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US tariffs on Canada and Mexico take effect, as China takes aim at US farm exports

The Associated Press - March 4, 2025

WASHINGTON (AP) — President Donald Trump’s long-threatened tariffs against Canada and Mexico went into effect Tuesday, putting global markets on edge and setting up costly retaliations by the United States’ North American allies. Starting just past midnight, imports from Canada and Mexico are now to be taxed at 25%, with Canadian energy products subject to 10% import duties. Top 10 US imports from Mexico Imports by value, 2023 Source: US Census Bureau Cars and trucks $92.9B Auto parts $77.6B Computers and accessories $30.2B Oil $23.9B Electrical equipment $23.6B Telecom equipment $14.6B Medicinal equipment $13.6B Industrial machines $11.5B Fruits including avocados, blueberries, strawberries $11.3B Household appliances $11B The 10% tariff that Trump placed on Chinese imports in February was doubled to 20%, and Beijing retaliated Tuesday with tariffs of up to 15% on a wide array of U.S. farm exports. It also expanded the number of U.S. companies subject to export controls and other restrictions by about two dozen. Canadian Prime Minister Justin Trudeau said his country would slap tariffs on more than $100 billion of American goods over the course of 21 days. Mexico didn’t immediately detail any retaliatory measures. Top 10 US imports from China Imports by value, 2023 Source: US Census Bureau Cell phones $66.7B Computers and accessories $53.1B Electric and industrial equipment. $42B Toys, games, and sporting goods. $32.3B Appliances and furniture. $25.5B Clothing and textiles $19.6B Car parts $14.6B Telecommunications equipment. $12.9B Cookware, cutlery, tools $8.9B Shoes $7.9B The U.S. president’s moves raised fears of higher inflation and the prospect of a devastating trade war even as he promised the American public that taxes on imports are the easiest path to national prosperity. He has shown a willingness to buck the warnings of mainstream economists and put his own public approval on the line, believing that tariffs can fix what ails the country. “It’s a very powerful weapon that politicians haven’t used because they were either dishonest, stupid or paid off in some other form,” Trump said Monday at the White House. “And now we’re using them.” Top 10 US imports from Canada Imports by value, 2023 Source: US Census Bureau Oil and petroleum products $108.3B Cars and trucks $42.8B Auto parts $14.1B Aluminum and bauxite $9.3B Metal products $8.8B Natural gas $8.6B Bread, pastries, baked goods $8.5B Industrial supplies $7.5B Beef, pork, and other meat $6.7B Gold $6.4B The Canada and Mexico tariffs were supposed to begin in February, but Trump agreed to a 30-day suspension to negotiate further with the two largest U.S. trading partners. The stated reason for the tariffs is to address drug trafficking and illegal immigration, and both countries say they’ve made progress on those issues. But Trump has also said the tariffs will only come down if the U.S. trade imbalance closes, a process unlikely to be settled on a political timeline. The tariffs may be short-lived if the U.S. economy suffers. But Trump could also impose more tariffs on the European Union, India, computer chips, autos and pharmaceutical drugs. The American president has injected a disorienting volatility into the world economy, leaving it off balance as people wonder what he’ll do next. “It’s chaotic, especially compared to the way we saw tariffs rolled out in the first (Trump) administration,” said Michael House, co-chair of the international trade practice at the Perkins Coie law firm. “It’s unpredictable. We don’t know, in fact, what the president will do.’’ Democratic lawmakers were quick to criticize the tariffs, and even some Republican senators raised alarms. Sen. Susan Collins, R-Maine, said she’s “very concerned” about the tariffs going into effect because of her state’s proximity to Canada. “Maine and Canada’s economy are integrated,” Collins said, explaining that much of the state’s lobsters and blueberries are processed in Canada and then sent back to the U.S. The world economy is now caught in the fog of what appears to be a trade war. Even after Trump announced Monday that the tariffs were going forward, Canadian officials were still in touch with their U.S. counterparts. “The dialogue will continue, but we are ready to respond,” Canadian Defense Minister Bill Blair said in Ottawa as he went into a special Cabinet meeting on U.S.-Canada relations. “There are still discussions taking place.” Shortly after Blair spoke, Trudeau said Canada would impose 25% tariffs on $155 billion Canadian ($107 billion U.S.) worth of American goods, starting with tariffs on $30 billion Canadian ($21 billion U.S.) worth of goods immediately and on the remaining amount on American products in three weeks. “Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” Trudeau said. The White House would like to see a drop in seizures of fentanyl inside the United States, not just on the northern and southern borders. Administration officials say that seizures of fentanyl last month in everywhere from Louisiana to New Jersey had ties to foreign cartels. Damon Pike, technical practice leader for customs and trade services at the tax and consulting firm BDO, suggested the responses of other countries could escalate trade tensions and possibly increase the economic pressure points. “Canada has their list ready,” Pike said. “The EU has their list ready. It’s going to be tit for tat.’’ The Trump administration has suggested inflation will not be as bad as economists claim, saying tariffs can motivate foreign companies to open factories in the United States. On Monday, Trump announced that Taiwan Semiconductor Manufacturing Company, the computer chipmaker, would be investing $100 billion in domestic production. Still, it can take time to relocate factories spread across the world and train workers with the skills they need. Greg Ahearn, president and CEO of The Toy Association, said the 20% tariffs on Chinese goods will be “crippling” for the toy industry, as nearly 80% of toys sold in the U.S. are made in China. “There’s a sophistication of manufacturing, of the tooling,” he said. “There’s a lot of handcrafting that is part of these toys that a lot of people don’t understand … the face painting, the face masks, the hair weaving, the hair braiding, the cut and sew for plush to get it to look just so. All of that are very high hands, skilled labor that has been passed through generations in the supply chain that exists with China.” For a president who has promised quick results, Ahearn added a note of caution about how quickly U.S. factories could match their Chinese rivals. “That can’t be replicated overnight,” he said. Gillies reported from Toronto. Associated Press writers Anne D’Innocenzio in New York and Lisa Mascaro in Washington contributed to this report.

At least 4 people killed in an Arizona highway crash of multiple tractor-trailers

The Associated Press - March 3, 2025

TONOPAH, Ariz. (AP) — Authorities in Arizona are investigating a crash that killed four people and left two in critical condition after several tractor-trailers collided with nearby cars on a highway. Firefighters hosed down charred cars as billowy smoke covered the roadway after seven vehicles caught fire from crashing on an Arizona interstate Saturday afternoon. The wreck caused hourslong road closures. Six more people were injured and transported to hospitals, five of whom were treated and released, according to a statement from the Arizona Department of Public Safety. The fatal crash occurred near Tonopah, about 50 miles west of Phoenix. At least two tractor-trailers were strewn off to the shoulder of the highway and multiple cars sat clumped together in the middle of lanes covered in soot and ash. Authorities were investigating whether an initial collision caused by poor visibility from “blowing dust” led to a series of secondary crashes. More than 20 units from three different fire departments responded to the crash around noon Saturday, according to Arizona Fire and Medical Authority spokesperson Matt Licardi. The collision involved multiple tractor-trailers, cars and an RV. Eight people were taken to the hospital by ambulance and one person was airlifted by helicopter, Licardi said.

From Alaska to Maine, communities that border Canada worry US tariffs come at a personal cost

The Associated Press - March 2, 2025

DETROIT (AP) — At the U.S. Embassy in Ottawa, a quote from former President Ronald Reagan is engraved on one wall. “Let the 5,000-mile border between Canada and the United States stand as a symbol for the future,” Reagan said upon signing a 1988 free trade pact with America’s northern neighbor. “Let it forever be not a point of division but a meeting place between our great and true friends.” But a point of division is here. On Tuesday, President Donald Trump plans to impose a 25% tariff on most imported Canadian goods and a 10% tariff on Canadian oil and gas. Canada has said it will retaliate with a 25% import tax on a multitude of American products, including wine, cigarettes and shotguns. The tariffs have touched off a range of emotions along the world’s longest international border, where residents and industries are closely intertwined. Ranchers in Canada rely on American companies for farm equipment, and export cattle and hogs to U.S. meat processors. U.S. consumers enjoy thousands of gallons of Canadian maple syrup each year. Canadian dogs and cats dine on U.S.-made pet food. The trade dispute will have far-reaching spillover effects, from price increases and paperwork backlogs to longer wait times at the U.S.-Canada border for both people and products, said Laurie Trautman, director of the Border Policy Research Institute at Western Washington University. “These industries on both sides are built up out of a cross-border relationship, and disruptions will play out on both sides,” Trautman said. Even the threat of tariffs may have already caused irreparable harm, she said. Canadian Prime Minister Justin Trudeau has urged Canadians to buy Canadian products and vacation at home. The Associated Press wanted to know what residents and businesses were thinking along the border that Reagan vowed would remain unburdened by an “invisible barrier of economic suspicion and fear.” Here’s what they said: Skagway, Alaska-Whitehorse, Yukon People flocked from the boomtown of Skagway, Alaska, to Canada’s Yukon in search of riches during the Klondike gold rush of the late 1890s, following routes that Indigenous tribes long used for trade. Today, Skagway trades on its past, drawing more than 1 million cruise ship passengers a year to a historic downtown that features Klondike-themed museums. But the municipality with a population of about 1,100 still holds deep ties to the Yukon. Skagway residents frequently travel to Whitehorse, the territory’s capital, for a wider selection of groceries and shopping, dental care, veterinary services and swimming lessons. The Alaskan city’s port, meanwhile, still supports Yukon mining and is a critical hub for fuel and other essentials both communities need. “It’s a special connection,” Orion Hanson, a contractor and Skagway Assembly member, said of Whitehorse, which sits 110 miles (177 kilometers) north and has 30,000 people. “It’s really our most accessible neighbor.” Hanson is concerned about what tariffs might mean for the price of building supplies, such as lumber, concrete and steel. The cost of living in small, remote places already is high. People in Whitehorse and Skagway worry about the potential impact on community relations as well as prices. Norman Holler, who lives in Whitehorse, said the months the tariffs have loomed created “an uncomfortable feeling and resentment.” If the threat becomes reality, Holler said he would probably still visit Alaska border towns but not other parts of the United States. ““Is it rational? I don’t know, but it satisfies an emotional need not to go,” he said. – Becky Bohrer in Juneau, Alaska Point Roberts, Washington-Delta, British Columbia At the border of Washington state and British Columbia, the tension over tariffs is evident in a waterfront community that is hoping for Canadian mercy. Point Roberts is a 5-square-mile (13-square kilometer) U.S. exclave whose only land connection lies in Canada, which supplies the unincorporated nub of American soil its water and electricity. It’s a geographic oddity that requires a 20-mile drive around Canada to reach mainland Washington state. Local real estate agent Wayne Lyle, who like many of his neighbors has dual U.S.-Canadian citizenship, said some of Point Roberts’ roughly 1,000 residents are signing a petition pleading with British Columbia’s premier for an exemption to whatever retaliatory tariffs Canada may institute. “We’re basically connected to Canada. We’re about as Canadian as an American city can be,” Lyle said. “We’re unique enough that maybe we can get a break.” Lyle, who serves as the president of the Point Roberts Chamber of Commerce, said it’s too early to identify measurable effects, but he fears Canadians won’t visit the popular summer getaway destination out of spite. “We don’t want Canada to think we’re the bad guys,” Lyle said. “Please don’t take it out on us.” – Sally Ho in Seattle Billings, Montana-Alberta The 545-mile (877-kilometer) stretch of land that separates Montana from Canada includes some of the sleepiest checkpoints on the binational border. Several of the state’s border posts had fewer than 50 crossings a day on average last year. But unseen, in underground pipelines that cut through vast fields of barley, flows about $5 billion annually worth of Canadian crude oil and natural gas, most of it from Alberta. The lines traverse a continental pivot point — Montana is the only state with rivers that drain into the Pacific Ocean, Gulf of Mexico and Canada’s Hudson Bay – and deliver to refineries around Billings. “Canada is one of our major supply sources for oil across the United States,” said Dallas Scholes, the government affairs director of Houston-based refinery company Par Pacific, which runs a processing facility along the Yellowstone River. “If tariffs are imposed on the oil and gas industry, … it’s not going to be good for consumers.” People in Montana drive long distances given its sprawling size and burn lots of natural gas through harsh winters, making its residents the highest energy consumers per capita in the U.S., according to federal data. That means a 10% tax on Canadian energy resources would be felt broadly. The state’s farmers would be among those hit more severely, given the large volumes of gasoline needed to run tractors and other equipment, according to Jeffrey Michael, director of the University of Montana’s Bureau of Business and Economic Research. “It will be painful, but there are larger concerns if I were an agricultural producer in Montana,” Michael said. “I’d be worried about the trade war escalating to where my products start to get hit with reciprocal tariffs.” – Matthew Brown in Billings, Mont. Detroit-Windsor, Ontario The Detroit River is all that separates Windsor, Ontario, from Detroit. The cities are so close that Detroiters can smell the drying grain at Windsor’s Hiram Walker distillery and Windsor can hear the music drifting from Detroit’s outdoor concert venues. Manufacturing muscle makes the Ambassador Bridge, the 1.4-mile-long span connecting the two cities, the busiest international crossing in North America. According to the Michigan company that owns the bridge, $323 million worth of goods travel each day between Windsor and Detroit, the automotive capitals of their countries. The U.S., Canada and Mexico have long operated as one nation when it comes to auto manufacturing, noted Pat D’Eramo, CEO of Vaughan, Ontario-based automotive suppler Martinrea. Tariffs will cause confusion and disruption, he said. Right now, steel coils arrive at a plant in Michigan and get stamped into parts that are shipped to Martinrea in Canada. Martinrea uses the parts to build vehicle sub-assemblies that get shipped back to an automaker in Detroit. It’s unclear if parts would be taxed twice if they crossed the border multiple times, and if suppliers or their customers will have to pay for the tariffs. Also unclear is how a separate 25% levy on steel and aluminum that Trump said would take effect starting March 12 factors into the mix. D’Eramo understands the impulse to strengthen U.S. manufacturing but says the U.S. doesn’t have the capacity to make all the tooling Martinrea would need if it were to shift production there. At the end of the day, he thinks it’s sad tariffs will take up so much time, energy and resources, and only make vehicles even more expensive. “We need to be spending our time and money to get more efficient and reduce our costs so customers can reduce their costs,” he said. -Dee-Ann Durbin in Detroit Buffalo, New York-Ontario Buffalo, New York is, decidedly, a beer town. It’s also a border town. That makes for a complementary relationship. Western New York’s dozens of craft breweries rely on Canada for aluminum cans and much of the malted grain that goes into their brews. Canadians regularly cross one of the four international bridges into the region to shop, go to sporting events and sip Buffalo’s beers. Brewers and other businesses fear there may be less of that, though, if the tariffs on Canada and aluminum go into effect. Trump’s repeated comments about making the neighboring nation the 51st U.S. state already offended its citizens – so much so that Buffalo’s tourism agency paused a campaign running in Canada because of negative comments. “Obviously, having a bad taste in their mouth and booing the national anthem at sporting events is not a great thing for them coming down here and drinking our beer and hanging out in our city,” said Jeff Ware, president of Resurgence Brewing Co. The historic factory building housing Ware’s business in Buffalo is about 4 miles from the Peace Bridge border crossing, where 1.8 million cars and buses and 518,000 commercial trucks entered Buffalo from Ontario last year. It’s a terrible time to alienate customers, Canadian or American. The snowy first months of the year are hard enough for Buffalo’s breweries, Ware said. Higher prices from 25% tariffs would be yet another obstacle. Ware gets about 80% of the base malt be uses to make his specialty beers from Canada. “Labor is more expensive, energy is more expensive, all of our raw ingredients are more expensive,” he said. “It’s death by a thousand cuts.” – Carolyn Thompson in Buffalo, N.Y. Cutler, Maine-New Brunswick Commercial lobsterman John Drouin has fished for Maine’s signature seafood for more than 45 years, often in disputed waters known as the “grey zone” that straddle the U.S.-Canada border. The relationship between American and Canadian fishermen can sometimes be fraught, but harvesters on both side of the border know they depend on each other, Drouin said. Maine fishermen catch millions of pounds of lobsters every year, but much of the processing capacity for the valuable crustaceans is in Canada. If Trump follows through with the threatened tariffs next week, lobsters sent to Canada for processing would be subject to customs duties when they return to the U.S. to go to market. Drouin fears what will happen to the lobster industry if the trade dispute persists and Canada enacts a retaliatory tariff on lobsters. “As the price goes up to the consumer, there comes a point where it just doesn’t become palatable for them to purchase it,” Drouin said. Drouin, 60, fishes out of Cutler, Maine, and sees Grand Manan Island, an island in the Bay of Fundy that is part of the province of New Brunswick, when he takes his boat out. He described his business as “right smack on the Canadian border” in terms of both economics and geography. He described himself as a fan of Trump’s first term who is “not overly thrilled with what he’s been doing here.” And he said he’s concerned his home state could ultimately be hurt by the tariffs if the president isn’t mindful of border industries such as his. “The rhetoric is a bit much, what’s taking place,” Drouin said. – Patrick Whittle in Scarborough, Maine

Trump’s transportation department cancels new review step that could’ve slowed state projects

The Associated Press - March 1, 2025

CHICAGO (AP) — President Donald Trump’s administration is backing off its demand for an extra layer of federal scrutiny whenever states seek even minor changes to their transportation plans, after the rescinded requirement sparked concern that some payments for roads, bridges and transit would be delayed or even halted due to policy differences. Most of the federal money used for transportation projects flows to states almost automatically through formulas established by Congress that consider population and other factors. For decades, states have enjoyed widespread autonomy to set their own priorities and spend the funds on projects they deem as most worthy. But under the policy the administration put in place last week and reversed this week, no additional money was to be allocated until lawyers in the U.S. Department of Transportation ’s Washington headquarters signed off on any changes. Such amendments to state transportation plans were already subject to a federal review, but it was usually a swift process from a regional office to confirm they didn’t violate any U.S. laws. State transportation departments learned of the reversal Friday through an email from Joung Lee, deputy director and chief policy officer for the American Association of State Highway and Transportation Officials. Lee said the Trump administration had confirmed that the review process was being returned to the regional level without the need for lawyers in Washington to sign off. “As this remains a continuing development, we will keep you posted on any further updates,” Lee wrote. The U.S. Department of Transportation and Federal Highway Administration didn’t respond to emails seeking details about why the headquarters-level review was implemented and later reversed. The Association of Metropolitan Planning Organizations, which represents organizations that oversee local and regional transportation projects that get federal funding, told its members last week that at least six states had reported learning about an anticipated pause in getting their plans approved due to the extra review. “In areas with large-scale projects or narrow construction windows, even short delays can cascade into prolonged setbacks, increased project costs, and missed opportunities to address critical transportation needs,” AMPO said in the memo. AMPO followed up the next day with new information from the Federal Highway Administration, which confirmed there was an ongoing administrative review of the projects, but that “there is no pause.” Even something as minor as adding or removing lanes of a road, or changes in cost estimates or supplies, could have required a federal review. Advocates for transportation projects said the sheer volume of projects had spurred concerns that much-needed federal funding would be delayed even as many states are set to enter construction season. “You’re having to get approval from an office that didn’t have to approve things before,” said Steve Davis, vice president of transportation policy for Smart Growth America, a nonprofit that advocates for safer streets and other community improvement efforts. “I don’t see any way that this does not slow down and delay projects.” The metropolitan planning organization in Chicago alone, for example, sends about eight amendments a year to its transportation improvement plan, and each includes about 300 different projects. That is just one of 410 metropolitan planning organizations across the country that set their own plans and seek amendments to them throughout the year. Adie Tomer, a senior fellow at the Brookings Institution’s metropolitan policy program Brookings Metro, said that even more concerning than delays was the possibility that the U.S. Transportation Department might try to redirect projects already approved by states in order to promote the administration’s policy objectives. Trump has signed executive orders seeking to end government support for programs promoting diversity, equity and inclusion. And Transportation Secretary Sean Duffy sent a memo that calls for prohibiting governments that get Department of Transportation funds from imposing vaccine and mask mandates, and requiring their cooperation with the administration’s immigration enforcement efforts. It wasn’t immediately clear whether those orders would have any impact on the approval of amendments to state transportation plans. “Even the threat of “(transportation improvement program) amendments not being approved can have a chilling effect on project delivery,” Tomer said. “And if project delivery is delayed, that means higher costs for the project and, in the end, the taxpayers.”

CVSA’s International Roadcheck to focus on hours of regulation, tire inspections

Dana Guthrie - February 28, 2025

The Commercial Vehicle Safety Alliance’s (CVSA) International Roadcheck is set for May 13-15 and will focus on both driver and vehicle regulations. The International Roadcheck is a high-visibility, high-volume commercial motor vehicle and driver inspection and regulatory compliance enforcement initiative will place over three days in Canada, Mexico and the United States. “Law enforcement personnel will inspect commercial motor vehicles and drivers at weigh/inspection stations, temporary sites and mobile patrols to verify regulatory compliance,” the CVSA said in a press release. “Data from the 72 hours of International Roadcheck will be collected and the results will be released this summer.” Each year, International Roadcheck places special emphasis on a driver violation category and a vehicle violation category. During International Roadcheck, inspectors will primarily conduct the North American Standard Level I Inspection The check is a 37-step procedure that includes an examination of driver operating requirements and vehicle mechanical fitness. While all 37 steps will be completed, inspectors will also pay close attention to the driver’s record of duty status (RODS) and the vehicle’s tires. Driver Focus Area “Hours-of-service (HOS) regulations are in place to safeguard transportation safety by limiting driving hours and mandating adequate rest breaks to ensure commercial motor vehicle drivers have the opportunity to get the rest they need, thereby preventing crashes and incidents caused by fatigue,” the CVSA said. To ensure compliance with HOS regulations, drivers must accurately reflect their times and duty statuses in their RODS. RODS is a log that a commercial motor vehicle driver must maintain to record their driving activity. Failure to record, complete or retain the log, or knowingly falsifying logs or other related reports, is not only a driver out-of-service violation, it also makes the driver and/or carrier liable to prosecution. During the driver portion of an inspection, inspectors check the driver’s documents, license or commercial driver’s license, medical examiner’s certificate and skill performance certificate (if applicable), record of duty status, Drug and Alcohol Clearinghouse status (in the U.S.), seat belt usage, and alcohol and/or drug impairment. If an inspector identifies driver out-of-service violations, they place the driver out of service, restricting that driver from operating their vehicle. Vehicle Focus Area “The importance of proper tire maintenance cannot be overstated,” the CVSA said. “Tire failure while in transit is a hazard to all motorists. It is also far more expensive and time consuming for motor carriers to repair an in-transit tire failure versus proactively maintaining tire health and addressing tire issues before the vehicle is on the road.” Inspectors will check tires’ tread depth and proper inflation. They will also be on the lookout for tire damage, such as air leaks, tread separation, cuts, bulges, sidewall damage and improper repairs. During the vehicle portion of the Level I Inspection, inspectors ensure the vehicle’s brake systems, cargo securement, coupling devices, driveline/driveshaft components, driver’s seat, fuel and exhaust systems, frames, lighting devices, steering mechanisms, suspensions, tires, wheels, rims, hubs and windshield wipers are compliant with applicable regulations. Inspections of motorcoaches, passenger vans and other passenger-carrying vehicles also include the examination of emergency exits, seating, and electrical cables and systems in the engine and battery compartments. CVSA Decals A vehicle that successfully passes a Level I or V Inspection without any critical vehicle inspection item violations may receive a CVSA decal, which is valid for up to three months. If out-of-service violations are found during an inspection, as outlined in the North American Standard Out-of-Service Criteria, the vehicle is restricted from operating until all out-of-service violations have been properly addressed. Help from Inspectors As part of International Roadcheck, inspectors may also be available to answer questions about tire health and violations, and to help drivers navigate the HOS regulations in their jurisdictions. In case of inclement weather or other limiting circumstances during the three days of International Roadcheck, a jurisdiction or an inspector may opt to conduct a limited Level II Walk-Around Driver/Vehicle Inspection or Level III Driver/Credential/Administrative Inspection, instead of a Level I Inspection. Level II and III Inspections are not eligible for a CVSA decal.

Grand theft cargo: Senate subcommittee convenes to tackle freight fraud and other crimes

Dana Guthrie - February 28, 2025

WASHINGTON — The Senate Commerce Committee’s Subcommittee on Surface Transportation, Freight, Pipelines and Safety held a hearing on Thursday, Feb. 27. to address the rise of cargo theft and other crimes in the trucking industry. The hearing was convened by committee chair Senator Todd Young (R-Ind.) and focused on the rise in cargo theft, specifically on crimes within the supply chain like brokering scams, fraudulent trucking companies and train robberies by highly organized gangs. The hearing aimed to examine potential solutions, including increased coordination and enforcement by federal agencies like the Federal Motor Carrier Safety Administration (FMSCA) and the Department of Homeland Security to stop theft and fraud. “We are addressing an urgent and growing concern of cargo theft,” Young said. According to Young, in the fall, PFL Logistics, a third-party logistics provider in Indiana, lost a $60,000 shipment when its cargo was stolen by a previously trusted carrier. “For a small company, a loss like this absolutely devastating,” Young said. “One that employees and customers ultimately bear. It drives inflation at a time when inflation is top of mind of our constituents.” Young noted that PFL is just one of many companies that have fallen victim to cargo theft across the county and that the trucking industry is asking congress to take action. “They want us to to work together with their industry to address this threat and come up with some concrete solutions,” Young said. Young noted that the rise in e-commerce has brought additional threats and challenges. He also pointed out that the FMCSA does not have adequate protections in place to identify fraudulent actors or remove them from its system. “Nor does it have the authority to assess civil penalties for violations of its safety or commercial regulations,” Young said. Young emphasized the need to modernize safeguards. “I’m hopeful that, together, we can begin the process of establishing and implementing those safeguard reforms today,” Young said. Trump Administration Setting Freight Safety Back Sen. Gary Peters also emphasized the need for greater safety and the prevention of cargo theft, but believes that the Trump Administration is taking steps to eliminate safety regulations that are already in place. “Since taking office, instead of increasing federal law enforcement capacity and effectiveness, which I believe is the first step we need to take to address this criminal trend like cargo theft, and fraud,” Peters said. “President Trump has prioritized politicizing and gutting federal law enforcement.” Peters noted that Trump fired much of the Federal Bureau of Investigation senior leadership including the head of the criminal, cyber, response and services branch which is responsible for criminal and cyber investigations world wide. He also fired the heads of multiple critical FBI officers and dozens of prosecutors across the country for working on Jan. 6 cases. Trump also implemented a hiring freeze preventing agencies from recruiting new talent. “You are asking for more law enforcement, but there is a freeze on new talent coming into law enforcement,” Peters said. The subcommittee heard from a variety of witnesses at the hearing including, chief Will Johnson, chief special agent, BNSF Railway Police Department and second vice president of International Association of Chiefs of Police of Fort Worth, Texas; Robert Howell, chief supply chain officer, Academy Sports and Outdoors of Katy, Texas and Adam Blanchard, principal and CEO, Tanager Logistics and Double Diamond Transport of San Antonio, Texas. Owner-Operator Independent Drivers Association OOIDA executive vice president Lewie Pugh also testified during the hearing. “OOIDA’s mission is to promote and protect the interests of our members and any issues that impact their safety and success which increasing includes freight fraud,” Pugh said. Freight Fraud Easy to Commit “Cargo theft and freight fraud are so incredibly easy to commit it doesn’t even take a savvy or experienced criminal to pull it off,” Pugh said. “Everyone from shippers, receivers, motor carriers and brokers are vulnerable targets. Often, the perpetrators of these crimes are based internationally far beyond the reach of American enforcement agencies. While there are certainly cases of physical theft occurring within our industry, most of the problems small business truckers face involves being scammed by fraudsters or swindled by unscrupulous brokers.” According to Pugh, these illegal activities exploded in recent years, increasing by 600% over the course of just 5 months between 2022 and 20231. Estimates indicate these crimes costs the industry roughly $1 billion annually. Factors Contributing to Freight Fraud “There are several factors contributing this recent explosion in freight fraud,” Pugh said. “Weak freight rates, overcapacity, increased competition, leading to greater susceptibility to fraud among small trucking businesses. Advanced technology, coupled with a lack of federal oversight and enforcement of regulated entities has also created an environment where fraudulent actors can thrive.” Most small-business truckers – who are not contracted with a larger motor carrier – acquire loads from brokers on platforms called load boards. As shippers have become less likely to work directly with small carriers, reliance on load boards has increased dramatically over the years among owner-operators. “Unfortunately, small trucking businesses are both the most vulnerable to fraud and least likely to be able to recover from it,” Pugh said. “Most commonly, motor carriers are held responsible for the loss of the cargo due to fraud. With costs ranging from tens of thousands to hundreds of thousands of dollar per incident.” According to Pugh, several OOIDA members have lost their businesses after falling prey to a single case of freight fraud. One Scam to Lose it All “This is not hyperbole,” Pugh said. “It only takes one scam to completely ruin a small trucking business. “Fraudulent activities include double brokering, criminals posing as legitimate brokers, rerouting schemes, identity theft, purchase of authority by fraudsters and more. Double Brokering Double Brokering is when criminals pose as motor carriers to acquire loads from brokers, then pose as brokers looking for truckers to complete hauls. When the freight is delivered, the legitimate broker issues a payment to the fraudulent actor, and the trucker who actually hauled the cargo is left high and dry. It is entirely possible brokers are unaware any fraudulent activity has occurred in these cases, but there are instances of fake motor carriers working closely with unscrupulous brokers to take advantage of small trucking businesses via double brokering. Another scam involves the theft of a broker’s identity to arrange the shipment of a load with a motor carrier. The trucker delivers the load and submits the appropriate paperwork to the fake broker, who then forwards the documents to the real broker, collects the payment and disappears. Making matters worse, small trucking businesses are also forced to absorb all the additional costs associated with moving the freight, including fuel, tolls maintenance and other expenses. Reroute Schemes Some motor carriers have also fallen victim to reroute schemes. While hauling a fraudulently brokered load, the scammers contact the unknowing trucker with a new delivery address, often offering extra payment for covering the additional miles. Once delivered, the load is transferred to another truck and stolen, leaving the carrier responsible for the lost freight. Identity Theft In other cases, a motor carrier’s identity is stolen and used to secure a load from a broker. The fraudster then delivers the load to a warehouse, where it is transferred and stolen. The legitimate motor carrier, whose authority was compromised, is ultimately held liable for the value of the stolen load. It is not particularly difficult to accomplish this type of scam. Every motor carrier is assigned a USDOT Number, which, along with addresses and phone numbers, can be easily viewed on FMCSA’s website. As a result, it is incredibly easy to take that information, hijack the authority of a legitimate motor carrier, acquire loads, and receive payments. Fraudsters can also assess the safety records of motor carriers to choose victims that are most likely to be selected by brokers. No Help for the Victims “Truckers are doing everything they can to protect themselves, but they are limited in their capabilities,” Pugh said. “For example, an OOIDA member doesn’t have the resources to identify the sophisticated scammers. They lack the authority to ensure brokers are complying with existing transparency regulations. While there are systems in place that can combat fraud, the federal government is struggling to provide support to shippers, motor carriers and brokers as needed.” What Should the Government Do? Pugh said the first step that should be taken is legislation by congress. “Passing Senate Bill 337 which is bipartisan legislation introduced by Senators Fischer and Duckworth,” Pugh said. “This bill, which is supported by a wide variety of industry stake holders gives the Federal Motor Carrier Safety Administration the authority to level civil penalties against fraudsters. It also requires brokers to register with a physical address. This is something carriers have had to do for years. It’s a minor change that can have a major impact in protecting motor carriers.” Pugh said that congress should also use its oversight to ensure existing programs can help prevent fraud. “This includes improving FMCSA’s National Consumer Complaint Database (NCCDB), which OOIDA has advocated for for years,” Pugh said. Regulatory Efforts Pugh noted that congress must also support regulatory efforts that are currently underway, such as insurance compliance, broker bond requirements and by creating a new registration system. “Additionally, if FMCSA fails to produce a final rule that ensure compliance with existing broker transparency regulations, congress must compel the agency to do so,” Pugh said. How Quickly Fraud Can Happen At this point in the hearing, Pugh had been speaking for approximately 5 minutes. “Since I began my testimony, a small business trucker has likely fallen prey to fraud that could jeopardize their entire business,” Pugh said. “That’s how commonplace freight fraud is becoming in trucking. We believe we have identified several critical steps congress and FMCSA must take to weed out fraudulent actors.” Young thanked Pugh for his testimony and perspective on the issues of fraud in trucking. Primary Target for Fraud Young noted that truckload freight is the primary target for fraud. “98% of respondents identified truckload freight as the most vulnerable mode,” Young said. “This subcommittee oversees the FMCSA and I’d like to better understand how bad actors are acquiring USDOT numbers, MC numbers and other business identifiers to carry out their illicit schemes under the guise of legitimacy.” FMCSA Lacking Earlier in the meeting Blanchard testified that a bad actor had posed as his own company, Tanager Logistics, to steal shipments. Young inquired as to how this could happen so easily. “They are able to do this now through a whole multitude of ways,” Blanchard said. “We have experienced everything…from spoofing our emails and otherwise representing themselves on behalf of out company. There are instances out there now where individuals are out there purchasing MC and DOT numbers on the black market. That is a major issue that we have to address and the FMCSA must do a more efficient job, in our opinion, of ensuring that they go through those companies that are authorized to transport freight in the United States and remove those that are illegitimate.” Chief Johnson noted that their have been instances of companies that are going out of business that have auctioned off their numbers just as they do pieces of equipment. “Individuals could buy this numbers through a business liquidation process and then already have an established footprint and assume illicit operations under a previous legitimate (business),” Johnson said. When Blanchard informed FMCSA about the illicit use of his company, he was told that unless a third party was out these using their MC or DOT number, that FMCSA did not have the ability to investigate this other company that was representing us. “We provided them with the information we knew at the time,” Blanchard said. “The individual that was behind the other Tanager Logistics, from our investigation, turned out to be somebody from Africa. We also did some investigation internally and through our attorneys that determined that the address that was listed in the SAFER website provided by the FMCSA was an address in Ohio of a woman that had no affiliation to logistics whatsoever.” What Should Congress do to Equip FMCSA? Blanchard said that FMCSA should be better equipped regarding its cyber capabilities. “They are falling further and further behind these criminal organizations,” Blanchard said. “We had an instance where our profile with FMCSA was hacked and somebody changed our address and phone number in an attempt to engage in another fraud…the FMCSA needs to be the group that quarterbacks a unified federal group of agencies and law enforcement groups in order to address these issues, in order to create a database and a repository of data so that it can be coordinated appropriately amongst not only federal law enforcement, but state law enforcement and increase the cyber security that they have to prevent these kinds of things from happening.” To watch the entire hearing click here.

Man arrested for theft of big rig and chase on California highways

Bruce Guthrie - February 27, 2025

SAN BERNARDINO, Calif. — According to a news report from KABC in California, a suspect who drove a stolen big rig was arrested following a police chase that spanned multiple cities across Southern California. Police say the chase began around 12:30 a.m. Wednesday in El Monte. According to the California Highway Patrol, the suspect led authorities on the 210, 60 and 10 freeways, at times swerving across lanes. Police confirm that the big rig chase ended around 3 a.m., when the driver crashed into the 210 Freeway median divider in San Bernardino. The suspect fled on foot after he crashed the rig and was eventually arrested.

Number of Americans filing for unemployment benefits rises to highest level in 3 months

The Associated Press - February 27, 2025

Applications for U.S. jobless benefits rose to a three-month high last week but remained within the same healthy range of the past three years. The number of Americans filing for jobless benefits rose by 22,000 to 242,000 for the week ending Feb. 22, the Labor Department said Thursday. Analysts projected that 220,000 new applications would be filed. Weekly applications for jobless benefits are considered a proxy for layoffs. The four-week average, which evens out some of the week-to-week volatility, climbed by 8,500 to 224,000. The total number of Americans receiving unemployment benefits for the week of Feb. 15 fell by 5,000 to 1.86 million.

Trucking industry supports Transportation Freedom Act

Dana Guthrie - February 26, 2025

WASHINGTON — U.S. Sen. Bernie Moreno, a former auto dealer turned politician, is introducing legislation that would repeal emissions rules and give tax breaks to car manufacturers. The Transportation Freedom Act “The Transportation Freedom Act would roll back costly electric truck mandates, eliminate arbitrary state emissions waivers and restore a balanced regulatory framework for the trucking industry,” the American Trucking Associations (ATA) said. According to the bill one-sheet, “the act provides a bold, pro-America, pro-worker solution to revitalize auto manufacturing and restore fairness in emissions regulations.” Key Provisions: Support for American Auto Manufacturing Provides a 200% tax deduction for American auto workers and supports and encourages job creation in the U.S. It will ensure that the U.S. remains a global leader in vehicle innovation, design and manufacture centered here at home. Common-Sense Emissions Standards Repeals the EPA’s extreme ‘Tailpipe Rule,’ which would mandate that 67% of all new cars be electric by 2032, regardless of consumer demand or affordability. Eliminates burdensome emissions rules for heavy-duty trucks, protecting supply chains and working-class industries. Ends arbitrary CAFE fuel economy standards that require manufacturers to build vehicles the consumers simply do not want. Provides a 180-day window for Cafe Standards and Greenhouse Gas Emissions to be replaced with tough but achievable standards reflecting market ready technology and industry consultation. Current regulatory improvements assume technologies that don’t even exist. One National Standard – No More California and other State-by-State Waivers Prevents California and other states from dictating national emissions policy and forcing costly regulations which increase the cost of cars for all American drivers. Revokes California’s zero-emission vehicle mandate, ensuring all Americans— not just California politicians—have a say in our country’s transportation future. Ensuring Predictability in Regulations Mandates stable emissions and fuel economy standards from 2027-2035, providing a 10-year regulatory roadmap for automakers. For perspective, the average time from conception to certification for a car takes 7 years. Ensures standards are based on real-world feasibility and affordability, not government mandates disconnected from consumer demand. Requires input from manufacturers, energy producers, and consumers, instead of bureaucrats pushing a political agenda. The Transportation Freedom Act puts American workers, consumers and innovation first by strengthening domestic auto manufacturing and ensuring Americans—not Washington—decide what they drive, according to the bill one sheet. “By restoring regulatory stability, this bill promotes real competition and investment, bringing back the golden age of American automobiles,” the bill one sheet said. “This bill puts American workers and consumers first by restoring fairness, boosting investment, and ensuring the U.S. leads the world in auto innovation.” Fair Share Earlier this month, other legislators put forth the Fair SHARE Act which would impose one-time fees on electric vehicles (EVs) to ensure EVs contribute to the Highway Trust Fund (HTF) as internal combustion vehicles do. Trucking Industry Support According to the ATA the legislation includes key provisions that it has actively supported. It includes the repealing of the Phase 3 greenhouse gas standards, which mandate the sale of electric trucks, and the elimination of California’s ability to set de facto national emissions policy. These changes represent a critical step towards ensuring that future regulations are achievable, technology-neutral, and do not jeopardize the stability of America’s supply chain. “Sixty trucks today emit the same amount as one truck manufactured in 1988,” said Chris Spear,ATA president, CEO. “The trucking industry has proven our commitment to reducing our environmental footprint, but in recent years, some regulators have turned their backs on the collaborative model that made this monumental progress possible. “The trucking industry commends Senator Bernie Moreno for introducing the Transportation Freedom Act, which would restore commonsense at EPA and put an end to states like California creating a patchwork of unachievable timelines and targets. His legislation will prevent price hikes for consumers, allow innovation to flourish, and foster achievable national standards that put us back on the path to lowering emissions without causing supply chain disruptions.” Trucks of Today Trucks today produce 99% fewer nitrogen oxide and particulate matter emissions than those on the road decades ago, and new trucks cut carbon emissions by over 40 percent compared to a truck manufactured in 2010, according to the ATA. As a result, 60 of today’s trucks emit what just one truck did in 1988. The trucking industry supported the Environmental Protection Agency’s Phase 1 and Phase 2 greenhouse gas regulations and worked collaboratively with the agency to set aggressive but achievable emission reduction goals on reasonable timelines. EPA’s Phase 3 rule marked a sharp departure from this successful partnership, setting unrealistic adoption rates for battery-electric trucks. Waivers EPA granted to California for its onerous Advanced Clean Trucks and Omnibus NOx rules added further complexity and set the trucking industry up for failure, according to the ATA. According to a study commissioned by the Clean Freight Coalition, full electrification of the U.S. commercial truck fleet would require nearly $1 trillion in infrastructure investment alone. A report by the American Transportation Research Institute identified the many challenges related to U.S. electricity supply and demand, electric vehicle production and truck charging requirements. Read a one-pager on the Transportation Freedom Act HERE. Read the text of the bill HERE.

Curly Fried: Semi catches fire in Maine, burning potato cargo to a crisp

Bruce Guthrie - February 26, 2025

YORK, Maine — Monday was a peculiar day for the York, Maine Fire Department who battled a blaze involving an semi truck loaded with frozen curly fries. According to a social media post, at approximately 1:40 p.m., York Police Dispatch began receiving calls for a tractor trailer on fire on I-95SB just south of Beech Ridge Rd. York Police dispatch reported upwards of 30 calls into 911. Authorities say It was quickly determined that the cargo was frozen curly french fries and not a hazardous material. Collectively, approximately 6,000 gallons of water were used according to authorities. The trailer and cargo were a total loss and there were no injuries to firefighters or civilians. Southbound Interstate was down to one lane for several hours while wreckage was cleaned up and removed. There was significant traffic impact throughout York as a result of the fire.

Pink Cheetah Express roars back at TQL with broker transparency lawsuit

Dana Guthrie - February 25, 2025

WASHINGTON D.C. — Pink Cheetah Express, LLC has filed a lawsuit in the District of Columbia District Court against Total Quality Logistics (TQL) for its failure to comply with a Federal Motor Carrier Association order to process shipper-broker rate transparency requests. According to the court filing, Pink Cheetah has standing to bring the action because it was injured as a result of the TQL’s failure to obey an order given to them by the USDOT pursuant to 49 USC 514704, based on Pink Cheetah’s regulatory right to inspect records under 49 C.F.R’ 371-3. The company is asking for a declaratory judgment ordering TQL to comply with a previous FMCSA order to provide transactional records. TQL Refuses to Release Records On or about January 18, 2023 Pink Cheetah contracted with TQL on the spot market to haul one interstate truck load of ice cream. After the load was hauled, Pink Cheetah filed a request to inspect TQL’s transactional records required to be kept by TQL under 49 C.F.R. 37l.3, including records between the TQL and Pink Cheetah and its shipper client pursuant to Pink Cheetah’s regulatory rights to rate transparency. TQL refused to release the records on the basis that TQL’s standard spot market contract requires motor carriers such as Pink Cheetah to waive their rights under 49 CFR 371.3(c), which states in relevant part: “Each party to a brokered transaction has the right to review the record of the transaction required to be kept under these rules.” Broker Rate Transparency Rights Pink Cheetah learned that FMCSA had approved in March of 2023 a rule to strengthen motor carriers’ broker rate transparency rights and that FMCSA had previously issued a letter to one of these associations one year prior on March 1, 2023 stating 49 C.F.R. 371.3 was still in full force and effect and brokers were obligated to comply with the regulation in the interim during the pendency of the rulemaking. FMCSA Investigation Begins FMCSA began an investigation on Pink Cheetah’s behalf and demanded the records from TQL On Nov. 29, 2023, FMCSA Transportation Specialist Nelson Newcomb called Pink Cheetah’s owner, Dakota Springfields and told her TQL was refusing to turn over the requested documentation to USDOT until they talked with their legal department and the FMCSA Ohio Field Office would be paying a visit to Pink Cheetah’s office the following day to seize the records if they didn’t respond. Records Reveal Pink Cheetah was Cheated The following day, TQL complied with FMCSA’s request and produced the records to FMCSA. It is unclear if the planned visit took place. Newcomb provided Springfields with the records she had originally requested from TQL. Despite statistics from the brokerage industry that purport that the average broker “margin” is 14-16 %, the records revealed that Pink Cheetah received from the broker only 56 % of the payment for the load in question in terms of what the shipper paid as a freight rate to the broker At the conclusion of the investigation, FMCSA issued an order to TQL to remove the waiver language from its contracts because it may violate the evasion of regulation statute (49 U.S. Code $ 14906), and to comply with future 49 CFR 371.3 records inspection requests from any motor carriers who haul for TQL. Non-Compliance It is Pink Cheetah’s belief that TQL has not complied with the order in general by removing the contract waiver clause or cooperating with other carriers’ requests to inspect records, according to court documents. On Dec. 3, 2023, after FMCSA issued and the TQL had received the Nov. 30 order, Pink Cheetah contacted TQL again and requested to inspect the transactional records on an additional 15 loads Pink Cheetah carried for TQL over the past three years in furtherance of collecting evidence to be used to sue TQL. TQL rejected the request, violating the order. Pink Cheetah sent an email to Newcomb on Dec. 6 that she made a request to TQL for broker transparency on an additional 15 loads the company hauled and Pink Cheetah once again requested FMCSA assistance in retrieving the documents as they are an addendum to the original request for assistance from USDOT and complaint the Pink Cheetah previously filed with the Secretary against TQL. On Dec. 7, 2023 Springfields sent an email to the National Consumer Complaint Database (“NCCDB”) to update her previously-filed complaint number against TQL. She made the following notation: “Pursuant to FMCSA’s previous action on my complaint against TQL in the matter of complaint number 10245033, I request you also order this broker to comply with 371.3 and or seize and furnish me with shipper broker records on this load. Insofar as my complaints in part involve alleged deceptive business practices I request you refer that part of the complaint to the Federal Trade Commission.” Blocked From Communicating The next day, TQL blocked Pink Cheetah from all communication which prevented the company from further communicating and following up on transparency requests. As of the filing of the complaint, Pink Cheetah has not received any information regarding the broker transparency requests aside from the initial document that was turned over on Nov. 30, 2023, even though several good-faith requests to TQL and to FMCSA have been made Violating Regulations “Defendant has knowingly and intentionally violated the regulations, the law, and the FMCSA’s order and arrogantly takes the position it is above the law,” the lawsuit said. “This must not be allowed to continue to happen with impunity.” Through the lawsuit, Pink Cheetah Express is requesting TQL to turn over all records, in an un-redacted format, of any transaction that has taken place between the Pink Cheetah and TQL, including but not limited to all of the 14 transactions that the Pink Cheetah previously requested pursuant to the Nov. 30, 2023 order, as well as any documentation, in un-redacted form, between TQL and their original shipper client for all loads that were the subject of the 14 transactions as described above. Call to Action “Tell FMCSA you demand broker transparency automatically and you need the waiver language removed from contracts when you comment on this link that brings you directly there,” Pink Cheetah said on the company’s Facebook page regarding the lawsuit and broker transparency. “If you have been affected by these horrible rates and you’re on your way out of business or you’re barely alive or you already went out of business, this is the time to be heard so please no short answer answers, make your comments as to why FMCSA must do this for you. I’m fighting for us, but you need to help me fight.” FMCSA Re-Opens Comment Period for Broker Transparency According to the Federal Register, the comment period on Broker Transparency Rulemaking is being reopened at the request of the Small Business in Transportation Coalition (SBTC). The new comment period will last through March 20. To comment on the rulemaking click here. In December 2024, OOIDA president Todd Spencer urged all truck drivers to comment on the issue in a strongly worded statement. “To the shady freight brokers, you’ve skirted federal regulations to take advantage of the hardworking (people) behind the wheel for too long and it’s far past time this era of screwing over truckers comes to an end,” Spencer said. “To the American trucker, now is your chance to hold bad brokers accountable. Jump into the arena and demand action from FMCSA. No more sitting on the sidelines complaining. If you speak up, we’ll win this fight.”

ACT Research: U.S. trailer orders signal improvement

Dana Guthrie - February 25, 2025

COLUMBUS, Ind. – January net trailer orders, just below 21.3k units, were down 13% from December, but 51% above the level accepted in January 2024, according to this month’s issue of ACT Research’s State of the Industry: U.S. Trailers report. “As noted the past few months, net orders are signaling a move toward ‘better,’ although they haven’t reached ‘good’ yet,” said Jennifer McNealy, director–cv market research & publications at ACT Research. “That said, we caution that the industry remains in the annual period of seasonally stronger order months, so weaker intake months are expected as we move into the late spring and summer months.” Regarding Backlog and Build “For only the third time in more than a year, and for three consecutive months, order intake outpaced build, and by about 7,800 units in January,” McNealy said. “As a result, backlogs expanded more than 9% sequentially. However, backlogs remain sharply lower against 2024’s backdrop. 2024 was a challenging year for the US trailer market, and OEMs see both challenges and opportunities on the horizon for 2025.”

TFI plans relocation to U.S., releases latest financials

Dana Guthrie - February 24, 2025

MONTREAL, QUEBEC — TFI International Inc. is pursuing re-domiciliation from Canada to the United States. According to a company press release, TFI has operated in the U.S. since 2011 and has traded on the New York Stock Exchange since February 2020. Approximately 70% of TFI’s operations are currently based in the U.S., and a plurality of its shareholders are U.S.based. Company Financials “Amidst ongoing challenging conditions, TFI International’s solid performance continued through the final quarter of 2024. We generated more than $260 million of net cash from operating activities and over $200 million of free cash flow, bringing our full-year free cash flow to more than $750 million for a third year in a row,” said Alain Bédard, chairman, president and CEO. “(TFI) reinforced our firm financial footing by reducing debt, and executed targeted bolt-on acquisitions during and subsequent to the quarter, as well as additional share repurchases following the October renewal of our normal course issuer bid. We were also pleased to declare a 13% increase to our quarterly dividend in December. Looking ahead into 2025, the skilled men and women of TFI International are intensely focused on continued strong execution in our mission to generate robust free cash flow and make strategic investments, especially during periods of reduced freight volumes, all while returning meaningful capital to shareholders and building long-term value.” Fourth Quarter Results Total revenue of $2.08 billion compared to $1.97 billion in the prior year period and revenue before fuel surcharge of $1.83 billion compared to $1.67 billion in the prior year period. The increase is primarily due to contributions from business acquisitions, offset by reduced volumes driven by weaker end market demand. Operating income of $160.2 million compared to $198.3 million in the prior year period. The decrease is primarily attributable to the decline in revenues as a result of weaker market demand in the quarter, partially offset by contributions from business acquisitions of $12.2 million. Net income of $88.1 million compared to $131.4 million in the prior year period, and net income of $1.03 per diluted share compared to $1.53 in the prior year period. Adjusted net income, a non-IFRS measure, was $101.8 million, or $1.19 per diluted share, compared to $147.0 million, or $1.71 per diluted share, in the prior year period. Total revenue increased by 64% for the Truckload segment due primarily to the acquisition of Daseke, while the Less-Than-Truckload and Logistics segments declined by 13 and 14%, respectively. Operating income in the Truckload segment increased by 18% compared to Q4 2023, while the Less-Than-Truckload and Logistics segments declined by 34% and 22%, respectively. The Less-Than-Truckload recorded US accident-related expenses of approximately $8.0 million more than in the prior year period. Full-Year Results Total revenue was $8.40 billion for 2024 versus $7.52 billion in 2023. Revenue before fuel surcharge of $7.30 billion compared to $6.42 billion the prior year. The increase is primarily due to the acquisition of Daseke and is partially offset by decreases from existing operations due to weaker market demand. Operating income totaled $719.0 million compared to $757.6 million in the prior year. The decrease is mainly attributable to the weaker market demand referenced above and less gains from the sale of rolling stock, equipment, and assets held for sale of $24.5 million in 2023, partially offset by contributions from business acquisitions. Net income was $422.5 million, or $4.96 per diluted share, compared to $504.9 million, or $5.80 per diluted share a year earlier. Adjusted net income and adjusted diluted EPS, non-IFRS measures, were $489.5 million, or $5.75 per diluted share, compared to $538.3 million, or $6.18 per diluted share the prior year. During 2024, total revenue increased 52% for Truckload, due to the acquisition of Daseke, and 7% for Logistics, and declined 6% for Less-Than-Truckload relative to the prior year. Operating income was up 6% for Truckload, 14% Logistics, and decreased 15% for LessThan-Truckload.

Trucker survives after ice crashes through windshield in Pennsylvania

Bruce Guthrie - February 23, 2025

MONROE COUNTY, Pa. — A truck driver from Northeast Pennsylvania says he is lucky to be alive after a chunk of ice smashed through his windshield. Dashcam video captured the incident posted by WPVI in Philadelphia shows ice crashing through the windshield while traveling on Route 78 to Allentown, Pennsylvania. The truck driver Josh Keating told ABC affiliate WNEP that it all happened in split second. Keating was able to safely pull over and call for help after the ice crashed through the glass. “I had an angel with me,” he said. “The only thing I got was cuts and bruises basically on my hands because when it came through, I put my hand up to kind of catch the glass.” In Pennsylvania, a driver has 24 hours after snow stops to clean the vehicle of any snow or ice. Officials say if someone is injured or killed because of ice coming loose, fines can range from $200 to $1,500.

California governor asks Congress for nearly $40 billion for Los Angeles wildfire relief

The Associated Press - February 23, 2025

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom has asked Congress to approve nearly $40 billion in aid to help the Los Angeles area recover from January’s devastating wildfires, which he said could become the costliest natural disaster in U.S. history. Newsom sent a letter Friday asking for support from lawmakers including House Speaker Mike Johnson (R-La.) and Rep. Tom Cole (R-Okla.), the House Appropriations Committee chair. “Los Angeles is one of the most economically productive places on the globe, but it can only rebound and flourish with support from the federal government as it recovers from this unprecedented disaster,” Newsom wrote. Estimates of the total economic loss from the firestorm have been estimated to surpass $250 billion — with real estate losses from the Palisades and Eaton fires predicted to potentially top $30 billion, according to a Los Angeles Times analysis. More than 16,200 structures were destroyed as flames ripped through Pacific Palisades, Malibu, Pasadena and Altadena. Newsom vowed that the funding would be used to rebuild homes, infrastructure, businesses, schools, churches and health care facilities, while supporting the needs of people affected by the devastation. “Make no mistake, Los Angeles will use this money wisely,” Newsom wrote. His largest request is for an additional $16.8 billion from the Federal Emergency Management Agency, mostly intended for the rebuilding of property and infrastructure, with $5 billion earmarked for debris cleanup. Newsom also asked for $9.9 billion from the Department of Housing and Urban Development for grants to fire victims, homeowners, businesses and renters, as well as $5.29 billion from the Small Business Administration for homeowner and business loans. Newsom thanked President Donald Trump for support for fast-tracking debris removal. The letter did not mention recent threats by the Trump administration that federal aid could come with strings attached. “We are eternally grateful,” Newsom said. Trump has been a frequent critic of Newsom and California’s water policies. Ric Grenell, a Trump ally serving as his envoy for special missions, said Friday that “there will be conditions” to any federal aid for the state. He said one of the possible conditions being discussed was defunding the California Coastal Commission, which regulates coastal development and protects public beach access. Trump has criticized the agency as overly restrictive, bureaucratic and a hindrance to timely rebuilding efforts.

TANY gratified to see federal action on congestion pricing, more work needed

Dana Guthrie - February 21, 2025

NEW YORK — The Trucking Association of New York (TANY) has long voiced its concerns about congestion pricing. “…we are gratified to see that concern echoed in (Thursday’s) letter from Secretary of Transportation Sean Duffy,” TANY said in a media release. “As we argued in our litigation challenging the program, congestion pricing and its lack of parity has unfairly – and we believe, illegally – disproportionately burdened the trucking industry. “We continue to believe that the current congestion pricing program is deeply and inherently flawed and should be halted. In just six short weeks since its implementation, this program has already negatively impacted our industry and the people who rely upon it – essentially all New Yorkers.” Cost Impacts According to TANY, congestion pricing includes increased operational costs for trucking companies, higher prices for consumers and potential job losses in the transportation sector. These are challenges for every industry in New York and everyone who depends on the timely delivery of goods – from groceries to medical supplies. “We stand with President Trump and Secretary Duffy in their efforts to end the congestion pricing program,’ said Kendra Hems, TANY president. “We agree with their decision to halt this program, and we hope it leads to an immediate cessation of the collection of tolls.” More Work Needed According to TANY, to truly address congestion and emissions, New York City should invest in initiatives such as the burgeoning microhubs program, off-peak hours delivery incentives and operator subsidies for electric vehicle conversion. “Smart policy initiatives like these will help reduce traffic while allowing New Yorkers to continue to enjoy the city, receive reasonably priced goods, and ensure the economy keeps running smoothly,” TANY said.

Eastbound Green River Tunnel reopens after multi-vehicle crash and fire

Dana Guthrie - February 20, 2025

GREEN RIVER, Wyo. – The Wyoming Department of Transportation opened the eastbound Interstate 80 Green River Tunnel to head-to-head traffic on Thursday. Crews have placed more than 5,000 feet of concrete barrier and added additional traffic control signage and devices to help guide drivers through the area. “We are treating it a lot like a typical construction zone on Interstate 80, but with some added safety measures,” said John Eddins, WYDOT District 3 engineer. Reduced Speed Limits There will be a reduced speed of 35 mph from the crossover at mile marker 90 to the crossover at mile marker 91, with advanced signage to help drivers prepare and navigate the head-to-head lanes. In addition, crews have added screens to the concrete barrier to reduce headlight glare from opposing traffic. Although I-80 traffic will now be routed back through the tunnel, drivers should still plan for delays due to the reduced lane in each direction and lower speeds. “This will help get interstate traffic moving on the highway again and out of Green River, but congestion will still be a factor,” Eddins said. Zipper Merging Drivers can help move traffic more efficiently by “zipper merging” while approaching the traffic control area. “Zipper merging” can be an effective driving tool to help move vehicles through a temporary single lane. Drivers should: Continue to drive in both lanes equally until the merge area. Be respectful of drivers who wait to merge. Don’t rush ahead and then brake suddenly. Use your turn signal before moving into the open lane. There is a 10.5 ft. width and 16 ft. height restriction through the head-to-head lanes in the eastbound tunnel. Oversized vehicles should contact the Wyoming Highway Patrol’s oversize loads permit office for detours. Info at https://whp.wyo.gov/commercial-carrier/ports-of-entry “WYDOT would like to thank DeBernardi Construction and S & L Industrial for their hard work and quick response in installing all the necessary traffic control so we could get traffic moving on the interstate again,” Eddins said. Work continues in the westbound tunnel, including clean-up operations, assessments and evaluations. Motorists are asked to drive cautiously and be aware of roadside workers and vehicles.

USDOT terminates tolling approval for NYC congestion pricing program

Dana Guthrie - February 19, 2025

WASHINGTON – The U.S. Department of Transportation’s Federal Highway Administration is terminating approval of the pilot for New York’s Central Business District Tolling Program (CBDTP). In a letter to New York Governor Kathy Hochul, the Department rescinded a Nov. 21, 2024 agreement signed under the Value Pricing Pilot Program (VPPP). It effectively ends tolling authority for New York City’s cordon pricing plan. The plan imposes tolls on drivers entering Manhattan below 60th Street. Slap in the Face to Working Class “New York State’s congestion pricing plan is a slap in the face to working class Americans and small business owners,” said U.S. Transportation Secretary Sean Duffy. “Commuters using the highway system to enter New York City have already financed the construction and improvement of these highways through the payment of gas taxes and other taxes.” No Free Highway Alternative “But now the toll program leaves drivers without any free highway alternative, and instead, takes more money from working people to pay for a transit system and not highways,” Duffy said. “It’s backwards and unfair. The program also hurts small businesses in New York that rely on customers from New Jersey and Connecticut. Finally, it impedes the flow of commerce into New York by increasing costs for trucks, which in turn could make goods more expensive for consumer. Every American should be able to access New York City regardless of their economic means. It shouldn’t be reserved for an elite few.” Highways Constructed with Federal-aid Highway Funds Cannot be Tolled The construction of federal-aid highways as a toll-free highway system has long been fundamental to the Federal-aid highway program. Except for limited exceptions allowed by Congress, highways constructed with Federal-aid highway funds cannot be tolled. The construction of Federal-aid highways as a toll-free highway system has long been fundamental to the Federal-aid highway program. The VPPP is one of the exceptions to the general prohibition against tolling. Reasons for Termination As detailed in the letter, the Secretary is terminating the pilot for two reasons. The scope of the CBDTP is unprecedented and provides no toll-free option for many drivers who want or need to travel by vehicle in this major urbanized area. The toll rate was set primarily to raise revenue for transit, rather than at an amount needed to reduce congestion. By doing so, the pilot runs contrary to the purpose of the VPPP, which is to impose tolls for congestion reduction – not transit revenue generation. The Federal Highway Administration will work with the project sponsors on an orderly termination of the tolls. Owner-Operator Independent Drivers Association Applauds Change “OOIDA and the thousands of small business truckers who operate in New York City welcome USDOT’s decision to rescind tolling authority for New York ‘s congestion pricing plan,” said Todd Spencer, OOIDA president. “Truckers often have very little control over their schedules, so this congestion pricing plan is particularly problematic for owner-operators and independent drivers. “We routinely have no other choice than to drive through metropolitan areas during periods of high congestion because of the rigidity of current federal hours of service requirements. Additionally, shippers and receivers generally have little regard for a driver’s schedule, frequently requiring loading and unloading to occur at times when nearby roads are most congested. New York City’s congestion pricing plan was anti-trucker to begin with and we will continue fighting to ensure it doesn’t come back. Beyond New York City, we encourage the Trump Administration and Congress to fight the expansion of tolling across the country.” President Trump Asked for Program Review In the letter, Duffy said the President asked him to review the FHWA’s approval of the program under VPPP. Trump expressed his concerns about the burden the program placed upon residents, business and area commuters. “I share the President’s concern’s about working class American’s who now have an additional financial burden to account for in their daily lives,” Duffy said. You can view a full copy of the letter here.

Don’t do it: FMCSA Task Force says lease purchases should be banned

Cliff Abbott - February 19, 2025

It sounds so great. You can own your own truck. You don’t need a good credit rating or even a credit card. All you need to do is run enough miles to cover the cost of the monthly (or weekly) payment and take good care of the truck. Comply with the terms of the lease, and the truck will be yours. After that, who knows? Carriers with fleets in the thousands started with a hard-working entrepreneur and a single truck. Don’t do it. That’s the advice from the Federal Motor Carrier Safety Administration’s (FMCSA’s) Truck Leasing Task Force (TLTF or Task Force). Mandated by the Infrastructure and Jobs Act signed into law in November, 2021, the TLTF reviewed thousands of documents, court documents and hard-luck stories from drivers who participated in lease-purchase agreements with carriers. The TLTF officially ended on January 17, 2025. Their recommendation was as harsh as it was simple: lease-purchase agreements should be banned. If not banned, the recommendation was strict government oversight. What does “lease” mean? Before proceeding, it will be helpful to understand the trucking industry’s confusing use of the word “lease.” The Department of Transportation requires that a motor carrier be granted authority to operate in interstate commerce. To obtain authority, proof must be provided that the carrier can meet financial obligations and other standards. Truck owners who don’t have this authority can enter agreements to become Independent Contractors (ICs), running under a carrier’s authority. This arrangement is called a “lease” because the owner is granting the carrier permission to add the truck to their fleet. The contract that specifies the responsibilities of both parties is a “lease agreement.” Rather than paying a rental fee for the truck, the carrier agrees to pay the Contractor a percentage of the income the truck brings in or a flat per-mile fee. Other obligations, such as the I/C providing a driver for the truck, are included in the lease agreement. Rather than buying a truck, some drivers rent, or lease equipment from third-party suppliers. For this article, that arrangement is treated the same as truck ownership. A “lease-purchase” is another matter. Carriers offer drivers who want to become independent contractors but don’t have the money or credit to purchase a truck an opportunity to lease (rent) one from the carrier. The driver agrees to pay a monthly (or weekly) amount, to be deducted from settlements, until a certain amount has been paid. There’s often a final payment, after which ownership of the truck is transferred to the IC. Until that final payment is made and ownership transfers, however, the would-be owner is simply renting the truck from the carrier. So, in a bewildering twist, the driver leases a truck from the carrier and then enters into a lease agreement to become an IC for that carrier. two agreements are needed, a lease-purchase agreement to define truck ownership and then a lease agreement that determines the working relationship between the truck “owner” and the carrier. What is the harm in a lease-purchase agreement? While many drivers have had long, successful careers as ICs, the track record of those who entered Lease-Purchase Agreements is not a good one. The Task Force collected data that suggests that less than one in every hundred drivers who participate in a Lease-Purchase end up owning the truck. The TLTF conclusion was, “The Task Force agrees unanimously that the costs and harms of lease-purchase programs are so great that these programs should not be permitted.” They added, “Lease-purchase programs are regularly established to enrich motor carriers at the expense of drivers.” Carriers often use lease-purchase as a method of getting a larger return for used equipment than they could realize by trading it in. They can set their own price, rather than accepting a dealer’s offer. Since the agreement is a rental until the contract is completed, the driver builds no equity and can’t sell the truck to get out from under debt. It belongs to the carrier and can be leased to driver after driver, and the carrier determines how many miles or loads the driver gets. The demands of the carrier Maintenance costs on a truck increase as they age, especially after warranties run out. Lease-purchases transfer the responsibility for maintenance to the driver at a point when maintenance costs are expected to rise. Further, since the carrier still retains ownership, they often dictate where repairs must be made or place other requirements, sometimes even performing maintenance in carrier facilities and charging the cost to the driver. Carriers have other demands, too. Some mandate where the driver buys fuel or obtains other services. Drivers can’t negotiate fuel surcharge agreements, accessorial pay such as detention and layover. Extra costs such as trailer washouts, loading or unloading fees and extra stops may be the driver’s responsibility. The driver may be required to purchase insurance through the carrier at greater cost. Carriers may require escrow accounts to cover maintenance, cargo claims, insurance deductibles or other costs. These thousands of dollars are often difficult for the driver to get back. Many drivers don’t fully understand the costs of operating as an I/C. The carrier no longer pays health or retirement benefits. The I/C purchases their own Worker’s Compensation or Occupational Accident insurance and tax liability changes. IC’s are required to pay the 15.3% self-employment tax, on top of federal and state income taxes. For employees, the carrier pays half the Social Security and Medicare taxes owed, but ICs must foot the entire bill themselves. The Task Force highlighted another problem with lease-purchases. In cases where the carrier doesn’t keep their part of the bargain, the driver must use an arbitration process instead of seeking legal recourse. The terms of arbitration often mean appearing for hearings in locations far from the driver’s home, with travel and lodging costs the responsibility of the driver. Another issue is that the arbitration proceedings are private. There is no public record, as there would be in a lawsuit. Anyone considering a lease-purchase offer from any carrier would do well to read the 51-page final report from the Task Force. It’s available at www.fmcsa.dot.gov Then, read the lease purchase agreement carefully, and decide wisely.