Topics: Economic Shifts, Equipment Financing, Carrier Newsletter, FreightMarketTrends, LogisticsChallenges, FrontLoadingStrategies
The July disappearance of a trailer packed with $15 million worth of Apple and AMD products from an unsecured lot in Reno, Nevada, has drawn focus on the increasing problem of cargo theft in the United States. One of the cargo theft hot spots is Southern California, where retailers have been front-loading imports to get ahead of tariffs.
Despite those import gains, the trucking industry continues to struggle with a soft market. Cass Information Systems is closely monitoring the freight market volatility to support carriers as they shift strategies to overcome all of this year’s challenges.
Operations
Cargo Theft Reaches ‘Crisis Levels’
Cargo theft is rampant across the country, with CargoNet reporting that more than $63 million worth of goods was stolen in just the first quarter of 2025.
“Cargo theft in the U.S. has reached crisis levels, with annual losses now topping $35 billion, according to new data reported by Tank Transport,” Supply Chain 24/7 said, pointing out that “with roughly 65,000 incidents logged last year, the growing threat has put pressure on shippers, carriers, and brokers to rethink cargo security as a strategic priority.”
CargoNet said theft incidents increased 27% year over year to an all-time high in 2024 — and losses are forecast to jump another 22% this year. The average theft is now valued at more than $202,000.
“IMC Logistics has seen cargo theft of intermodal volumes rise from five incidents in 2021 to 876 incidents in 2024. That is a 17,520% increase in just three years,” Donna Lemm, IMC’s chief strategy officer, testified before a Senate committee considering the proposed Combating Organized Retail Crime Act of 2025.
Cargo theft hot spots, according to Supply Chain 24/7, include Southern California, Memphis, the Texas Triangle, mid-Atlantic ports, and the Chicago rail corridor.
Scott Cornell, the vice president of transportation and crime and theft specialist for Travelers, said food and beverages are the top target for thieves because they are easy to steal, difficult to trace, and always in demand.
Forward Air Leaders Still Considering Sale
Forward Air executives said a possible sale or merger is still on the table.
The embattled carrier has been trying to recover from its lawsuit-plagued acquisition of Omni Logistics in early 2024. Forward Air posted a second-quarter net loss of nearly $20.4 million. Still, that was down substantially from the nearly $1 billion net loss posted in Q2 2024. Trucking Dive reported that the huge loss was “driven almost entirely by the new Omni segment.”
Forward Air began a strategic review in January and reportedly is weighing its options.
CFO Jamie Pierson said Forward Air’s leaders don’t favor “piecemeal sales of the business,” according to Trucking Dive, but CEO Shawn Stewart said nothing has been ruled out.
“To unwind it, I think, would be value destructive, but there might be one that we would consider,” Stewart said.
About 70% of Forward Air’s revenue comes from its ground transportation segment, which includes expedited LTL, truckload, and brokerage services.
Landstar Looking at Mexico Business Sell-Off
Landstar announced in a securities filing that it is working with a financial advisor to market its Mexico-based Landstar Metro business.
According to Trucking Dive, Landstar said the Mexico unit “is failing to meet business goals, partly stemming from risks and tariff-fueled uncertainties for its Mexico operations.”
Landstar Metro was created in 2017 through the $8.5 million acquisition of logistics company Fletes Avella, S.A. de C.V.
Landstar said in an earnings report in May that “changes in U.S. trade policy and the impact of tariffs may significantly impact our customers, our industry, and our business.”
Tariffs
Cargo Front-Loading Peaks in July
The Port of Los Angeles recorded its busiest month in its 117-year history in July as U.S. companies rushed to front-load goods ahead of expected tariff hikes.
The port handled 1,019,837 twenty-foot equivalent units (TEUs), an 8.5% year-over-year increase.
“Shippers have been front-loading their cargo for months to get ahead of tariffs, and recent activity at America’s top port really tells that story,” Port of LA Executive Director Gene Seroka said. “Port terminals in July were jam-packed with ships loaded with cargo, processed without any delay — much to the credit of our dedicated longshore workers, terminal and rail operators, truckers, and supply chain partners.”
Supply Chain Dive reported that the waves of front-loading have created “a massive product stockpile.”
At a media briefing with Seroka, Zachary Rogers, a Colorado State University assistant professor of supply chain management, said, “So much inventory is already here, and it’s really put stress on the warehousing network, and so there’s a lot of costs right now that is associated with holding onto goods, and that’s especially true if we look upstream.”
Seroka said July likely was the peak for imports this year. Early numbers showed August totals at the Port of LA of between 850,000 and 900,000 TEUs.
Walmart and Target Raced to Beat Tariffs
Walmart and Target were among the major retailers that implemented front-loading strategies to get inventory into the United States before tariffs hit.
Imports at the top 10 U.S. ports in the first four months of 2025 were up 15.6% year over year, according to Sea-Intelligence.
CNBC said Walmart’s front-loading activity peaked in March with an estimated 14,600 TEUs. Target brought in cargo even earlier, peaking in January before Lunar New Year with 22,200 TEUs, according to Import Genius data.
After the Trump administration reduced tariffs on Chinese goods from 145% to 30% in May, the retailers again stepped up imports. Import Genius data showed Target imports at 21,100 TEUs in July and Walmart imports at 10,800 TEUs.
“During the first half of 2025, and in particular around the erratic tariff decisions of the Trump administration in April and May, shippers had to deploy stop-and-go tactics,” Peter Sand, Xenata’s chief shipping analyst, told CNBC. “Doing it earlier did not bring lower freight cost around — but shippers doing that enjoyed greater predictability and a more even flow of goods.”
Economy
Trucking Industry Grapples With Market Volatility
Trucking industry executives commiserated over market volatility during an August supply chain summit hosted by third-party logistics company Jarrett.
“The challenges you had a couple of years ago are totally different. And if you don’t change or adjust, you don’t do well,” Mark Hamblin, Saia’s vice president of sales, said.
Dana Lentz, senior vice president of customer solutions at the Bennett Family of Companies, added that the biggest challenge is “being comfortable with the uncomfortable.”
Lentz said building strategic partnerships is key to driving long-term volume growth.
“As we face the inevitable future, we can’t let it be a lost art to forge those strategic relationships because, in our experience, what comes with those relationships is solutions,” Lentz said.
The Commercial Carrier Journal said the panelists stressed the importance of data visibility, real-time analytics, and predictive technology as fundamental tools to navigate market volatility, control costs, and avoid unexpected charges or rate hikes.
Universal Logistics Turns Focus to Specialized Freight
Trucking Dive reported that Universal Logistics is betting big on specialized freight, as hauling components for the wind energy sector has shown promise in an otherwise soft market.
Universal Logistics’ second-quarter revenue dropped 14.8% year over year to $393.8 million. Q2 trucking volumes declined 22.6%.
Still, Universal leaders said they have seen strong demand for wind industry-related hauls, particularly the transport of blades, towers, and components, and said revenue per load increased by more than 24% year over year in the first quarter, a sign that the focus on specialized, high-yield freight was gaining traction.
“Our focus on specialized freight, including our wind energy business, continues to support more resilient margins even in a depressed market,” Universal CEO Tim Phillips said on a Q2 earnings call.
LTL
NMFTA Hails ‘Successful Implementation’ of LTL Classification Overhaul
The National Motor Freight Traffic Association (NMFTA) is touting the “successful implementation” of the mid-July overhaul of the National Motor Freight Classification (NMFC) system for LTL shipments.
“These updates reflect years of thoughtful analysis and engagement with our members and LTL stakeholders,” NMFTA Executive Director Debbie Sparks said. “The modernized classification system better aligns with how goods are packaged and shipped today, while still supporting fairness and consistency across the supply chain.”
Despite the smooth rollout, FedEx Freight has delayed implementation of the revamped system until Dec. 1 to give its LTL shippers more time to adjust to the classification changes.
“Since several commodities are moving to density-based classification, it’s more important than ever for shippers to accurately record shipments’ density, weight, and dimensions. If you ship these types of commodities, the density will determine the classification,” FedEx said in a statement.
Navigate Market Volatility with Cass
Cass Information Systems supports carriers by making sense of analytics and designing flexible, customized early payment solutions that align with business goals.
Cass Commercial Bank Equipment Financing finances trucks, trailers, and equipment. Contact Scott Williams, Vice President Commercial Equipment Finance, at (513) 545-4605 or swilliams@cassbank.com to learn more.
