C.H. Robinson Takes Another Hit

Happy Monday. C.H. Robinson just took another hit in court. The judgment now tops $711 million, and major shippers are asking tougher questions about how brokers select and vet carriers.

Plus:

• The Driver Shortage Is Back on the List

• J.B. Hunt's 20% Revenue Growth Barely Moved Profit

• The CDL-Mill Purge Just Got Messier

💡 QUESTION OF THE DAY:

J.B. Hunt’s revenue grew 20% last quarter. Profit grew just __%

🍳 WHAT’S COOKIN’ IN FREIGHT

🚛 The Driver Shortage Is Back on the List. ATRI’s 22nd annual industry issues survey, released Oct. 18 at ATA’s conference, put the driver shortage back in the top 10 for the first time since 2024, landing at No. 5, a ranking it has held in 17 of the last 22 yearly surveys. Fuel prices jumped 17 spots to claim the top overall spot, the first time drivers themselves have ranked it No. 1, with diesel topping $6.50 a gallon and the Energy Information Administration saying prices won’t return to 2025 levels until at least 2028. Lawsuit abuse reform held at No. 2, and the economy fell from No. 1 to No. 6.

📊 J.B. Hunt's 20% Revenue Growth Barely Moved Profit. J.B. Hunt's third-quarter revenue climbed 20% to $3.68 billion, but driver, fuel, and medical costs held net earnings growth to just 1%, at $172.4 million. The operating ratio worsened to 93.3% from 92.1%, with group medical costs alone adding more than $16 million versus the prior quarter. Intermodal volume grew 8%, and brokerage volume jumped 22%, but Final Mile stops fell 10%. Executives now say 2027 bid-season pricing must close the gap after 2026 delivered only low-single-digit increases. CEO Shelly Simpson called margin repair the company's "top priority" heading into next year.

🎓 The CDL-Mill Purge Just Got Messier. Overdrive reported that FMCSA's August shutdown of 110 "sham" CDL schools is unraveling, with more than 20 schools contesting the removals and several, including one in Miami, already back on the Training Provider Registry, one of them clearing the bar by submitting TikTok videos as proof of English instruction. DOT fired back at the reporting, denying it used AI to flag the schools and insisting the shutdowns targeted a "willful, dangerous disregard" for federal rules, citing 38,189 English-proficiency violations tracked since July 2025 and drivers linked to fatal crashes. "We make no apologies for enforcing the law," DOT said.

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C.H. Robinson’s $711M Reckoning

Dallas County Judge Dianne Jones upheld the $604 million jury verdict against C.H. Robinson on October 16 in Lipe v. Lupus Superior.

Approximately $107 million in prejudgment interest brings the judgment to more than $711 million. C.H. Robinson disputes the verdict and is expected to appeal.

A day later, Ferguson Enterprises Vice President of Global Logistics Nick Palmucci told attendees at the American Trucking Associations' Management Conference & Exhibition that shippers are rethinking how they vet brokers and carriers.

Ferguson is one of North America's largest suppliers of plumbing and HVAC equipment, with about 1,700 locations.

The Cost of an Appeal

The judgment carries a 6.75% interest rate. TD Cowen analyst Jason Seidl warned that a prolonged, unsuccessful appeal could increase the final amount, creating a "non-trivial incentive to settle" if developments turn against C.H. Robinson.

However, overturning the jury's finding that C.H. Robinson controlled the driver likely remains the company's first preference.

C.H. Robinson reported $154.9 million in cash and equivalents at the end of the second quarter, far below the judgment, although cash on hand alone doesn't determine its ability to pay.

The Control Question

The July jury found that the carrier's driver was operating for C.H. Robinson's benefit and under its control when a 2021 Mississippi crash killed three people. Friday's ruling left that finding intact at the trial-court level, though an appeal could still overturn it.

C.H. Robinson Chief Legal Officer Dorothy Capers pointed to Lupus Superior's Satisfactory FMCSA rating and nearly 270 safely completed loads. She maintained that C.H. Robinson did not employ the driver and called for a clear national standard defining what constitutes a safe carrier.

The Transportation Intermediaries Association has also requested federal guidance on what brokers can reasonably rely upon when selecting carriers.

Shippers Are Asking Different Questions

Palmucci said Ferguson's transportation-provider reviews previously centered on service levels, claims ratios, and rates. Now, he said, "we lead off with your safety strategy."

Ferguson wants to understand how its partners manage risk, develop drivers, recruit and retain employees, and structure their insurance coverage. "It's going to have our logo just as much on there if something happens," he added.

ArcBest President and Chief Executive Officer Seth Runser, speaking on the same panel, described similar customer pressure.

ArcBest has undergone a re-vetting process, particularly for carriers it hasn't used recently, checking them through internal and external screening software.

Runser said safety questions rarely came up in customer conversations before the recent court decisions. Now customers are asking, "Hey, what are you doing to train your drivers?

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Join GoodShip and Chris Pickett, Chief Commercial Officer at Flock Freight, for a live Freight Market Update breaking down the latest market signals and what brokers and carriers should be watching as 2026 wraps up.

🗓️ Tuesday, October 20 | 12 PM ET / 9 AM PT

 🌎 AROUND THE FREIGHT WEB

🎃 South Carolina Is Ready for Halloween. A church’s pumpkin-patch delivery spilled near Charleston’s Ravenel Bridge, and locals hauled away pumpkins in their arms, baskets, and carts, free of charge.

👔 ATA Picks Its Next President. Mark Colson, who led Alabama’s trucking association for seven years, takes over in Washington Dec. 1, four months after Chris Spear left the post.

💊 $30 Million in Meth, Zero Arrests. U.S. Customs and Border Protection seized 3,395 pounds of meth hidden in a salt shipment at a Laredo port of entry, then let the driver and his truck go.

🗂️ FMCSA Just Put Itself on the Clock. FMCSA's reformed DataQs process is now live in all 50 states, giving carriers a three-stage appeal and the agency its own clock to beat.

📱 Phone-a-Friend Just Got Him Indicted. A Massachusetts man is facing federal charges for paying $3,000 to have a Bluetooth earpiece feed him real-time answers on his CDL permit exam.

🚛 Class 8 Sales Just Had Their Best Month in a While. September retail sales jumped 30% from a year earlier to 21,095 units, though year-to-date sales are still running 5% behind 2025’s pace.

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