The Great Freight Recession continues its relentless purge in the carrier sector, claiming Illinois-based VIB Trans, a 29-truck carrier, as the latest casualty to file for Chapter 11 amid deeply depressed spot rates and relentlessly high operating costs. This pain is accelerating due to an 18% drop in freight volumes coupled with immense overcapacity, driven by 310,000 new trucks and 200,000 new CDLs added to the system since 2019.

Strategic experts are anticipating the Largest capacity purge in history coming as new regulations tighten enforcement around non-domiciled CDLs and ELP requirements. This regulatory squeeze could eliminate up to 600,000 active drivers from the system, potentially leading to sharp volatility spikes and market rationalization that ultimately benefits surviving carriers with higher pay and increased freight rates.

While carriers fight for survival, the brokerage world is thriving, C.H. Robinson again is strong, and Wall Street throws roses after the company posted extremely strong third-quarter performance, including a 22.6% increase in income from operations. C.H. Robinson’s core North American Surface Transport segment successfully grew combined truckload and LTL volume by 3%, demonstrating significant market share growth against a declining industry benchmark.

In strategic updates, UPS is reversing its costly insourcing strategy for low-budget shipments, tentatively agreeing to UPS, Postal Service to reunite for delivery of low-budget shipments via the USPS last-mile network. This reversal acknowledges that UPS's internal cost structure struggled to compete, especially after Ground Saver volume plummeted nearly 33% year-over-year.

Internationally, the U.S. and China suspended punitive reciprocal fees on docking ships for one year amid trade talks, which were originally imposed to revive U.S. shipbuilding. Plus, we cover immediate executive changes at CSX as CEO Steve Angel switches up leadership, naming Kevin Boone CFO and promoting Mary Clare Kenny to Chief Commercial Officer.

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