Freight Day! 👋 We’re starting the day with a surge in freight activity sparked by recent tariff announcements. The new tariffs have caused panic in the U.S. manufacturing and logistics sectors, prompting shippers to rush shipments ahead of expected cost hikes and delays.

More ahead 👇

💬 More in Freight:

⚫️ Fraud Related Earnings Report Hit

⚫️ AGL Group Expands After Acquiring MI Brokerage

⚫️ LTI Trucking Group: Ceasing Operations Immediately

⚫️ PODCAST: How Co-Driver is Unlocking the Power of AI with Jesse Taylor

Fraud Related Earnings Hit 🥊

Landstar System Inc has revised its Q1 2025 earnings guidance following a supply chain fraud investigation, causing its stock to drop by nearly 8%.

Originally projecting earnings per share (EPS) between 90 and 95 cents, Landstar now expects a reduction of 35-50 cents due to the fraud, resulting in a financial hit of $12.5 million to $17.9 million.

The fraud, discovered in the final week of Q1, impacted trade accounts receivable but is unrelated to Landstar’s core truckload services. In addition to the fraud, higher insurance and claims costs from cargo theft and accidents have pressured the company’s finances.

For the first eight weeks of the quarter, Landstar saw a 4% decline in loads hauled. Despite repurchasing $60 million in shares, the stock fell 7.87%, dropping to $139.98.

Freight Brokerage Contraction Continues 📉

While there was a slight uptick in closures during March 2025, the year-over-year contraction rate for freight brokerages is still easing. Compared to March 2024, the number of brokerages has decreased by 8.6%.

Over the past four years, brokerage space growth has largely plateaued. Currently, there are just 1.3% more active freight brokerages than in April 2021.

🚫 Net change in active brokerages last month: -132
✅ Total active MCs as of April 1: 25,087

Change over time (41/2025):
6-Month: -3.4%
1-Year: -8.6%
2-Year: -18.3%
3-Year: -15.4%
4-Year: +1.3%
5-Year: +17.8%

TOGETHER WITH TALENTO.

Talento is not just a nearshoring solution – it’s a partner in building and scaling a thriving logistics business. Focused entirely on freight, supply chain, and logistics, Talento offers more than just talent—it provides an entire ecosystem designed to support and optimize growth.

Beyond providing skilled, nearshore professionals, Talento helps diagnose operations, improve processes, and implement the right technology solutions.

Let Talento be the partner that helps build a dream team and scale smarter, faster, and limitless.

What Else Is Moving 🚚

Panic Mode 🫨

The recent tariff announcements have sparked panic in the U.S. manufacturing and logistics sectors, creating significant uncertainty and prompting businesses to scramble to adjust their strategies. As tariffs rise, supply chains are feeling the pressure, with companies racing to move goods before disruptions take effect.

Tariffs Trigger Panic

The new tariffs have caused shippers to rush shipments ahead of anticipated cost hikes and delays. This surge in shipments, particularly along critical trade routes like the I-35, has led to increased delays as businesses seek to stay ahead of the tariff impacts. As Uber Freight's Jose Guerrero noted, “Some importers held back shipments until the news was confirmed, while others rushed to move goods ahead of potential disruptions.”

Manufacturing Sentiment Dips

Despite strong fundamentals, U.S. manufacturing sentiment has dropped due to rising production costs and ongoing tariff uncertainty. Key manufacturing indices, such as the S&P Global PMI, have shown signs of contraction, signaling that concerns over tariffs are beginning to outweigh growth expectations. As Chris Williamson, Chief Business Economist at S&P Global, stated, “Cracks are now starting to appear,” pointing to the growing unease among manufacturers.

FREIGHT SNIPPETS ✂️

🥶 Cold Storage Acquisition | Vertical Cold Storage has acquired Arctic Logistics in Canton, Michigan, expanding its footprint and making it the sixth-largest cold storage company in North America. The deal adds 140,000 square feet, 19 dock doors, and 20,000 pallet positions to Vertical Cold’s network. The USDA-certified facility offers storage temperatures ranging from -20 to 40°F. This marks Vertical Cold’s fifth acquisition in the past year. Financial details were not disclosed. Read more.

🚛 Q1 Ends With Layoffs | Freight-related layoffs continue to rise across North America, driven by economic uncertainty, tariffs, declining demand, and rising costs. In recent weeks, 5,608 job cuts were reported, with nearly 23,000 layoffs announced since January, impacting sectors like auto, food distribution, manufacturing, and logistics. Read more.

💻 Chip Manufacturing Investment | Nvidia CEO Jensen Huang announced that the company plans to invest hundreds of billions of dollars in U.S.-made electronics over the next four years, marking a significant move to bring more chip manufacturing back to the United States. Read more.

🔌 Transforming Electric Truck Charging | Greenlane has partnered with Volvo Trucks North America to enhance charging accessibility for heavy-duty electric vehicles (HDEVs). As part of this collaboration, Greenlane is integrated into Volvo’s Open Charge service, providing Volvo customers seamless access to Greenlane’s public charging network. This makes Greenlane the first official Charge Point Operator (CPO) in North America to work with Volvo. Read more.

⏰ Loophole Closed | President Donald Trump signed an executive order on Wednesday to close a trade loophole allowing cheap packages from China and Hong Kong to enter the U.S. duty-free. Starting May 2, the $800 de minimis exemption will end. Shipments not through the postal system will face regular duties, while postal shipments will incur a fee of 30% of the item’s value or $25, whichever is higher, increasing to $50 after June 1. Read more.

🤝 AGL Group Expands | The AGL Group has acquired ADA Logistics Corporation, a domestic brokerage in Ada, MI, as of April 1st. This acquisition adds flatbed capacity and strengthens AGL’s presence in the Great Lakes region. CEO Steve Zambo stated, “This acquisition enhances our flatbed capacity and expands our footprint in the Great Lakes. ADA has built a strong brand, and we look forward to serving their clients while improving our offerings to current customers.” Read more.

NEW PODCAST 🎧

#78: Jesse Taylor, Parade

In this episode, Jesse Taylor from Parade returns to the podcast to discuss the rapidly advancing role of AI in the freight brokerage industry. He introduces Parade's new AI-driven tool, Co-Driver, which automates carrier inquiries and enhances communication, helping brokers build stronger relationships with carriers while optimizing operations.

The conversation also covers the importance of leveraging data intelligence to stay competitive, improve carrier recommendations, and measure AI's impact through key performance indicators.

Finally, Jesse explores the potential future innovations that AI could bring to the logistics space, emphasizing how AI is poised to transform freight brokerage operations.

🎧 Also available on Apple, Spotify, and wherever podcasts are available.

Pallets of News 🚛

Ceasing Operations Immediately 🛑

LTI Trucking Services, an Illinois-based trucking and logistics company, has informed its 250 drivers that it is ceasing operations immediately.

A fleetwide message sent on Wednesday announced the closure, stating, "After exhausting all possible options and careful consideration of our circumstances, we have made the difficult decision to close LTI Trucking Services."

The company, which was founded in 2005 and headquartered in Madison, Illinois, specializes in temperature-controlled freight with 300 tractors and 575 trailers. It served customers such as Walmart, Nestle, Hershey’s, and Dr. Pepper.

LTI officials assured drivers they would assist with getting them home and processing their final paychecks. 

Truck Driver Wins At Supreme Court 🏛️

A truck driver fired for testing positive for marijuana after using a CBD product won a U.S. Supreme Court case, allowing him to seek treble damages in a lawsuit against the product’s manufacturer.

Douglas Horn was dismissed in 2012 after his drug test linked to Dixie X, marketed as THC-free. He sued the manufacturer under the RICO Act for damages.

In a 5-4 decision, the Court ruled Horn could pursue treble damages, sending the case back to the 2nd U.S. Circuit Court of Appeals. However, the Court did not decide if his injury meets RICO's direct relationship requirement, and Horn still faces challenges proving his case. Justices expressed concerns about expanding RICO's use beyond organized crime.

MEME OF THE DAY 😂

📍 Upcoming events: Catch up with us at TIA: Capital Ideas Conference in San Antonio on April 9-12 and at the Broker Carrier Summit in Indianapolis on April 28-May 2. Let us know if you’ll be there – we'd love to connect!