Plus: The Supreme Court reviews Trump’s tariff case, IPS and J&R Schugel join forces, U.S. Bank shows shrinking freight but rising rates, and more in today's newsletter.
Good Monday morning. The DOT's compliance net just got wider. Secretary Sean Duffy says shippers will now share liability for unqualified drivers, a move that will ripple to the brokers they hire.
Plus:
Supreme Court Takes on Trump Tariff Power
IPS Merges with J&R Schugel
U.S. Bank: Freight Shrinks, Rates Rise
📢
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🍳What's Cookin' In Freight
⚖️ Supreme Court to Decide Future of Presidential Tariff Power. The Armchair Attorney'sMatthew Leffler says Trump v. V.O.S. Selections, Inc. could become the defining Supreme Court case on executive trade authority. At issue is whether presidents can use the 1977 IEEPA law to impose sweeping import tariffs without Congress. Lower courts have blocked Trump’s “Liberation Day” tariffs, duties of up to 60% on global imports, calling them unconstitutional. What's at stake? Nearly $90 billion in tariff revenue, hundreds of trade deals, and the balance of power between Congress and the presidency. A ruling against Trump could reaffirm legislative control over trade, while a victory would grant the White House vast unilateral economic power.
🤝 IPS Acquires J&R Schugel. Interstate Personnel Services (IPS) has acquired J&R Schugel (JRS), merging two employee-owned carriers into a 2,000-truck, 6,000-trailer network. Both companies’ employee-owners “voted overwhelmingly in favor” of the deal, announced in late October. The acquisition expands IPS’s reach into refrigerated freight, complementing its dry van and logistics units under Paschall Truck Lines and Transport Distribution Co. IPS CEO Dave Gibbs said the merger “creates new opportunities for employee-owners,” while JRS CEO Sean Claton added that the deal preserves their ownership culture and enhances customer value. Financial terms were not disclosed.
📉 U.S. Bank Sees Freight Contraction as Rates Edge Higher. The U.S. truck freight marketshrank again in Q3 2025, with shipments down 2.9% from Q2 and 10.7% year-over-year, according to the U.S. Bank Freight Payment Index. Despite falling volumes, shipper spending rose 2%, signaling that capacity is tightening as smaller fleets exit. U.S. Bank’s Bobby Holland said, “Shippers paid more to move less freight,” as rates rose beyond fuel-driven costs. Regionally, the Southwest saw the steepest decline, while the Northeast outperformed with 6.3% annual shipment growth. ATA’s Bob Costello noted the sector remains under strain from weaker manufacturing and consumer demand despite earlier signs of recovery.
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Duffy says shippers will now be held accountable for loading unqualified or unlawfully licensed drivers — a move that will ripple to brokers.
FMCSA has already removed 244 training schools from its registry, part of a larger cleanup of “CDL mills.”
DOT is also penalizing states and auditing licensing programs tied to illegal or fraudulent CDLs.
What's New
Transportation Secretary Sean Duffy is turning up the heat on every part of the trucking chain. In a press conference, he announced a federal crackdown on fraudulent CDLs, including licenses issued to individuals who aren’t legally authorized to work in the U.S.
"We are going to go after the CDL mills that are issuing licenses… saying you have a qualified individual — and the truth is they are not," Duffy said.
He warned that companies hiring unqualified drivers will be "held to account."
"We are diving into the companies that hire these drivers that may not have a lawfully issued license or do not speak the language," he said.
Shippers Next, Brokers Prep
Duffy also namedshippers as the next enforcement target:
"A company can’t hire someone knowing they can’t speak English… We have to take a look at shippers — people who load up these rigs and send them across the country."
Though he didn’t mention brokers directly, the implication is clear: shippers will now demand stringent proof of driver compliance from the brokers and carriers they work with, forcing new diligence across the market.
The Numbers
Table showing FMCSA’s Training Provider Registry “Removed Providers” list, including 244 schools removed across multiple states in 2025. Image Source: FMCSA Training Provider Registry
244 training providers removed from FMCSA’s Training Provider Registry (up from 94 two weeks prior).
2,600+ more under proposed removal.
DOT has already pulled $40 million in federal funding from California for failing to enforce English proficiency, with $160 million more potentially on the line.
A recent Indiana sting with ICE resulted in 223 arrests, including 146 truck drivers allegedly operating unlawfully.
"Trucking is a skilled profession, not cheap labor. We applaud the administration’s commitment to restoring standards."
CVTA praised the action as "a modest but noteworthy step," adding that it finally answers years of calls to police "CDL mills."
The Bottom Line
FMCSA’s school purge and Duffy’s licensing enforcement mark the most aggressive federal oversight since ELDT went live in 2022.
The crackdown now stretches from fraudulent CDL schools to state DMVs, carriers, and shippers, with brokers pressured to prove the drivers they book are trained, legal, and fluent enough to safely share the road.
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🎄 Capital Tree Haul. Knight-Swift was chosen to transport the U.S. Capitol Christmas Tree, the Silver Belle. The tree will be harvested from Nevada, making celebratory stops before arriving in Washington, D.C.
🙅‍♂️ Driver Loss Myth. Michigan State’s Jason Miller pushed back on claims of a 600,000-driver purge, calling the estimate a “clear nonsensical plot.” He said Census and BLS data show roughly 2.9 million active truckers, adding that freight recovery hinges on improved domestic manufacturing, not massive capacity cuts.
⚖️ California Sues OEMs. California filed suit against 4 major truck manufacturers over the Clean Truck Partnership, alleging collusion to weaken emissions standards and delay the state’s zero-emission transition.
đź’Ą Crash Lawsuit. A trucker has filed a $1 million lawsuit against another driver and carrier after a failure-to-yield crash caused serious injuries and vehicle damage.
📺 Fatal Anime Distraction. A truck driver admitted to watching anime seconds before a fatal crash that killed another motorist. According to the affidavit, he used it as background noise to “keep from zoning out.”
🎣 THE FREIGHT CAVIAR CORNER
Caviar & Confessions. FreightCaviar’s Founder, Paul, sat down with Supply Chain Insiders by Pallet to spill freight secrets, caviar, and a little vodka. Watch the interview here.
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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.
Hello! I'm Jerome FreightCaviar! I’m into the politics of freight and the impact it will have worldwide. I'm always eager to learn more. Follow me on X @JeromeFreightC
Congress is moving to put driverless 80,000-lb trucks on public roads. Plus: 13,000 California CDLs get cancelled, diesel hits a 32-year record, Florida wants $50K to get your truck back, and more.
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