Topics: Carrier Relations, Carrier Solutions, Early Payment, New Tariff Impact, Equipment Financing
The levying and rescinding of tariffs is what you’d call a fluid situation, and we hesitate to lead the newsletter on import taxes as the bargaining among countries continues. However, the prospect of 25% levies on goods imported to the United States from Mexico and Canada remains top of mind for carriers and consumers, and we’ve got to address the elephant in the room.
At Cass Information Systems, we’ve got carriers’ backs, and we’re also keeping tabs on proposed legislation and company earnings, as well as safety measures, cybersecurity initiatives, and networking opportunities.
Supply Chain Expert Says Tariffs Could ‘Wreck’ Trucking Market Recovery
President Donald Trump’s threatened 25% tariffs on all goods imported from Canada and Mexico have been put on hold — for now. Many supply chain stakeholders hope it stays that way.
“An all-out tariff war like the POTUS just started is the one thing that can wreck the potential for a significant recovery in the trucking sector in 2025, both in terms of freight volumes and prices,” said Jason Miller, an associate supply chain management professor at Michigan State University.
Chris Spear, president and CEO of the American Trucking Associations (ATA), agreed, saying, “As the trucking industry recovers from a years-long freight recession marked by low freight volumes, depressed rates, and rising operational costs, we have concern that tariffs could decrease freight volumes and increase costs for motor carriers at a time when the industry is just beginning to recover.”
Both Canada and Mexico have vowed to implement retaliatory tariffs in phases if the United States’ are put into effect. Canadian products in the first round of tariffs would include orange juice, peanut butter, wine, appliances, and pulp and paper.
For U.S. consumers, the prices for fresh vegetables, beer, tequila, and more all could go up if Mexico puts its threatened retaliatory tariffs in place.
K&B Transportation Reduces Accidents by Watching the Weather
K&B Transportation achieved an 80% year-over-year decrease in Department of Transportation recordable accidents by keeping very close tabs on the weather.
The Nebraska-based food hauler implemented a custom weather alert system to enhance the capability of its driver app. Severe weather warnings are channeled through a dedicated newsfeed with read-aloud functionality to prevent driver distraction. The system requires driver acknowledgement of the alerts.
K&B also can remove load information cards if drivers are in areas where they should not be operating because of severe weather conditions. The removal of load information is an alert that’s “impossible to miss,” K&B’s Matt Fengler told the Commercial Carrier Journal.
Marten Encouraged Despite 63% Income Plunge
Marten Transport’s full-year 2024 operating income dropped 63% to $33.2 million, but leadership said it was encouraged by its operating ratio improvement in the fourth quarter.
“We are encouraged by this quarter being the first quarter with sequential improvement in each of our net income, operating income, and operating ratio, net of fuel surcharges, since the second quarter of 2022,” Executive Chairman Randolph Marten said in an earnings statement.
The earnings release said the carrier is seeing increased interest from customers to secure dedicated capacity.
“We continue to focus on minimizing the freight market’s impact on our operations while investing in and positioning our operations to capitalize on profitable organic growth opportunities, with fair compensation for our premium services,” Marten said.
Bipartisan Bill Introduced to Fight Freight Fraud
The Owner-Operator Independent Drivers Association (OOIDA) is supporting a bipartisan bill introduced in the House and Senate that would restore the Federal Motor Carrier Safety Administration’s (FMCSA) authority to issue civil penalties in cases of freight fraud and require brokers, freight forwarders, and carriers to provide valid business addresses before acquiring operating authority.
“Freight fraud committed by criminals and scam artists has been devastating to many small business truckers simply trying to make a living in a tough freight market,” OOIDA President Todd Spencer said in a statement.
Eleanor Holmes Norton, a sponsor of the bill who represents the District of Columbia in Congress, explained that the Household Goods Shipping Consumer Protection Act would “provide FMCSA with explicit authority to assess civil penalties for violations of commercial regulations and crucially, to withhold registration from applicants failing to provide verification details demonstrating they intend to operate legitimate businesses.”
ArcBest Blames Lighter Shipments for Income Drop
ABF Freight President Matt Godfrey attributed the 40% year-over-year drop in ArcBest’s asset-based trucking operating income to ongoing industrial demand weakness, low housing inventory, and lighter weight per shipment.
“Some higher-weight LTL shipments have also shifted to the truckload market, with its continued low rates and excess capacity,” Godfrey said.
ArcBest’s fourth-quarter operating income came in at $52.3 million. Volumes remained steady, with shipments per day dipping only 1% year over year.
ATA Applauds Trump’s Pick to Lead EPA
ATA President and CEO Chris Spear said he looks forward “to the restoration of common sense in our nation’s environmental policies” until new Environmental Protection Agency (EPA) chief Lee Zeldin.
According to the CCJ, Spear wants to work with Zeldin to replace electric truck mandates with national emissions standards “that are technologically achievable, encourage innovation, and account for the operational realities of our essential industry.”
President Trump’s pick to head the EPA is a former New York congressman.
“Over the past several years, the mad dash to zero and a patchwork of unachievable mandates on unrealistic timelines have posed a grave threat to the trucking industry, the supply chain, and our economy,” Spear said.
NMFTA Offers Fleets Cybersecurity Guidance
The National Motor Freight Traffic Association (NMFTA) has produced a cybersecurity guidebook for owner-operators and fleets.
The NMFTA said the guidebook is designed to “provide clear, actionable security standards that are accessible to non-cybersecurity professionals, helping to simplify and strengthen cybersecurity programs across fleets of all sizes.”
The 2025 NMFTA Cybersecurity Conference will take place in Austin, Texas, on Oct. 26-28.
Saia Investments Impact Q4 Earnings
Saia Inc. attributed lower fourth-quarter earnings to a “record level of real estate investments.”
Net income was $76.1 million, down from $89.2 million in Q4 2023. For the full year, however, net income was $362.1 million, up from $354.9 million the previous year.
“We opened 21 terminals in 2024, which is, by far, a record, and we relocated an additional nine terminals,” CEO Fritz Holzgrefe told investors. “We ended the year with 214 terminals and now have a national footprint, enabling us to provide direct service to our customers in the 48 contiguous states.”
New CargoNet Tool Designed to Reduce Theft Risk
The new CargoNet RouteScore API is designed to reduce the risk of cargo theft. The tool uses a proprietary algorithm to generate a cargo theft route risk score that provides a relative measure of probability that crime and loss will occur along any route in the United States and Canada, according to a CCJ article.
CargoNet is using about 15 years’ worth of historical data it has collected on supply chain thefts – down to the GPS coordinates of where the thefts occurred.
“We’re taking that information and putting it into a process where someone can use an API to connect to us, and they can actually get a risk assessment done … on their shipping lanes,” Lewis told the CCJ. “The lower the score, the safer the route. The higher the score, the less safe the route.”
Heartland Suffers in ‘Prolonged Negative Operating Environment’
Heartland Express reported a Q4 net loss of $1.9 million, but “even in this challenging and prolonged operating environment, we continued to generate positive operating cash flows,” CEO Mike Gerdin said in an earnings release.
Heartland Express’ full-year operating ratio was 101.9%, up from 96.5% in 2023.
But Gerdin remains optimistic, saying the company is “seeing a positive shift in customer rate and volume negotiations that we expect to strengthen as the year unfolds.”
Put a Trucking Conference on Your To-Do List
It’s a good time of year to plan for trips to sunny locales like Las Vegas, Phoenix, and San Diego.
Trucking Dive compiled a list of industry conferences in 2025, complete with registration links. Check it out.
Count on Cass Throughout 2025 and Beyond
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Carriers can secure financial freedom with Cass Early Payment Solutions, which provide the steady cash flow needed for smooth day-to-day operations as well as structured financial growth essential for long-term success.
Contact us today to learn more.
