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

truck fallen over

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

A convenient time for a vacation, indeed

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

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

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

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

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

BALTHROP: “One-vehicle fleets.”

FREIGHTWAVES: OK, that’s interesting.

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

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

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

How a truck driver gets stopped for inspection

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Time to start inspecting in the winter

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

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

FREIGHTWAVES: That makes sense.

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

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

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

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

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

Why the Northeast is quietly running out of diesel

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

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

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

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

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

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

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

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

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

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

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

Here’s a breakdown:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The ‘everything shortage’ endures

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

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

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

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

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

Exclusive: Central Freight Lines to shut down after 96 years

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

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

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

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

Kalem agreed.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Watch: Central Freight Lines’ impact on the LTL market

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

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

Central Freight Lines statement

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

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

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

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

Brief history of Central Freight Lines

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

Warehouse cramming is about to begin — Freightonomics

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

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

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

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

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

Seasonality pushing rejections and rates higher ahead of the Fourth

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

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

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

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

The Pricing Power Index is based on the following indicators:

Load volumes: Absolute levels positive for carriers, momentum neutral

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

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

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

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

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

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

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

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

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

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

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

Tender rejections: Absolute level and momentum positive for carriers

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

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

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

SONAR: Capacity Trend Market Score (Carriers – VAN)

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

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

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

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

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

Freight rates: Absolute level and momentum positive for carriers

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

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

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

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

Economic stats: Momentum and absolute level neutral

Several economic releases this week are worth noting.

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

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

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

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

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

SONAR: IJC.USA

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

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

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

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

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

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

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

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

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

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

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

Project44 acquires ClearMetal to strengthen predictive tools

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

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

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

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

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

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

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

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

Click here for more articles by Grace Sharkey.

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No signs of truckload capacity recovering

Chart of the Week: Accepted SONAR Tender Volume Index, SONAR Tender Rejection Index  SONAR: ASTVI.USA, STRI.USA

The truckload market is heading into the holidays with almost no slack. The Accepted SONAR Truckload Volume Index (ASTVI), which measures only the loads carriers accept, has fallen more than 4% over the past four weeks to 9,518. That’s its lowest level outside a holiday week since January. Normally, a drop like that would give carriers room to breathe. Instead, the national rejection rate (STRI) has barely moved and is holding near 13.9%.

A year ago, the market entered peak season with rejections under 6%, and the ASTVI was roughly 2% higher. That suggests the market has regained little, if any, efficiency over the past year.

Fewer accepted loads after 11 months of elevated rates is not what many expected. In the early phase of COVID, carriers appeared to hit their limit with the ASTVI around 11,500 in the fall of 2020. Rejection rates were near 25%, a sign that demand was well beyond what carriers could handle.

By the spring of 2021, carriers were accepting more than 10% more loads, even with rejection rates still elevated. That market was certainly tighter than today’s. Even so, most would expect accepted volumes to have improved by now after months of elevated rates.

A supply-led cycle

The two cycles differ in several ways. The biggest difference is that the COVID cycle was driven more by rising demand than by falling supply. Tender volumes rose nearly 50% year over year from September 2019 to September 2020, and accepted volumes rose 20%. That surge quickly used up all the slack in what had been an oversupplied market.

The current cycle seemed to appear almost out of nowhere. It first showed up during the 2025 holiday season, when rejection rates and spot rates ran well above the previous three years. Many still questioned it, because trucking demand was actually weaker.

Winter Storm Fern in late January was the second catalyst. It pushed tender rejections and spot rates higher, and neither has meaningfully retreated since. Again, demand wasn’t the driver; limited capacity was.

Barriers to entry

The other major difference from the last inflationary cycle is that barriers to entry are much higher now. English language proficiency enforcement, stricter rules on non-domiciled CDLs and tougher immigration policies are keeping a large pool of potential drivers out of the industry.

The Montgomery v. Caribe ruling has an indirect effect on drivers, because brokers are now less likely to use carriers with poor safety records. As of this past summer, close to 2% of carriers with substandard safety scores had been removed from service, according to GenLogs. 

Rising costs

Diesel prices have spiked at times, making it hard for smaller carriers to manage cash flow.

Retail diesel prices are up 73% year over year. Dry van spot rates are up a still-impressive 43%, but they haven’t kept pace with fuel over the past few months. That gap squeezes carrier profitability, a pressure that was largely missing in the COVID era, when diesel prices actually fell in 2020.

Carriers that made it through the difficult stretch from mid-2022 to late last year are hesitant to invest in growth. Borrowing costs are much higher, and the low-cost government lending that helped carriers during COVID isn’t available. Supply always moves more slowly than demand, and it now faces more headwinds than in any recent cycle. Even with economic concerns, transportation procurement teams should prepare for a market that stays tighter for longer, into 2027.

About the Chart of the Week

The FreightWaves Chart of the Week is a chart selection from SONAR that provides an interesting data point to describe the state of the freight markets. A chart is chosen from thousands of potential charts on SONAR to help participants visualize the freight market in real time. Each week a Market Expert will post a chart, along with commentary, live on the front page. After that, the Chart of the Week will be archived on FreightWaves.com for future reference.

SONAR aggregates data from hundreds of sources, presenting the data in charts and maps and providing commentary on what freight market experts want to know about the industry in real time.

The FreightWaves data science and product teams are releasing new datasets each week and enhancing the client experience.

To request a SONAR demo, click here.

What Daimler’s Finance And Global Chiefs Revealed About Diesel, Driverless Trucks, And The Future Of The Industry

On a rainy Saturday morning in Charlotte, inside the brand new North American headquarters of Daimler Truck Financial Services, four of the company’s senior leaders traded the usual press-conference script for something closer to a fireside chat, and over the better part of an hour they said more about where this industry is actually heading, from the engine under your hood to the driver who may one day not be in the seat to the rising cost of borrowing money against a truck, than most carriers will hear in a year of official announcements.

The panel brought together a rare mix of global and local perspective. Eva Scherer, chief financial officer of Daimler Truck Holding AG, carried the worldwide view. Stephan Unger, chairman of Daimler Truck Financial Services, which operates across 21 countries, spoke to how the financing side of the business is changing. Kevin Bangston, president and CEO of Daimler Truck Financial Services USA LLC, handled the view from the United States, Canada, and Mexico. Goetz Johanning, head of strategy and realization for the North American financial services arm, moderated. The session was set up as a conversation rather than a presentation, and the candor showed.

Here is what matters in it for carriers of every size, from the single-truck owner-operator to the mega fleet, pulled apart and put in plain terms.

The EPA 2027 Engine Is Real, And The Pre-Buy Never Came

Start with the question on every buyer’s mind, because the answer shapes equipment decisions for the next two years. Daimler is going to market with a fully EPA 2027 compliant Detroit engine, and Scherer was clear that the company is not playing games with emissions credits or non-conformance penalties as a way around the standard. The strategy is a compliant engine, full stop.

The reassurance she offered carriers is built on continuity. The new Detroit engine shares roughly two-thirds of its parts with the current generation, which the company is framing as a reliability story rather than a leap into the unknown, paired with what it describes as competitive pricing. On top of that, Scherer said the new engines deliver about three percent better fuel economy, which over a year of real miles is a number worth paying attention to.

What has not happened is just as telling. Daimler released its 2027 price list in September, and there was no spike in orders. Normally a coming emissions change triggers a pre-buy, a rush to purchase trucks under the old standard before the new one lands. This time the industry is sitting on its hands, and the reason is uncertainty. With ambiguity still hanging over the final 2027 rules, the engine strategies, and the penalty structure, buyers are in wait-and-see mode. Scherer said all the major manufacturers are fully booked for the rest of this year and that customers are positioning for orders next year, but they are not committing yet. For a small carrier, the read is simple. There is no stampede to beat, which means less pressure to make a rushed, expensive decision in a fog of regulatory uncertainty.

The Freight Recovery Is Real, And So Is The Diesel Risk

The panel was refreshingly plain about the pain of the last few years. A multi-year freight recession hurt Daimler’s own credit portfolio, and the company did not pretend otherwise. Bangston described coming into this year cautiously optimistic, watching a recovery driven by capacity leaving the market rather than by a surge in demand, with pricing power returning as that capacity bled out.

By the second quarter, he said, renegotiated rates started showing up in the financials of on-highway customers, and the portfolio moved from stabilizing to performing meaningfully better. That is the clearest signal yet from a lender’s seat that the small and mid-sized carriers who survived are starting to breathe again.

The one threat still hanging over all of it is the price of diesel, and here the panel gave a data point every carrier should sit with. Bangston estimated that customers are able to pass on roughly 70 percent of diesel cost through fuel surcharges, which leaves about 30 percent that carriers absorb themselves. That gap is exactly where thin margins get thinner when diesel spikes, and with recent price pressure tied to a string of geopolitical events, the leadership was openly wary about where fuel goes from here. For an owner-operator without the surcharge leverage a large fleet commands, that uncovered slice of fuel cost is the number that can quietly decide a year.

Financing Is Getting More Expensive, And That Changes The Math

If there was one theme the finance leaders kept circling back to, it was that money itself has gotten more expensive, and that it is reshaping how carriers buy trucks.

Unger laid it out bluntly. Interest rates are high around the world, spreads are widening, and sovereign debt is sitting at elevated levels that he expects to persist. As financing gets more expensive, he said, more customers are coming to Daimler’s captive finance arm specifically for help, because a captive lender that only finances trucks, and that understands trucking through its cycles, can structure around a downturn in ways a general bank will not. The company leans on an A credit rating and a balance sheet it calls rock solid to back that up.

The bigger shift underneath that is the move away from simply buying a truck and bolting on a loan at the end. Daimler is pushing hard toward bundling, wrapping financing, maintenance, repair contracts, insurance, telematics, extended warranty, and residual-value packaging into what increasingly looks like a single monthly rate. Unger pointed to Europe, where the company runs more than 6,000 trucks in short-term and long-term rental through a unit called Charterway, and where full-service leasing and rental are growing fast. In North America, Daimler delivers that full-service leasing through partnerships with Penske and Ryder rather than running the fleet itself.

Bangston was careful not to oversell the trend. He said North America is seeing more interest in bundling but not a fundamental shift out of ownership and into leasing, and no dramatic change in the owning-versus-leasing mix at the moment. The takeaway for a small carrier weighing its next purchase is that the options are widening, from straight ownership with a plan to remarket in three years, to an operating lease with its own financial advantages, to bundled service packages, and the right answer depends on how much flexibility and predictability your operation actually needs.

Driverless Trucks Are Closer Than The Timeline Suggests

The most forward-looking part of the conversation was autonomy, and Daimler’s framing was concrete rather than hand-wavy. Scherer said the company expects to get the driver out on its first route by the end of this year, then build mileage from there, targeting commercialization at scale toward 2028. The platform is an autonomy-ready Freightliner Cascadia with full redundancy in braking and steering, paired with a virtual driver from Torc Robotics, the company’s autonomous subsidiary.

Two points from that discussion matter for the rest of the industry. First, the system is being built to be modular rather than locked to a single autonomy provider, so the redundant chassis can in principle work with different virtual-driver companies. Second, and more important for how this hits the market, the business model splits into separate revenue streams. You buy or finance the truck and chassis as you always have, and the virtual driver comes as a per-mile software-as-a-service layer on top. That is a genuinely different way to pay for a truck, and Daimler says it will finance whatever shape the autonomous model ultimately takes.

Scherer also noted how fast the underlying capability is moving, describing a shift from older imitation-based training to reinforcement learning that lets a truck handle routes it has never seen before. Autonomy will still roll out on defined lanes that expand gradually, with safety as the gating factor, but her message was that the pace of expansion is accelerating and the next two years will show real ground covered.

Electric, Hydrogen, And The Patience Behind The Strategy

On powertrain, Daimler described what it calls a dual-track approach, and it was candid that North America and Europe are moving at different speeds. In North America the priority is squeezing more efficiency out of diesel, with the compliant 2027 engine now and further efficiency steps planned toward 2030 and beyond. In Europe, where regulation is forcing the pace, the company is pushing much harder on zero-emission trucks and is also investing in hydrogen for the 2030s.

Scherer offered a striking figure to show the company is not standing still on electric, saying its flagship long-haul electric model in Europe holds a 38 percent market share there, well above its overall share, and that the newest battery technology it runs in Europe can be brought into North American products like the electric Cascadia relatively quickly once real demand materializes. The company’s stance, which it calls the speed of right, is that customers and markets will decide the pace, and it will be ready either way rather than forcing a transition the market is not asking for. On charging infrastructure, the position was equally disciplined. Daimler does not intend to pour large capital into building charging at scale, preferring to support customers with depot and warehouse charging and to kickstart activity through selective partnerships.

Why It Matters

Everything the panel laid out, the compliant 2027 engine with its roughly three percent fuel-economy gain, the recovery finally showing up in rate renegotiations, the rising cost of money, and the roughly 70 percent of diesel cost carriers can pass through, points to a single reality for anyone running trucks, which is that the uncovered edges of this market, the 30 percent of a fuel spike you eat and the higher payment you now carry, are exactly where a thin margin gets decided. For small carriers and owner-operators, the smart move is to read this as the honest lender’s-eye view it is, make equipment decisions on your own breakeven rather than on fear of a 2027 deadline that is not actually triggering a pre-buy, and watch the per-mile autonomous model closely, because it is an early signal of how the whole economics of owning a truck may one day be priced.

This article is based on a panel discussion with Daimler Truck and Daimler Truck Financial Services leadership at the DTFS North American headquarters in Charlotte, North Carolina, featuring Eva Scherer, CFO of Daimler Truck Holding AG, Stephan Unger, chairman of Daimler Truck Financial Services, and Kevin Bangston, president and CEO of Daimler Truck Financial Services USA LLC, with Goetz Johanning of DTFS USA moderating. Figures and forward-looking statements are as presented by the executives.

BREAKING: Texas judge upholds nuclear verdict against C.H. Robinson

The more than $600 million judgment in a Texas court case against C.H. Robinson has been affirmed by the judge that heard the case.

Judge Dianne Jones of Dallas County Court on Friday affirmed the July verdict of $604,025,000 handed down in July against C.H. Robinson (NASDAQ: CHRW) as a result of a fatal accident that killed three persons in March 2021. 

One of the three persons killed in the wreck was Gorgonio Gonzalez, an employee driver of carrier Lupus Superior that was hired by C.H. Robinson to move a load for Arizona Beverages. His death made finding the cause of the accident difficult to ascertain.

The lead named plaintiff in the case is the estate of Jennifer Lipe, represented by Peyton Lipe. Jennifer Lipe was one of the persons killed in the crash that occurred in Jackson, Mississippi, though the case was heard in Texas because that is the headquarters of Lupus Superior. 

The case of Lipe vs. Lupus Superior, the carrier hired by C.H. Robinson, is problematic for C.H. Robinson on two key fronts. 

One is the $600-million plus verdict. While there have been nuclear verdicts in trucking larger than that–though not many–there is no known precedent for a verdict of that size against a publicly-traded company with an investment-grade credit rating and an end-second quarter balance sheet of $5.8 billion. Some of the larger verdicts were handed down against companies that were effectively ghosts and didn’t participate in their defense.

(It is notable that the second quarter balance sheet for C.H. Robinson listed cash and cash equivalents of $154.9 million, far below the Lipe award).

Who’s in control?

But the other major issue for C.H. Robinson, and by extension the brokerage community in general, is the jury’s finding, in response to a question in the jury’s charge, that driver Gonzalez was “operating the vehicle in the furtherance of a mission for the benefit of C.H. Robinson and subject to control by C.H. Robinson as to the details of the mission.”

If that finding is upheld on appeal, it means the brokerage industry would have gone in just a few months from liability protection under the Federal Aviation Administration Authorization Act (F4A) being blown away in May by the Supreme Court’s Montgomery decision, to a precedent that may be set by Lipe vs. Lupus Superior that the driver at a carrier is effectively controlled by the brokerage that hired the trucking company.  

In a prepared statement released late Friday following the affirmation, C.H. Robinson reiterated several of the same points that it made not only when the initial decision was handed down in July but also in various forums since then.

The company expressed sympathy for the “profound loss suffered by the families in this case.”

“But C.H. Robinson did not cause or contribute to the accident, and accountability must be grounded in the facts and the law,” Dorothy Capers, chief legal officer at C.H. Robinson, said in the prepared statement.

Capers’ statement brought up a question facing brokers in the post-Montgomery landscape: what constitutes a hiring process that can protect them?

Dorothy Capers of C.H. Robinson

She pointed out, as has been done before, that Lupus Superior had a Satisfactory rating from the Federal Motor Carrier Safety Administration (FMCSA) and had “safely delivered nearly 270 loads for our customers.”

“The carrier is an independent company and the driver worked for them,” Capers said in the statement. “C.H. Robinson does not employ drivers.”

“The extreme nature of this judgment underscores why a clear national standard for what constitutes a safe carrier is needed now,” Capers’ statement added. “America’s freight network should not be governed by safety standards determined after the fact, state by state and courtroom by courtroom.”

It is an issue that has been raised publicly by the Transportation Intermediaries Association. In June, it called for federal action of some kind to determine what a broker can rely upon to protect itself when hiring brokers. 

The size of the payout does not end with the $604 million. As TD Cowen’s Jason Seidl noted in an analyst report released soon after news spread of the affirmation, there is also approximately $107 million in pre-judgement interest affirmed by Judge Jones. 

“We believe the substantial interest charge was less appreciated by investors and drove weakness in trading immediately after the judgment was entered, though this was included in the plaintiff’s originally proposed judgment,” Seidl wrote.

The interest rate being applied to the judgment is 6.75%. 

“Assuming CHRW moves to appeal and this results in a multi-year process, this would imply an even larger compounded charge if appeal is unsuccessful,” Seidl added.

C.H. Robinson, Seidl wrote, has a “non-trivial incentive to settle this lawsuit eventually if appeal sees adverse developments, though overturning the vicarious liability ruling (where C.H. Robinson was found to control the driver) in appeal is likely to remain a first preference.”

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Evos raises $9M to build AI operators for industrial businesses

AI startup Evos raised $9 million in pre-seed funding to develop autonomous software operators for small and midsized industrial businesses, including freight brokerages, the company announced Wednesday.

This comes as the company looks to automate routine work without requiring businesses to replace their existing software.

The round was co-led by Uncork Capital and Field Ventures, with participation from Crosslink Capital, Utopia Capital Management, Sandwith Ventures and angel investors.

Evos said it surpassed $1 million in annual recurring revenue four weeks after launching. The company did not disclose its valuation or the number of customers using its platform.

How it works

Evos is developing AI operators that learn how employees make decisions and carry out specific business functions within a company’s existing systems. Rather than requiring employees to prompt an AI tool for every task, the operators are designed to manage an assigned function independently once their decisions consistently match those of experienced workers.

The approach targets smaller industrial businesses where operational knowledge often rests with experienced employees rather than documented procedures. Evos said its operators learn from employees’ behavior and decisions, with the goal of reproducing their work before taking on tasks autonomously.

“The most capable system in many of these businesses is the person who has been there 20 years, and what they know has never been written down,” said Urav Shah, founder and CEO of Evos.

According to the company’s announcement, 99.3% of U.S. motor carriers operate fewer than 100 trucks, while 93% of U.S. manufacturers have fewer than 100 employees. Evos argues that these businesses need automation that does not require extensive technical resources or lengthy implementation projects.

“The platform is fully self-serve: work that would take a consultant or an implementation partner 9 to 18 months to deliver, an Evos operator takes on in 24 hours from discovery to deployment,” the company said.

One freight brokerage, MyFreightWorld, is using an Evos operator to audit less-than-truckload (LTL) carrier invoices against its transportation management system. Evos said the operator made nearly 3,500 audit decisions over two months with 97% accuracy and identified billing discrepancies valued at more than $600,000 over the most recent five-week period. The $600,000 represents the value of discrepancies identified between invoices involving MyFreightWorld and its end customers, rather than money recovered or savings realized, Evos noted. The company did not explain how it calculated the 97% accuracy rate or specify the sample used to measure performance.

Broader context

LTL invoice audits can uncover billing errors involving accessorial fees, fuel surcharges and freight classifications.

A 2024 analysis by AFS Logistics illustrates the volume of discrepancies that can arise in LTL billing. The company found 11,881 errors in a review of nearly 250,000 invoices. Inaccurate accessorial charges accounted for 42.8% of the errors, followed by fuel surcharges at 14.4% and freight misclassification at 12.3%. The findings reflect AFS’s review rather than the entire LTL market.

The startup’s approach comes as logistics companies continue to seek measurable returns from AI investments. A Boston Consulting Group report published in August 2026 found that only 13% of executives surveyed at 30 leading global logistics companies said AI was delivering measurable financial results, despite two-thirds of respondents reporting a dedicated AI budget and strategy. The findings highlight the gap between investing in AI and translating that investment into measurable business results.

For smaller operators, the cost and complexity of implementation can also determine whether automation is practical. Evos is betting that software capable of learning established workflows and executing tasks within existing systems can lower those barriers.

Why this matters

AI startups are increasingly targeting routine logistics work, but proving that automation delivers measurable financial results remains a challenge. Evos’ work with MyFreightWorld offers a specific example of how AI operators could be used in freight brokerage operations, though the startup has not disclosed how much money the technology has recovered or independently verified its reported accuracy rate.

Tesla staffs up Nevada Semi plant as fleet orders stack up

Tesla Semi cab chassis on the assembly line inside Tesla’s Sparks, Nevada plant, with production equipment, pallets, and overhead systems visible.

Tesla had 103 job openings with Semi in the title posted at its Sparks, Nevada, truck plant as of Oct. 16, according to Tesla’s careers site. The listings come three weeks after the plant started high-volume Semi production on Sept. 24.

The hiring is for a 1.7-million-square-foot factory designed to build 50,000 trucks a year, as fleets line up orders for a truck Tesla first showed in 2017. Tesla has not said how many Semis the plant is building now. Before the dedicated line opened, the Semi fleet numbered just under 200 pilot trucks, delivered to customers including DHL, PepsiCo and US Foods.

Drayage carrier IMC Logistics ordered 50 Semis this month, following WattEV’s 370-truck order in May. Tesla was also named lead manufacturer on a 2,500-truck order through the ZET SCALE alliance in September, though the alliance did not say how many of those trucks will be Semis.

Tesla CEO Elon Musk told analysts in July, “We have started production with the Tesla semi-truck.” The company’s second-quarter shareholder update said production was expected to begin later in the year.

Semi openings span assembly to dispatch

The Semi listings include quality technicians for stamping, body-in-white and powertrain; equipment maintenance technicians for general assembly and the drivetrain; and a CDL driver, a dispatcher and an endurance fleet driver.

Several are night-shift roles, including a battery production supervisor, associate production managers and stamping quality technicians. Tesla is also hiring construction staff for the Semi site, from a pipefitter to an electrical superintendent.

The Semi roles are part of a larger list: Tesla’s site showed 490 openings in Sparks, 301 of them in manufacturing. The company’s Sparks listings on Indeed include production roles on battery, Powerwall, drive unit and LFP cell lines.

Semi service and charging build out beyond Nevada

Another 66 Semi postings sit outside Sparks. In the U.S., Tesla is hiring Semi service managers, supervisors and technical instructors in 11 cities, including Laredo, Texas; Elizabeth, New Jersey; and Chicago.

On the charging side, Pilot and Tesla opened their first Megacharger site in Ellabell, Georgia, Oct. 8, with 12 more under construction.

Tesla is also hiring for the Semi in Germany, France, the Netherlands, Belgium and the U.K., where it is targeting customer deliveries by the end of 2027. Postings there include service technicians in Berlin, Düsseldorf and Lyon, France.

The first European trucks will come from Nevada. “We’ve got ample capacity to support our initial wave,” Dan Priestley, who leads the Semi program, said in a September keynote at IAA Transportation in Hannover, Germany.

Output figures remain undisclosed

Tesla’s third-quarter delivery report on Oct. 2 did not mention the Semi, and the company has not disclosed pricing. It reports quarterly results after the market closes Oct. 21.

Semi postings are down from the spring even as Tesla’s overall Nevada postings rose. Stocktwits counted 146 Semi roles among nearly 471 full-time Nevada jobs on Tesla’s site in April, though it did not say how it identified Semi roles. On Oct. 16, the site listed 103 Semi-titled roles and 537 full-time Nevada openings.

Priestley has also said “Tesla is not a heavy truck company yet,” FreightWaves reported in its coverage of the Sept. 24 inauguration.

Why it matters: Tesla is staffing a Nevada plant built for 50,000 trucks a year as IMC, WattEV and ZET SCALE orders arrive. It has not said how many Semis the plant builds today, and its Oct. 21 results are the next chance to find out.

Veteran trucker launches free parking, fuel-price platform for drivers

A veteran truck driver in Georgia has launched a free online platform designed to help truckers find parking, locate roadside repairs, compare diesel prices and access other resources without paying subscription fees.

Shawn Gresham, a 17-year commercial driver and founder of Trucking Life Academy in Dalton, Georgia, said his Trucking Life With Shawn platform currently lists 2,031 truck parking locations across 45 states.

The directory includes 1,882 truck stops, 78 dedicated truck parking lots and 71 hotels that accommodate commercial trucks. It also features 259 listings for truck repair, tire services, roadside assistance and heavy-duty towing, according to Gresham.

“Truckers get nickeled and dimed to death across a hundred different apps: one for parking, one for fuel prices, one for HOS math, one to study for the CDL,” Gresham told FreightWaves. “I built one place, by a trucker, with all of it, free.”

Gresham said the directory has been under development since July and is now being made available to the public. He said 80 listings were added over the past 30 days.

The platform does not display real-time parking availability. Instead, it identifies locations where drivers may park, with listings marked to indicate whether overnight parking has been confirmed or remains unverified.

Drivers can search by state, interstate and exit number, rather than downloading an app or creating an account.

“The directory itself comes from something personal,” Gresham said. “I ran 17 years with a paper truck stop guide on the dash and wrote my own notes all through it.”

He said the online version is designed to recreate that experience on a smartphone, allowing drivers to quickly identify parking locations and roadside services along their routes.

During a demonstration with FreightWaves, Gresham showed how drivers can select a state, interstate and travel direction to find truck stops and parking locations along their route.

A separate repair directory allows drivers to locate towing companies, tire services and other repair providers near interstate exits.

Gresham said the feature was inspired by his own experiences trying to locate assistance after a breakdown.

Instead of searching multiple websites and calling companies that might be dozens of miles away, drivers can identify services near their location and contact them directly through the directory.

The platform also includes a diesel price board that Gresham said is updated daily.

Drivers can compare estimated prices by state, region and city, along with using a calculator to evaluate potential fuel costs.

Gresham, who also works in fuel operations at Rosedale Transport, said he uses diesel pricing information supplied by Love’s Travel Stops to help populate the platform.

“It’s not perfectly average, but it gives you a good idea of what that state’s going for that day,” Gresham said.

He said the information could help drivers and fleets make more informed decisions about where to purchase fuel along their routes.

Gresham is also developing a truck navigation system and trip planner, which he expects to release publicly on New Year’s Eve.

The GPS system is currently being tested by 87 working truck drivers, according to Gresham.

He said the pilot program has allowed developers to identify and correct navigation problems before making the system widely available.

One early issue involved delayed turn notifications, which Gresham said has since been addressed.

The accompanying trip planner is designed to help drivers identify potential stopping locations based on their routes, weather, traffic conditions and remaining available driving hours.

Drivers must manually enter their available hours of service, and Gresham emphasized that the tool is not an electronic logging device or a replacement for federally required hours-of-service records.

The system is intended to identify potential parking locations before drivers exhaust their available driving time.

Gresham said he has intentionally limited access to the GPS pilot while testing continues.

“I didn’t want a brand new driver to use it, and then it did something wrong,” he said.

Drivers interested in participating in the pilot can contact Gresham through the website.

Although the platform’s driver tools are free, Gresham said the website generates revenue through several channels.

Those include sales of his trucking books and guides, affiliate commissions from Truck Parking Club and paid featured listings for businesses such as repair shops.

Gresham said Truck Parking Club is working to integrate its reservable parking locations into his directory, allowing drivers to access paid parking options through the platform.

He receives affiliate compensation when users book qualifying parking through the referral arrangement.

Gresham said drivers can continue using the free parking directory without purchasing a reservation.

The platform also includes CDL practice tests, educational articles, study guides and a sleeper berth split calculator intended to help drivers understand hours-of-service calculations.

He said the goal is to consolidate resources that truckers might otherwise access through multiple websites or subscription services.

“Drivers never pay, and they never will,” Gresham said of the platform’s driver tools.

The online platform follows Gresham’s efforts to establish Trucking Life Academy, a CDL training school in Dalton built with equipment and other contributions from drivers and businesses.

The academy is scheduled to open this month, pending final state approval.

Gresham previously told FreightWaves that he established the school in response to concerns about the quality of CDL training and the preparation of new commercial drivers.

The school plans to limit classes to six students and initially offer training over eight weekends.

The new online platform expands that effort beyond prospective CDL holders to drivers already working in the trucking industry.

Gresham said the parking directory is now publicly accessible, although he does not yet have meaningful usage figures because the service is newly launched.

He said working drivers can submit additional parking locations and corrections, which he reviews before publishing.

“Parking is a huge problem,” he said. “I just want truckers using it.”

Why it matters: The platform aims to give truckers easier access to parking and operational information without requiring multiple paid subscriptions, although its parking directory does not provide live space availability.

More FreightWaves articles by Noi Mahoney:

Louisiana attorney, staged accident scammer, finally sentenced

Danny Keating, an attorney who was one of the masterminds of the Louisiana staged accident scam, was sentenced Thursday to 32 months in federal prison. 

Keating’s sentence will be followed by three years of supervised release. He also must pay $657,405.34 in restitution.

Keating was one of the most significant participants in what prosecutors in the office of the U.S. Attorney for Eastern Louisiana dubbed “Operation Sideswipe,” the intentional collisions in the New Orleans area between cars full of participants in the scheme and other vehicles that were usually tractor trailers. 

Keating pleaded guilty in June 2021. He is the only attorney involved in the case to cop a plea.

He has been cooperating with prosecutors since then and was a key witness in the successful prosecution of fellow attorneys Vanessa Motta and Jason Giles, who were convicted in March for their roles in the scam. They await sentencing, as earlier sentencing dates were delayed with no new ones set as the two sides work through various motions.  

Keating did not testify in the recent mixed bag verdict of several people charged in the murder of Cornelius Garrison, who also had agreed to cooperate with federal prosecutors in 2020 after he pleaded guilty. Garrison was gunned down in his home soon after. The key murder charges in that case ended up in a hung jury with no new trial scheduled, though there were other convictions.

During the interim between his guilty plea and this week, Keating’s sentencing was frequently scheduled and then delayed before finally occurring Thursday.

According to reporting about the sentencing by NOLA.COM, the online successor to the New Orleans Times Picayune, Keating’s attorney Brian Capitelli had asked U.S. District Court Judge Nanette Brown to sentence Keating to probation, citing Keating’s cooperation with the investigation and the fact that he is in poor health.

Keating not only didn’t get that; he also got more than the two years prosecutors had sought. But his sentence, according to NOLA.COM, is less than federal sentencing guidelines of 57 to 60 months.

According to NOLA.COM, assistant U.S. Attorney Brian Klebba in making his argument to the judge to hold Keating’s sentence to two years said “when faced with a choice, Mr. Keating chose to admit to his misdeeds, forfeit his law license and tell the truth about the crimes that he and others committed.”

Keating must report to prison by January 11, 2027, according to the NOLA.COM reporting.

In its prepared statement announcing the sentencing, U.S. Attorney for the Eastern District of Louisiana David Courcelle said in the plea from 2021, Keating admitted to paying fellow ringleader Damian Lebeaud for 31 tractor trailer crashes. Concurrently, Keating represented 77 plaintiffs involved in the staged collisions. 

Lebeaud, like Keating, cooperated with prosecutors.His sentencing, like Keating’s, also has been delayed numerous times but is now set for December 3. 

Keating’s attorneys on Friday requested that the U.S. Bureau of Prisons send Keating to the minimum-security satellite camp at FCI Beaumont Low. Keating, according to the court filing, suffers from “Common Variable Immunodeficiency (“CVID”) and also has two spinal cord stimulators.”

“Due to CVID and the spinal cord stimulators and his medication requirements, it is requested that he be designated to a Federal Medical Facility,” the filing said. The facility in Beaumont, Texas has the ability to treat those ailments, the attorneys said. 

According to the U.S. Attorney’s office, payouts in the staged collisions totaled about $1.5 million for plaintiffs represented by Keating. He kept about $358,000 of that.

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25 charged after drug ring used unsuspecting truckers to haul cocaine from California to Florida

More than 40 kilograms of cocaine traveled from California to Florida aboard a commercial truck without the carrier’s knowledge. Investigators intercepted the shipment as suspects began unpacking a pallet containing the drugs. Florida Attorney General James Uthmeier announced October 13 that Operation Icebreaker uncovered a trafficking network spanning three South Florida counties. Authorities charged 25 individuals in connection with the operation.

Investigators seized approximately 45.5 kilograms of cocaine during the operation. Uthmeier announced the takedown following enforcement operations across Palm Beach, Broward and St. Lucie counties. Officers also recovered fentanyl, methamphetamine, prescription pills and firearms.

How cocaine moved through commercial freight

According to the Attorney General’s announcement, traffickers concealed multi-kilogram quantities of cocaine aboard commercial trucks. The organization relied on legitimate carriers that authorities described as unaware of the illegal cargo. Investigators identified Ariel Fernandez-Alonso as a major supplier who reportedly claimed receiving 50 to 60 kilograms every 15 days. Detectives intercepted one delivery as Fernandez-Alonso and associates began unloading the shipment.

Authorities have not confirmed whether the intercepted pallet traveled through a truckload or less-than-truckload network. Investigators have not identified the shipper, consignee, freight broker or carrier. Specific pickup and delivery locations also remain undisclosed. Court records provide no additional details about the shipment arrangements.

Previous FreightWaves reporting has documented other drug trafficking operations involving commercial transportation. One investigation uncovered a $139 million trafficking operation involving broker-style arrangements with knowing drivers. Another case involved $6 million in cocaine concealed beneath a semi-trailer’s floor near the Canadian border.

Palm Beach County Sheriff’s Office narcotics detectives began investigating suspicious social media activity in March 2026. A 162-page arrest warrant affidavit details undercover purchases, court-authorized wiretaps and surveillance of suspected distributors. Detectives identified Kenny Charles as a primary supplier to Richard Paterniti during the operation. The filing does not explain how investigators first identified the intercepted California shipment.

Investigators identify trafficking network across three counties

Authorities executed more than 20 search warrants during coordinated enforcement operations. Prosecutors charged 25 individuals, including Fernandez-Alonso, Paterniti, Charles, Craig Benard, Jerri Kitzelman and Jerry Salerno. Charges include drug trafficking, racketeering conspiracy and unlawful use of communication devices. All defendants are presumed innocent unless proven guilty.

Why it matters

Legitimate trucking companies can unknowingly transport illegal cargo when traffickers exploit commercial freight networks. The case highlights the importance of shipper verification, accurate cargo documentation and maintaining control throughout the transportation process.

Click here for more articles on cargo theft and freight fraud by Phil Brink.

Nebraska deputies recover $250K stolen copper load 50 miles past Iowa destination – FreightWaves

Freight Fraud Awareness Day returns as strategic cargo theft reshapes trucking – FreightWaves

Man gets 2 years for $3.5M Amazon fraud using 23 trucking accounts – FreightWaves

ATRI gets a new head: TeamOne’s Siplon

The American Trucking Associations wrapped up a busy week Friday as it prepares for its annual conference beginning Sunday, with the American Transportation Research Institute, ATA’s not-for-profit research organization, naming a new head the day after ATA announced a new chief of the entire organization.

Page Siplon will head up ATRI, according to a Friday announcement. He will hold the positions of president and chief operating officer. 

According to ATRI, Siplon was most recently the CEO of TeamOne Logistics, a firm that partners with companies to provide drivers and other employees to carriers. “His leadership focused extensively on the trucking workforce, driver recruitment and retention, safety, and the operational challenges facing motor carriers,” ATRI said in its announcement of Siplon’s hiring. 

The news of Siplon’s appointment comes a day after the ATA said it had hired Mark Colson, current head of the Alabama Trucking Association, to head the national organization. 

Georgia background

TeamOne is based in Georgia, and Siplon’s career in logistics prior to that was focused on the Peach State.

Previously, Siplon had been executive director of the Georgia Center of Innovation for Logistics. He also founded the Georgia Logistics Summit, which ATRI described as “one of the nation’s largest logistics conferences.”

Siplon also has been vice chairman of the U.S. Department of Commerce’s Advisory Committee on Supply Chain Competitiveness.

Siplon will join the ATRI staff next month. He will work alongside current ATRI president Rebecca Brewster, who is retiring in February 2027. He will then assume his duties at the top of the organization.

Siplon’s announcement comes right before the ATA MCE meeting next week which also is when ATRI announces the results of its Top 10 survey. The input from that research into the top 10 issues separates the results out by totals and separate subcategories drawn from driver and management input, the latter of which often reveal a significantly different perspective between the two.

ATRI regularly conducts such surveys throughout the year. Earlier this week it announced two new surveys, one aimed at carriers and the other at drivers, on the issue of driver health.

Looking at driver health

The survey, according to ATRI, will take different approaches in its methodology.

ATRI said it would ask drivers to share anonymously several inputs, “as well as their experience with maintaining health and wellness while on the road.”

Carriers would be asked by ATRI for information on their fleets’ medical card durations, insurance costs and other key performance indicators. “Motor carriers are also strongly encouraged to share the driver survey with their driver workforce,” ATI said.

A medical card is more formally referred to as a Medical Examiner’s Certificate. It certifies a driver’s fitness to be on the road and is required by federal law.

In the prepared statement kicking off the health study, ATRI quoted Project 61 Founder & CEO Jeremy Reymer. ““We already know driver health can affect safety,” he said. “The next question is how much it may also be affecting operational risk and cost.”

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Carrier Logistics, LSP44 announce partnership to automate LTL shipment identification

Carrier Logistics and LSP44 have partnered to develop an AI-powered API that can identify less-than-truckload shipments when a shipper or third-party logistics provider does not have the correct tracking number, targeting a source of manual work for carrier customer service teams.

The collaboration combines Carrier Logistics freight management software for LTL carriers with LSP44’s AI agent and API infrastructure for logistics service providers. The jointly developed technology allows shippers and 3PLs to submit other shipment details, including company names, delivery locations, shipment descriptions and approximate dates to search for freight through an automated connection.

“We’ve opened up the API to accept not just a pro number, but description of the shipment, an approximate date, where it’s getting delivered, and the names of the parties,” Carrier Logistics President Ben Wiesen said. 

The companies announced the collaboration at Carrier Logistics’ user group conference in Chicago on Friday, Oct. 9. The partnership is now live, according to Carrier Logistics.

Traditional tracking APIs rely on a valid PRO number, the identifier used to track less-than-truckload shipments. When a shipper or broker doesn’t have the correct number, the carrier’s system may be unable to find the shipment, forcing the customer to call or email the carrier so an employee can locate the freight manually.

As more logistics companies automate communications, failed tracking requests can add to the volume of calls carriers must handle. LSP44 cited RXO‘s report that its AI agents automated more than 500,000 phone calls in the first quarter of 2026, illustrating the growing scale of AI-driven communications in logistics. Also, at Carrier Logistics’ user conference on Friday, Oct. 9, Jeremy Estep, head of sales at LSP44 cited estimates that responding to bot communications can cost motor carriers upward of $10 per shipment.

“The industry has treated manual tracking requests as the cost of doing business for decades.  Every carrier running LTL has a customer service team absorbing that cost today,” said Nick Ruggiero, LSP44’s head of product. 

Wiesen described the problem from a carrier perspective. 

“If both parties don’t know what the tracking number is, then that electronic communication fails,” Wiesen said.

The API searches recent shipment records and ranks potential matches using details such as origin and destination, ZIP codes, company names and other shipment characteristics. Shippers and 3PLs can compare the results with their own records to identify the correct shipment and resume electronic tracking.

The API first identifies potential shipment matches using defined search criteria. Carrier Logistics said AI then ranks those candidates by accounting for discrepancies in the available information. For example, it might recognize a shipment number with two incorrectly transcribed digits as a potential match, or rank a shipment higher when its ZIP code matches even if its listed weight differs from the search information.

Wiesen said the system searches around a week’s worth of shipment records. The approach is intended to replicate the work a customer service representative would perform when trying to identify freight from incomplete information.

The API is password-protected and uses account-specific credentials. Carrier Logistics said it considers only shipments associated with validated accounts as potential matches, limiting the records available through a search.

Testing whether the API reduces manual inquiries

The collaboration targets a specific failure point in freight automation: tracking requests that cannot be resolved because the requesting system lacks a valid shipment identifier.

Rather than deploying additional AI agents to respond to calls and emails generated by failed tracking requests, Carrier Logistics and LSP44 are attempting to resolve the identification problem at the API level.

“We could put voice bots on our side to answer voice bots on your side, and email-responding AI to email it. But why? Why can’t we just solve the bottleneck and the fundamental problem?” Wiesen said.

The system’s effectiveness will depend on whether it can identify the correct shipment from incomplete information and whether the requesting company’s software can use the results to resolve the inquiry without additional manual work.

The companies did not disclose how many carriers or customers would participate in the rollout.

“We can’t be sure it’s going to stop all the phone calls until we implement and deploy it,” Wiesen said.

LTL industry works toward standardized visibility

The partnership comes as the LTL industry develops common standards for exchanging shipment information across transportation systems.

The National Motor Freight Traffic Association’s Digital Standards Development Council has published an In-Transit Visibility API standard covering shipment status, delays and delivery estimates. The standard defines common milestones, including pickup, in transit, out for delivery and delivered, so shippers and logistics providers can interpret status updates consistently across carriers.

The council’s framework also provides for authenticated access to detailed shipment information and public access to certain status information. Its stated goal is to reduce reliance on phone calls and inconsistent tracking portals.

Carrier Logistics and LSP44 are addressing a related but distinct problem. Standardized data formats help systems communicate, but the new collaboration is designed to identify the shipment itself when the tracking number supplied in a request is missing or inaccurate.

That distinction matters for companies managing freight across multiple carriers and technology platforms. A system can successfully send an API request yet fail to retrieve the intended shipment if it cannot match the available information.

The API’s impact will depend on how accurately it identifies shipments from incomplete information and whether those matches reduce manual tracking inquiries. The companies have not yet established how many carriers or customers will participate in the rollout or how much manual work the system can eliminate.

Why this matters

As logistics companies automate more communications, missing or incorrect shipment identifiers can prevent tracking systems from finding freight and push inquiries back to carrier customer service teams. Carrier Logistics and LSP44 are trying to address that problem at the API level, rather than adding more automation to handle calls and emails. Whether the technology can reduce manual work will depend on its ability to match shipments accurately and its adoption by carriers and logistics providers.