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For-Hire Trucking Index shows fourth month of volume declines

Tractor trailer driving down a highway

The for-hire trucking industry faced its fourth consecutive month of declining volumes in June, according to ACT Research’s For-Hire Trucking Index. The diffusion index is based on a survey of carriers and measures the degree and direction of changes in their operational statistics. A reading above 50 shows growth; below 50 is degradation.

The Volume Index posted a seasonally adjusted 41.5 in June, down from 42.5 in May. This downturn stems from tariff-related effects, particularly the early April tariffs and persistent overcapacity, extending the current freight market downcycle. 

Volumes are expected to improve, with the release noting, “Volumes should improve in July and August following the tariff reprieve, but the pull-forwards in freight demand in the first half of the year will result in paybacks.”

Particularly noteworthy is the Driver Availability Index, which tightened to 47.9 from 50.9, the first deterioration in driver supply in 38 months. “Given the duration of the downturn, current uncertainty, and a weaker freight outlook due to tariffs, we would expect the driver market to continue to tighten in the near term,” the report notes. “While a tighter driver supply is a potential catalyst for a new cycle, demand is needed too.” 

Other causes of tightening driver availability include cost-cutting measures, which are beginning to take drivers and driving schools out of the market.

Fleet purchase intentions rose 15.6% month over month in June, with 43% of respondents planning equipment purchases in the next three months. However, this remains significantly below the 54% long-term average as fleets deal with financial constraints and rising equipment costs.

The report adds, “Overall, buying sentiment is expected to remain below the long-term average as we enter the 13th quarter of a for-hire downturn, compared to the six- to eight-quarter historical average. Fleets are cash-strapped, and many are delaying or forgoing new equipment purchases altogether.”

The Pricing Index fell 3.6 points to 44.2 in June from 47.8 in May. The persistent overcapacity remains evident in soft spot trends during typically strong seasonal months. While volumes should improve following the tariff reprieve, multiple pull-forwards in freight demand earlier in the year will likely result in payback periods.

The Capacity Index increased slightly to 46.8 in June, up 0.4 points from May, but capacity continued to decline overall as publicly traded TL carriers’ profit margins remain near their lowest levels since 2009. 

The Productivity Index showed a substantial 16.3-point decrease to 47.6 in June, as the loosening capacity returned following May’s temporary tightness during Roadcheck week.

With tariff impacts expected to weigh on volumes through 2025, recovery prospects remain limited despite ongoing capacity attrition.

Project 61 acquires Offshift in ‘game-changer’ for driver health

Carmel, Indianapolis-based nonprofit Project 61 has acquired health and wellness company Offshift to improve the wellbeing of America’s truck drivers.

With the average truck driver’s life expectancy being 61 years old, Project 61 aims to raise awareness and provide education and resources to confront what the nonprofit is calling a health crisis.

Offshift’s technology now powers a mobile platform to achieve Project 61’s mission of putting free, practical tools and a driver-led community directly into the hands of America’s trucking workforce, according to a news release published by Project 61 on Thursday.

“Truck drivers have the highest rates of obesity and diabetes of any occupation in the U.S.. This crisis is worsening as chronic disease continues to skyrocket,” the release stated. “Project 61 is spearheading the Movement to reverse that trend.”

The platform will help drivers build healthier nutrition, movement and sleep habits. The app is intuitively designed for drivers and can coach five-minute workouts within their cabs and healthier options at truck stops. Sleep tracking is also available.

“This is a game-changer for the Movement,” said Jeremy Reymer, founder of Project 61, in the release. “If we’re going to address this industry-wide health crisis at scale, technology has to lead the way. With the acquisition of Offshift, we’re turning awareness into action through a proven solution that empowers drivers to take daily steps toward a longer, healthier life.”

Dr. Mark Manera, founder of Offshift, said that the program was “born out of frustration.” Via the merger, Manera will serve as president and chief health officer of Project 61.

“As a physical therapist, I saw what 20 to 30 years behind the wheel can do to a person’s body – and how none of the available health solutions actually worked in the real world of trucking,” Manera said in the release. “We built Offshift to change that. Now, joining forces with Project 61 lets us turn that vision into reality for the entire trucking industry. Together, we’re not just raising awareness about this health crisis – we’re putting a proven solution into the hands of every driver in North America at no cost.”

Hub Group is fully behind a potential UP-NS transcontinental railroad creation

Hub Group, a major intermodal transportation provider and a company that would be on the front lines of a merger between Union Pacific and Norfolk Southern, likes what it sees.

In the prepared statement released in conjunction with the company’s second quarter earnings, Hub Group (NASDAQ: HUBG), said it was “supportive” of the two companies and their merger plans to create the nation’s first transcontinental railroad. . 

“The announced transaction would further accelerate our long-term growth opportunity,” the company said. “Specifically, a transcontinental network removes friction in gateways, reduces transit times, provides access to new markets, and increases competition with truck volume through new single-line service.”

Can we talk about something else?

When President and CEO Phil Yeager first brought up the merger on the company’s call with analysts Thursday after the numbers and statement were released, he echoed the positive sentiments in the earnings release. But he also asked the analysts on the call to not focus on the merger and the impact it might have on Hub Group. “We would appreciate questions being focused on the company and our results,” Yeager said.

And then when the phone lines were open to questions, Yeager’s request was promptly ignored and the first question was about the merger.

Despite his earlier admonition, Yeager took the question and continued to express support for the creation of the cross-country rail supergiant.

Yeager, in his prepared remarks, said Hub Group were “exclusive partners” with both Union Pacific and Norfolk Southern. With the two of them together, he said, “there are several catalysts that should create significant intermodal conversion,” citing “improved fluidity” in gateway cities, “faster transit, better asset utilization, enhanced fuel efficiency and access to additional lanes and markets.”

Yeager said about 30% of the Hub Group’s current business is “moving in a transcontinental fashion.” But since there is no single transcontinental railroad–establishing one being the point of the Union Pacific-Norfolk Southern (NYSE: UNP) (NYSE: NSC) tieup–Yeager expressed optimism about the efficiencies that could come from the existence of such a system instead of needing transfers between regional railroads..

Yeager said on the call that the transcontinental business is “typically a positive mix” for both revenue and margins. 

Optimism on the Marten acquisition

Hub Group’s earnings release was the first since it announced its plan to acquire the intermodal operations of Marten Transport (NASDAQ: MRTN). Yeager said the acquisition “allows us to enhance our scale and capacity in one of the highest growth segments of our intermodal network,” which is refrigerated. 

While the Marten intermodal operations had been consistently running with an operating ratio in excess of 100% for several quarters, Yeager said he believes the operations inside Hub Group will “”expand our customer base while generating strong returns, due to our ability to capture synergies within our platform.”

As for more purchases, Yeager said Hub Group has a “robust pipeline of additional acquisitions designed to continue deploying capital toward long term growth opportunities.”

Kevin Beth, the company’s CFO, after reviewing a decidedly mixed and not overly optimistic outlook on the state of the freight business for the rest of the year, did note one sign of strength for rail transportation.

“It’s very positive that we’re seeing peak season surcharges in July, and we hopefully will see that momentum carried forward in August and September and through the remainder of the year as well,” Beth said.

Beth, in response to an analyst question, said the surcharges Hub Group has seen in the market this year are larger than last year, but they also were implemented by railroads later this year than in 2024.

Yeager said the company anticipates an early West Coast peak season as part of an “inventory pull forward” driven by importers trying to get ahead of tariffs. But specific to Hub Group, he said, the company has had an “improved bid realization rate” and has added several new dedicated customers, “which should lead to higher revenue from current levels.”

The company’s second earnings reported that several financial measures were weaker for Hub Group in the quarter. Operating income declined 13.1% from the second quarter of 2024 to $34.3 million. Net income dropped 13.7% to just over $25 million.

The cost of purchased transportation at Hub Group, which is easily the largest expense at the company, declined 9.8%. It accounted for 72.4% of all operating expenses, down from 73.7% a year earlier.

Specific units of the company both reported significant declines in revenue, though the Intermodal and Transportation Solutions segment, which is the asset-heavy part of Hub Group, did see an increase in operating income. Revenue was $528 million, down from $561 million a year earlier. But operating income rose to $14.4 million from $13.6 million a year ago.

Logistics revenue was $404 million, down from $459 million. Adjusted operating income for the segment was $23 million compared to $26 million a year earlier. 

Sequentially, results at Hub Group were mostly weaker but only by minor amounts. Operating revenue sequentially dropped 1%. Purchased transportation was down less than half a percentage point. But operating income was down 8%. And net income declined 7.1%.

Total legacy headcount, which excludes acquisition employees, drivers and warehouse employees, declined 3% from prior year. 

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Report: CSX talks with investment bank about merger options

CSX has declined to comment on a Bloomberg report that it has engaged Goldman Sachs to advise it about potential merger options.

Today’s news follows this week’s announcement that Union Pacific (NYSE: UNP) will acquire Norfolk Southern (NYSE: NSC) in an $85 billion deal that would create the first transcontinental freight railroad.

Industry analysts believe the UP-NS combination will put pressure on BNSF Railway and CSX (NASDAQ: CSX) to respond, either through a merger of their own or by BNSF launching a bid for NS. BNSF has declined to comment.

CSX Chief Executive Joe Hinrichs said last week — prior to the UP-NS announcement — that the railroad would not rule out merger talks.

Activist investor Ancora on Wednesday said that CSX could be a merger target if its performance metrics continue to lag the other Class I railroads.

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

Related coverage:

Rail deal will open new markets for top US container port 

Activist investor may target CSX, citing slumping financial performance

While shippers cite merger concerns, rival railroad looks instead to ‘collaborations’

CEOs say Union Pacific-Norfolk Southern merger will reverse rail freight decline

Amazon posts strong Q2 growth, provides mixed guidance

Amazon on Thursday posted second-quarter net revenue of $167.7 billion and adjusted earnings per share of $1.68.

Wall Street was anticipating earnings per share of $1.33 and revenue of $162.1 billion, according to Bloomberg consensus estimates.

The e-commerce and cloud services giant’s guidance for the third quarter reflects resilient consumer demand, but uncertainty from tariffs and trade policies.

Amazon’s (NASDAQ: AMZN) expects third quarter net revenue between $174 billion and $179.5 billion, reflecting 10% to 13% growth above analysts’ estimate of $173.27 billion. 

Third quarter operating income is expected to be between $15.5 billion and $20.5 billion, compared with $17.4 billion in the third quarter of 2024. Wall Street has an estimate of $19.49 billion for third-quarter operating income.

“As we’ve said before, it’s impossible to know what will happen,”CEO Andy Jassy said during a call with analysts after the market closed.

“Where will tariffs finally settle, especially China? What happens when we deplete the inventory we forward-bought, or that our selling partners forward-deployed in advance of the tariffs going into effect? If costs end up being higher, who will absorb them? But what we can share is what we’ve seen thus far, which is that through the first half of the year, we haven’t yet seen diminishing demand nor prices meaningfully appreciating.”

North American sales rose 11% year-over-year in the second quarter to $100.1 billion, while international sales jumped 16% year-over-year to $36.8 billion.

Jassy said the company had one of its biggest-ever Prime Day sales events (July 8 to July 11), and expanded same-day delivery to help drive sales growth.

“This year’s Prime Day was our biggest ever, with record sales, number of items sold, and number of Prime signups in the three weeks leading up to the Prime Day,” Jassy said.

AmazonQ2/2025Q2/2024Y/Y % Change
Net revenue$167.7B$148B13%
Operating income$19.2B$14.7B31%
Net income$18.2B$13.5B35%
Shipping costs$22B$21.81%
North American sales$100.1B$90B11%
International sales$36.8B$31.7B16%
Adjusted earnings per share$1.68$1.2633%
Amazon’s key second-quarter performance indicators.

Tax credit could boost competition among Gulf coast ports

ZPMC cranes at Long Beach container terminal

WASHINGTON — New tax incentives proposed by Republican lawmakers aimed at protecting US supply chains from Chinese market power could also boost competition among Gulf Coast ports.

The Port Crane Tax Credit of 2025, introduced recently by U.S. Reps. Mike Ezell, R-Miss., Jen Kiggans, R-Va., and Nicole Malliotakis, R-N.Y., would establish tax credits to incentivize the domestic production of port cranes, “a critical step toward strengthening U.S. supply chain security and revitalizing American manufacturing,” according to the bill’s sponsors.

“I’m deeply concerned that so many of our ports are forced to use cranes manufactured by Shanghai Zhenhua Heavy Industries [ZPMC], a Chinese state-owned company,” Kiggans said in a press statement.

“It makes no sense to let our top adversary build and maintain the very equipment that powers our supply chains. The work our ports do is imperative – we cannot afford to leave that in the hands of the Chinese Communist Party.”

The American Association of Port Authorities (AAPA) sees the incentive as a counter to levying tariffs on Chinese-built cranes to achieve economic and national security policy goals. Last year the Biden administration imposed a 25% tariff on Chinese cranes, and the Trump administration has proposed raising it to 100%.

“Instead of levying unfair taxes on port development, the Port Cranes Tax Credit Act is a tangible first step on the supply side towards incentivizing the reshoring of key [container handling equipment] in the coming years since there are currently no domestic STS [ship-to-shore] crane manufacturers,” said AAPA President and CEO Cary Davis.

Gulf Coast ports have been particularly vocal about the cost increases they face due to existing and potential new tariffs on Chinese-made container cranes.

The Port of Houston, Port Freeport in Texas, and the Port of New Orleans all have invested in the past several years in container cranes built in China, which dominates the U.S. and international container gantry crane markets.

Their rivals in the Eastern part of the Gulf – the ports of Gulfport and Pascagoula in Mississippi, and Port Tampa – see the tax credit as a way to help compete for business as well as incentivizing domestic manufacturing.

The proposed tax credit “is exactly the kind of forward-thinking support Gulf Coast ports like ours need to stay competitive and meet the demands of a modern, American-made supply chain,” said Port Pascagoula Port Director Bo Ethridge.

“As manufacturing continues to return to U.S. shores, our port is experiencing increased demand and new growth opportunities. Yet we remain the only major Gulf Coast port without cargo cranes, which is an infrastructure gap that limits our ability to diversify commodities. This legislation is a vital step toward closing that gap.”

Jon Nass, executive director at the Port of Gulfport, said the legislation “creates a path to bring new skilled jobs to Mississippi and reinforces our ability to compete globally while supporting our maritime and port industries.”

Port Tampa Bay, which installed Chinese-made cranes at its container terminal in 2016 to help compete for larger container ships, supports the tax credit because it “addresses urgent national security concerns,” said Paul Anderson, the port’s president, by incentivizing U.S-made port equipment.

Click for more FreightWaves articles by John Gallagher.

Why a French shipping magnate with US ties is interested in China-owned port terminals 

French container line CMA CGM could purchase port container terminals being sold by HK Hutchison of Hong Kong, a company executive said.

“It’s very important for the industry, and it’s important for us as a major player in this sector,” CMA CGM Chief Financial Officer Ramon Fernandez said during the company’s earnings presentation this week. “We are present in 65 terminals around the world so we are following this operation very closely and are naturally interested in participating.”

The Marseilles-based company, which is controlled by the Saade family, is the world’s third-largest container carrier and also operates dozens of terminals of its own, including seven in the United States.   

Chief Executive Rodolphe Saade was in the Oval Office in March when President Donald Trump announced a wide-ranging initiative to rejuvenate the domestic maritime sector. Saade at the time said his company would invest $20 billion over four years in U.S. shipping.

Prior to that, Trump had threatened that the U.S. would take back the Panama Canal, where Hutchison owns terminals at the ports of Cristobal and Balboa, alleging China was controlling the waterway.

Not long after, Hutchison (0001.HK) announced plans to sell more than 40 container terminals under its Hutchison Port Holdings unit to a consortium led by BlackRock, the U.S. asset manager, that includes Geneva-based shipping line MSC, for $23 billion. 

After the exclusivity deadline for the deal passed, Huchison this week said it was including a “major investor,” thought to be China’s Cosco, after Beijing threatened to block the sale unless a Chinese company was brought into the transaction. 

Huchison, which is controlled by billionaire Li Ka-shing, also said it would not sell its Panamanian terminals.

Find more articles by Stuart Chirls here.

Related coverage:

Rail deal will open new markets for top US container port 

Activist investor may target CSX, citing slumping financial performance

While shippers cite merger concerns, rival railroad looks instead to ‘collaborations’

CEOs say Union Pacific-Norfolk Southern merger will reverse rail freight decline

XPO sees ‘massive runway’ to push margins higher

A closeup of a white XPO tractor on a highway

An improved freight mix, significant network investments and self-help productivity initiatives are pushing XPO’s financial results higher. The Greenwich, Connecticut-based less-than-truckload carrier again beat analysts’ expectations on Thursday.

XPO (NYSE: XPO) reported adjusted earnings per share of $1.05, which was 6 cents better than the consensus estimate but 7 cents lower year over year. (The adjusted EPS number excluded transaction and restructuring costs.)

The company’s LTL unit reported a 2.5% y/y decline in revenue to $1.24 billion. A 6.7% decline in tonnage per day was partially offset by a 4.2% increase in revenue per hundredweight, or yield. (Yield was 6.1% higher y/y excluding fuel surcharges.)

A weak manufacturing economy again weighed on LTL industry tonnage in the quarter. XPO’s tonnage decline resulted from of a 5.1% y/y decline in shipments per day and a 1.7% decline in weight per shipment.

On a y/y comparison, XPO’s tonnage fell 5.5% in April, 5.7% in May and 8.9% in June. Preliminary results for July showed an 8% y/y decline. The carrier acknowledged a seasonally weaker June but said July was slightly ahead of normal seasonal patterns.

The two-year-stacked tonnage comps showed an acceleration in the declines (from low-single-digits in the second quarter to 8.8% in July). However, XPO’s prior-year comps get much easier starting in August. From August 2024 through the end of 2024, it averaged mid-single-digit y/y tonnage declines.

(Daily shipments and tonnage increased sequentially in the second quarter by 4.9% and 3.6%, respectively.)

Table: XPO’s key performance indicators

Further, XPO’s freight mix is changing for the better.

The carrier has onboarded over 5,000 local accounts this year. These are largely small-to-midsize businesses that carry better margin profiles. Shipments among this group increased by a high-single-digit percentage in the second quarter, which was a step up from a mid-single-digit increase in the first quarter. The group represents a low-to-mid-20% share of XPO’s LTL revenue currently and the goal is to push that to 30%.

Also, XPO continues to increase premium services revenue, or shipments that incur accessorial charges. This accounts for a low-double-digit percentage of revenue currently and there is opportunity for a few more percentage points of growth.

The LTL unit reported an 82.9% adjusted operating ratio (inverse of operating margin), which was 30 basis points better y/y and 300 bps better than the first quarter. The result was at the top end of management’s guidance.

Purchased transportation expenses (as a percentage of revenue) were down 280 bps y/y. Linehaul miles executed by third-party carriers have been reduced from more than 20% a couple of years ago to 6.8% in the recent quarter.

Also, an AI-enabled model has allowed it to reduce linehaul miles by 3%, empty miles by 10% and freight diversions by more than 80%. It is now running fewer miles (down by a mid-single-digit percentage) to move the same amount of freight.

The initiatives led to a $36 million y/y reduction in the expense line in the quarter. It recently implemented a similar program to rework its pickup and delivery network.

Productivity initiatives are helping to reduce labor hours per shipment, and XPO’s average tractor age is now less than 4 years, which has lowered maintenance costs per mile by 6%.

Most of the carrier’s more than 30 new terminals are now open and it is already carrying the costs to operate them. That means there is significant margin leverage when the market turns.

The LTL unit has delivered nearly 400 bps of margin improvement through the downturn. It outperformed all public carriers by 440 bps in the second quarter. Further, XPO sees “a massive runway ahead” for many of these idiosyncratic initiatives.

The unit normally sees 200 to 250 bps of OR degradation from the second to the third quarter. However, this year it is forecasting no change, implying an 82.9% OR, or 130 bps of y/y improvement. The guide assumes a moderation in the y/y tonnage declines and a continuation of sequential increases in revenue per shipment and yields.

Yield excluding fuel surcharges is expected to increase by at least the same percentage it did in the recent quarter (up 6.1% y/y). XPO’s yields have increased by a mid-teen percentage on a two-year-stacked comparison over the past four quarters.

SONAR: Longhaul LTL Monthly Cost per Hundredweight, Class 50-65 Index. Less-than-truckload monthly indices are based on the median cost per hundredweight for four National Motor Freight Classification groupings and five different mileage bands. To learn more about SONAR, click here.

XPO’s European transportation segment reported a 4% y/y increase in revenue to $841 million with an adjusted earnings before interest, taxes, depreciation and amortization margin of 5.2%, 80 bps lower y/y.

XPO generated $247 million in cash flow from operations in the quarter and reduced its net debt leverage to 2.5 times from 2.7 times a year ago. It had $824 million in liquidity to end the quarter and remains focused on paying down debt and buying back stock.

Those efforts will be bolstered as annual capex steps down from 15% of revenue. The company has already onboarded terminals and refreshed the fleet.

Shares of XPO were down 8.9% at 3:05 p.m. EDT on Thursday compared to the S&P 500, which was flat.

More FreightWaves articles by Todd Maiden:

Rail deal will open new markets for top US container port 

The Port of Los Angeles stands poised for significant growth and transformational change following news of Union Pacific’s plans to acquire Norfolk Southern (NYSE: NSC) and create the nation’s first transcontinental freight railroad.

In a phone interview with FreightWaves, Executive Director Gene Seroka emphasized the vast opportunities presented by the historic rail agreement, particularly in terms of enhancing cargo flow and expanding reach into key markets across the country.

“We’ve been working real closely with Union Pacific (NYSE: UNP) on bringing more cargo in to go through the Alameda Corridor,” Seroka said, referring to the below-grade rail freight route used by UP and BNSF to access the San Pedro port complex, which he said was a “great investment but underutilized.” 

The $85 billion rail consolidation aims to optimize the use of the corridor, opening up access to the populous regions east of the Mississippi, and boosting intermodal freight capabilities out of the southern California container hub.

Seroka reminisced about past successes in transcontinental cargo movement as president of the Americas for American President Lines, noting how apparel was efficiently transported from Asia to New York. 

“Think about garments on hangars that would come right out of the box to Macy’s on 34th Street in Manhattan’s Garment District and get put right on their racks,” he recalled. This efficient supply chain model is a compelling vision for future operations, especially with the potential enhanced efficiency from the merger.

Seroka said that the rail-tie up would enable more efficient transportation of goods from Los Angeles to East Coast destinations. 

“You’re reducing paperwork and handoffs, you’re improving digital technology and you’re sailing on a ship getting to Los Angeles to on- dock rail through the Alameda Corridor,” he said. “There’s the retail consuming area of the tri-state New York, New Jersey and Connecticut, the ability to get to Boston, to get to the Mid- And South Atlantic, to get to the Sunbelt, which is growing so fast. And you can do that today, but if you combine the two companies, whether it’s steel wheel interchange at UP’s Global 4 terminal north of Chicago or west of Cleveland, you now have the same company trying to make that turn more efficient.”

The prospect of streamlined logistics would benefit other major markets.

“That will also buoy our biggest markets like Chicago where 20% of our intermodal goes, and then to Memphis and Dallas, but also to get to secondary and tertiary markets quicker. Think of Kansas City, Denver, Salt Lake City. There’s going to probably be a reconfiguration of how the two companies combined to get deeper and longer into this market.”

Despite the transformative potential, the merger is subject to multi-level approvals. Seroka expressed confidence in the diligent work being conducted at both the federal and state levels to secure this future. 

“We’re confident both companies have been working on that,” he said. “But what [the merger] does is it improves our service offering. You know what’s interesting? When just before the Alameda Corridor opened [in 2002], 41% of our imports were intermodal. It dropped down as low as 23%. These ports on the East and Gulf coasts for decades now have hired switched-on leaders, aligned with policymakers and have made massive investment. Cargo owners have gone to a four-corner strategy of port diversification. It’s now possible to get to Chicago from a Mid-Atlantic port. But this puts us back in the game with a higher level of service offering to go out and champion the cause for that discretionary cargo.”

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

Find more articles by Stuart Chirls here.

Related coverage:

Activist investor may target CSX, citing slumping financial performance

While shippers cite merger concerns, rival railroad looks instead to ‘collaborations’

CEOs say Union Pacific-Norfolk Southern merger will reverse rail freight decline

Shippers line up against railroad mergers

What a Real Back Office Looks Like for a Two-Truck Operation

Let’s clear this up: your back office isn’t an office. It’s the system you build to make decisions, protect your money, and stay on the road legally. It doesn’t need to be big—but it does need to be tight. The three main roles of your back office are:

  1. Financial Visibility – So you know what each truck is making (or losing).
  2. Compliance Control – So you don’t get sidelined by fines or failed audits.
  3. Operational Clarity – So you can grow without chaos.

If your current setup involves a legal pad, a shoe box of receipts, and a mental note that something’s due “sometime this month,” you’re already behind.

Your Financial System Is the First Line of Defense

Every successful small carrier knows their breakeven rate down to the penny. And that starts with having a real financial system, not guesswork.

What You Need:

  • A basic digital accounting platform (QuickBooks Online, Wave, or Zoho Books)
  • Weekly tracking of:
    • Revenue per truck
    • Load-specific expenses
    • Fuel, maintenance, tolls, permits
    • Pay, insurance, factoring fees

What to Set Up:

  • Load Profit Tracker (per truck)
  • Monthly P&L snapshot
  • Reconciliation checklist for checking vs. EFS/fuel cards

Reflection Moment:  If you can’t answer “How much profit did I make per truck last month?” in 60 seconds, you need better visibility.

Compliance Isn’t Optional

You don’t get a pass on DOT compliance because you’re small. The fines hit just as hard. And worse—your insurance rates and CSA score can spiral fast if you’re not buttoned up.

Minimum Compliance Setup:

  • FMCSA registration log (MC, DOT, UCR, MCS-150)
  • IFTA folder with quarterly checklists
  • Centralized storage for:
    • BOC-3
    • Proof of Insurance
    • Annual inspections
    • Driver qualification files (even if you’re driving yourself)
    • ELD data pulled weekly

Use Google Drive or Dropbox to keep everything searchable and backed up. Use calendar alerts for expirations. Miss nothing.

Reflection Moment: Set one recurring calendar block each Friday for a “compliance sweep” so you never fall behind.

Documentation and Admin That Doesn’t Suck Up Time

Paperwork is the silent killer of growth. The more time you spend chasing down BOLs and resending rate confirmations, the less time you spend doing what pays: running trucks.

What to Systematize:

  • BOL Upload Flow: Driver → scanner app → shared folder
  • Rate Confirmation Tracker: Spreadsheet or TMS with rate, broker, and load info
  • Invoice Sent Log: Track invoice date, payment terms, and due date
  • Broker Email Templates: For follow-ups, disputes, and rate confirmations

Free tools like Adobe Scan, Gmail templates, and a simple spreadsheet can replace hours of admin time. If you can’t afford a TMS, build your own with Airtable or Google Sheets.

Reflection Moment: Every hour saved on admin is one you can spend quoting higher-paying loads or onboarding better brokers.

Broker Management Is a Back Office Function

Too many small carriers treat broker relationships like one-night stands—book a load, hope it pays, move on. That’s not a strategy.

What to Track:

  • Payment terms for every broker you work with
  • Payment history (on-time, late, issues)
  • Red flags (chargebacks, changed rate cons, poor communication)
  • Volume history and seasonality

Use a tracker (spreadsheet, Airtable, or CRM) to log every interaction. Use DAT or Truckstop’s data tools to assess repeat volume before you call. Stop treating every broker the same.

Reflection Moment: If a broker’s rate is always low and their payment always late, you’re not being flexible—you’re being exploited.

When to Outsource and What to Let Go

If you’re spending more than 6 hours a week doing admin tasks, you’re ready to start outsourcing. Not everything needs to be done by you—and frankly, some of it shouldn’t be.

What You Can Offload First:

  • IFTA prep
  • Invoicing and collections
  • Permit renewals and filings
  • Maintenance reminders and DOT inspection scheduling

You don’t need a full VA—just someone who can log in a few hours a week and keep the wheels turning behind the scenes.

Reflection Moment: The goal is simple—free up your time to work on the business, not just in it.

Use Load Boards for Freight, Not Back Office

Load boards are a tool—not a business model. Use them to fill gaps, spot trends, and test lanes—but don’t let them dictate your strategy.

Use Load Boards To:

  • See lane trends and compare RPMs
  • Find new brokers (after vetting)
  • Spot outbound strength before you deadhead

Don’t Use Load Boards To:

  • Rely 100% for freight
  • Skip broker tracking and vetting
  • Assume all brokers are equal

Reflection Moment: If you can’t explain your load board strategy without saying “I just look for what’s available,” you don’t have a strategy.

Final Word 

Your back office isn’t something you “get to later.” It’s the foundation. For a two-truck operation, you don’t need expensive systems or a full-time admin. But you do need structure.

If you want to grow beyond two trucks—or even keep both trucks profitable long-term—you’ve got to start treating the business like a business. That means tracking, organizing, and executing with intention.

The ones who win in this game don’t just out-drive the others. They out-manage them.