Daily freight & trucking briefing

Good morning. It's Tuesday, April 29th — here's what's moving in freight today.

Freight markets are sending their clearest upcycle signals in years, with Landstar declaring an inflection point and flatbed spot rates running close to 30% above year-ago levels — though the fuel picture is more complicated. Shell's chief executive is warning that the Strait of Hormuz blockade may extend into next year, raising doubts about how long the current streak of falling diesel prices can hold. On the regulatory front, U.S. states are tightening commercial driver's licence standards in ways that have direct implications for Canadian cross-border operators, and Washington is moving to lock in a new round of tariffs before its stopgap levies expire this summer.

New tariff push extends uncertainty for cross-border freight

Canadian carriers operating in the Canada-U.S. corridor are watching another tariff development unfold in Washington, with Transport Topics reporting that the Office of the U.S. Trade Representative has opened hearings on two new investigations expected to produce a fresh round of import taxes. The administration's preferred tariff mechanism was struck down by the Supreme Court earlier this year; the stopgap levies currently in place expire in under three months. With the USMCA/CUSMA review already scheduled for July, the development adds a further layer of uncertainty for carriers, shippers, and freight pricing on both sides of the border.

Landstar calls early upcycle on Q1 beat and strong April momentum

FreightWaves is reporting that Landstar System posted first-quarter earnings per share of $1.16 — 31 cents higher year over year and 4 cents ahead of analyst estimates — with the company declaring the market is entering the early stages of an upcycle. April yields are tracking significantly ahead of seasonal norms. Landstar is an active player in Canada-U.S. lanes, making its read on market direction a meaningful signal for cross-border operators watching for a pricing and capacity inflection.

Flatbed spot rates extend winning streak for third straight week

All-in flatbed broker-posted rates climbed 3.4 cents per mile for the week ending April 24 — the smallest gain in nine weeks but still the third consecutive increase — Overdrive reports, citing Truckstop.com and FTR Transportation Intelligence data. Rates are running close to 30% above year-ago levels, a reading that reflects tightening conditions in a segment heavily indexed to industrial and cross-border freight. The advance came alongside a third consecutive decline in benchmark diesel, giving flatbed operators an unusual combination of rising revenue and falling fuel costs.

UPS beats revenue expectations amid ongoing transformation

UPS pressed ahead with its multiyear restructuring in the first quarter, posting net income of $864 million on total revenue of $21.2 billion — roughly in line with analyst expectations despite a challenging quarter, per Transport Topics. CEO Carol Tomé flagged rising fuel costs stemming from the Middle East conflict and historically low U.S. consumer confidence as the primary external risks ahead, while reaffirming the company's $3 billion cost-cutting target for the year. International revenue rose 3.8%, partly offsetting a 2.3% decline in U.S. domestic operations as Amazon volume reductions and a voluntary driver buyout program reshaped the network.

Shell warns Hormuz blockade could stretch into 2027

Fuel relief may be short-lived — Transport Topics reports that Shell's chief executive warned investors the blockade of the Strait of Hormuz is likely to last months and could extend into next year, with Brent crude rising 2.7% to $104.40 on Monday as markets repriced the conflict's expected duration. BP's first-quarter profit more than doubled year over year to $3.84 billion, a reflection of how sharply energy markets have shifted since the Iran war began in February. For fleet operators, the near-term weekly decline in diesel benchmarks may not reflect where fuel costs are heading.

Diesel — Canada (national average): 173.0 ¢/L Diesel — United States: $5.351/gallon — down 5.2 ¢ from last week, third consecutive weekly decline

Flatbed spot rates: All-in broker-posted rates for the week ending April 24 up 3.4 ¢/mile; running approximately 30% above year-ago levels

Rate data: Truckstop.com / FTR Transportation Intelligence. Diesel: Natural Resources Canada / U.S. Energy Information Administration.

FMCSA adds identity verification to Drug and Alcohol Clearinghouse

The Federal Motor Carrier Safety Administration (FMCSA) is rolling out new identity verification requirements for users of its Drug and Alcohol Clearinghouse, responding to a documented rise in fraud attempts targeting drivers in the database. Overdrive has the breakdown of which user categories are affected and what the new process will require — relevant for Canadian carriers whose U.S.-operating drivers must maintain active Clearinghouse registrations.

States move to tighten CDL standards on proficiency and licensing

Lawmakers across multiple U.S. states are advancing legislation targeting English proficiency requirements, non-domiciled commercial driver's licence holders, and out-of-state commercial driver's licence (CDL) use — three issues that intersect directly with how Canadian-licensed drivers qualify to operate south of the border. Land Line reports that Pennsylvania is among the states moving on proficiency-related measures, with Wyoming and others already having adopted new rules. For Canadian cross-border carriers, the emerging patchwork of state-level standards adds a compliance layer worth tracking.

Werner swings to adjusted profit on dedicated fleet expansion

First-quarter revenue at Werner Enterprises came in at $808.6 million — up 14% year over year — with the carrier's net loss narrowing to $4.3 million from $10.1 million a year earlier, FreightWaves reports. Adjusted earnings turned positive, driven by pricing gains, dedicated fleet growth, and early contributions from the FirstFleet acquisition completed during the freight downturn. The results add to a growing body of Q1 data pointing toward gradual improvement in the truckload sector.

ArcBest beats Q1 estimates as LTL pricing holds firm

What the market had been signalling was confirmed Tuesday by Transport Topics — ArcBest posted adjusted first-quarter earnings per share of 32 cents, 3 cents ahead of estimates, as volumes improved across its business. Less-than-truckload pricing remains rational and the truckload market is beginning to firm, executives said, though overall demand is still running below mid-cycle norms. A weak housing market and sluggish manufacturing activity were flagged as the remaining headwinds.

A Canadian at the top of U.S. trucking

Mark Seymour, the CEO of Ontario-based Kriska Transportation Group, is only the third Canadian to chair the Truckload Carriers Association in the organisation's history — and his remarks at the TCA's annual convention earlier this year offer a candid window into how the cross-border freight relationship looks from the Canadian side. It's a worthwhile read for any operator who runs freight across the 49th parallel, and a reminder that the Canada-U.S. corridor is built on relationships that predate — and will likely outlast — any tariff cycle.

Read the full conversation at TheTrucker.com.

All-in flatbed broker-posted spot rates were running approximately 30% above year-ago levels as of the week ending April 24, according to Truckstop.com and FTR Transportation Intelligence — the third consecutive weekly gain in a segment that is outpacing the broader truckload market's recovery.