The freight industry stands at a crossroads that looks remarkably familiar to anyone who remembers the early days of fintech. Before Plaid became the connective tissue linking bank accounts to lending decisions, borrowers shuffled paperwork and lenders operated on good faith. Now that same transformation is coming for trucking, and Highway’s Chief Commercial Officer Michael Caney believes Highway is building the rails that will make it happen.
“Highway is Plaid,” Caney told FreightWaves in an interview. “Highway is allowing a user, a carrier user, to say: ‘We’re asking the question — are you willing to tell the truth about who you are? And are you willing to let the world know if something changes?’ And when they’re not, that’s a tell.”
The Changing State of Freight Fraud
The nature of cargo theft has shifted dramatically. Double-brokering schemes, once the dominant threat, have given way to direct theft. This shift is partly due to identity verification tools from Highway and others that have made impersonation more difficult.
“The reason that we see direct theft rising is because it’s no longer easy to impersonate a carrier,” Caney said. “We’ve made it harder. You actually have to be picking up freight for a while.”
The challenge now lies in detecting when legitimate carriers “break bad.” Highway monitors roughly 2.5 million loads a month, watching for behavioral anomalies that signal trouble: a five-truck operation suddenly booking 100 loads, unfamiliar carriers moving into high-value commodity lanes, or sudden spikes in user additions.
“There are things that you can detect where you say, ‘Man, that guy’s gonna start stealing freight soon,’” Caney said. “We geocode facilities, so we look at the propensity of a commodity or a facility or a traffic lane, and we look for carriers to move into that lane that maybe haven’t been there before.”
Chameleon carriers, those operations that shed identities to escape enforcement history are another persistent threat. But Caney argues detection is straightforward when carriers must verify principal ownership through facial recognition, provide real names without virtual private network masking and match vehicle identification numbers on electronic logging devices against scheduled auto policies.
“Not all electronic logging device providers are created equal,” Caney said. Highway has begun shutting off data feeds from providers that fail its integrity standards, telling one recently: “If you don’t change the way that you send data, we’re gonna say that any connected ELD through this particular provider is no good and brokers shouldn’t trust it.”
The Economics of Fraud and Market Incentives
Behind the fraud epidemic lies an uncomfortable economic reality. For years, shippers squeezed rates to the point where some brokerages operate on 3 to 4 percent gross margins. This isn’t earnings before interest, taxes, depreciation and amortization, but actual gross margin.
“When shippers [were] providing the rates, and there’s some brokerages operating out there at 3 and 4 percent gross margin — barely breaking even, they’re just trying to stay in business — their incentive alignment’s off,” Caney said. “Shippers have pushed it till it’s breaking.”
That pressure cascades downward. Carriers can’t afford compliance investments. Non-domiciled and limited-term commercial driver’s license (CDL) holders account for a disproportionate share of stolen loads. Fraud itself has become professionalized, requiring more working capital to operate. This means bad actors must target higher-value shipments to cover their costs.
“Fraud’s a business,” Caney said. “It’s organized, it is well thought out, there’s technology behind it, and it now costs more to run a fraud business.”
Enforceable Standards vs. Data Commentary
Caney offered five key points during a recent conference appearance. One stood out: “Data shows you risk, but it doesn’t prevent it.”
The solution, he argues, lies in making the transaction itself the enforcement mechanism. When a broker books a carrier with a connected ELD that auto-assigns to the load based on proximity. It then verifies the vehicle identification number against the scheduled auto policy and uses a secure rate confirmation conduit that prevents inbox interception. The added steps means theft drops to zero.
“When someone comes and says, ‘We’ll create the standards like a Visa,’ and you choose to trade outside those standards, you’re choosing risk,” Caney said. He compared it to a renter offering to pay outside Airbnb for a discount: the platform’s guarantees disappear the moment you step off the rails.
A Trusted Freight Exchange to Rebuild Trust
Highway’s Trusted Freight Exchange has scaled rapidly since launch. John Tozer, who oversees the platform, said it has become the second-largest freight marketplace in roughly seven months, with 250 to 300 integrated customers posting upward of 60,000 available loads daily.
“The trust in the Trusted Freight Exchange is more valuable than anything else,” Tozer said. “It has to come from pre-vetted brokers.”
Approximately 100,000 motor carriers currently meet TFX eligibility requirements, having provided identity verification, connected an ELD to a truck and confirmed that the device links to an insured asset. The platform emphasizes relationship-building over transactional load matching.
“The biggest mistake I made when I started back in the day in freight tech with Newtrul was thinking that technology is going to replace humans or replace relationships,” Tozer said. “More importantly, technology done the right way enables both.”
Post-Montgomery Impact and Safety Guardrails
The Montgomery event has sent ripples through the brokerage community, though Tozer cautioned against overreaction. Highway has responded by enabling brokers to surface safety rule sets and identify performance-guaranteeable carriers based on the company’s data footprint.
“What we’re seeing is there’s a lot of fear associated with post-Montgomery,” Tozer said. “I’ve heard the wide gamut of things — that this is the event that’s going to consolidate the brokerage space, that this is the event that’s going to put thousands of brokers out of business. I don’t think we have enough information to say any of that is actually true yet.”
Insurance markets, he predicted, will ultimately determine the new standards. Highway’s Load Lock technology seeks to address a critical gap: verifying that the carrier who completed vetting is actually the one picking up the load.
“You can do all the diligence in the world, but if that’s not the carrier that picks up the load, what does it matter?” Tozer said.
Future Outlook: Capacity Procurement and Lane Intelligence
Over the next 12 months, TFX will focus heavily on capacity procurement features and lane intelligence. Examples include identifying the top 10 to 20 carriers that should be running specific lanes based on historical performance and safety profiles. The approach brings sophisticated vetting tools once reserved for major fleets to the broader market.
“We cater that approach and make it really easy for the operator to build that relationship with the best carriers that meet their rule set,” Tozer said.
Caney framed the industry’s trajectory in historical terms: “Ten years ago, we didn’t have visibility, we didn’t contemplate digital transactions. It’s not a fault of why we got here. We’re simply following the evolution.”
That evolution, both executives believe, leads inevitably toward enforceable digital standards — the same transformation that brought credit card security to e-commerce and identity verification to banking. For freight, the question is not whether those rails will be built, but who will choose to ride them.
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A nuclear verdict handed down by a California jury this week is not just another big payout to a plaintiff from a trucking company defendant, or in this case, multiple defendants.
It also is a reminder to trucking companies that subcontract work to another firm or hire an independent owner operator that they can be found responsible for what those drivers do on the road, and steps to protect themselves in the event of a crash will likely need to be pursued.
Although there are no brokers involved in this case, it does have some parallels to the new world created by Montgomery vs. Caribe Transport II in that it deals with the legal issue of how far up or down the supply chain can liability be spread.
The California case came out of Los Angeles Superior Court. The jury decision awarded a total of $52.1 million to Chad Perrigo and his wife Alexa Perrigo under the definition of vicarious responsibility.
As Judge Michele Flurer defined that in her instructions to the jury, vicarious responsibility is when “an employer is responsible for harm caused by the wrongful conduct of its employees while acting within the scope of their employment.”
Perrigo was riding his motorcycle in August 2021 in Santa Clarita, California when he collided with a truck driven by Jorge Castaneda Rodriguez. Rodriguez was driving a truck owned by Montecristo Trucking, which had a load from the U.S. Postal Service that had been subcontracted out twice.
HOS violation an issue at trial
Khail A. Parris, a partner at the PARRIS law firm who represented the Perrigos said the jury decision turned on his firm’s argument that driver Rodriguez was in violation of federal Hours of Service rules at the time of the crash.
Alexa Perrigo was not on the motorcycle at the time. She was a plaintiff citing “loss of consortium” due to the injuries her husband suffered.
Parris said California law on vicarious liability when an independent contractor is found negligent or liable traces back to the decision of Ely vs. Murphy, a 1952 case before the California Supreme Court.
As the Justia service said of the decision, “both to protect the public from financially irresponsible contractors, and to strengthen safety regulations, it is necessary to treat the carrier’s duties as nondelegable.”
“It’s a precedent in the sense that many people in California aren’t aware of this rule,” Parris said in an interview with FreightWaves. “Basically the rule is that if you’re a motor carrier and you’re operating in the state of California, there’s a duty and you’re liable whether you subcontract or not. You can’t just subcontract away all of your liability in California, you actually have to participate in making certain that the operators are safe, that the subcontracted entity is safe.”
Cautionary tale
“This is a cautionary tale for companies and independent owner operators and other contractors who transport freight,” Richard Reibstein, a partner with the law firm of Troutman Pepper Locke who specializes in independent contractor law, said of the California decision. Reibstein also writes a blog on independent contractor issues.
Reibstein said cases such as the Perrigo verdict drive home the point that companies must “structure, document and implement your independent contractor relationships in a manner that complies with the law. Otherwise you may lose the benefits of being insulated from liability for the negligence of an independent contractor you retained.”
The chain of events that ultimately led to the crash that seriously injured Chad Perrigo began with a contract between the U.S. Postal Service and Thunder Ridge Transport to haul mail.
Load got passed down the chain
According to Parris, 100% of that contract was subcontracted to Fames Transport. Fames then subcontracted part of the contract to Montecristo Trucking, the independent contractor that Jorge Castaneda Rodriguez was driving for when he struck Perrigo.
Parris said Perrigo hit Rodriguez’ truck headon going 50 miles per hour.
All three trucking companies were defendants in the case, as well as Castaneda. But in her instructions to the jury, Judge Flurer focused on Fames, as it was the company that gave the contract to Montecristo who Castaneda was driving for when he struck Perrigo.
Judge Flurer said jurors needed to consider several questions regarding whether Rodriguez was in essence an employee of Fames Transport.
“In deciding whether Fames Transport Inc.’s was Jorge Castaneda Rodriguez’ employer, in addition to the right of control, you must consider the full nature of their relationship,” the judge’s instructions said.
Among those factors: “whether Fames Transport Inc. supplied the equipment, tools, and place of work; whether the work being done by Jorge Castaneda Rodriguez was part of the regular business of Fames Transport Inc.; whether Jorge Castaneda Rodriguez was not engaged in a distinct occupation or business; whether Jorge Castaneda Rodriguez and Fames Transport Inc. believed that they had an employer-employee relationship.”
Getting prepared
Reibstein said he “sees this time and again” with companies that don’t properly manage their independent contractor relationships.
His law firm offers a service called IC Diagnostics that is structured to determine whether a company’s various independent contractor relationships are in compliance with all applicable laws and regulations.
Although the Castaneda case didn’t set a legal precedent, Reibstein said it should “reverberate in the C suite of companies who should ask their folks on the ground, what are we doing to make sure this doesn’t happen to us?”
Parris said he believes the large judgement is collectible. “I don’t work for headlines,” he said.
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A rollover on the interstate at 3:00 a.m. is already a bad day. But for a growing number of motor carriers, even worse financial damage comes from the tow bill that follows.
Stephen Brasher, Travelers Inland Marine Claim Unit Manager, joined FreightWaves’ What the Truck?! with host Malcolm Harris to break down how predatory towing practices are draining carriers of tens (and sometimes hundreds) of thousands of dollars per incident.
Brasher says the tow operators hold nearly all the leverage, invoices are routinely inflated, and motor carriers who don’t respond immediately can watch storage fees consume whatever margin they had left.
“Imagine it’s 3:00 a.m. and one of your drivers is involved in a rollover accident on the interstate,” Brasher said. “The truck and trailer are blocking the roadway, the trailer is breached, and cargo is strewn across the highway. When the County Sheriff shows up, his priority is to get those travel lanes cleared as fast as possible, so he dispatches a tow company.”
The motor carrier has no say in which company responds, and the moment that tow operator hooks up, a billing clock starts running that can be extraordinarily difficult to stop. “Motor carriers need to understand, you do not get to choose that tow company,” Brasher said.
Once the tow company takes possession of the truck, trailer, and any salvageable cargo, those assets typically go to the operator’s storage facility. From that point forward, every day on the lot costs money, and the fees compound across multiple line items.
“We’re talking an average of $120 per day for storage, per component. $120 for the truck, $120 for the trailer, and $120 for the cargo, every single day,” Brasher explained. “They will not release any of it until their invoice is paid in full.”
That structure gives tow companies an asymmetric advantage. The motor carrier needs its equipment back to generate revenue. The cargo may be time-sensitive or perishable. With every day that passes, the bill grows, creating pressure to settle quickly and on the tow operator’s terms.
“They are holding your property until the bill is paid,” Brasher said. “Towing operators know how desperate the situation is and use it to their advantage. So we’ve all heard that possession is nine-tenths of the law; in this case, the tow company has all the leverage.”
The scale of the problem is significant. Brasher cited industry data showing the average tow-and-recovery invoice comes in at nearly $12,0001, a figure that can balloon dramatically depending on the complexity of the scene and the aggressiveness of the operator.
“There’s a documented case in Virginia where a single truck crash recovery resulted in a $200,000 invoice2,” Brasher said.
Beyond the sticker shock of individual invoices, the financial exposure is magnified by the way insurance coverage is typically structured. A truck crash can involve multiple parties, such as the motor carrier, the shipper, and the broker, each with different policies and different carriers. The coverage triangle doesn’t always close cleanly.
“Generally speaking, an auto policy covers the truck and trailer, while cargo insurance covers the cargo,” Brasher said. “Let’s call this a triangle of coverage that gets very murky very fast.”
The murkiness is especially dangerous when towing costs exceed what the policy was designed to handle. Many commercial auto policies carry specific sub-limits for towing and recovery. Those caps may have been set before predatory billing pushed invoices into six-figure territory.
“So if that tow recovery bill comes in at $60,000 or $100,000, and I can assure you it does, the motor carrier is responsible for the difference,” Brasher said. “That leaves a $10,000 excess exposure over those sublimits for the cargo expenses, and the motor carrier is responsible for that excess. That can be a devastating financial hit for small fleets and owner-operators.”
The math can be unforgiving. A carrier running a handful of trucks may not have the cash reserves to absorb a five- or six-figure surprise. Because tow operators are likely to refuse to release equipment until the invoice is settled, the carrier is also losing revenue on a truck that’s sitting idle.
The frequency of these situations is what makes the issue systemic rather than anecdotal. Brasher noted that rollovers are a daily occurrence in the claims data he reviews, and that the vast majority of carriers have been on the wrong end of an inflated tow bill at some point.
“I see at least one rollover a day; they are extremely common, especially in winter months when roads are icy,” Brasher said. “Roughly 83% of motor carriers have experienced excessive towing rates3.”
The problem goes beyond aggressive pricing. Brasher pointed to outright fraud as a recurring issue in the towing ecosystem, including cases where operators submit duplicate invoices to different insurance companies for the same recovery event.
Regulation has been slow to catch up. Towing oversight varies dramatically from state to state, with no unified federal framework governing rates or business practices for heavy-duty recovery. That patchwork leaves carriers with few guardrails in unfamiliar jurisdictions.
“Regulation is spotty and it’s very state-specific,” Brasher said. “You don’t have time in the moment to figure out the regs for this particular state. Tow companies have all the leverage in this scenario; it’s like the Wild Wild West.”
Five best practices for managing towing exposure
Despite the structural disadvantages, Brasher outlined a five-point framework for minimizing financial damage. The common threads are preparation and speed.
The first and most critical step is notifying the insurer immediately. Storage fees accrue daily, and every day of delay erodes the insurer’s ability to negotiate on the carrier’s behalf.
“Timely notification is everything,” Brasher said. “We’ve had carriers call us three weeks after an accident, and by then the storage fees alone have become enormous. We’re starting from a position, at that point, of zero leverage. So the moment something happens, call us, and we can get involved.”
Second, motor carriers should review their towing-related coverage limits before an accident forces the question. Understanding the sub-limits on a policy is the kind of homework that pays for itself the first time a $60,000 invoice lands on the desk.
Third, motor carriers should negotiate aggressively. Tow operators build inflation into their initial pricing precisely because they expect pushback.
“Towing companies know the invoices are inflated,” Brasher said. “They expect to negotiate. Every insurer will try to work the bill down, and most towing companies will generally compromise. So don’t accept the first number they give you. Always, always negotiate.”
Fourth, every invoice should be itemized and scrutinized. Labor hours, equipment charges, and storage fees should all be broken out and verified, including a check for duplicate billing.
Finally, documentation is essential. Every communication (emails, phone calls, settlement offers) should be logged. Because motor carriers bear strict liability for cargo in interstate transit, walking away from a disputed tow bill isn’t an option. A well-documented paper trail can make the difference between a negotiated resolution and protracted litigation.
“Remember, at the end of the day, in interstate transit, the motor carrier is strictly liable for that cargo, so you can’t walk away,” Brasher said. “But if you’re making good-faith efforts to pay and they’re refusing to negotiate or release your cargo, make sure everything is documented.”
The broader takeaway is that towing exposure has graduated from a routine operational cost to a potential balance-sheet event. Carriers that haven’t reviewed their coverage limits or established internal notification protocols are betting that it won’t happen to them, but they’ll likely lose eventually, according to the data.
“An accident is no longer just an operational headache; it’s a potential six-figure financial event,” Brasher said.
If you’re looking for additional resources on managing towing-related risks, visit Travelers.com today to evaluate whether your current coverage limits reflect the reality of today’s towing environment.
Citations:
1 American Transportation Research Institute, “Causes and Countermeasures of Predatory Towing,” November 2023. Average tow and recovery invoice of $11,681.27 based on analysis of 490 invoices ranging from $250 to $110,000.
2 FreightWaves, “When Towing Becomes Predatory,” February 2025.
3 American Transportation Research Institute, “Causes and Countermeasures of Predatory Towing,” November 2023. Excessive rates experienced by 82.7% of motor carriers; unwarranted extra service charges experienced by 81.8% of carriers.
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A potential breakthrough in the Middle East could soon ease major headaches for truckers, shippers, and manufacturers worldwide. On Friday, U.S. and Iranian leaders are set to formally sign a 14-point memorandum of understanding (MOU) in Switzerland. This interim deal aims to end recent fighting, reopen the Strait of Hormuz, and start 60 days of talks on a final agreement.
Once More Unto the Strait, Dear Friends, Once More.
The Strait of Hormuz is a narrow waterway between Iran and Oman. Before the conflict, it carried about one-fifth of the world’s oil supply, plus large amounts of liquefied natural gas (LNG) and other goods. When fighting closed the strait earlier this year, oil prices spiked, shipping costs jumped, and supply chains faced serious delays. Tanker traffic dropped sharply. Insurance rates soared. Many ships rerouted around Africa’s Cape of Good Hope, adding weeks and extra fuel costs to journeys.
Key Parts of the MOU That Matter for Freight
The 14-point document includes several steps that could quickly affect transportation:
· Immediate ceasefire on all fronts, including Lebanon, and no new military moves during talks.
· Reopening the Strait of Hormuz to commercial traffic. The U.S. will lift its naval blockade. Iran will clear mines and other obstacles. Full pre-war traffic levels should return within 30 days.
· Oil export waivers. The U.S. Treasury will allow Iran to sell crude oil, petrochemicals, and related products right away. This includes banking, insurance, and shipping services.
· Release of frozen funds, around $24 billion or more, and promises of broader sanctions relief if talks succeed.
· A $300 billion economic development plan funded through regional partners.
· Iran will make best efforts for the safe passage of commercial vessels with no charge for 60 days only from the Persian Gulf to the Sea of Oman and vice versa.
These changes target energy flows first. More stable oil supplies should lower fuel prices for trucks, ships, and planes. That helps control costs across every link in the supply chain, from factories to warehouses to store shelves.
What Happens Next If Signed on Friday.
Signing the MOU on Friday does not end all problems overnight, but it starts a clear timeline:
Immediate effects: Fighting stops. The U.S. begins removing the blockade. Iran starts clearing the strait. Treasury waivers for Iranian oil exports take effect.
Within 30 days: Commercial ships should move through Hormuz at near-normal levels. Tankers now waiting or rerouted can return. Insurance companies will likely lower war-risk premiums as risks drop.
Next 60 days: Teams negotiate a final deal on Iran’s nuclear program, remaining sanctions, and long-term security. If successful, broader sanctions relief could follow, unlocking more Iranian oil and trade.
Ongoing monitoring: Both sides must follow the rules, or the deal could collapse. President Trump has warned that violations could restart conflict.
U.S. Strategic Petroleum Reserve at Lowest Levels in 43 Years
The timing of the MOU could not arrive soon enough. As of the week ending June 12, 2026, the inventory of the U.S. Strategic Petroleum Reserve (SPR) currently stands at approximately 340.25 million barrels, down sharply from recent weeks due to emergency releases tied to the Iran conflict and Strait of Hormuz disruptions. Yes, this is the lowest level since 1983. At that time, the Reagan administration was still in the early stages of filling the newly created reserve, established in 1975 after the 1973-74 oil embargo.
The SPR has not been this low in over 43 years. Releases in 2026 were partly loans to refiners to stabilize prices during the crisis, with some repayment expected later. The recent U.S.-Iran MOU could reduce the need for further draws if the strait reopens smoothly. Even so, the SPR is at a historically vulnerable point for any new major disruption, like a hurricane season event.
US Munitions Stockpiles for Key Advanced Systems Significantly Depleted
According to analyses from the Center for Strategic and International Studies (CSIS) and reports in major outlets, the roughly 38–39 days of high-intensity operations burned through large quantities of precision munitions, particularly long-range strike and air-defense interceptors.
Exact classified totals are not public, but open-source estimates include:
· Tomahawk Land Attack Missiles (TLAM): More than 1,000 fired, close to or exceeding much of the available stockpile. Annual production has historically been low (~86/year on average), though ramping toward 600–1,000+. Replenishment to pre-war levels could take until late 2030 or early 2031.
· Patriot interceptors: Over 1,000 used (each costing millions). Replenishment projected for mid-2029.
· THAAD interceptors: Up to ~290 expended (roughly half or more of inventory). A full recovery is not expected until end of 2029.
· Other systems: 45%+ of Precision Strike Missiles (PrSM), significant shares of ATACMS, JASSM, and SM-3/SM-6 naval missiles (around 20–30% in some cases
The U.S. still has sufficient munitions for plausible ongoing or limited scenarios in the current theater and maintains deeper stocks of less advanced items (e.g., JDAM bombs, artillery). However, the drawdown has pulled assets from other commands like Europe and Pacific, leaving those regions thinner and creating a “window of vulnerability” for a high-end conflict like one with China.
Rebuilding will take years, generally 2-4 years for the most stressed systems, even with accelerated production orders under the Trump administration. The defense industrial base is expanding, but past low procurement rates and supply chain limits slow the process. The U.S.-Iran MOU and ceasefire should ease immediate pressure, reducing the need for further high-volume expenditures. Pentagon officials have stated inventories remain adequate for deterrence, but experts warn of risks if another major crisis emerges soon. Production surges and FY2027 budget requests aim to close the gap faster.
Impacts on Supply Chains.
Positive side: Lower energy prices should ease inflation on diesel and jet fuel. This helps trucking companies, railroads, and ocean carriers. Chemical and fertilizer shipments from the Gulf region could resume more cheaply, supporting U.S. and global farming. Retailers and manufacturers may see steadier costs and fewer delays.
Challenges ahead: Full recovery will take time. Mines and wreckage must be cleared. Hundreds of ships may need repositioning. Insurance adjustments and crew safety concerns won’t vanish instantly. Some routes altered during the crisis may stay changed for months. Backlogs at ports could linger. For U.S. importers and exporters, this MOU brings cautious optimism. Companies should review contracts now for fuel surcharges, insurance clauses, and force majeure terms. Diversified sourcing and strong carrier relationships remain smart moves.
And What of Lebanon?
Israel began its ground invasion of southern Lebanon on or around March 16-17, 2026, shortly after the broader U.S.-Israel conflict with Iran erupted. The emphasis on Lebanon in the 14-point U.S.-Iran MOU centers on Point 1, which calls for an immediate and permanent end to military operations on all fronts, explicitly including Lebanon. This provision requires the U.S., Iran, Israel, and their respective allies to stop fighting there right away. It also commits both sides to respect Lebanon’s territorial integrity and sovereignty going forward. Iran has stressed that this means Israeli forces must withdraw from southern Lebanon, where clashes with Hezbollah, a Tehran-backed group, have caused heavy casualties and displacement.
The U.S. and Iran see the Lebanon ceasefire as essential to prevent the conflict from spreading or restarting while the two countries negotiate a final deal over the next 60 days. Without it, the broader truce, and steps like reopening the Strait of Hormuz, could quickly unravel. In short, Lebanon is highlighted to lock in a regional de-escalation, not just a bilateral U.S.-Iran pause. Should conflict in Lebanon continue, the MOU may be out the window entirely.
Looking Ahead.
The last time the U.S. Congress formally declared war on a foreign country was 84 years ago. 84 years ago. Yet military adventurism seemingly continues unabated. What else could this be but a bipartisan, and fully institutionalized constitutional failure? This is yet another reminder of how geopolitics and logistics remain linked. One narrow strait can ripple across oceans and highways. If the MOU holds and the strait reopens smoothly, supply chains could gain real breathing room by late summer. The next few weeks will show whether paper promises turn into smooth sailing. Freight professionals should watch oil prices, tanker rates, and official updates closely. Stability in the Gulf could mean lower costs and more predictable deliveries for everyone.
I will leave you with John Quincy Adams’ 1821 Fourth of July address:
“Wherever the standard of freedom and Independence has been or shall be unfurled, there will her heart, her benedictions and her prayers be. But she goes not abroad, in search of monsters to destroy. She is the well-wisher to the freedom and independence of all. She is the champion and vindicator only of her own.”
Let’s hope that the next time we go searching for monsters to destroy, we seek the advice and consent of the U.S. Congress.
Matthew Leffler is a transportation attorney, adjunct professor of law at Michigan State University College of Law, and the host of the Armchair Attorney® Podcast. He can be reached at matthew@armchairattorney.com
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The Small Business in Transportation Coalition (SBTC) has filed a court petition seeking to force federal regulators to decertify the commercial driver’s license programs of New York and California.
The petition, filed June 10, asks the court to review actions by the Federal Motor Carrier Safety Administration and the U.S. Department of Transportation and order the agencies to revoke the authority of New York and California to issue CDLs, escalating a dispute over immigration-related licensing policies and English-language proficiency requirements for commercial drivers.
SBTC argues that FMCSA has already determined both states were in “substantial noncompliance” with federal CDL regulations and therefore must be decertified under federal law. The organization contends that federal statutes require the transportation secretary to prohibit a state from issuing CDLs once such a determination is made.
The filing, made in the U.S. Court of Appeals for the District of Columbia Circuit, specifically challenges FMCSA’s April 16 final determination regarding New York and also seeks relief related to a Jan. 7 determination involving California.
SBTC alleges the agency improperly failed to act on a petition it submitted in May 2025 requesting decertification orders against several states, including New York and California.
Virginia crash cited in petition
The lawsuit comes less than two weeks after a fatal bus crash on Interstate 95 in Virginia that killed five people and injured dozens more.
According to the court filing, SBTC points to the May 29 crash as evidence that stronger enforcement of federal licensing standards is needed. The organization alleges the bus driver involved held a New York-issued CDL despite concerns about English-language proficiency.
The crash involved a bus operated by E&P Travel Inc. Federal investigators are examining the company’s connections to a broader network of bus operators in the Northeast, according to CBS News. The driver, identified by CBS News as Jing S. Dong of Staten Island, New York, faces five felony involuntary manslaughter charges.
Compliance findings at center of dispute
SBTC’s petition centers on FMCSA’s nationwide review of state CDL programs following changes to federal rules governing non-domiciled commercial driver’s licenses.
The coalition says FMCSA’s audits initially identified 24 states and the District of Columbia as being in substantial noncompliance with federal CDL requirements. According to the filing, New York and California ultimately received final notices of substantial noncompliance after federal reviews of their handling of non-domiciled CDL and permit applications.
The petition alleges New York’s noncompliance rate exceeded 55%, while California’s was about 25% during federal audits. SBTC argues those findings legally trigger mandatory decertification orders.
FMCSA previously warned multiple states that they could face funding consequences or additional enforcement actions if they failed to comply with federal CDL standards for non-domiciled drivers.
Latest chapter in broader legal battle
The lawsuit follows a separate high-profile challenge brought by Florida against California and Washington.
In May, the U.S. Supreme Court declined Florida’s request to file an original-action lawsuit alleging California and Washington violated federal law by issuing CDLs to undocumented immigrants.
The case stemmed from a fatal crash on Florida’s Turnpike involving a truck driver who reportedly held a California-issued CDL and had previously been licensed in Washington.
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FedEx says shipping delays in Vietnam have eased this month after a bungled switch to a different ground delivery provider and the rollout of new technology led many customers to loudly complain about difficulty retrieving inbound goods from warehouses.
The freight transportation giant has worked for weeks to restore service levels for customs clearance and local delivery for inbound shipments, but specifics about the exact nature of the disruption have been hard to come by.
FedEx (NYSE: FDX) attributed the shipment delays and cargo congestion in warehouses to challenges associated with transitioning to a new contract courier, and the introduction of new technology and workflows designed to match global operating standards. The complexity of simultaneously implementing new systems, processes and teams created transition challenges, according to a May 29 service bulletin on FedEx’s Vietnam website.
“We fully recognize the service disruption experienced by our customers in Vietnam and the impact to their operations,” said Masamichi Ujiie, president of FedEx North and South Pacific in the communiqué. “We are treating this with the highest urgency and focus.”
Spokespersons declined to provide details about what triggered the operational meltdown.
Vietnamese newspaper Thanh Nien reported that problems began on April 26 when FedEx switched from long-time national delivery partner Song Binh to Viettel Post for pickup and last-mile delivery after customs clearance.
International traders and logistics companies quickly flooded social media forums with complaints about import shipments stranded at warehouses in Hanoi and Ho Chi Minh City for several days, FedEx hotlines that couldn’t be reached for assistance, and no clear point of contact for getting status reports. Businesses also reported having to cancel and resubmit customs declarations because of mismatches related to the new transport provider, as storage fees mounted for goods that were stuck.
In one case, a garment company was unable to collect fabric samples sent by its international client that were urgently needed to meet production deadlines. The shipment sat in a Hanoi warehouse for days without being released, which put the company at risk of having the order canceled and paying penalties, according to an article by Thanh Nien. Another customer expressed dismay that a shipment which requires cold storage was languishing at the airport cargo terminal, and had likely spoiled, because it couldn’t be processed by customs authorities. Other companies said they had to halt production lines because they hadn’t received raw materials from overseas.
Delays primarily relate to bookings placed with FedEx prior to the April 26 cutover to Viettel Post, Thanh Nien reported.
“FedEx has implemented a more integrated operating model to strengthen our long-term capabilities in Vietnam. We are actively executing contingency plans — including increased sorting capacity, enhanced customer service, and additional clearance support — to accelerate recovery, restore normal operations, and minimize impact for our customers,” the company said in a statement last week to FreightWaves.
A follow-up request for more details about what caused the meltdown was met with a second statement.
“The recent temporary delays affected pickup, delivery, and import clearance processing which resulted from higher-than-usual shipment volumes following public holidays and our recent operational transition. While the initial transition temporarily impacted processing within our facilities, our recovery actions are yielding positive results, including normalized clearance and local delivery operations. This consistent progress is steadily improving service consistency across the Vietnam network,” FedEx said on Tuesday.
FedEx said it initiated a series of steps to speed up the restoration of normal operations, including hiring and deploying additional personnel to increase processing capacity in warehouses and call centers. It also established a dedicated task force to manage, prioritize and clear the shipment backlog, waived storage charges during the period for impacted shipments, and prioritized claims processing for affected customers. Specialists are coordinating with customs authorities on expediting shipment processing.
In the May 29 bulletin, FedEx said backlogs had decreased by nearly 50% compared to peak levels in early May. Shipment flows through customs and last-mile delivery are becoming more stable, it said at the time.
FedEx added that pickup and same-day uplift performance for outbound shipments are trending toward pre-transition levels, while approximately 4,500 deliveries are currently being completed daily, reflecting increased throughput across the network.
On Monday, the global express logistics provider told customers that operations continue to improve, resulting in fewer backlogs and allowing shippers to send and receive shipments with fewer delays. There are no more cargo holds at Hanoi airport and the extra wait time to retrieve cargo at Ho Chi Minh City airport has been reduced from two days to one day, the notice said.
“Our team remains focused on stabilizing operations and restoring service consistency as quickly as possible,” it concluded.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
Write to Eric Kulisch at ekulisch@freightwaves.com.
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