FreightWaves Today

Federal authorities arrested 13 alleged members of two rival groups engaged in a violent power struggle in the San Fernando Valley for three years. These groups faced charges including attempted murder and illegal firearm possession, and specifically targeted Amazon, posing as carriers on the platform to steal shipments.

Market conditions have led to the bankruptcy filing of a Wisconsin carrier, Elite Carriers, and its associated brokerage, ECI, Inc.. Three other businesses owned by the same person also filed for Chapter 11 protection, with both Elite Carriers and ECI reporting between $1 million and $10 million in assets and liabilities.

Additionally, US law enforcement has obtained a temporary restraining order against two logistics companies, YDH Express Inc. and YDH International, stopping them from using the US Postal Service with counterfeit postage labels. The companies are accused of shipping thousands of parcels for Chinese customers with fake labels, and the complaint seeks to immediately stop the companies and collect money for financial losses incurred by the postal service.

Looking ahead, tune into FreightWaves TV for new episodes of Freightonomics and The Long Haul today. You can also find recaps of the recent Domestic Supply Chain Summit on the YouTube channel and register for the Freight AI Symposium in Washington DC on July 30th, with a ticket special available through Memorial Day weekend.

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Omnichannel fulfillment provider Stored has acquired Ware2Go from UPS. This deal significantly expands Stored's network by adding 21 new e-commerce warehouses with a combined capacity of 2.5 million square feet of storage space.

In manufacturing news, International Paper Company is restructuring its cross-border operations by closing two facilities in Edinburg, Texas. These plants were responsible for manufacturing containers and paper sheets, with the sheet plant slated for conversion into a warehouse.

On the trade front, US trade representatives held a second round of hearings to discuss imposing punitive fees on Chinese-built, -owned, and -operated ships calling at American ports. The stated goals of these fees are to reduce China's maritime dominance and potentially incentivize American shipbuilding.

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In freight technology news, load board provider DAT announced its acquisition of payments platform Outgo last week. This strategic move aims to integrate the entire freight transaction process into the DAT One ecosystem, with a key benefit being that carriers can now potentially get paid much faster, sometimes within just 15 minutes. Outgo, founded in 2022 by former Uber and Convoy technologists, focused on bundling banking, factoring, and payment services, including a "fractional factoring" model giving carriers more control. This acquisition is seen as positioning DAT to become the freight industry's central exchange platform, competing with others like Triumph Financial who are also building their ecosystems.

Turning to maritime trade, the Port of Long Beach recorded its strongest April on record last month. The port handled 867,493 twenty-foot equivalent units (TEUs), representing a 15.6% year-over-year increase attributed to importers frontloading tariff-affected cargo. Imports saw a significant 15.1% year-over-year rise, while exports slightly declined. Even with this record, the port anticipates a more than 10% drop-off in imports in May, with effects expected beyond the docks.

In Washington D.C., lawmakers are processing a large volume of input from the trucking sector. The Department of Transportation (DOT) received over 900 recommendations for regulatory removal as part of implementing executive orders to cut bureaucracy. Approximately 30% of these recommendations came directly from the trucking industry and addressed regulations affecting drivers and carriers.

Finally, mark your calendars for upcoming Freight Waves TV programming, including The Stockout and What the Truck?!?. You can also find details on the Fraud Fighters Award winners and information on the upcoming Domestic Supply Chain Summit this week.

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📦 Is the end of the de minimis exemption coming? The U.S. House is considering a ban that could change how low-value imports enter the country — just as the White House rolls out temporary tariff relief on China shipments.

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We cover the significant 90-day pause on tariff increases between the United States and China, aiming to ease the ongoing trade war and boosting global financial markets as US tariffs decrease to 30% and China's to 10%. This truce allows for negotiations towards a more comprehensive agreement, reinforcing the importance of economic ties and international cooperation in logistics. Learn more about the details of this trade agreement in this FreightWaves article.

Hear about the reinstatement of English language proficiency as a requirement for commercial truck drivers by the Trump administration. This policy reversal allows drivers unable to demonstrate English skills to be placed out of service starting June 25th, sparking debate about its effectiveness for road safety despite previous studies finding no strong link between limited English skills and crash risk. Explore the data and debate surrounding this decision in this related FreightWaves article.

Discover the alarming new report revealing a dramatic surge in cyberattacks targeting the US logistics and supply chain sector. These attacks, ranging from ransomware to espionage and linked to nation-state actors like APT29, are probing digital systems supporting freight visibility and warehouse management, highlighting the industry's dangerous exposure without sufficient data tech and cybersecurity training. Find more details on these evolving cyberthreats in this FreightWaves article.

Plus, tune in for upcoming FreightWaves content, including The Stockout and What the Truck?!? with Dooner. Don't miss the Freight Fraud Symposium this Wednesday, May 14th, in Dallas, bringing together industry leaders to address the crisis of freight fraud and share mitigation best practices. Register now for the symposium to be part of the solution.

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The California Air Resources Board (CARB) will now be required to present a proposal to repeal the high-priority fleets and drayage requirements of the ACF. A public hearing on this proposal needs to be held before October 31st.

Regarding potential tariff changes, reports suggest the Trump administration may cut tariffs on China imports from a current broad rate of 145% to as low as 50%. While the White House has dismissed this as conjecture, Treasury Secretary Scott Bessent is scheduled to meet with Chinese officials for trade talks soon.

Details of the UK trade deal indicate increased access for agricultural products, chemicals, machinery, and other goods from both countries. The agreement, which still requires Congressional approval, maintains a baseline 10% U.S. tariff on most goods from the UK but includes specific provisions for items like steel, aluminum, beef, and auto imports.

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Railroads are actively seeking the repeal of a recent safety regulation. They are asking the Trump administration to scrap a Biden-era rule that requires two-person train crews, arguing this mandate is unsubstantiated and hinders efforts towards modernization and regulatory reform.

The Houthi militia has refuted claims of a Red Sea ceasefire. Contrary to statements by President Trump, the Houthis deny agreeing to halt attacks on vessels in the trading route. Their attacks on ships linked to Israel, ongoing since late 2023, have made the Red Sea-Suez Canal route largely too unstable for regular shipping services.

A notable potential change is coming for the US Postal Service. Following President Trump's approval, FedEx board member David Steiner is reportedly set to be selected as the next postmaster general. This direct selection process by the White House for the board's approval is described as unprecedented and aiming to diminish the agency's independence.

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