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This week’s deep dive unpacks the relentless surge of nearshoring at the U.S.-Mexico border, where year-to-date trade has surpassed the $507 billion mark, cementing Mexico’s place as the number one U.S. trade partner. We examine how logistics firms like Uber Freight are heavily integrating customs, brokerage, and transportation services to digitalize the “black hole” at the border and navigate the growing complexity of USMCA rules and new tariffs. We shift from land to air to analyze how the U.S. policy ending the de minimis exemption for small parcels from China is hammering global carriers. This single change trimmed FedEx’s Q1 operating income by $150 million and created a projected $1 billion fiscal year headwind, forcing the company to cut its Trans-Pacific capacity by 25% and redeploy assets to the profitable Asia-to-Europe lane. Finally, we explore the domestic physical limits currently squeezing the supply chain, including the severe crisis on the Mississippi River where drought-driven low water levels are forcing capacity cuts and causing barge rates to jump nearly 50% . We also discuss the immediate pressure on the new Federal Highway Administration administrator, Sean McMaster, to prioritize the persistent lack of critically needed truck parking capacity across the country. Learn more about your ad choices. Visit megaphone.fm/adchoices

Uber Freight is betting big on cross-border trade, deepening its imprint in Mexico by integrating customs, brokerage, and transportation services to help shippers navigate the complex trade environment, especially as U.S.-Mexico trade has surged 21% this year. The company uses a digitized method to provide visibility at the border, which historically has been referred to as the "black hole" in logistics, and helps customers avoid extra duties or delays due to shifting regulations like USMCA rules of origin. President Trump has voiced his approval for the proposed $85 billion merger between Union Pacific and Norfolk Southern, calling Union Pacific a "great railroad". If approved by the Surface Transportation Board (STB), this deal would create the nation's largest railroad, boasting 52,000 miles of track across 43 states. Volvo Trucks North America has also launched Load Finder, a new, free load board designed to help carriers reduce empty miles and deadhead operations. Developed in partnership with Canadian-based freight tech company Class8, the platform aggregates available loads from over 40 sources and integrates into the existing Volvo Connect system for customers. Learn more about your ad choices. Visit megaphone.fm/adchoices

Amazon has aggressively expanded its third-party logistics footprint. They opened their Multi-Channel Fulfillment service to merchants on rival platforms like Shein, Shopify, and Walmart, leveraging their scale to become the default logistics backbone for e-commerce. We analyze the major corporate reality shift in Less-Than-Truckload as FedEx Freight remains firmly on track to become an independent public company by June 2026, trading on the NYSE as FDXF. Despite a constrained LTL market due to a weak industrial economy, FedEx Freight announced a 5.9% general rate increase taking effect January 5th, driven by spin-off cost pressures and rising wages. The episode shares a stark economic warning of "profitless prosperity," which projects steady, slow expansion for US GDP and freight activity through 2029, yet requires operators to fight hard for margins. Persistent inflation is expected, fueled by factors like labor scarcity, fiscal deficits, and rising energy demand, making these rate increases likely to stick. Adding to the inflation headache, the weighted average U.S. tariff rate has climbed to 16.4%, the highest level seen since the 1930s, which is expected to generate 1.3% to 1.4% inflation. We also cover capacity dynamics, noting that while the Outbound Tender Rejection Index remains low (stuck just over 5%) signaling persistent excess capacity, capacity exits are expected to continue as smaller carriers struggle to afford replacing aging truck fleets. Finally, we address critical regulatory changes related to risk and driver welfare, starting with the Department of Transportation launching a major crackdown on cargo theft after a spike of more than 90% between 2021 and 2024. New legislation is also moving fast to ban predatory lease-purchase programs, which were concluded by an FMCSA task force to be "irredeemable tools of fraud and driver oppression" that shift the financial burden onto drivers. Learn more about your ad choices. Visit megaphone.fm/adchoices

FedEx Freight is becoming a standalone public company, with its parent planning to spend $600 million to enhance its IT systems and infrastructure ahead of the separation . Consolidated adjusted earnings for FedEx were strong for the fiscal first quarter, exceeding expectations even though FedEx Freight revenue saw a 3.1% year-over-year decline. Hear the latest on the ongoing labor negotiations as Canada Post prepares to present a new contract offer to unionized mail carriers in an effort to break the existing stalemate. However, the Canadian Union of Postal Workers declined to immediately drop their limited strike action—a ban on delivering marketing mail—and asked why negotiations need to be postponed for another week after two years without new collective agreements. The morning minute also features the opening of the Savage Tooele Railroad in the northwest corridor of Utah, marking the state’s first new short line railroad in over a century. This 11-mile route restores a former Union Pacific branch and serves the Lakeview Business Park, a project Governor Spencer Cox hailed as a major step forward for Utah’s economy . Tune into FreightWaves TV later today for WHAT THE TRUCK?!? with Malcolm Harris at noon. You can also register for next month's State of Freight which will be live and in-person at the Future Freight Festival (F3). Learn more about your ad choices. Visit megaphone.fm/adchoices

August saw an accelerated decline in freight shipments, particularly in less-than-truckload (LTL) volumes, marking the largest year-over-year drop since October 2023. Meanwhile, the Port of Los Angeles experienced record container traffic in July and August due to early holiday stocking, but anticipates a significant slowdown through the end of 2025 as economic caution grows and new ship fees are implemented. In a move to enhance infrastructure, Outpost has secured $1 billion in funding to double its truck terminal network, expanding its national footprint across key logistics hubs. Their proprietary gate automation platform, leveraging AI and computer vision, provides customers with comprehensive asset visibility and flexible service options. The U.S. Postal Service is also modernizing, investing in next-generation package sorting machines like the PILS and MEWS systems to significantly boost processing capacity and reduce operating costs. On the rails, Watco has signed an agreement with Intramotev to deploy its TugVolt autonomous battery-electric railcars, marking the first commercial deployment of such innovative freight rail technology by a railroad operator. Despite these advancements, the industry faces ongoing challenges, as evidenced by a federal appeals court upholding a ruling that requires the defunct Yellow Corp. to pay over $6.5 billion in pension withdrawal liabilities. This decision rejects Yellow Corp.'s argument that federal bailout funds absolved it of this significant debt. Learn more about your ad choices. Visit megaphone.fm/adchoices

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Major carriers like DHL Express and FedEx Express are making significant, strategically expanded, and sustainability-focused moves. DHL recently inaugurated a new $94 million international hub at Barcelona International Airport, which boasts a seven-fold capacity increase, processing over 20,000 pieces per hour, and features a full solar array and 37 electric chargers for its vans. Similarly, FedEx opened a new 19,000-square-foot dedicated freight facility at East Midlands Airport in the UK, operating separately from parcel sorting to boost cross-border air shipments and improve asset utilization. Next, we shift stateside to US ports, specifically the LA-Long Beach complex, which is showing surprisingly strong efficiency numbers for August 2025. Truck dwell time averaged just 2.73 days, while rail dwell time significantly improved to 4.98 days, demonstrating effective coordination between terminals, truckers, and railroads even with high cargo volumes. Diesel is currently presenting a "tale of two prices" with retail stability contrasting with surging futures. The weekly average retail price remained stable around $3.739 a gallon, but ultra low sulfur diesel futures surged over 10 cents in two days, reaching its highest settlement since late July due to geopolitical factors and attacks on Russian oil infrastructure. Supreme Court's upcoming review of two important broker liability cases, TQL v. Cox and Montgomery v. Caribe II, on September 29th. These cases will determine the interpretation of the FAAAA safety exception regarding whether it covers brokers or just carriers, a critical point that has led to conflicting circuit court decisions. Additionally, we note the recent, thankfully quick, resolution of a brief outage of public FMCSA data, which highlighted the industry's reliance on this information for critical safety checks. Learn more about your ad choices. Visit megaphone.fm/adchoices

Large chunks of publicly available data on carriers have vanished from the FMCSA's website, impacting transparency for safety scrutiny efforts. Neither the FMCSA nor the Department of Transportation has yet offered an explanation for this significant data disappearance. Yellow Corp. is selling a Baltimore service center for $4.7 million, with only 11 terminals now remaining from its original 325-plus locations. Yellow has successfully sold over 200 service centers for nearly $2.4 billion since beginning its liquidation process. The surprising boost in container rates, influenced by positive trade negotiations between China and the US, include a potential TikTok deal. Rates from China to the US West Coast surged 7% week-over-week and 34% since late August, with East Coast prices also rising due to general rate increases and demand before China's Golden Week.  Finally, don't miss Malcolm Harris and Adam Wingfield on FreightWaves TV today at noon, discussing Truck Driver Appreciation Week. Remember to grab your last-chance tickets for the Future of Freight Festival in Chattanooga, Tennessee, on October 21st and 22nd. Learn more about your ad choices. Visit megaphone.fm/adchoices

The Transportation Intermediaries Association (TIA) is sounding the alarm over broker liability. The Supreme Court is currently weighing requests to hear two cases, Total Quality Logistics v. Cox and Montgomery v. Caribe Transport II, which highlight conflicting circuit court rulings that create an "acute existential threat" for small brokers. A significant victory against cargo theft, as California authorities recovered over $1.4 million in stolen consumer electronics. This bust was made possible with the assistance of cargo security platform Overhaul, whose real-time tracking capabilities enabled law enforcement to pinpoint the cargo and arrest eight suspects. Michigan-based Kalitta Air prepares to operate the world’s first Boeing 777-300 aircraft converted from passenger to cargo configuration. These "Big Twin" jets, modified by Israel Aerospace Industries, boast a 110-ton payload and will replace aging 747s, significantly boosting long-haul capacity for e-commerce shipments despite earlier certification delays. Learn more about your ad choices. Visit megaphone.fm/adchoices

CloudTrucks has expanded its "Road to Independence" program by launching FleetFirst Leasing LLC, a new lease-to-own provider aimed at making truck ownership more accessible for company drivers. This initiative stands in stark contrast to a widespread Class A CDL fraud scheme in Louisiana, where six people were indicted for selling passing grades without required tests for approximately $6,500. A federal judge in Georgia allowed a lawsuit to proceed against GFA Alabama Inc. and Glovis Georgia, alleging a "bait and switch" scheme where Mexican professionals recruited for engineering roles were assigned lower-paying manual labor jobs. Separately, the industry's largest lobbying groups, ATA and OOIDA, are clashing over priorities for the next highway bill, differing on issues like hair testing and allowing 18-20 year olds in interstate commerce, yet agreeing on truck parking and combating freight fraud. In strategic global logistics, Radiant Logistics acquired an 80% stake in Weeport, a Mexico City-based provider, significantly strengthening Radiant's presence in Mexico and North America due to nearshoring. Finally, the liquidation of Yellow Corp.'s rolling stock generated approximately $175.7 million in net proceeds, contributing to the estate's roughly $623 million in cash, though former employee claims and the final bankruptcy plan remain uncertain. Learn more about your ad choices. Visit megaphone.fm/adchoices