Freight Friday! 👋 We’re starting the day with a mixed outlook from the U.S. Bank Freight Payment Index from Q1 2025. While some regions saw improvements, the overall national picture was affected by severe winter weather, wildfires, and shifting trade dynamics.

Freight volumes and spending declined compared to both Q4 2024 and Q1 2024, as factors like accelerated imports and changing consumer behaviors added complexity to the market. More ahead 👇

💬 More in Freight:

⚫️ Driverless Semi's Are Officially On The Road

⚫️ Truckload Spill: 8 Million Dimes

⚫️ PMI: Manufacturing Dips In April

⚫️ ATRI Announces 2025 Research Priorities

Driverless Semi's Are Officially On The Road In Texas 🤖

Aurora Innovation has launched its commercial driverless trucking operations in Texas, making regular deliveries between Dallas and Houston. After years of development and testing, the company’s autonomous system, the Aurora Driver, has completed over three million miles and 1,200 miles without a driver onboard.

Aurora's first customers include Uber Freight and Hirschbach Motor Lines. Hirschbach CEO Richard Stocking highlighted the benefits of autonomous trucks for safety and driver well-being, while Uber Freight integrates the technology into its broader logistics strategy.

The company completed a rigorous safety case to prove its system’s readiness, with support from Texas and federal regulators. Texas Governor Greg Abbott praised the innovation for its potential to boost jobs and improve road safety.

Aurora plans to expand its network to include El Paso and Phoenix in 2025, aiming to scale its fleet with purpose-built autonomous trucks. The company’s technology features long-range sensors, system redundancies, and a “Verifiable AI” approach for decision validation.

Truckload Spill: 8 Million Dimes 🪙

Crews spent hours cleaning up a rare spill in Texas after a truckload of dimes spilled from an overturned 18-wheeler onto U.S. Highway 287 in Wise County. The incident.

According to the Alvord Fire Department, the driver veered off the road, overcorrected, and rolled the truck onto its side. The spill, amounting to about $800,000 or roughly 8 million dimes, covered the highway.

The highway remained closed until about 7 p.m. while crews worked to recover the loose change. The driver and a passenger were taken to the hospital with non-life-threatening injuries. The reason for the truck carrying millions of dimes and its destination remains unclear.

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What Else Is Moving 🚚

Regional Freight Spend 📊

The freight market in the first quarter of 2025 saw mixed results, with regional variations playing a significant role in shaping the national freight landscape. Factors such as severe winter weather, wildfires, and shifting trade dynamics affected freight volumes in different areas, while accelerated imports and changing consumer behaviors added complexity to the overall picture.

Despite improvements in some regions, the national metrics for freight shipments and spending saw declines compared to both Q4 2024 and the first quarter of 2024.

Regional Shipment and Spending Insights

The first quarter saw varied results across the U.S. regions:

• Northeast: The strongest region in Q1, with a 3.6% increase in shipments compared to Q4 2024 and a 2.1% increase year-over-year. Both shipments and spend were up, suggesting a recovery from prior softness.
• West: Despite wildfires and disruptions, the West experienced modest gains in shipments (up 1.5% year-over-year), largely driven by improved port volumes and factory output. Spending rose slightly, though it declined from Q4 2024.
• Southwest: The region suffered the largest shipment decline, with a staggering 40.1% drop year-over-year. Despite this, spending increased by 7.3% quarter-over-quarter, driven by strong chemical production and possibly tighter truck capacity.
• Midwest: This region experienced a 6.9% drop in shipments compared to the previous quarter, and a 13.9% decline year-over-year. Weak manufacturing, adverse winter weather, and falling housing starts contributed to the decline, although shippers in the region spent less than the previous quarter.
• Southeast: Much like the Midwest, the Southeast saw declines in both shipments and spending. Severe winter weather was a major factor, along with weaker demand for manufactured goods and flat retail sales.

Freight Rates: Spot, Contract, and Fuel Changes

Freight rates showed moderate increases during the first quarter of 2025. The national average spot market rate rose 0.9%, while contract rates grew 0.8%, indicating price pressures despite overall declines in freight volumes.

Fuel rates saw a 2.3% increase from the previous quarter but were still 14% lower than the same time in 2024 due to falling diesel prices. This, combined with tightening capacity, added upward pressure on transportation costs for shippers.

Disruptions & Impacts

Severe weather events, including winter storms and wildfires, disrupted freight volumes in Q1 2025. The South and Southeast experienced significant snowfall and precipitation, causing road and supply chain delays. Meanwhile, wildfires in Southern California affected freight for nearly a month. Despite these disruptions, the West saw higher shipments overall, driven by increased port volumes and a push to stock up ahead of potential tariffs.

Accelerated Imports and Consumer Behavior

Despite challenges, some shippers and importers accelerated shipments in anticipation of tariffs, particularly on goods coming from overseas. While this helped drive freight demand early in the quarter, it did not have a significant impact on overall freight volumes. Consumer spending was mixed, with signs that households made large purchases like vehicles ahead of anticipated tariffs. However, many of these purchases were from existing inventories, leading to a limited boost to freight volumes.

FREIGHT SNIPPETS ✂️

🇨🇳 Heartland Struggles | Heartland Express reported a net loss of $13.9 million for Q1 2025, marking its seventh straight quarterly loss. Revenue dropped 19% year-over-year to $219 million. The company attributed the loss to weather disruptions, tariff uncertainties, and rising operating costs outpacing freight demand and rate increases. Heartland's adjusted operating ratio worsened to 107.1%, while its legacy fleet remained profitable. However, its other brands, Millis Transfer, Smith Transport, and Contract Freighters Inc., incurred losses due to poor equipment utilization and driver retention issues. Read more.

✅ Washington State Transportation Funding Bill | Washington state lawmakers have finalized a $15.5 billion transportation funding plan, which includes new and increased taxes and fees. The plan, now headed to Gov. Bob Ferguson, allocates funds for construction, preservation, operations, and multimodal projects, as well as the Washington State Patrol and Department of Transportation. The two-year budget will support the maintenance and improvement of the state's infrastructure, including roads, bridges, ferries, and transit systems. Read more.

🤝 Tesla Semi Hiring | Tesla is set to hire over 1,000 new workers as it ramps up production for its electric semi truck. Tesla announced that production of its electric semi truck will begin by the end of 2025, with an annual capacity of 50,000 units. Originally, Tesla projected full-scale production of the electric semi truck by 2019, then aimed for volume production in 2020. In 2022, Tesla hosted an electric semi release event, forecasting production of 50,000 trucks by the end of 2024. Read more.

❌ Texas Carrier Bites The Dust | Balkan Express and its affiliate, Balkan Logistics, have filed for Chapter 11 bankruptcy protection, citing over $25 million in debts. The companies, based in Fort Worth, Texas, filed for bankruptcy on Wednesday in the U.S. Bankruptcy Court for the Northern District of Texas. Balkan Express, a dry van trucking company operating since 2007, employs 166 drivers and operates 159 power units. The companies listed assets between $10 million and $50 million and have up to 49 creditors. Earlier in March, M&T Capital sued Balkan Express for more than $4.2 million in unpaid loans, interest, and attorney fees. Read more.

✂️ Penske Announces Layoffs | Penske Logistics announced plans to permanently lay off 337 workers at its Kinloch, Missouri location, according to a WARN notice filed on Wednesday. The layoffs stem from the loss of a contract providing warehousing services for supermarket chain Schnucks, headquartered in nearby St. Louis. The affected workers include 266 warehouse employees, as well as operations and security personnel. Penske will transition the operation to BGDC Distribution, an Atlanta-based supply chain and logistics provider. Read more.

🛑 Watches and Driver's Licenses Seized | U.S. Customs and Border Protection (CBP) officers in Chicago intercepted 145 shipments of counterfeit watches and 340 shipments of counterfeit driver’s licenses at various locations, including Chicago O’Hare International Airport. They seized counterfeit watches, including brands like Rolex and Cartier, were valued at over $9.22 million if genuine. The shipments, which came from Hong Kong and China, also included 4,345 fake driver’s licenses intended for U.S. locations. These counterfeit IDs, often used for illegal activities, were intercepted before reaching their destinations. Read more.

Pallets of News 🚛

Manufacturing Dips In April 📊

Tariffs are raising manufacturing costs and reducing demand, as President Donald Trump enters his first 100 days in office, according to the Institute for Supply Management’s (ISM) April Purchasing Managers’ Index (PMI). The PMI dropped to 48.7%, signaling a contraction in manufacturing, with the production index falling 4.3 points to 44%.

Timothy Fiore, chair of ISM’s manufacturing survey committee, noted that 82% of survey responses were related to tariff concerns. Export orders also plunged 6.5 percentage points. S&P Global’s PMI showed a slightly more positive 50.2%, but also noted rising costs and declining demand.

Fiore also expressed concern about slower supplier deliveries due to extended customs processes at U.S. ports. This data follows a U.S. GDP report showing a 0.3% contraction in Q1 2025. Despite this, President Trump remains confident, citing $2 trillion in new investments attributed to tariffs.

ATRI Announces 2025 Research Priorities 📣

The American Transportation Research Institute (ATRI) has released research showing that repealing the 12 percent federal excise tax (FET) on new trucks could offer significant environmental and safety benefits. The FET adds $20,000 to $50,000 to the cost of new trucks, deterring purchases and delaying the replacement of older vehicles.

ATRI’s research suggests that repealing the FET would reduce CO2 emissions by 1.2 million metric tons annually, saving nearly 66 million metric tons over 10 years. It would also accelerate the adoption of Advanced Driver-Assistance Systems (ADAS), preventing 750 crashes per year and saving $13.5 billion in crash costs over a decade.

The report also highlights the volatility of FET revenue for the Highway Trust Fund and suggests alternatives for replacing it. “Truck prices impact sales and customers' ability to upgrade fleets,” said Jacqueline Gelb, President of the American Truck Dealers. “This report highlights the real-world benefits of repealing the FET on new trucks.”

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