Trucking fleets that delayed equipment purchases during the prolonged freight recession are beginning to return to the market, prompting TFS Financial and WEX to launch a new financing program aimed at helping carriers acquire trucks, trailers and other transportation assets.
Vancouver, British Columbia-based TFS Financial announced Monday the launch of “Equipment Financing Powered by TFS,” a program that provides equipment financing to WEX Over-the-Road customers across North America.
“I would love to be the fastest and friendliest transportation finance company in the U.S.,” Aaron Case, president of TFS Financial, told FreightWaves. “Ideally, we become the one-stop shop for transportation finance.”
The initiative gives WEX carriers access to TFS’ multi-lender financing platform, which matches borrowers with financing providers based on factors such as credit profile, asset type and loan terms.
The collaboration comes as many trucking companies continue to grapple with high operating costs, rising equipment prices and tighter lending conditions after more than three years of freight market weakness.
“We’ve been asked a lot about financing equipment, especially this year,” Noel Glasgow, vice president of sales for WEX’s Over-the-Road business, told FreightWaves.
“Because of the economic impact that trucking has suffered over the past few years, a lot of folks have not purchased equipment. Most trucking companies are looking at replacing equipment on a three-, four-, five- or six-year basis, and a lot of them have extended that timeframe because of the freight recession.”
Portland, Maine-based WEX (NYSE: WEX) is a provider of payment processing and information management services to the commercial vehicle fleet industry.
Glasgow said fleets that normally would have replaced equipment on a regular cycle are now facing a backlog of purchases.
“In a normal year they’re buying X amount of vehicles. Now they might need to buy 2X because of what they have done over the past few years,” Glasgow said.
Carriers finally returning to the market
Case said TFS is also seeing tangible signs that fleet confidence is improving after several difficult years.
“It seems like I’ve been on the road quite a bit meeting with a lot of these fleets, and I’d say the level of confidence in the last eight weeks has really skyrocketed,” Case said.
“The conversations with the CFOs of all the largest top-100 carriers — people seem to think transportation is back now.”
Case said truck and trailer dealers are beginning to see order books fill as fleets move forward with replacement purchases that were postponed during the downturn.
“People extended their replacement cycles as long as they really could,” Case said. “They held off on replacing units until they knew they had the work, and now it seems like they’re starting to replace, which is a great sign for the economy.”
The financing program is available to fleets of all sizes, from owner-operators purchasing a first truck to some of the largest transportation companies in North America.
According to Glasgow, the offering can be used to finance Class 8 tractors, trailers, light-duty trucks and mixed fleets.
“The ultimate goal is to finance any type of equipment that the carrier needs,” Glasgow said. “It’s not just trucks. It’s also trailers. It can be a mixed fleet.”
Match Engine connects borrowers to lenders
At the center of the program is TFS’ proprietary Match Engine Technology, which uses a network of more than 70 lending partners to connect carriers with financing options that fit their business profile.
Case said the system allows TFS to accommodate a broad range of trucking companies that may not fit a traditional bank’s underwriting model.
“We’ve been a transportation lender for over 40 years, so we’re extremely familiar with transportation,” Case said.
“If a trucking company has been around for 50 years and they’ve never missed a payment, we’re going to match that with a large bank. If it’s a two-truck fleet that’s had some hard times recently, we’re going to match that up with a different type of lender.”
Case said one financing source alone cannot effectively serve the diversity of customers operating in trucking.
“We understand that there are so many different types of customers that one financing source can never approve all of them,” he said.
Glasgow added that some traditional lenders remain cautious about transportation despite improving market conditions.
“Some of those institutions are not all in on getting back in the transportation space right now,” Glasgow said. “They’re waiting to see. Our relationship allows for a transportation-focused company to provide a solution now.”
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Bendix Commercial Vehicle Systems LLC selected Aeva to integrate 4D LiDAR sensors and perception software into its next-generation collision mitigation systems for Class 8 mass-production vehicles. The program builds on Bendix’s Fusion ADAS platform, which already operates across most major Class 8 OEMs.
Roughly 300,000 new Class 8 trucks enter the North American market annually. The collaboration targets mass production of one of the first LiDAR-based L2+ driver assistance solutions for commercial vehicles. It is part of a shift toward using advanced perception in active safety systems, not just higher autonomy.
“We’re excited to expand our work with Aeva through this program as we continue advancing safety technologies for commercial vehicle fleets,” said Mike Tober, chief technology officer at Bendix. “Aeva’s 4D LiDAR provides capabilities that can improve system performance in critical driving scenarios, helping support the next generation of collision mitigation solutions that perform more effectively across a wider range of real-world operating conditions.”
“This program represents an important milestone in our collaboration with Bendix and a significant step toward mass production of a first-of-its-kind LiDAR-based L2+ driver assistance solution for commercial vehicles,” said Mina Rezk, co-founder and chief technology officer at Aeva. “By combining Aeva’s 4D LiDAR with Bendix’s industry-leading safety platform, we are positioned to deliver next-generation LiDAR-based solutions that enhance safety and performance for commercial vehicle fleets at scale.”
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Borderlands Mexico is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week in Borderlands Mexico: Echo bets on Mexico growth with domestic transportation offering; DP World in talks to develop container terminal at Port of Corpus Christi; and Chinese auto supplier invests $42M in Saltillo plant.
Echo bets on Mexico growth with domestic transportation offering
Echo Global Logistics is expanding its presence in Mexico, unveiling a new suite of intra-Mexico transportation services designed to give shippers a fully integrated supply chain solution spanning both sides of the border.
The Chicago-based third-party logistics provider announced Wednesday that it has formally added domestic Mexican transportation capabilities to its existing cross-border operations, customs brokerage and warehousing services.
The expansion aims to allow customers to manage freight movements throughout Mexico and across the U.S.-Mexico border through a single logistics partner.
“By formally adding intra-Mexico transportation to our existing portfolio, Echo has solidified its position as a true end-to-end supply chain integrator for the region,” Troy Ryley, president of Echo Mexico, said in a news release. “Historically, shippers had to navigate multiple fragmented suppliers to manage cross-border legs, border warehousing, customs clearance, and domestic Mexican distribution.”
The new offering includes city-to-city freight transportation, port drayage, domestic intermodal services and managed transportation solutions across Mexico. The services are being integrated with Echo’s existing cross-border operations and its EchoXBorder division, which provides customs brokerage and warehousing services in both the United States and Mexico.
The move comes as manufacturers and logistics providers continue expanding operations in Mexico amid nearshoring trends and growing trade flows between the U.S. and Mexico.
Echo has managed cross-border transportation services for more than a decade, but significantly expanded its Mexico operations in 2024 by opening locations in Mexico City, Monterrey and Laredo, Texas.
The company’s Mexico division has grown rapidly over the past two years, supported by investments in cross-border technology and bilingual logistics teams.
“Our investments in Mexico are purpose-built to bring the same level of operational excellence and scalable infrastructure our clients rely on in the U.S. directly into their Mexican operations,” Ruben Gamboa, director of commercial development for Mexico and the southern border, said in a statement.
By adding intra-Mexico transportation to its portfolio, Echo is positioning itself to capture a larger share of freight movements tied to North American manufacturing and trade, while reducing the operational complexity often associated with managing multiple transportation and customs providers, Gamboa said.
Echo operates more than 60 locations across North America and provides freight brokerage and managed transportation services across truckload, less-than-truckload, intermodal, cross-border, drayage, warehousing and other transportation modes.
DP World in talks to develop container terminal at Port of Corpus Christi
DP World has entered exclusive negotiations for a long-term lease to develop and operate a container terminal at the Port of Corpus Christi in Texas.
The agreement marks an early step toward expanding containerized cargo capabilities at one of the nation’s largest ports by total tonnage. If finalized, the project would be DP World’s first container terminal development on the U.S. Gulf Coast.
Under the proposal, DP World would design, build and operate the terminal, with the exclusive negotiation period focused on terminal design, capacity planning and investment structure.
The Port of Corpus Christi is a major gateway for U.S. energy, agricultural and industrial exports. Port officials said the potential container terminal would help diversify cargo operations and create new opportunities for South Texas businesses.
DP World handles about 10% of global container traffic annually through a network of more than 60 ports and terminals worldwide.
Chinese auto supplier invests $42M in Saltillo plant
Chinese automotive supplier CHL/Henglong Mexico Automotive is investing $42 million to establish a manufacturing operation in Saltillo, Coahuila, producing steering systems for commercial vehicles and passenger cars, according to Cluster Industrial.
The project is expected to create 162 jobs and strengthen the automotive supply chain in one of Mexico’s largest vehicle manufacturing hubs.
The investment will be carried out in two phases and further expand the presence of Asia-based automotive suppliers in northern Mexico.
The company is expected to support vehicle manufacturers already operating in the region while reinforcing Saltillo’s role as a strategic center for the production of commercial vehicle and automotive components.
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Chart of the Week: Accepted SONAR Truckload Volume Index, SONAR Truckload Rejection Index – USA SONAR: ASTVI.USA, STRI.USA
The recent truckload market tightening has been largely described as supply-driven. While true, this framing overlooks a fundamental principle: all markets are a product of the balance between supply and demand. When analysts say the current tightening is supply-driven, they mean supply is the variable that has shifted most. Looking at the SONAR Accepted Truckload Volume Index (ASTVI) alongside the SONAR Truckload Rejection Index (STRI), we can see that carriers are far less capable of handling current demand volumes than they were just a few years ago.
Accepted tender volumes measure inbound requests that carriers formally agree to cover under a pre-existing rate agreement. This index, paired with tender rejection rates, gives us a reliable read on how well carriers can cover existing requests. In an elevated rejection rate environment like this one (STRI > ~10%), we can safely conclude that carriers lack sufficient capacity to meet existing customer demand.
Tender rejection rates — or inversely, load acceptance rates — are measures of carrier compliance. Carriers have no incentive to increase rejection rates or reduce compliance; unlike rate increases, they know rejections are purely damaging to customer relationships. Simply put, there is no internal motivation to turn down loads, but there is one to raise rates. This makes the rejection rate a cleaner signal of capacity balance than rates alone.
The ASTVI in June 2023 was 10,600, while the STRI sat just above 4%. The most recent weekly ASTVI reading averaged around 10,450, with the STRI above 16%. This suggests carriers are roughly 12–14% underserved relative to demand.
It should also be noted that even in well-supplied markets, a 2–4% rejection rate is normal. Netting the current 16.5% rejection rate against that baseline brings us back to a balanced or oversupplied market.
Demand improved — but not like it has before
Demand shifts can be powerful in both directions. Demand shocks were the primary drivers of the most recent market tightening events in 2017 and 2020 — and while supply conditions matter, demand was the primary catalyst in both cases. When demand increases rapidly, it has the same potential to collapse similarly.
Strong government stimulus was present in both the 2017 and 2020 environments, tender volumes increased ~60% from early March to August in 2020.
These two cyclical shifts were accompanied by freight recessions in the preceding periods. Those recessions pushed carriers into defensive pricing and fleet investment strategies, reducing both rates and fleet sizes.
In the current market, demand has seen a decent uptick over the past year, driven in part by hyperscaling AI data centers, defense spending, and reduced inventories prompting shippers to shorten their order lead times. But this demand growth has not reached the scale seen in 2017 or 2020. Accepted volumes are essentially flat year-over-year, with total tender volumes up around 9% — compared to total tender volumes up ~36% in the back half of 2020 and accepted volumes up around 19%. The recent increase is more subtle and possibly more sustainable.
Supply is slow to move, getting slower
There are still many unknowns and moving parts, both domestically and globally. Shippers have struggled to produce reliable demand forecasts, and uncertainty has been the defining theme of the past 18 months.
The base case, however, keeps demand relatively stable to slightly higher, assuming inflation pressures ease in the coming months. In a relatively unregulated carrier environment — like the one that existed prior to last year — rejection rates fall just over 1% per month as capacity grows at its fastest pace — supply side conditions are much slower to move. At that rate, the market would return to balance in roughly a year if capacity were growing steadily.
But this is not that environment, and there are few signs that carriers are committing to capacity growth. Most large fleets have been reducing capacity through the first quarter of this year, with net changes in operating authorities tracked by the FMCSA remaining deeply negative through April. The Montgomery-Caribe ruling further complicates things as brokers have to be more mindful in their vetting processes, reducing their options beyond simply finding active operators.
Much can change, but anyone expecting a sharp easing or a short-lived tight cycle — based on current data — may be setting themselves up for a difficult second half of the year and start to 2027.
About the Chart of the Week
The FreightWaves Chart of the Week is a chart selection from SONAR that provides an interesting data point to describe the state of the freight markets. A chart is chosen from thousands of potential charts on SONAR to help participants visualize the freight market in real time. Each week a Market Expert will post a chart, along with commentary, live on the front page. After that, the Chart of the Week will be archived on FreightWaves.com for future reference.
SONAR aggregates data from hundreds of sources, presenting the data in charts and maps and providing commentary on what freight market experts want to know about the industry in real time.
The FreightWaves data science and product teams are releasing new datasets each week and enhancing the client experience.
To request a SONAR demo, click here.
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DHL has transitioned autonomous vehicles from its Fast Forward Challenge into daily operations at the Advanced Regional Center in Singapore. In partnership with Zelostech, the company now operates fully electric, driverless vehicles for point-to-point transfers between logistics facilities on campus.
These shuttles handle repetitive hub-to-hub movements that require tight coordination, where delays from congestion or staffing can quickly affect shippers’ timelines.
Employees load up to three pallets or 1.5 tons per vehicle and dispatch it via a mobile app with real-time tracking. The vehicles navigate autonomously using sensors, mapping and artificial intelligence, managing traffic and obstacles on their own. They operate 24/7.
Each vehicle averages 40 trips and covers 28 kilometers daily, with staff handling unloading at the destination. A small fleet moves dozens of pallets each day.
The vehicles deliver consistent performance at roughly half the operating cost of diesel trucks. It also cuts emissions to support customers’ sustainability goals. Sensors improve safety in busy zones. The deployment allows teams to shift from driver supervision to system and data management.
“We’re excited to see autonomous technology in full-scale operation here in Singapore and explore how it can transform the way we move goods between sites. It’s an important step in strengthening our ability to deliver smarter, greener logistics solutions for our customers,” said Wei Kieng Eunis Hew, managing director of DHL Supply Chain Singapore.
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AVI-SPL has begun commercial autonomous freight operations between Dallas and Houston. The technology solutions provider is running Volvo VNL Autonomous trucks powered by the Aurora Driver on the corridor. It is using the trucks to move various audio-visual electronics, including a mix of new products and end-of-life equipment from which it recovers precious metals as part of its electronic recycling program.
The launch targets time-sensitive, high-value shipments at a time when freight demand is rising and carriers continue to face qualified driver shortages and capacity constraints. Volvo Autonomous Solutions provides the complete end-to-end system, including the purpose-built vehicle, virtual driver, required infrastructure, operations and uptime support, and a fleet management system that orchestrates transport operations and manages logistics flows.
“This collaboration shows how autonomous transport can help reduce transit times, improve service, and meet the demands of time-sensitive, high-value freight,” said Sasko Cuklev, head of on-road solutions at Volvo Autonomous Solutions.
“Autonomous transportation has the potential to significantly reshape the future of logistics,” said Tim Riek, chief strategy officer at AVI-SPL. “This collaboration allows AVI-SPL to explore innovative technologies that can help improve operational resilience, support long-term scalability, and strengthen the overall customer experience.”
The collaboration has the potential to strengthen supply chains through greater uptime, improved asset utilization and enhanced cargo security as operations scale.
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