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Yahoo
30-05-2025
- Business
- Yahoo
Capacity, courtrooms and caution – what's really driving the market this week
If you're leased on under someone else's authority and operating in or around California — or even just watching the legal landscape — pay attention. A ruling from the 9th U.S. Circuit Court of Appeals just gave California's AB5 law a major boost, making it even harder for trucking companies to classify drivers as independent contractors. The court sided with the state, saying there's nothing illegal about enforcing the law across the trucking industry — even though it directly conflicts with how the lease-on model has worked for decades. Why this matters: AB5 uses what's called the 'ABC Test' to decide if a worker is truly independent. And most leased-on owner-operators don't pass the test — especially the part that says the worker must do something outside the core business of the company. (Hauling freight is the core business.) That means, in California, leased-on drivers might be forced to become employees — or risk being deemed 'misclassified.'This ruling could put serious heat on carriers that rely on lease-on contractors in California. And while this specific case was about one company, the court's message was loud and clear: Enforcement is fair game, and state labor laws can override how the trucking model is traditionally operated. What happens next? The Owner-Operator Independent Drivers Association might push this to the Supreme Court, but so far, no green light. If this stands, it opens the door for stricter enforcement, back-pay lawsuits and fines for companies not in line with AB5. What small carriers and leased-on O/O's need to do right now:If you're leased on Start looking at your options. Running under your own authority may offer more protection long term if AB5-style rules spread to other states. If you run a small fleet using leased on drivers Talk to a compliance attorney. Make sure you understand how this law could impact your operation — especially if you're doing business in California. Watch for ripple effects Other states could follow suit, especially New Jersey, New York and Illinois — all of which have flirted with similar rules. This potentially isn't just a California issue anymore. This could reshape how independent trucking operates across the country. On Wednesday, the U.S. Court of International Trade ruled that President Donald Trump's sweeping import tariffs overstepped constitutional boundaries, briefly delivering a hard stop to one of the most aggressive trade maneuvers in decades. But the legal drama was just getting started. On Thursday, a federal appeals court stayed the trade court ruling temporarily. Depending on the final legal outcome, we could see the beginning of a major shift in the freight economy. So what happened? The trade court decided that the White House can't use emergency powers to impose broad tariffs without congressional approval — specifically targeting the Trump-era global import tax that hit nearly every U.S. trading partner. The ruling also blocked a set of retaliatory tariffs aimed at China, Mexico and Canada. But then the U.S. Court of Appeals for the Federal Circuit weighed in, staying the trade court order, and many legal experts agree the case is heading to the Supreme Court. If the high court ultimately sides with the trade court rather than the appeals court, thousands of small importers could be in line for massive refunds — plus interest. Now, what does that mean for the freight market? If the tariffs are pulled back permanently or suspended during appeals, expect to see some key effects: More imports, more volume Lower duties mean more goods flowing through ports, intermodal hubs and distribution centers. That spells opportunity for carriers running out of the ports or pulling freight from warehouse zones like Savannah, LA/Long Beach, New York/New Jersey, and Chicago. Spot market momentum If manufacturing and retail sectors get tariff relief, shippers may surge back into the market to replenish inventory or accelerate imports. This could temporarily boost available loads on high-traffic lanes. Fuel for a potential rate lift Increased freight demand — paired with rising tender rejection rates we've seen in recent weeks — could finally start to tip the rate scales in favor of carriers, especially if capacity continues to tighten. Here's what to watch:Legal delays The appeals process will drag out. If this reaches the Supreme Court, a final decision could be months away — so don't expect immediate change. Border ops For now, U.S. Customs is still collecting tariffs until told otherwise. But brokers and importers are already adjusting contract terms in anticipation of future refunds or reversals. Shipper sentiment Some shippers are already reevaluating their long-term pricing and sourcing strategies. If they believe these tariffs won't stick, they'll start planning freight moves more aggressively — and that means load boards could heat up faster than usual. Bottom line: This isn't just a courtroom technicality — it's a potential freight catalyst. Small carriers should pay attention to trade headlines, because this could lead to more volume, more stability and stronger lanes. But until the final gavel falls, stay cautious. Legal moves this big don't play out overnight. Despite the noise suggesting a turnaround, the real data tells us we're still stuck in a holding pattern. Volume and rates may have seen temporary bumps, but capacity just isn't leaving the market fast enough to tip the scales. Instead of the large-scale exits that would tighten supply and drive up pricing power, we're seeing a trickle of new entrants still flowing in — and that's keeping competition stiff for small carriers trying to survive. So what does that mean? It means we're in a 'grind-it-out' season. No magic flip, no clean recovery. Just tactical execution and watching the data like a hawk. Let's unpack what the latest SONAR charts are showing us — and why they might be the first signs of a market shift worth preparing for: We saw a meaningful 1.8% bump in tender volumes this week. That's notable. But it needs context. Tender volumes are still down compared to seasonal expectations, and even with this increase, we're not yet in peak season mode. The spike could reflect a mix of delayed Memorial Day freight, rebalancing or just a short-term burst of demand. Either way, it's movement — and movement matters. For small carriers, this is where you need to be watching your lane activity. Look for trends in your region — are tenders climbing? Are brokers calling you instead of the other way around? This volume bump means some areas are seeing freight flow again, and you need to be first to spot it. Tender rejections are creeping back up — and that matters more than most folks realize. A rate near 7% isn't what we'd call a tight market just yet, but it's a strong signal that carriers are beginning to say 'no thanks' to low-paying, inconvenient freight. The higher this number climbs, the more leverage shifts back toward the truck. This is the highest rejection rate we've seen in several weeks, and it's not happening in isolation. It's part of a broader trend of tightening in key regions — especially the Southeast, Mid-Atlantic and Texas. That tells us capacity is starting to push back, even if it's not dropping off in droves. Takeaway for small carriers: If you're still taking whatever a broker throws your way, it's time to reconsider. Use this as an opportunity to start building rate discipline. If you're hauling into one of the tightening regions, ask for more. Use language like, 'Look, rejections are up in this lane. I can take it, but not at that number.' Keep it firm, not combative. Remember, the market is shifting — and when it does, early movers make the most of it. You may not be able to flip every rate, but if you don't start flexing your pricing muscle now, you'll be left behind when momentum really starts to turn. After a brief rally earlier this month, national linehaul rates are easing back down to $2.31 per mile on the seven-day average, according to the SONAR National Truckload Index. We saw a nice post-Memorial Day lift — likely driven by tighter holiday windows and carriers that sat out International Roadcheck — but it didn't stick. The dip we're seeing now tells a clear story: Spot shippers were willing to bump up rates temporarily, but in the long run, they're still in the driver's seat when it comes to negotiating power. The broader market hasn't tightened enough to create lasting upward pressure just yet. What does that mean for small carriers? It's a reminder that we're still operating in a shipper-favored environment. You might get lucky on a few loads, especially if you're running into hotter regions, but don't treat these bumps as the new norm. Protect your margins by doubling down on the controllables — accessorials like detention time, layover pay, TONU (Truck Order Not Used) and fuel surcharges can make the difference between profit and breakeven on tighter runs. Start tracking your weekly averages across core lanes and be aggressive with follow-up negotiations. Every penny matters right now. This is the one to keep your eye on — not because it's explosive, but because it's telling a deeper story that most folks will miss. At a glance, a net positive gain in carrier authorities might feel like a good sign. But in reality, it's a red flag when we're trying to signal a capacity correction. A healthy recovery for small carriers means less competition, not more. And what we're seeing here is that new entrants are still trickling into the market — even in the middle of a freight recession. This isn't a flood like we saw in 2021 or early 2022, but it's enough to stall meaningful upward rate pressure. If carriers aren't leaving and new ones are still popping up, then pricing power stays diluted. More trucks fighting over the same — or even fewer — loads. This is where we need to start thinking about supply and demand, not just in terms of freight volume, but in terms of how many competitors are left in the room. Every new MC that goes active adds noise to the rate negotiation process, keeps the load board crowded and makes it harder to get consistency. This is the bottleneck that's holding rates back from a true rebound. Takeaway for small carriers: Waiting for the market to tighten is no longer a strategy — it's a liability. Capacity isn't leaving fast enough to do the hard work for you. So the move now is to get sharper: Build out shipper/broker relationships, refine your value proposition, and focus on making your truck stand out when it counts. That means improving service levels, delivering on time, investing in communication tools, and showing brokers and customers that you're a reliable partner when others flake. You have to outlast — but more importantly, you have to outsmart. This isn't a game of patience. It's a game of precision, and the ones who thrive are the ones who stop waiting for the economy to save them and start engineering their own edge. If you're in the market for a used truck, or even thinking about unloading one, now's the time to pay attention. Auction prices for sleeper tractors surged in April — especially for newer, low-mileage models. According to the latest data, 2023 model trucks went for nearly $97,000, up over 20% from just last month. Even older 4-to-6-year-old models saw a 30% price jump compared to this time last year. That's not noise — that's movement. Why It Matters to You This tells us two things: Fleets are buying again, especially when they can grab trucks with less than 300,000 miles. These buyers aren't waiting around for the next EPA mandate or another rate spike. Inventory may be tightening, which means if you're holding on to a clean truck with reasonable miles, you have leverage. Dealers and auction houses are seeing stronger bidding and more competition — which wasn't the case even a few months ago. And if you're still using a higher-mileage unit that's eating you alive on maintenance? That temporary pause on tariffs from China might help stabilize some parts costs, but new truck uncertainty still looms with 2027 emission rules in limbo. Average Hammer Price (3-to-6-Year-Old Sleepers): Prices spiked hard in April — especially on 3-year-olds. This wasn't a one-month blip. When you zoom out, you'll notice prices are still well above 2019 levels. If you have a late-model truck, its value might be higher than you think. Auction Volume of Used Sleepers (3-7 Years Old): While prices jumped, the number of trucks sold fell. That's classic supply and demand. More buyers, fewer good trucks to sell = stronger pricing. But don't be fooled — this isn't a long-term guarantee. If rates cool or macro demand weakens, pricing could level. Bottom Line for Owner-Ops and Small Fleets: Don't panic-buy, but do start comparing pricing if you're planning to scale or replace this summer. If your truck is clean, low-mileage and well-specced, you might get top dollar right now if you need to sell or trade. Keep in mind — 2027 model pricing is already inflated due to emissions prep. Used might remain a smart move for the near future. Let's keep it real: Higher prices at auction don't mean the market is 'back' — but they do show signs of life. And in a freight cycle like this, every signal counts. Another quarter, another delay. Tesla's long-promised electric Semi has once again been pushed back, with no firm date on when wider production will begin. According to an article by Thomas Wasson, only limited deliveries are expected this year, and most of those are earmarked for internal use by Tesla and hand-picked test customers. For most small carriers and owner-ops, this headline probably feels like a rerun. And in many ways, it is. Tesla made waves back in 2017 when it first unveiled the Semi, promising 500-mile range, rapid charging and a bold new vision for trucking. But seven years later, most fleets still haven't touched one — and may not for a while. So what does this delay actually mean? Here's the takeaway: EV adoption in heavy trucking is still crawling, especially outside of short-haul and drayage work. The infrastructure simply isn't there yet for most small carriers to switch without major disruption. The headlines outpace the reality. There's a lot of noise about electric trucks, but the diesel rig in your yard still has more real-world uptime, easier access to fueling and a stronger repair network than any EV on the market. If you're running a smaller fleet, this is not your signal to pivot to electric. It's your reminder to stay focused on what you can control: fuel efficiency, preventative maintenance and managing your cost per mile. Tesla isn't alone in missing timelines. Even legacy OEMs with decades of fleet relationships (like Peterbilt and Volvo) have seen rollout delays due to battery sourcing, grid challenges and high production costs. And with the EPA's 2027 emissions standards still looming in limbo, the truth is the diesel-to-EV transition for heavy trucks is going to stretch well into the next decade. Bottom line? Keep an eye on the tech — but don't let it distract you from building a strong, resilient business now. There's opportunity for small carriers in this gap while the big guys play catch-up. This week wasn't filled with fireworks, but it carried real freight for the sharp carriers paying attention. A court ruling that could reshape the leased-on model. Another delay in Tesla's long-promised Semi. Spot rates creeping upward while volume sputters and capacity refuses to exit stage left. These aren't random headlines. They're signals. We're not in a boom. But we're not in freefall either. This is what the freight middle looks like — and the ones who thrive here are the ones who know how to work it. Maybe your margins are still tight. Maybe the load board still feels like a war zone. But if you've been watching the charts, reading the tea leaves and positioning yourself in the regions where freight is heating up — you're already ahead. So here's your charge this week: Don't wait for a recovery. Operate like the recovery is already testing you. Every mile matters. Every rate negotiation counts. Every move should be strategic. Until next time — stay focused, stay dangerous and keep your wheels turning. The post Capacity, courtrooms and caution – what's really driving the market this week appeared first on FreightWaves.
Yahoo
02-05-2025
- Automotive
- Yahoo
Research on driver shortage claim points to churn rather than burn
Recent research published by the Owner-Operator Independent Drivers Association's Research Foundation took aim at the theory of a persistent driver shortage in the long-haul truckload segment. The report titled 'The Churn: A Brief Look at the Roots of High Driver Turnover in U.S. Trucking,' argues that despite claims by other trucking associations of a shortage, it's the turnover rates of upwards of 90% across large truckload fleets that are to blame. The researchers argue that a persistent shortage would lead to higher driver wages, as a lack of labor would, according to some economists, result in higher wages from demand for said labor. The research outlines many structural issues that it deems a feature, not a bug, of the long-haul driver labor market. The first comes from the intense competition that prevents carriers from raising wages for fear of losing out to a cheaper competitor. The carrier that raises wages needs a higher rate, and that means that among price-sensitive shippers, someone else gets the coveted incumbent spot on the routing guide. The second argument the report notes is labor subsidies via industry and government initiatives that increase the labor pool of available drivers without resulting in higher wages. Overtime and regulatory loopholes also exist, with truck drivers not qualifying for overtime under the Fair Labor Standards Act. However, this exemption has been around since the 1930s. This results in a fragmented pool of drivers who, by the nature of their job, are unable to negotiate for better working conditions. The final piece of the report talks about information asymmetry, in which new drivers who enter trucking are misled and believe the earnings starting out are much greater than the reality. From personal experience, it took this long-haul over-the-road driver at least a year to learn the habits the lifestyle needed to become economically productive. Those same new drivers who graduated from CDL school had a 50% success rate to make it past six months. On Monday, President Trump signed an executive order requiring that truck drivers be able to speak English or be placed out of service. According to a fact sheet published by the White House, the order rescinds previous guidance that had watered down the law that required English proficiency, which had removed the out-of-service criteria. Additionally the order instructs the secretary of transportation to review state issuance of nondomiciled commercial driver's licenses to identify any irregularities and ensure the drivers are licensed and founder and CEO Craig Fuller weighed in, noting on the X platform, 'This is a positive development for safety, but it will have a significant impact on trucking capacity and could help the industry right-size from excess capacity.' Fuller added that one insurance executive from one of the largest firms in the U.S. estimates 40% of truck drivers are first-generation immigrants and 10% of the total driver population lacks English proficiency. The White House notes that safety is one of the reasons behind the move, with over 120 people killed every day as a result of motor vehicle crashes. This is roughly the equivalent of a Boeing 737-700 crashing each day. Another challenge is resources. An estimated 45,000 people work for the Federal Aviation Administration. The Federal Motor Carrier Safety Administration has 1,000 to 1,100 employees. Werner Enterprises' first-quarter earnings came as a surprise. The company reported a net loss of $10.2 million compared to last year's Q1 gain of $6.2 million. In the earnings release, CEO Derek Leathers cited elevated insurance costs, extreme weather, a smaller fleet and customer changes related to tariff uncertainty as reasons behind the earnings miss. Fewer trucks did impact top-line revenue, which fell $36.8 million in Q1 to $433 million. The company's operating ratio net of fuel was 99.6%, a 430-basis-point decline from 95.3% in Q1 count also took a hit, with the combined truckload transportation services segment shedding 520 tractors from 7,935 in Q1 2024 to 7,415 units in Q1 2025. Broken down by segment, one-way truckload fell by 154 tractors y/y from 2,786 to 2,632, while dedicated saw a larger loss of 366 units from 5,149 to 4,783 tractors. The percentage of empty miles, or deadheading, also crept up, from 14.9% in Q1 2024 to 16%. A good rule of thumb for deadhead percentages is to try to keep them around 10%, which is easier said than operationally done. During the earnings call, Leathers gave more details and noted the possible impacts of tariffs. While the quarter is an outlier due to the rare instance of Werner's posting an operating loss, Leathers notes the company is in a better position regarding liquidity, having recently secured a $300 million receivables-backed line of credit. Leathers also referred to the impacts of tariffs on Werner's business as an air pocket, referencing the reduction in inbound freight to U.S. ports from Asia. That pocket will need to be filled with substitutes to offset the loss in freight demand. FreightWaves' John Kingston adds: '[Leathers] said Werner customers have been telling him their inventory levels 'are in good shape,' so there won't be a rescue from those customers needing to increase their freight demand.' Summary: Dallas' outbound tender volumes ( have grown approximately 20% over the past five years compared to the national average of 15%. The two largest outbound markets in the U.S. — Ontario, California, and Atlanta — have both lost significant shares: 2% and 13%, respectively. The ongoing capacity glut is hiding a rather significant shift in national freight flow patterns. In a more balanced market, freight demand changes are discovered through isolated pockets of tightening, where spot rates increase and carriers flock to cover the freight. In the current market, where supply is abundant, there is no tightening or increased rates as carriers are nearly sitting on the sides of the streets ready to pounce. Import demand has dropped, but that hasn't been strongly felt in the domestic freight market as of yet. It does create volatility in the market that makes for uncertain long-term planning. A Light That Moved Fast and Shined Bright: Honoring Brittany Traylor (FreightWaves) Dispute over $6.7 million leads to closure of Kingsley Trucking (FreightWaves) Mass layoffs in trucking and retail coming – Apollo (FreightWaves)FMCSA denies truck driver learner's permits for 17-year-olds (FreightWaves) Strong demand drives up used truck prices and volumes (Commercial Carrier Journal)Insurance costs, entry-level driver training top ATRI's research priorities for 2025 (The Trucker) The post Research on driver shortage claim points to churn rather than burn appeared first on FreightWaves.
Yahoo
29-04-2025
- Automotive
- Yahoo
Are truckers now required to speak English? What Trump's executive order means
President Donald Trump signed an executive order on April 28 to boost enforcement of a law for truck drivers that requires them to speak English. English proficiency is already a requirement for commercial truck drivers. The order directs the Secretary of Transportation to enforce the law and review "state issuance of non-domiciled commercial driver's licenses to identify any irregularities and ensure American drivers are validly licensed and qualified." The order is part of the Trump administration's efforts to make English the "official language" of the U.S., according to the White House. The trucking industry is already facing ballooning demand as consumers try to stockpile before tariff orders go into effect, and a slowdown could be on the horizon, Reuters reported. Yes. That hasn't changed with this latest executive order. However, the Trump administration says the law stopped being enforced in 2016 when inspectors were instructed not to place those who violate the law out of service. 'Federal law is clear, a driver who cannot sufficiently read or speak English—our national language—and understand road signs is unqualified to drive a commercial motor vehicle in America. This commonsense standard should have never been abandoned,' Transportation Secretary Sean Duffy said in a statement. 'This Department will always put America's truck drivers first.' Duffy said he would take action to enforce the order and also review non-domiciled licenses to "identify any unusual patterns or other suspicious irregularities." Owner-Operator Independent Drivers Association, representing 150,000 truckers, said in a post on X it supports Trump's order. Kinsey Crowley is the Trump Connect reporter for the USA TODAY Network. Reach her at kcrowley@ Follow her on X and TikTok @kinseycrowley or Bluesky at @ This article originally appeared on Palm Beach Post: Trump enforces order that commercial truck drivers must speak English
Yahoo
29-04-2025
- Business
- Yahoo
Trump signs executive order demanding truck drivers speak English
President Donald Trump signed an executive order demanding truck drivers operating on America's highways be able to speak English. Trump has already moved to formally recognize English as the official language of the United States and the new order compels the nation's truckers to demonstrate their proficiency before hitting the roads. 'America's truck drivers are essential to the strength of our economy, the security of our nation, and the livelihoods of the American people,' the order states. 'Every day, truckers perform the demanding and dangerous work of transporting the nation's goods to businesses, customers, and communities safely, reliably, and efficiently.' It goes on to argue that proficient English 'should be a non-negotiable safety requirement for professional drivers. 'They should be able to read and understand traffic signs, communicate with traffic safety, border patrol, agricultural checkpoints, and cargo weight-limit station officers. 'Drivers need to provide feedback to their employers and customers and receive related directions in English. This is common sense.' The order goes on to declare that truckers must be able to read and speak English 'sufficiently to converse with the general public' and to direct Transport Secretary Sean Duffy to introduce new testing and enforcement to that effect. A failure to comply with Duffy's new rules will render drivers 'out-of-service.' The new directive is a reversal of a policy change made under Barack Obama's administration that removed the requirement that truck drivers be placed out-of-service if they violate federal English language proficiency rules. Prior to Monday's signing, White House Press Secretary Karoline Leavitt had introduced the order by describing hauliers as 'the backbone of our economy'. 'You might not know, but there's a lot of communication problems between truckers on the road with federal officials and local officials, as well, which obviously is a public safety risk,' she added. Responding to the order, Todd Spencer, president of the Owner-Operator Independent Drivers Association (OOIDA), said: 'OOIDA and the 150,000 truckers we proudly represent strongly support President Trump's decision to resume enforcement of English proficiency requirements for commercial drivers. 'Basic English skills are essential for reading critical road signs, understanding emergency instructions, and interacting with law enforcement.' It was less warmly received on social media, however, with podcaster Brian Allen commenting: 'Nothing screams fixing America like hunting down accents while bridges collapse and inflation guts the country.' An anti-Trump account meanwhile branded the move 'insane' and warned it could cost the Republican Party future votes from freight and logistics sector employees. Novelist Patrick S Tomlinson satirized the policy by imagining truckers complaining that they face having their vehicles repossessed because there is no demand for their services as a result of the president's trade war with China, only for Trump to respond: 'Speak English!'
The Independent
29-04-2025
- Business
- The Independent
Trump signs executive order demanding truck drivers speak English
President Donald Trump signed an executive order demanding truck drivers operating on America's highways be able to speak English. Trump has already moved to formally recognize English as the official language of the United States and the new order compels the nation's truckers to demonstrate their proficiency before hitting the roads. 'America's truck drivers are essential to the strength of our economy, the security of our nation, and the livelihoods of the American people,' the order states. 'Every day, truckers perform the demanding and dangerous work of transporting the nation's goods to businesses, customers, and communities safely, reliably, and efficiently.' It goes on to argue that proficient English 'should be a non-negotiable safety requirement for professional drivers. 'They should be able to read and understand traffic signs, communicate with traffic safety, border patrol, agricultural checkpoints, and cargo weight-limit station officers. 'Drivers need to provide feedback to their employers and customers and receive related directions in English. This is common sense.' The order goes on to declare that truckers must be able to read and speak English 'sufficiently to converse with the general public' and to direct Transport Secretary Sean Duffy to introduce new testing and enforcement to that effect. A failure to comply with Duffy's new rules will render drivers 'out-of-service.' The new directive is a reversal of a policy change made under Barack Obama 's administration that removed the requirement that truck drivers be placed out-of-service if they violate federal English language proficiency rules. Prior to Monday's signing, White House Press Secretary Karoline Leavitt had introduced the order by describing hauliers as 'the backbone of our economy'. 'You might not know, but there's a lot of communication problems between truckers on the road with federal officials and local officials, as well, which obviously is a public safety risk,' she added. Responding to the order, Todd Spencer, president of the Owner-Operator Independent Drivers Association (OOIDA), said: 'OOIDA and the 150,000 truckers we proudly represent strongly support President Trump's decision to resume enforcement of English proficiency requirements for commercial drivers. 'Basic English skills are essential for reading critical road signs, understanding emergency instructions, and interacting with law enforcement.' It was less warmly received on social media, however, with podcaster Brian Allen commenting: 'Nothing screams fixing America like hunting down accents while bridges collapse and inflation guts the country.' An anti-Trump account meanwhile branded the move 'insane' and warned it could cost the Republican Party future votes from freight and logistics sector employees. Novelist Patrick S Tomlinson satirized the policy by imagining truckers complaining that they face having their vehicles repossessed because there is no demand for their services as a result of the president's trade war with China, only for Trump to respond: 'Speak English!'
