Hump Day News

Key Highlights in the Trucking Industry This Week (September 10-17, 2025)

The trucking sector continues to navigate a challenging freight market, with ongoing carrier failures, regulatory delays, and cautious optimism for 2025 amid economic slowdowns. Spot rates are easing post-Labor Day, diesel prices are down, but operating costs like insurance and trailers remain elevated. A major focus this week has been on enforcement of English Language Proficiency (ELP) requirements, leading to hundreds of drivers being taken out of service. Here’s a breakdown of major developments:

Market Conditions and Forecasts

  • Freight Recession Persists: A Wall Street Journal report highlights a wave of trucking company bankruptcies, particularly in California, as the cargo slowdown enters its fourth year. Experts warn of “cracks in the carrier base,” with smaller operators struggling to hold on due to weak demand and high costs. This could signal broader industry consolidation.
  • Spot Rates and Volumes: Broker-posted spot rates declined again this week, aligning with seasonal trends after Labor Day. Flatbed volumes surged 34% in August, but overall trucking jobs slipped slightly, with revisions showing a 2% downward adjustment for the sector. Q2 revenues stalled, especially in specialized freight.
  • 2025 Outlook Mixed: Executives from companies like Werner Enterprises report “positive momentum” in dedicated and logistics segments, with some projecting stability despite economic headwinds. However, forecasts from ACT Research and Trucking Solutions Group predict slower Class 8 demand, lower used truck prices, and stronger contract rates, but warn of hurdles like high interest rates and inventory overhangs. Potential Federal Reserve rate cuts could boost freight opportunities later in the year.

Regulatory and Policy Updates

  • FMCSA Delays Key Rules: The Federal Motor Carrier Safety Administration (FMCSA) postponed several regulations until May 2026, including broker transparency requirements, side underride guards, automatic emergency braking (AEB) mandates, electronic logging device (ELD) updates, and enhanced driver training. This gives carriers more time to adapt but reignites debates on safety improvements.
  • English Language Proficiency Enforcement Impacting Drivers: A major crackdown on ELP requirements has led to significant numbers of drivers being placed out of service. Since enforcement resumed on June 25, 2025—following the reversal of a 2016 Obama-era guidance memo—FMCSA data shows 1,212 commercial vehicle drivers have been taken out of service nationwide for failing to demonstrate sufficient English proficiency during inspections. This includes inability to read road signs, communicate with inspectors, or understand safety instructions. Earlier reports from July indicated around 1,500 drivers affected, with the Western region seeing the highest violations (particularly for traffic sign comprehension). Drivers failing the two-step test (verbal communication and document reading) face immediate out-of-service orders, typically for 10-30 days or until they pass re-testing; no interpreters or apps are allowed. The policy, backed by a Trump administration executive order, aims to enhance road safety but has exacerbated the driver shortage, with industry groups noting challenges in backfilling positions. A recent petition to FMCSA proposes adding an ELP endorsement to CDLs, modeled after FAA standards, to standardize testing.
  • Canada’s Equity Push: During National Trucking Week, the Canadian government announced $500,000 in funding for Trucking HR Canada to address barriers for underrepresented groups (women, Indigenous people, persons with disabilities, and visible minorities) in the industry. The project will review HR practices and workforce data to promote diversity.
  • Opposition to Driver Licensing for Undocumented Immigrants: U.S. Rep. Mary Miller (R-IL) is leading efforts to block sanctuary states from issuing commercial driver’s licenses (CDLs) to undocumented individuals, citing public safety risks. This has sparked advocacy from trucking groups concerned about wage dumping and road safety.
  • Other Driver-Related Enforcement: While specific September numbers are emerging, broader FMCSA out-of-service criteria for drivers include hours-of-service violations, drug/alcohol positives, invalid medical certifications, and fatigue indicators. Annual out-of-service rates hover around 20-25% for driver inspections, but ELP has driven a spike this year. Potential 2025 changes include SMS updates combining drug/alcohol with unsafe driving BASICs and stricter medical exam submissions.

Industry Events and Operations

  • National Truck Driving Championships: The American Trucking Associations (ATA) crowned David Comings of FedEx Freight as the 2025 Bendix Grand Champion at the event in Minneapolis. The championships, which included 45 finalists, emphasized safety and skills amid ongoing talent shortages.
  • Recalls and Safety Issues: Over 14,000 trucks were recalled due to dashboard technology glitches. Electric yard trucks from a major manufacturer also faced recalls for battery concerns. Separately, a UKG survey revealed the U.S. transportation sector’s struggles with a shrinking talent pool and rising wage demands.
  • Mergers and Expansions: Canadian carrier Mullen Group acquired Searcy Trucking, adding specialized transloading and warehousing capabilities. Less-than-truckload (LTL) provider Dayton Freight opened a new terminal in the East, expanding its reach.

Emerging Trends and Innovations

  • Autonomous and Electric Advances: Tesla announced a partnership with Uber Freight, positioning the Tesla Semi at the forefront of electric trucking. This could accelerate adoption in logistics, with potential for 24/7 autonomous operations reducing costs. Meanwhile, Bot Auto completed its first driverless hub-to-hub run in Houston.
  • Cross-Border Developments: Mexico unveiled a $540M industrial hub to attract investments and launched a $22B port overhaul for nearshoring. However, U.S. tariffs are causing job losses in border factories, impacting freight flows.
  • Equipment and Costs: Mack Trucks redesigned its Anthem model for regional haul efficiency. Diesel prices dropped this week, but insurance and trailer costs continue rising. A white paper from Ryder provides breakdowns of trucking, maritime, and intermodal capacity trends for the coming weeks.

Overall, the industry is bracing for a protracted recovery, with small carriers (91.5% of which operate 10 or fewer trucks) hit hardest. Cross-border trade remains strong—trucks handled 85% of U.S.-Mexico surface goods in 2024—but domestic demand lags, compounded by the ELP enforcement removing over 1,200 drivers from service this year alone. For owner-operators, focusing on contract freight, cost controls, and compliance training (especially ELP) is key to weathering the storm.

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