Topics: Carrier Solutions, Transportation Industry, Newsletters
As we prepared our last newsletter, wildfires were ravaging Southern California. Now the country is reeling from the midair collision that claimed more than 60 lives at Ronald Reagan Washington National Airport – one day after newly confirmed DOT Secretary Sean Duffy took the helm. These are uncertain times, and stakeholders in the transportation and logistics industry are expecting much change in 2025, including in the way of tariffs and government regulations.
New DOT Chief Responds to Reagan Airport Disaster
One day after Sean Duffy was confirmed to serve as secretary of the Department of Transportation, he faced his first crisis: An American Airlines flight from Wichita, Kansas, and an Army Blackhawk helicopter collided at Reagan National Airport, killing 67 people.
Just hours after the crash, Duffy said the accident was “absolutely preventable.” During his confirmation hearing, he had said the country needs more air traffic controllers.
“We are going to take responsibility at the Department of Transportation and the FAA to make sure we have the reforms that have been dictated by President Trump in place to make sure that these mistakes do not happen again and again,” Duffy said during a press conference with the president.
With more than 55,000 employees, the DOT oversees U.S. highways, railroads, and airspace and sets safety standards for trucks, trains, and automobiles.
Duffy also said during his confirmation hearing that he would “continue to seek the best possible information to ensuring truck transportation is as safe and efficient as possible across U.S. roadways.”
The American Trucking Associations supported Duffy’s appointment.
“Transportation is an issue that affects every American, and it is the key to a thriving economy, social and economic mobility, and job creation,” ATA President and CEO Chris Spear said in a statement. “Throughout his congressional service, Secretary Duffy was a steadfast supporter of hardworking truckers and the work that they do to deliver the nation’s freight. We look forward to building on our partnership with Secretary Duffy in the years ahead to modernize our infrastructure and increase the resiliency of our supply chain.”
Cargo Theft Still a Growing Problem
CargoNet said there were “record-breaking” levels of cargo theft in the United States and Canada in 2024 with 3,624 reported cases – a 27% increase from 2023.
The estimated average value per theft also increased from $187,895 to $202,364, CargoNet said, putting the total loss at almost $455 million in 2024.
“New targets included raw and finished copper products, consumer electronics (particularly audio equipment and high-end servers) and cryptocurrency mining hardware,” the CargoNet report said. “The analysis also revealed increased targeting of specific consumable goods, including produce like avocados and nuts, along with personal care products ranging from cosmetics to vitamins and supplements, especially protein powder.”
Cargo thefts are garnering media attention – thanks, in part, to Food Network star Guy Fieri, who went on Fox News to talk about the hijacking of two trucks carrying $1 million worth of the tequila he produces with partner (and rock star) Sammy Hagar.
“It wasn’t just like haphazardly someone just decided that they would go steal a truck” Fieri said. “Someone was planning it, someone got it, someone still has 10,000 bottles of it.”
The tequila is manufactured in Mexico and was en route to California when it was stolen, according to restaurateur Fieri.
“We don’t know where that truck ended up, but there was all kinds of tomfoolery in there. They were doing GPS masking locators, like they’re showing that the truck was in transit,” Fieri said.
US Companies ‘Preparing for Tariff Disruptions’
Greg Tompsett, the vice president of U.S. customs brokerage for Kuehne + Nagel, told FreightWaves that “people are desperate for information” regarding President Donald Trump’s tariff policies. He said that was evident when a recent webinar on global trade disruptions drew about three times more viewers than K+N programs usually do.
Nari Viswanathan, Coupa Software’s senior director of supply chain strategy, said industry stakeholders need to arm themselves with information in order to be prepared for whatever tariffs might be levied.
“Preparing for tariff disruptions before they happen is essential, and plans should happen in the most optimal way possible,” Viswanathan told FreightWaves. “Those who don’t may risk a severe revenue downturn in 2025, and businesses must prioritize resiliency and agility. When preparing for tariffs, regulations, and geopolitical fluctuations, it’s critical to have complete visibility of the end-to-end supply chain.”
C.H. Robinson Q4 Earnings Shoot Up 382%
C.H. Robinson reported a 382% year-over-year increase in fourth-quarter earnings – skyrocketing from $31 million to $149.9 million, driven by an operating model overhaul and a shift in the quarterly effective tax rate.
“We’ve talked extensively over the past year about our new Robinson operating model and the disciplined execution that the model is enabling, as well as how we’re leveraging our industry-leading talent and technology to raise the bar in logistics,” CEO Dave Bozeman said on an earnings call. “The benefits of these efforts were never more evident than in the significant year-over-year improvement in our Q4 financial results.”
J.B. Hunt Reports Slight Income Dip
J.B. Hunt Transport Services reported fourth-quarter net income of $155.5 million, down just slightly from $153.5 million in the same period in 2023. Total operating revenue dipped 5% from $3.3 billion to $3.15 billion.
“While 2024 was a continuation of the challenging freight environment, I am proud of the work of our team and how we position the company for our future,” CEO Shelley Simpson told investors. “We focus on providing excellent service to our customers, improving on our record-setting safety performance, and remaining cost discipline, all while leveraging our strategic investments in our people, technology, and capacity.”
Shippers ‘More Receptive to Rate Restoration’
Schneider National customers have been “more receptive to rate restoration” as the freight market continues to recover, President and CEO Mark Rourke said in looking ahead to full-year 2025.
Schneider reported fourth-quarter truckload segment revenue of $560 million, a 1.7% year-over-year increase. Intermodal revenue grew 6% to $276.2 million from $260.6 million.
“Schneider’s forecast includes growth in intermodal volumes and pricing this year,” Todd Maiden, FreightWaves’ finance editor, wrote. “Revenue per load was up nearly 3% from the third to fourth quarter. Intermodal pricing is expected to increase as TL rates move higher this year but with less intensity, which is the norm.”
Volvo Truck Sales Down, Costs Up
Volvo Group AB truck sales revenue in the fourth quarter decreased 4% year over year from $8.98 billion to $8.67 billion. Overall, the Swedish truck, construction equipment, and engine manufacturer reported a Q4 profit of $983 million, down 10.5% from $1.11 billion in the fourth quarter of 2023.
CEO Martin Lundstedt reportedly attributed higher-than-expected costs to Hurricane Helene’s impact on supply chains in western North Carolina, the ramp-up of the Volvo VNL tractor, and reintegration of Mack Trucks’ cab assembly operations.
Volvo Group is the parent company of Volvo Trucks North America (VTNA) and Mack Trucks. VTNA sold 6,448 trucks in Q4, down 19% year over year, while Mack sold 7,104 trucks, up 23% from the year-earlier period.
Volvo Trucks reportedly expects a much better performance in 2025 and is targeting a 25% North American heavy-duty market share by 2030.
ALAN Continues Wildfire Response Efforts
The American Logistics Aid Network (ALAN) continues supplying assistance in response to the devastating wildfires in Southern California. Executive Director Kathy Fulton toured LA disaster distribution centers in mid-January and found them overwhelmed by donations.
“We are providing practical guidance on receiving, sorting, and distributing goods, along with best practices for managing pop-up distribution operations efficiently,” Fulton wrote in an update. “As a single, reliable point of contact for logistics support, we’ve already informed center leaders that our network’s expertise is available to them. Our goal is to reduce the current logistics chaos and enhance their ability to serve fire survivors effectively.”
She pointed out that “80% of disaster relief costs are related to logistics. But 40% of that goes to waste. That’s a big part of what this project is intended to avoid.” As part of the project, ALAN is playing a key role in the startup of a nonprofit distribution center to support long-term recovery and rebuilding efforts.
“We are supplying the logistics expertise required to ensure that everything from the facility’s layout and slotting to its receiving and outbound shipping processes are fully optimized, so that every square foot, piece of material handling equipment and work hour can be put to its best use, and more survivors can get the help they need,” Fulton said.
ALAN also updates its website with needs for equipment donations, including reefer tracks and forklifts.
Cass Helps Carriers Navigate Uncertain Times
At Cass Information Systems, we are aligned with carriers to help them propel their businesses forward. As expense management and business intelligence experts, we deliver accurate insights into costs and strategies for process improvement.
Our tailored financing solutions have helped us become the bank of the trucking industry, with the expertise and capital needed to finance trucks, trailers, and other essential assets. Our working capital options ensure carriers have the financial flexibility to move carriers’ businesses forward.
Contact us today, and we can navigate 2025 together.
