Two bills just dropped in the Senate that could reshape trucking faster than anything since deregulation. Plus: Russian hackers targeted your load board, flatbed rejection rates just hit 40%, and a robot is taking the Houston-Dallas overnight run.
This week: The Dalilah Law, a trucking bankruptcy that wiped out thousands overnight, a FreightGuard civil war on Reddit, and the payroll data that's predicting Q4 capacity.
Indiana pulled the trigger on carriers employing illegal CDL holders. Plus: tariff ruling could flood LA with imports, DC finally moves on double brokers, spot rates are outrunning contract, and more.
Happy Monday. We hope you had a fantastic Thanksgiving weekend. Today's feature dives into Echo's recent court case victory and why it’s a significant win for freight brokers.
Plus:
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🐔 WHAT’S COOKIN’ IN FREIGHT
🚨 Trump Threatens BRICS. Also Meets with Trudeau. President-elect Donald Trump has issued aggressive economic threats, proposing 100% tariffs on BRICS nations if they pursue a new currency to rival the US dollar. BRICS, which includes major economies like Brazil, Russia, India, and China, has expanded recently, fueling discussions about reducing reliance on the dollar. Separately, Trump met with Canadian Prime Minister Justin Trudeau at Mar-a-Lago for a "productive" discussion on border issues, trade, and the fentanyl crisis. Trudeau committed to collaborating with the U.S. to tackle these challenges.
🏗️ Ex-NFL Player and Partners Indicted in PPP Scam. Former NFL linebacker Dana C. Howard, his business partner Richard Scott Myers, and their bookkeeper Glenn Sunnquist face federal charges over $1.4 million in PPP fraud. Prosecutors allege the trio used funds intended for payroll at their construction and trucking companies, Zoie LLC and Zade Trucking, for personal gain, including buying property and settling debts. The scheme involved falsified financial records, undisclosed bankruptcy filings, and manipulated loan forgiveness applications. With charges issued, court appearances are pending. The FBI continues to crack down on pandemic-related fraud nationwide. Howard’s arraignment is scheduled for Dec. 11.
🌄 Freight Market Projections. ACT Research reports that the truckload market is nearing balance as 2024 ends, with spot rates up 7% year-over-year in Q4 and modest but consistent increases in contract rates across DAT, Cass, and fleet financial data. The freight recession in the for-hire trucking sector is expected to end in 2025, supported by tighter supply-demand dynamics, normalizing equipment supply, and pre-tariff safety stock builds. However, the significant private fleet expansions of recent years may dampen expectations for a major boom.
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Brokers just scored another big legal win. Echo Global Logistics has been dismissed from a liability lawsuit tied to a fatal crash involving one of its hired carriers, S&J Logistics.
The U.S. District Court for South Carolina ruled on Nov. 15 that Echo’s actions were protected under the Federal Aviation Administration Authorization Act (F4A).
Judge Jacquelyn Austin summed it up: “Because there is no direct link between motor vehicles and Echo’s alleged negligent hiring … the Court concludes the safety exception does not save [the claims] from F4A preemption.”
The F4A, enacted in 1994, has been a cornerstone of broker liability cases. While the law protects brokers from state-level claims that could interfere with pricing, routing, or services, its "safety exception" remains a gray area. This provision allows states to regulate safety matters but leaves room for interpretation.
In her decision, Austin reviewed previous cases, including the high-profile Miller vs. C.H. Robinson ruling, which took a broader view of broker liability under the safety exception. However, she chose to follow narrower precedents from the Landstar and GlobalTranz cases, finding no direct link between Echo’s hiring process and the motor vehicle safety concerns outlined in the exception.
This decision is part of a growing list of rulings favoring brokers, further solidifying the protections provided by F4A. However, the landscape remains divided:
Matthew Leffler, speaking at F3 earlier this month, warned brokers about the stakes:
“The liability that faces our industry is catastrophic. We all need to understand the risks.”
While Echo’s win is a positive step, the plaintiff’s attorney has already indicated plans to appeal the decision to the Fourth Circuit Court of Appeals.
Until the Supreme Court weighs in on the issue, brokers will continue dealing with this fragmented legal landscape.
As Leffler said, “Are you liable when the motor carrier does something terrible? The answer is: it depends.”
So follow some common sense steps to move the dial in your favor:
Source: FreightWaves
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🌎 AROUND THE FREIGHT WEB
🚢 Show Me the Money. The Port of New York and New Jersey seeks greater revenue from booming ocean trade, including a share in transactions and contributions from cargo-handling tenants investing in infrastructure upgrades.
🚛 Co-founder Demands Liquidation. Xiaodi Hou, co-founder of autonomous trucking pioneer TuSimple, demands liquidation and $450M returned to shareholders amid disputes over a pivot to AI content.
🚂 Thanksgiving Boosts U.S. Rail Traffic. U.S. rail traffic saw a 25.6% spike during Thanksgiving week, driven by a holiday-related shift in reporting dates, with intermodal volume leading the surge.
🚔 Permian Basin Enforcement. Texas Troopers recently apprehended 618 drivers during an enforcement blitz in the Permian Basin, resulting in 57.5% out-of-service vehicles and 15% driver out-of-service violations.
⚖️ Walmart Driver Victory. A former Walmart truck driver wins nearly $35 million in a defamation lawsuit after proving Walmart defamed and discriminated against him after trying to force him back to work despite his injury.
👨💻 FREIGHT JOBS
Dart Advantage of Eagan, MN is looking for a full-time sales rep. Check out this and more opportunities here.
🎣 THE FREIGHT CAVIAR CORNER
FREIGHT MEME OF THE DAY
Two bills just dropped in the Senate that could reshape trucking faster than anything since deregulation. Plus: Russian hackers targeted your load board, flatbed rejection rates just hit 40%, and a robot is taking the Houston-Dallas overnight run.
This week: The Dalilah Law, a trucking bankruptcy that wiped out thousands overnight, a FreightGuard civil war on Reddit, and the payroll data that's predicting Q4 capacity.
Indiana pulled the trigger on carriers employing illegal CDL holders. Plus: tariff ruling could flood LA with imports, DC finally moves on double brokers, spot rates are outrunning contract, and more.
The Supreme Court ruled Trump's tariffs illegal. Plus: an Illinois official took $300K and handed out illegal CDLs, cartel violence may affect your Mexico freight, 550 CDL schools just got shut down, and more.
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