Unintended tariff consequences

Trucking is beating out its competitor. We don't mean fleets competing against other fleets or LTL winning over long haul; trucking is gaining freight market share over railroads. Can trucking maintain its lead? Meanwhile, the industry is sounding the alarm bells on Trump's newly imposed tariffs.

In this edition, we take a closer look at Knight-Swift’s multimillion-dollar investment in Yellow terminals, the growing cybersecurity risks facing trucking fleets, and the continued push toward autonomous trucking. Plus, lawmakers are once again advocating for expanded truck parking, a persistent issue in the industry.

Heading to TMC in Nashville next week? The Inside Lane will be there. If you run into editor Bianca Prieto or sales rep Khari Joseph, be sure to say hello.

$9.9M

The amount Knight-Swift will spend to acquire four additional Yellow terminals. Source: Yahoo Finance

Trucking vs. rail: friend or foe? 

In a win for trucking, fleets are gaining freight market share "while railroads fight over the scraps," writes James Kornas, executive vice president-rail at Ozinga, a concrete and building materials company. Kornas says railroads face issues with on-time performance, shipment visibility and equipment availability, all of which make trucks the more attractive option to shippers. 

"Trucks are a necessary piece of the logistics puzzle, but their piece keeps growing."

Why this matters: Share gain should be welcome news to the trucking industry, which has faced an unfavorable market of overcapacity and low rates for years. If rail improves its service metrics and value proposition, trucking may need to be on the lookout. At the same time, trucking and rail often work in tandem, transporting intermodal shipments the first and last mile. In this interconnected system, rail's problems could be trucking's problems. 

Get more details at Railway Age.

Bigger, longer, heavier. This op-ed argues that if planes, trains, and ships have evolved to carry more weight, then trucks should, too. 

From driver to boss. Instagrammer Jamie Hagen shares how he went from being a driver to the owner of his own fleet: Hell Bent Xpress.

Amazon’s next big move. The e-commerce giant plans to expand into LTL, adding to its current offerings of truckload and intermodal. It's a sign the company is moving from an e-commerce marketplace to an all-around logistics giant.

Woodwork wizardry. The video proves pallets are just for shipping. A little imagination and a lot of spare time go a long way.

ATA: Trump's tariffs will cause 'unnecessary economic pain'

As tariffs on goods from Canada and Mexico take effect this week, the American Trucking Associations warned of "unintended consequences." The group said tariffs will reduce cross-border freight, resulting in lower volumes and less business for many fleets. Plus, the tariffs could increase operational costs, including the cost of a new truck. 

Why this matters: Tariffs have a ripple effect, with price hikes passed down through each link in the supply chain and ultimately impacting the consumer. The tariffs could slow consumer buying just as trucking is coming out of a long freight recession. (American Trucking Associations)

Autonomous trucking co. plows ahead on driverless ops

Bot Auto sees 2025 as "a big year" for autonomous freight operations. The company will conduct a four-month pilot with driverless hauls between Houston and San Antonio. The trucks will carry cargo for paying shippers on actual highways—getting as close to the real world as possible. 

Why this matters: Driverless trucks are moving beyond hype to actual operations. Questions remain about the ability to scale, especially to regions with more inclement weather, and how to keep operational costs down. (FreightWaves)

OOIDA calls on Congress to bring back per diem tax deduction

The Owner-Operator Independent Drivers Association wrote a letter to a Congressional committee, asking lawmakers to restore the per diem tax deduction for employee truck drivers. Before the Tax Cuts and Jobs Act of 2017, employee drivers were allowed to deduct expenses for meals on the road. 

Why this matters: The tax legislation didn't work out to the benefit of drivers, with some noting they took a big hit to their finances because of the policy change. (Land Line)

Fleet slapped with $400K fine for violations leading to driver death

LTL carriers, shippers prep for classification change

TQL faces lawsuit over contract waivers, broker transparency 

Trucking owner sentenced for emissions tampering

How to protect trucking systems from cyberattacks

Many trucking technologies—think telematics, ELDs, dispatch systems—run on Linux OS, which is an open-source system, unlike Windows. At times, open source can leave systems more vulnerable to attack, putting fleets and their data at risk. 

Why this matters: Technology opens the doors to great efficiency, but it's not without risk. Having strict access controls and keeping software up to date can keep trucking firms safe. (Fleet Owner)

Lawmakers reintroduce bill to improve truck parking

A group of bipartisan lawmakers are once again bringing forth the Truck Parking Safety Improvement Act. If passed, the legislation would put funding toward creating thousands of truck parking spots. It would also fund improvements to existing parking areas. 

Why this matters: A lack of parking spaces forces drivers to make less-than-ideal decisions as the clock runs out on their HOS—keep driving to find a spot, or pull over on the side of the road and risk safety. (Transport Topics)

Thanks for reading today's edition! You can reach the newsletter team at editor@theinsidelane.co. We enjoy hearing from you.

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The Inside Lane is curated and written by Shefali Kapadia and edited by Bianca Prieto.