LA rejections just doubled, flatbed hit $3.74, and 9,500 drivers are off the road. Plus: SoCal theft ring busted, C.H. Robinson cuts headcount, UP CEO fires back, and more.
Good Monday morning. A fatal Indiana crash has widened into a federal investigation naming Sam Express, related carriers, and a CDL training school.
Plus:
XPO & Hub Group Earnings
Paladin Capital Files Chapter 11
Mexico Truckers Win Union Rights
🤔
Question of the Day: How many trucks are estimated to operate across the Sam Express–linked carrier network?
Today's Newsletter is Brought to You by Epay Manager.
🍳 What's Cookin' In Freight
XPO’s stock jump reflects confidence in cost control and network efficiency, not a full freight demand rebound.
📦 XPO & Hub Group: Execution vs. Uncertainty. Q4 2025 earnings from XPO and Hub Group show a widening gap in execution across large players. XPO reported improved margins and cost discipline despite softer volumes, pointing to productivity gains and tighter network control as demand stays choppy. Management emphasized execution over growth as customers remain cautious. Hub Group’s earnings narrative shifted after the company disclosed a $77 million understatement in purchased transportation expenses tied to the first three quarters of 2025. Shares fell 19%. Hub delayed fourth-quarter and full-year reporting and said it plans to restate 2025 financials.
💥 Paladin Capital’s Trucking Bet Unravels. Paladin Capital filed for Chapter 11 after its trucking-heavy portfolio collapsed under prolonged freight weakness and mounting financial pressure. Court filings show Paladin owns 100% equity in more than 20 operating subsidiaries, including Robert Bearden Inc. and the Quickway Transportation family, both of which filed separate Chapter 11 cases following shutdowns, driver layoffs, and equipment returns, according to FreightWaves. Paladin cited weak freight demand, rising insurance and equipment costs, and liquidity strain after accident-related insurance claims triggered draws on letters of credit, pushing the firm into default under a credit facility with Truist Bank. The firm employed roughly 912 workers at filing and plans Section 363 sales of individual units.
🚛 Mexican Truckers Win Union Rights. Mexican truck drivers have secured formal union rights after years of intimidation, firings, and stalled labor recognition — a ruling with implications beyond Mexico’s borders. The decision strengthens collective bargaining protections for drivers operating in and around cross-border trade corridors, a critical link in U.S.–Mexico supply chains. Analysts say it could raise labor standards but also introduce new cost and negotiation dynamics for cross-border carriers.
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Federal officials say they’ve expanded a probe tied to a fatal Feb. 3 crash in Indiana, and named AJ Partners, Sam Express, and a CDL training school as part of the inquiry.
The moment is bigger than one carrier. It’s also fueling a fast-growing narrative: unsafe roads, weak oversight, and “chameleon carrier” networks that can keep operating even after red flags surface.
The Latest
Duffy added: “Investigators are gathering evidence at each company RIGHT NOW” and described the carriers as having “all the markings of FRAUD” and being “accused of being CHAMELEON CARRIERS.”
He also said federal teams are investigating the driver-entry training school “Aydana Inc./ U.S. CDL,” adding: “If this is in fact a sham school, any other licenses they supported will be called into question.”
What Happened
According to the Indiana State Police, a tractor-trailer crossed into oncoming traffic on State Road 67 in Jay County, striking a van. Four men were killed, and the van driver was hospitalized.
DHS said the driver, Bekzhan Beishekeev, is a Kyrgyzstani national and is now in ICE custody pending immigration proceedings. State officials dispute that his status was illegal when the license was issued.
Why Sam Express is Central
Reporting by FreightWaves frames this as a network story, not just a single company story, alleging overlapping equipment, addresses, officers, and DOT numbers across multiple entities tied to the investigation, including:
Sam Express Corp (USDOT 3235924)
Tutash Express Inc (USDOT 3487141)
KG Line Group (USDOT 3487333)
AJ Partners LLC (USDOT 3617842)
and others
The reporting describes a network of more than 20 interconnected carriers, operating an estimated ~800 trucks across shared terminals and DOT authorities.
"Across the network, we’re looking at nearly 100 crashes combined." – Rob Carpenter, FreightWaves
On X, analyst Danielle Chaffin has separately written about what she describes as network signals tied to Sam Express.
As scrutiny increased, Sam Express’s public-facing social media footprint also changed. The company’s Facebook page is no longer available, and its Instagram account has been switched to private.
What’s Still Unproven
This reporting includes allegations (including equipment sharing and fraud claims). Those claims have not yet been adjudicated in court.
FMCSA has not publicly released findings from its on-site work.
The Bigger Picture
While the investigation is ongoing, industry voices argue this case highlights a broader enforcement gap, not a single bad actor.
Craig Fuller, CEO & Founder of FreightWaves & SONAR, tweeted:
“None of the large public carriers grew their fleets over the past couple of years and most lost money, despite being 10x the size and having massive advantages over smaller operators — except 1.
They operated in a world of compliance, would only hire drivers that were legitimate, and could only run their trucks a certain hours per day, per the limitations set by the Federal government.
Meanwhile, entrepreneurs that did not care about compliance took advantage of the lack of enforcement.”
🏈 AI Super Bowl Advertising. Flexport and Samsara both ran Super Bowl ads, with Samsara debuting its AI Coach alongside NASCAR champion Jesse Love as its first AI avatar.
🚁 Drone Delivery Breakthrough. Skyways unveiled an autonomous cargo drone fleet aimed at moving freight beyond line-of-sight. Current V2 model carries 30lbs over 450 miles, and V3 will carry 100lbs over 1,000 miles.
📉 Import Shift. China’s share of U.S. imports has fallen below7.5%, underscoring a longer-term sourcing shift toward Mexico, Southeast Asia, and nearshoring strategies.
🎣 THE FREIGHT CAVIAR CORNER
New FreightCaviar stickers coming this spring. Every print subscriber will receive a set. A lot is happening behind the scenes. This is the biggest project we’ve ever done. Freight Alley print + film coming in Spring 2026. If you have sticker ideas, send them our way. We might actually make them.
The FreightCaviar Podcast: We sat down with Ryan Joyce, CEO & Co-Founder at GenLogs, to discuss how they stay ahead of fraud with their camera network, their plans for 2026, and more. Catch the episode on YouTube, Spotify, or Apple Podcasts.
I’m Adriana, a writer and editor at FreightCaviar. I’ve covered everything from freight tech to industry lawsuits and market shifts, helping scale us to almost 14K subscribers. My goal: to make logistics stories digestible, clear, and fun to read.
LA rejections just doubled, flatbed hit $3.74, and 9,500 drivers are off the road. Plus: SoCal theft ring busted, C.H. Robinson cuts headcount, UP CEO fires back, and more.
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