The Supreme Court just heard arguments in the broker liability case we’ve been tracking. Plus: oil shipping costs explode, trucking insurance is stuck in 1980, regulators brace for a carrier crackdown, and more.
Optimize freight broker operations by fixing payment workflows in Q1. Streamline carrier pay before capacity shifts compress your margins.
Tucker Carlson’s nicotine brand loses 378,000 tins in a cargo theft. Plus: produce rates reset, diesel climbs, and a bill that could pull hundreds of thousands of drivers off the road.
Plus, p44 CEO responds to MyCarrier's open letter, Goldman Sachs expands warehouse portfolio, ArcBest earnings report is out, and more.
Good Monday morning. Tariffs on Mexico, Canada, and China spurred retaliation over the weekend. We're breaking down the potential impact on trucking, supply chains, and consumer wallets in today's feature.
Plus:
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🐔 WHAT’S COOKIN’ IN FREIGHT
📜 p44 CEO Responds to MyCarrier's Open Letter. Project44 CEO Jett McCandless refutes claims made in MyCarrier's open letter last week, alleging the company signed a five-year contract in 2023 while secretly building a competing platform. Despite benefiting from Project44’s discounted technology since 2017, p44 says MyCarrier breached the agreement by developing its own eBOL system and switching providers without notice. Legal proceedings revealed premeditated violations, with MyCarrier attempting to evade accountability despite saying they would “work towards a cure.” McCandless emphasizes this case matters because “this isn’t just about a contract dispute. It’s about trust, fair business practices, and the integrity of industry partnerships.” project44 went on to say they did not initiate this dispute, but they “will not stand by while MyCarrier undermines contracts, misuses [their] technology, and deceives the industry.”
📦 Goldman Bets Big on Last-Mile Logistics with $293M Deal. E-commerce demand isn’t slowing down, at least not in the warehouse sector. Goldman Sachs and Dalfen Industrial just dropped $293 million on a 21-warehouse portfolio, expanding their logistics footprint across Las Vegas, Dallas, Cincinnati, and Pennsylvania. The facilities (92% leased to 68 tenants, including Amazon and Red Bull) highlight the ongoing strength of last-mile logistics, even as high interest rates put pressure on commercial real estate. "Having executed our business plan at these properties, we are pleased to have reached this agreement and deliver a terrific outcome for our investors,” said a Blackstone spokesperson, whose firm sold the warehouses.
📉 ArcBest Faces Tonnage Declines; Q4 Report. ArcBest reported Q4 2024 revenue of $1.0 billion, down from $1.1 billion in Q4 2023. Adjusted earnings per share reached $1.33, surpassing estimates by $1.14 lower YoY. The company’s asset-based segment saw a 7.6% revenue drop, with tonnage per day down 7.3%. Despite the industry's current issues, ArcBest improved productivity and maintained pricing discipline. However, the asset-light unit faced continued losses due to weak truckload pricing. For 2024, ArcBest generated $4.2 billion in revenue and returned over $85 million to shareholders. Management plans to remain focused on cost control and network efficiencies while it continues to navigate the challenges of the current state of the freight market.
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Over the weekend, President Trump imposed hefty new tariffs on Canada, Mexico, and China, igniting a wave of retaliatory measures.
Canada is hitting back with $100 billion in retaliatory tariffs, targeting U.S. food, whiskey, appliances, and more. Meanwhile, Mexico plans countermeasures, likely focusing on agriculture and industrial exports.
China vowed “corresponding countermeasures” and is taking legal action at the World Trade Organization (WTO).
Trucks move 85% of U.S.-Mexico freight and 67% of U.S.-Canada freight, many experts say new tariffs could drive up costs and slow trade.
However, Jose Minarro, Managing Director for Sunset Transportation's Laredo hub, had this to say to FreightWaves:
“The year started at a normal pace, no slowdowns, not even because of all of the political noise; nothing that we’ve seen on the day-to-day operation represents what we’re hearing out there. It’s business as usual,”
Others project the fallout is still to come for the consumer:
“A 25% tariff levied on Mexico could see the price of a new tractor increase by as much as $35,000,” warned Chris Spear, CEO of the American Trucking Associations (ATA).
The impact on American farmers is also significant, with Mexico being a key buyer of U.S. corn and China historically retaliating against U.S. soybeans. Supply chain professor Jason Miller warns,
“American farmers are in for an unpleasant treat because Mexico is a huge source for U.S. corn, and China is likely to retaliate against soybeans like they did in 2019. As such, be prepared for our tax dollars to bail out farmers like we did in 2019.”
The North American auto supply chain is deeply intertwined. Canadian manufacturers send parts back and forth across the border before final assembly.
“Nobody can absorb this kind of cost, not automakers, not suppliers, not consumers,” said Linda Hasenfratz, executive chairwoman of Linamar, one of North America’s top auto part suppliers.
The industry fears potential shutdowns of U.S. auto plants, with millions of jobs on the line.
Even Republican leaders are voicing concerns. Senator Mitch McConnell called it a mistake, warning, "It will drive the cost of everything up."
Some experts believe these tariffs won’t stay in place for long. Jorge Gonzalez Henrichsen, co-CEO of The Nearshore Co., argued:
“There is little to gain from tariffs, as neither American companies nor consumers would benefit. Decision-makers in Washington understand this reality.”
But others, like Miller, fear nationalist sentiment in Canada and Mexico could prolong the dispute. If trade relationships deteriorate further, businesses may permanently shift sourcing strategies away from the U.S.
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🌎 AROUND THE FREIGHT WEB
🏎️ Saia Partners with NASCAR. Saia has announced its sponsorship of seven NASCAR CUP races this upcoming season. Joe Gibbs Racing will place Saia’s logo on the most prominent signage of their car.
⚖️ Convoy Fallout Continues. Hundreds of unpaid carriers are now defendants in a Swiss Re lawsuit over $75K in surety funds, adding more chaos after Convoy’s $3.8B collapse.
🤬 Auto Trans Gone Wrong. Listen to this inappropriate and, at times, funny call between a dispatcher and an auto trans broker.
🚢 New #1 Shipowning Nation. China has surpassed Japan in becoming the world's leading shipowning country. China’s fleet is valued at $255 billion. Rising demands for bulkers and container ships, along with strong market conditions, pushed China to the top spot.
🛑 Fraudulent Gas Engines Seized. CBP intercepted 1,134 fraudulent gas engines valued at $1.34 million at the Minneapolis-St. Paul Express Consignment Facility.
📦Undeclared Goods Seized. CBP officers at Eagle Pass Port of Entry, Texas, seized undeclared goods, including cigarettes and protein powder, worth over $1.9 million. Non-intrusive systems detected “anomalies within the merchandise” labeled as "other made-up articles," leading to the discovery.
🎣 THE FREIGHT CAVIAR CORNER
FREIGHT MEME OF THE DAY
The Supreme Court just heard arguments in the broker liability case we’ve been tracking. Plus: oil shipping costs explode, trucking insurance is stuck in 1980, regulators brace for a carrier crackdown, and more.
Tucker Carlson’s nicotine brand loses 378,000 tins in a cargo theft. Plus: produce rates reset, diesel climbs, and a bill that could pull hundreds of thousands of drivers off the road.
The Middle East crisis is already hitting carriers. Plus: Florida lost $3B in crops, flatbed rates posted a fifth straight weekly increase, a $5B brokerage was just acquired, and more.
Plus: autonomous trucking just raised $113M, California is fighting to keep 20,000 drivers, Arrive's 2026 truckload freight forecast, and more.
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