Philip Jacobs

U.S. for-hire trucking companies are in for a rude surprise with the expansion of the steel & aluminum derivative tariffs. Two of the HTS codes that were added were HTS 8716.39.0040 dry van trailers and HTS 8716.39.0090 other trailers for transporting goods. The USA imported over $1 billion of each of these HTS codes in 2024, with the vast majority coming from Mexico. However, and critically, as of June, the effective tariff rates on each of these HTS codes was < 0.1% because the imports were compliant with USMCA. In other words, these goods weren't being tariffed. That has changed because the steel and aluminum derivative tariffs override USMCA. This raises the question: what percentage of these goods' value is in steel and aluminum? Below is my attempt to answer this using the detail-level use table from the input-output accounts. Thoughts: •This table shows the breakdown of the cost structure for primary inputs for truck trailer manufacturing from the BEA’s detail-level input-output accounts. Aluminum and steel are, not surprisingly, very high on the list. A conservative estimate is 23% of the value for direct use comes from these goods. That would imply a minimum 11.5% tariff. •However, if we expand the bill of materials, that figure would surely increase because many of the components from other sectors are themselves made of steel and aluminum. For those familiar with the I-O total requirements tables, those don’t work as intended to expand the bill of materials because of the large amount of intra-industry transactions. •As a rough ballpark, if the steel and aluminum content includes the components at well, I would imagine we are looking at a minimum value of 35% (plus or minus a bit). Implication: truck trailers are going to be more expensive to import due to tariffs in the 15-20% range (rough estimate). Combine this with domestic manufacturing prices for trailers still being 44% above pre-COVID levels (https://lnkd.in/gcJE_HeN), and ongoing weak pricing conditions, we have  a rather nasty combination for carriers considering expanding their trailer pools. #supplychain #economics #freight #trucking #truckload

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Barton Logistics, a Texas-based freight brokerage is suing Walmart, alleging the retailer gave it theft-prone loads and used its carrier data to build a competing logistics business. Source: San Antonio Express-News

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Pamt Corp. posts another loss Landstar sees flatbed strength despite soft van market Port Houston completes $1B ship channel expansion Watch today’s FreightWaves Morning Minute 👇

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3.4 Million Total loads posted to the DAT One truckload spot market in the week ended Feb. 28, up 6% from the week before

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Brokers, 97 to 99% of sprinter van carriers will show “1” power unit on their FMCSA report. Sprinter vans are not power units, nor are they regulated in that category in any way. They are rated under 10,001 lbs, and for comparison, an Escalade weighs about the same as most cargo or sprinter vans on the market. Once you start listing multiple power units on your FMCSA when they technically aren’t power units, you will start seeing inspection alerts through Carrier411 or any third-party system used to verify a carrier’s authenticity. In fact, when you obtain your own authority as a sprinter van carrier, FMCSA agents will tell you to list zero power units. The funny part is that many brokerages still require one power unit with ELD and inspections to get onboarded. This is where a lot of misinformation in the sprinter van space comes from. Just because a sprinter van carrier shows one power unit on FMCSA but actually operates 30 sprinter vans does not make them fraudulent or bad actors. Any legitimate company will be able to provide their commercial insurance policy if you have concerns. #cargovans #sprintervans #noregulations

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Here's a refined LinkedIn post focused on market analysis rather than sales: The Trucking Market May Be Nearing Bottom The freight market remains unusually quiet, and recent data suggests we're approaching a cyclical low. Texas Production Index dropped again in October — a signal of declining retail orders and reduced consumer spending power. Less purchasing activity means less freight demand. Meanwhile, industry analysts project that up to 600,000 truck drivers could exit the market due to: New CDL requirements Immigration policy changes English proficiency enforcement Sustained weak freight conditions That's roughly 1 in 6 drivers potentially leaving the industry. The Supply-Demand Reset When demand eventually recovers, the capacity reduction will create an imbalance: Tighter available capacity Upward pressure on rates Improved negotiating position for surviving carriers Market cycles historically show that corrections at the bottom create sharp reversals. The combination of reduced capacity and eventual demand recovery could accelerate the shift. For freight professionals: Whether you're a shipper, broker, or carrier, understanding where we are in this cycle matters. The next 6-12 months will likely reshape competitive dynamics across the industry. Are you seeing similar signals in your market segment?

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🚛 In the Trucking World J&S Rios Logistics LLC update Today it’s all about freight volatility, fuel prices, and gearing up for the late-summer ag rush in a lot of places — especially down here in Texas. Rates are still bouncing around, and a lot of owner-operators are either chasing the next hot load or tightening up the books trying to stay lean. Fertilizer markets? Still slow, but better than they were in Q1. If you’re hauling end dumps or ag product, you already know—every penny and every hour counts.

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Industry News Updates! 📍 REGIONAL IMPACTS Georgia • Georgia carriers must align with the new FMCSA non‑domiciled CDL rule coming into effect next month, audit driver qualification files now. • The winter weather HOS waiver still applies in Georgia, through Feb. 20. Texas • Texas is included in the 40‑state HOS waiver extension; carriers responding to emergency relief should use the waiver appropriately. • Prepare for enforcement focus on ELD compliance as devices are revoked. Maryland • Maryland fleets benefit from the HOS waiver during urgent winter operations. • Carrier safety managers should be tracking the ELD revocations to avoid citations. Midwest • Weather waiver extends through the region, including Illinois, Indiana, Iowa, Missouri, Wisconsin, and more. • Enforcement trends indicate continued roadside focus on driver qualifications and safety standards. #fmcsa #transportationnews #carriers #trucking #owneroperators

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