FreightWaves NOW

We begin with news of a Houthi attack on the Liberian-flagged bulk tanker, Magic Seas, in the Red Sea, marking the first such incident on commercial shipping since December of last year. This attack, which occurred 51 nautical miles southwest of Hudaydah, Yemen, led to the vessel being set on fire and sinking, with its 23-person crew abandoning ship.  UPS plans to offer voluntary buyouts to unionized drivers for the first time in their history, as part of an effort to eliminate approximately 20,000 frontline positions and increase profits. While drivers taking the buyout would receive a generous financial package and earned retirement benefits, the Teamsters union strongly opposes this plan, viewing it as an illegal violation of their contract's commitment to creating new jobs.  In other news, DP World, a global ports and logistics operator, is seizing significant opportunities across Latin America, having recently opened a freight forwarding hub in Mexico City to support rising demand in US-Mexico cross-border logistics. The company has expanded aggressively in the Americas over the last two years, establishing 35 freight forwarding offices, including locations in Brazil and Toronto. Finally, don't miss out on upcoming Freight Waves events, including a new episode of What The Truck?!? today at noon, with a replay on Road Dog Trucking at 6 p.m.. Also, remember to sign up for the Enterprise Fleet Summit on July 23rd and the Supply Chain AI Symposium on July 30th in Washington DC, both accessible for registration at live.freightwaves.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Uncertainty surrounds U.S. and China trade relations as the July 9th tariff pause deadline approaches. President Donald Trump has announced an agreement for China to resume rare earth minerals trade in exchange for some U.S. tariff relief, with negotiations to be finalized after the Fourth of July holiday. The U.S. Postal Service has rolled out the second phase of its new delivery standards nationwide, aiming to improve operational efficiency and reduce transportation costs. These initiatives involve expanding reduced surface transportation schedules from regional processing centers to more distant post offices, intending to eliminate inefficient trucking trips and potentially save $36 billion over 10 years. A new LA-to-New York passenger train proposal by AmeriStarRail is set to carry long-haul trucks and their drivers. This coast-to-coast service, in partnership with Amtrak, promises to complete the journey in less than 72 hours, offering truck drivers drive-aboard service with access to Amtrak's coach, sleeper, and dining cars. The operation could potentially begin as early as May of next year. Listeners are also invited to explore new content on FreightWaves TV. Upcoming episodes include The Long Haul with Adam Wingfield and Bring It Home with JP Hamstead, offering further insights into the freight industry. Learn more about your ad choices. Visit megaphone.fm/adchoices

One of the largest food shipper bankruptcies in recent years involves Del Monte Foods filing for Chapter 11, impacting logistics providers like Uber Freight, which is owed $9 million. While pre-bankruptcy amounts are unsecured and repayment remains uncertain, there's hope that post-filing services may be paid more promptly under tighter court oversight and credit restraints. The U.S. Postal Service has expanded new delivery standards nationwide in its second phase, aiming to boost efficiency and slash costs by an estimated $36 billion over the next decade. This revamp involves consolidating facilities, eliminating redundant trucking trips, and streamlining mail processing, adapting to a dramatic shift in mail volume. On a more alarming note, recent weeks have seen over $31 million worth of illegal drugs seized at U.S. and Canadian border ports from commercial shipments. Supply chain risk firm Overhaul also assisted in recovering stolen rail freight cargo in California and Illinois, highlighting ongoing challenges of cargo theft. Let's turn to fuel prices, where benchmark diesel prices have cooled off after a spike linked to geopolitical fears, declining by nearly 5 cents per gallon to $3.727/gallon. Interestingly, diesel is trading in backwardation, where the front-month price is higher than later months, indicating tight inventory conditions and making its prices more sensitive than crude oil. Moving to the workforce, new data reveals truck driver wage growth is slowing in 2025 after strong increases in 2021 and 2022, projected to slow further to less than 1% during early 2025. This cooling is driven by reduced demand for drivers and a broader slowdown in national wage growth, despite non-fuel operational costs for trucking hitting record highs. Finally, experts agree that constant, overlapping disruptions have reshaped the global trade environment into a new normal, termed "compound disruptions". Building resilient supply chains in this era requires foresight, agility, a digital-first mindset, and enhanced collaboration between shippers and carriers. Learn more about your ad choices. Visit megaphone.fm/adchoices

Del Monte Foods has filed for Chapter 11 bankruptcy, marking one of the largest food shipper bankruptcies in recent years, with over $1 billion in liabilities. This event profoundly impacts transportation and logistics companies, including Uber Freight (listed as Transplace in the filing), which is owed over $9 million, as detailed in the article "Uber Freight faces $9M hit in Del Monte Bankruptcy". A new report from the American Transportation Research Institute (ATRI), indicates a continuing downward trend in driver wage growth from 2024 through the first quarter of 2025. This deceleration, attributed to reduced driver demand, saw the rate of growth drop significantly from 7.6% in 2023 to 2.4% in 2024, and only 0.9% in the first two months of 2025, as further explained in "Truck driver wages downshifting in 2025". There is growing speculation around the next Class One railroad merger in the United States, fueled by a surge of investor interest from a UK investor. While major mergers were once considered a thing of the past due to strict regulatory oversight, the industry's desire for structural changes and improvements could drive new east-west merger possibilities, a topic explored in "UK investor sees not one, but two, pathways to rail mergers". Finally, tune in to FreightWaves TV for What The Truck?!? live at noon. Also, mark your calendars for the Enterprise Fleet Summit on July 23rd and the Supply Chain AI Symposium in Washington D.C. at the end of this month. Learn more about your ad choices. Visit megaphone.fm/adchoices

Learn more about your ad choices. Visit megaphone.fm/adchoices

In this episode of the FreightWaves Morning Minute, we delve into the impact of stricter English language proficiency requirements on the U.S.-Mexico cross-border freight market, an initiative from the Trump administration. The enforcement, which began on Wednesday, July 1st, 2025, is already causing significant operational changes for the trucking industry and leading to an increase in rates on northbound trucking lanes. The episode also covers the dramatic decline in trans-Pacific container rates from the Far East to the U.S. West Coast, with market average spot rates plummeting 39% since June 1st to $3,317 per forty-foot equivalent unit. While rates to the U.S. East Coast also declined by 9% since June 1st, they still stand at $5,990 per FEU, maintaining a significant $2,673 spread between the coasts, the highest in 10 months. The first legal steps have taken to challenge the Clean Truck Partnership (CTP), a 2023 agreement between California and engine manufacturers. The Western States Trucking Association (WSTA) has petitioned the California Office of Administrative Law to determine if the CTP was properly reached under California law, labeling it an "unholy alliance". Don't forget to tune into FreightWaves TV for Check Call and Loaded and Rolling. Also, mark your calendars for the Enterprise Fleet Summit on July 23rd and the AI Supply Chain Symposium on July 30th in Washington D.C.. Learn more about your ad choices. Visit megaphone.fm/adchoices

Learn more about your ad choices. Visit megaphone.fm/adchoices

On this episode of FreightWaves Morning Minute, we delve into the U.S. Department of Transportation's (DOT) new initiatives, including a nationwide audit of non-domiciled CDL holders, significant federal funding for truck parking, and the cancellation of the speed limiter mandate for heavy-duty trucks. These changes aim to prioritize American truck drivers and address long-standing industry concerns, as announced by Transportation Secretary Sean Duffy on FreightWaves' WHAT THE TRUCK?!? show. You can read more about these changes in the article "BREAKING: DOT will crack down on non-domiciled CDL holders - FreightWaves". DHL Express Canada has reinstated all services and resumed full operations after Unifor union workers ratified a new four-year contract. This agreement ends a nearly three-week strike/lockout and includes a 15.75% wage increase over four years, a new payment structure for independent drivers, and enhanced pension programs. Further details are available in the article "DHL Express Canada reinstates service after workers ratify labor deal - FreightWaves". A new report indicates that Mexico is well-positioned to benefit from President Trump’s global tariff war and the ongoing trend of nearshoring. Most goods from Mexico qualify for tariff-free treatment under the USMCA, making it a reliable alternative for companies seeking to reduce exposure to trade friction and long lead times from overseas markets. Learn more in the report "Borderlands Mexico: Winner in global tariff war could be Mexico, report says - FreightWaves". Tune into FreightWaves TV for What the Truck?!? live at noon today, or catch the replay on SiriusXM channel 146. Don't forget to register for the upcoming Enterprise Fleet Summit on July 23rd and the Supply Chain AI Symposium on July 30th in Washington D.C.. Learn more about your ad choices. Visit megaphone.fm/adchoices

Learn more about your ad choices. Visit megaphone.fm/adchoices

FedEx's strategic Network 2.0 consolidation program, aims to close 30% of its U.S. package distribution facilities within two years. This initiative is already contributing significant savings, with $200 million expected this quarter, and involves integrating legacy Express and Ground networks to achieve greater efficiency and eliminate $2 billion in annual costs.  The broadcast also details Maersk's decision to reopen service at Israel's largest port, Port of Haifa, after a brief suspension due to heightened tensions and missile attacks from Iran. The carrier is closely monitoring the situation, including the navigability of the critical Strait of Hormuz, following reports of a ceasefire.  Additionally, Air Hong Kong, a freighter subsidiary of Cathay Pacific Airways and a DHL Express capacity provider, has completed a seven-year transition from an Airbus A300-600 fleet to an all-A330 freighter fleet. The new A330s are larger and newer than the retired A300-600s, offering 25% more payload and an extended range for new destinations such as Bahrain and Sydney.  Finally, don't miss upcoming FreightWaves events, including a What the Truck?!? episode featuring Transportation Secretary Shawn Duffy, and major summits like the Enterprise Fleet Summit on July 23rd, and the Supply Chain AI Symposium on July 30th in Washington D.C.. Register for these and get your F3 tickets by visiting live.freightwaves.com. Learn more about your ad choices. Visit megaphone.fm/adchoices