking Channel 146.

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MAKE AMERICA FREIGHT AGAIN – We are so back. Head on over to WTTGear.com to get our newest merch! Use code WTTFans for 10% off.

Now on demand

Southern storm freezes freight; Trump freezes FMCSA regulations; theft trends

Overhaul CEO on $55M in funding to fight fraud; Adam Wingfield’s master class

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FreightTech’s tracking superhero lands $40M

Visibility provider Tive announced Thursday it raised $40 million in an oversubscribed Series C funding round led by World Innovation Lab and Sageview Capital, with participation from AVP, RRE Ventures, Two Sigma Ventures, Qualcomm Ventures, Fifth Wall, Supply Chain Ventures, and Sorenson Capital.

This capital will fuel Tive’s goal to enhance real-time shipment tracking and monitoring capabilities. With its innovative multi-sensor trackers and cloud platform, Tive serves over 900 global customers across industries like life sciences, food and beverage and high-value goods, according to the company.

A key focus for Tive has been combating cargo theft, a persistent challenge in logistics.

Potomac Metals, Inc. (PMI), a scrap metal recycler, adopted Tive’s technology after experiencing significant thefts. By equipping shipments with Tive’s trackers, PMI gained real-time insights into their cargo’s location and condition. This visibility allowed them to recover stolen goods swiftly, including a $175,000 copper shipment in 2024.

Similarly, Vianney, a Mexico-based home textiles company, implemented Tive to counter theft and driver misconduct. Initially relying on traditional GPS devices with limited battery life, Vianney began using Tive’s Solo 5G trackers, which can last up to 90 days without charging.

Tive’s tracking led to the recovery of merchandise stolen on a high-theft route. The technology has also powered Vianney to sever ties with clients engaging in illicit activities.

The new funding will enable Tive to further refine its technology and expand its market reach.

How Descartes is helping you avoid fraud 😡

As these fraudulent schemes continue to evolve, technology providers like Descartes are stepping up their efforts to arm their customers with the tools and insights needed to stay ahead of bad actors.

According to Andrew Wimer, senior director of Operations and Professional Services at Descartes, the company’s Descartes MacroPoint customers say freight fraud is a top concern with bad actors getting more sophisticated at not only cargo theft but also spoofing tracking data and manipulating compliance scores.

“We’re seeing shipments stolen and data manipulated, even when the tracking data looks flawless,” he explains. “Carriers are finding ways to spoof location data and tracking information, making it difficult for brokers to know when a load has truly gone missing.”

In response, Descartes has been aggressively investing in fraud prevention capabilities across its suite of visibility and compliance solutions. A key focus has been enhancing pre-tender visibility, giving brokers deeper insights into a carrier’s history, assets and reliability before tendering a load.

Using data from its recent acquisition MyCarrierPortal, Descartes can provide a comprehensive footprint on each carrier, highlighting any red flags around insurance, VIN validation or past tracking compliance issues.

“We want to arm our customers with as much data as possible to make educated decisions on who they’re booking with,” Wimer states. “It’s not just about the post-tender visibility that MacroPoint (Descartes visibility tool) provides, it’s giving them the tools to vet carriers upfront and avoid potential issues down the road.”

Descartes has also rolled out new features like FraudGuard, which alerts customers when the system detects potentially manipulated tracking data. However, the company acknowledges that technology alone is not enough to combat this growing threat.

There is a critical human element involved, as Wimer explains: “There’s still that gut feeling when something might be off.”

With a fraud-first product roadmap ahead and a dedication to arming customers with the right tools and knowledge, the company is positioning itself as an ally in the fight against this growing concern.

Beauty and the bust 💄

Michelle Mack, the mastermind behind an $8 million organized retail crime ring, is paying the price, literally.

The California resident, dubbed the “Queenpin” was sentenced to five years in prison after stealing millions in beauty products from Ulta, Sephora and other retailers then reselling them on Amazon at cut-rate prices.

As part of a plea deal, Mack forfeited her $2.35 million mansion to help cover $3 million in restitution owed to her victims. While the funds offer some relief, experts caution that such restitution rarely compensates retailers fully for their losses.

Ulta praised law enforcement partnerships, emphasizing the importance of collaboration in combating retail crime.

“This case demonstrates that through close partnerships between retailers, law enforcement and prosecutors, as well as legislative support, we can make a meaningful impact on organized retail crime and hold the criminals perpetuating this problem accountable,” Dan Petrousek, senior vice president of loss prevention at Ulta Beauty, in a statement to CNBC.

Articles by Grace Sharkey

How automation is solving logistics’ biggest problems in 2025

Caffeine fix? Coffee wholesaler sues brokerage over missing $84,500 load

Crosswinds lash US industrial economy

Industrial production in the United States ended 2024 on a hopeful note, surpassing economists’ expectations and suggesting that the manufacturing sector is stabilizing after two years of decline.

In December, industrial output rose by 0.9% — the largest monthly increase since last February — bolstered by an uptick in factory activity and the resolution of a prolonged strike at Boeing. This uptick not only exceeded forecasts but marked a significant rebound in manufacturing, which had previously struggled amid high borrowing costs and fluctuating demand.

*SONAR: Industrial production, all items (white) and manufacturing output (orange)*
**To learn more about FreightWaves SONAR**, ***click here***.

The Federal Reserve’s December report highlighted that manufacturing output climbed by 0.6%, its most substantial gain since August 2024. This growth was driven largely by a 6.3% surge in aerospace equipment production following the end of Boeing’s strike. However, production in consumer goods and construction supplies also improved noticeably and played a role in the broader industrial expansion.

Excluding a dip in auto output, factory production increased by 0.7%, while mining and utilities enjoyed gains of 1.8% and 2.1%, respectively. The rise in natural gas extraction significantly boosted the utilities sector, a sign of growing demand both at home and abroad.

Retail sales data from December similarly affirmed a positive trajectory for the U.S. economy. Goods spending for gross domestic product (GDP) saw its largest increase in three months, indicating sustained consumer demand. Furthermore, housing starts accelerated to the fastest pace since early 2024. These strong performances led Goldman Sachs economists to raise their GDP tracking estimate for the fourth quarter by 0.1 percentage point to 2.6%.

There’s still a ways to go

Despite these encouraging signs, the manufacturing sector remains in its early stages of recovery. Manufacturing accounted for three-quarters of total industrial production and remained flat compared to December 2023.

December’s increase suggests the very beginning of a potential shift in the sector’s trajectory, contingent on ongoing improvements and favorable trade policies. The Fed’s release also noted that capacity utilization at factories reached a three-month high of 76.6%, though it still lags 2.1 percentage points below the long-term average.

Two key sentiment surveys give further insight into the manufacturing landscape: New York’s Empire State Manufacturing Index and Philadelphia’s Manufacturing Business Outlook Survey.

The Empire State Manufacturing Survey, conducted in early January, betrayed a contraction in general business conditions. The headline index fell 14.7 points from December into the red at minus-12.6, with concurrent declines in new orders and shipments shouldering most of the blame.

*SONAR: Empire State Manufacturing Index (green/red) and six-month outlook (yellow)*
**To learn more about FreightWaves SONAR**, ***click here***.

Still, firms were not deterred in hoping for improvements over the next six months. The forward-looking index fell by 9.8 points to 34.2, reflecting a wary but still sizeable optimism among manufacturers. The outlook for new orders and shipments was similarly bright, with their respective indexes reading 34.2 (after a 5.9-point bump) and 28.8 (following a 4.2-point stumble).

Conversely, manufacturers’ read of the current environment was far more sunny in Philadelphia. The index for general business activity soared from December’s revised reading of minus-10.9 to 44.3 in January — the highest such reading since April 2021, and the largest monthly increase since June 2020. The new orders and shipment indexes likewise rose to their highest levels since November 2021 and October 2020, respectively.

*SONAR: Philly Fed manufacturing index (green/red) and six-month outlook (purple)*
**To learn more about FreightWaves SONAR**, ***click here***.

Looking ahead, the index for future business activity rose 12.5 points to 46.3, a clear expectation for growth over the next half-year. The survey’s forecast for new orders and shipments not only increased but also reached multiyear highs, underscoring a confident stance among manufacturers about sustained demand. The outlook for labor was also favorable, as the employment index rose to its highest level since December 2021 at 40.4.

Though current conditions remain somewhat touch-and-go, the forward-looking surveys point towards a gradual stabilization and potential growth in industrial activity.

Trickle-down freightonomics

Increased manufacturing output directly translates to higher demand for freight services, especially in sectors experiencing rapid growth like aerospace and energy. As factories ramp up production, the need for transporting raw materials and finished goods intensifies, driving truckload volumes higher.

Moreover, the rise in construction supplies production is a leading indicator for a rise in construction projects, further fueling truckload demand (especially for flatbeds). As these sectors continue to recover and expand, truckload volumes are expected to follow suit, providing a positive outlook for the trucking industry.

However, challenges remain on the horizon. The Federal Reserve’s capacity utilization data suggests there is still slack in the system, with overall utilization below historical norms. This underutilization suggests constraints in scaling up operations, which could impact the ability to sustain growth in industrial production and, by extension, truckload volumes. Additionally, ongoing trade tensions and potential tariffs pose risks to manufacturers with international supply chains.

President Donald Trump’s anticipated trade policies are another wildcard to watch. His administration’s stance on tariffs could either bolster domestic manufacturing by making U.S. products more competitive or hamper exporters who may face retaliatory measures abroad. Such policy decisions — and their consequences — will play a crucial role in shaping the future dynamics of industrial demand and transportation logistics.

For more insights on trucking industry dynamics and economic outlooks, subscribe to FreightWaves’ newsletters and stay updated with the latest trends and analyses.

U.S. weekly rail volume shows big jump

U.S. rail traffic showed a massive jump for the week ending Jan. 18, 2025, with both carload and intermodal traffic up more than 25% from the same week a year earlier.

Statistics from the Association of American Railroads show overall traffic for the week was 500,160 carloads and intermodal units, a 25.9% increase. That included 216,457 carloads, up 25.1%, and 287,703 containers and trailers, up 26.5%.

While railroad officials have suggested that they are seeing traffic increases as importers move ahead of potential tariffs, the comparable week a year ago showed lower-than-average volumes: third-week traffic for the week ending Jan. 20, 2024, featured a 13.2% decrease from the same week in 2023, with all commodity groups showing declines.

Through three weeks, U.S. carload traffic is up 3.4% and intermodal traffic has increased 14% compared to the same period in 2024, with overall volume up 9.1%.

North American volume for the week from nine reporting U.S., Canadian, and Mexican railroads included 323,633 carloads, up 22.9% from the corresponding week in 2024, and 368,180 intermodal units, up 27%. The total volume of 691,813 carloads represents a 25.1% increase. Year-to-date North American volume is up 8.9% compared to the first three weeks of 2024. That includes a 10.6% increase in Canada and a 4.4% decrease in Mexico.

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Union Pacific profit up 7% in Q4, forecasts similar growth in 2025

Union Pacific reported 2024 fourth quarter net income of $1.8 billion, up from $1.7 billion a year ago, as higher rail freight volumes drove record profits.

The largest Class 1 railroad (NYSE: UNP) reported net income for full year 2024 of $6.7 billion, from $6.4 billion in 2023.

“We had a very successful year in 2024, with an operating ratio of better than 58%,” said Chief Executive Jim Vena, in a call with analysts and media. “That shows how our team executed on strategy, safety, and service for overall operational excellence.

“It was a fantastic end to 2024.”

While carload volumes were 5% ahead y/y In the fourth quarter ended Dec. 31, operating revenue of $6.1 billion was off 1% on lower fuel surcharge revenue and unfavorable business mix, partially offset by increased volume and core pricing gains.

Intermodal traffic increased by 16% in the quarter, though average revenue per car dipped 9% y/y.

International intermodal volumes were up by 26% on a surge of import demand, outpacing strong container flows through West Coast ports.

Domestic intermodal grew as the railroad wooed more shipments away from trucks.

Revenue carloads were up 5%, led by fertilizer, up 3%, and grain and chemicals, up 8%.

Coal revenue continued its long-term decline, down 29% in the quarter, but UP expects to partially offset that in 2025 under a new contract with electric utility Lower Colorado River Authority of Texas.

Grain benefitted from a good harvest and strong export business to Mexico, while plastics demand also grew, said Kenny Rocker, executive vice president, marketing and sales, on the call. “There was softer demand in construction materials, sand and rock. We are keeping a watchful eye on potential tariff changes which could impact volumes. We are anticipating a softer economic environment in 2025.”

Freight volumes are expected to be buttressed by $1.5 billion in project development now underway. The Gulf Coast is a specific target in that area.

Operating ratio was 58.7%, an improvement of 220 basis points, which included an unfavorable 70 basis point impact from the ratification of a new union contract.

Operating income grew 5% to a record $2.5 billion.

“There are a lot of unknowns in 2025 — tariffs, regulatory changes, interest rates — but that’s been the case in the forty-plus years I’ve been in railroading. It is what it is,” said Vena, who started his career as a train crewman. “Operating with a ‘buffer’ in railcars, locomotives and operating capacity paid dividends. We are expecting growth of high single digits to low double digits in 2025.”

Find more articles by Stuart Chirls here.

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First look: Union Pacific profit up 7% in fourth quarter

A Union Pacific train is parked in a rail yard next to some hopper rail cars.

Union Pacific (NYSE: UNP) on Thursday said fourth-quarter profit increased 7% on improved grain and fertilizer shipments, and core pricing gains.

Net income for the Omaha, Nebraska-based company was $1.76 billion, or $2.91 per share, in the fourth quarter, up from $1.65 billion, or $2.71 per share, in 2023.

Intermodal volumes were 6% better on strong imports through West Coast port gateways.

Net income for all of 2024 was $6.7 billion, or $11.09 per diluted share, from net income of $6.4 billion, or $10.45 per diluted share, in 2023.

Shares rose more than 4% in pre-market trading.

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