The nearshoring trend in moving production closer to U.S. shores may have gotten a lot of attention in recent years, but federal trade statistics show that truck traffic between the U.S. and Mexico has actually been growing fast for at least two decades.
And BTS Border Crossing data reveals that, starting in 2017, the trajectory of incoming trucks from Canada and Mexico began to diverge. The data indicate that Mexican freight flows are growing faster than Canada in a long-term trend that reflects changes in manufacturing, trade patterns, and supply chains in the North American freight market, BTS said.
Specifically, from 2000 to 2023, the number of trucks from Canada decreased 21.6% from 7,048,128 to 5,526,056 while trucks from Mexico increased 62.6% from 4,525,579 to 7,356,659.
Likewise, from 2019 to 2023, the number of commercial trucks entering the U.S. from Mexico rose 14.2% from 6,440,255 to 7,356,659 while trucks from Canada fell 2.7% from 5,681,155 to 5,526,056.
Those indicators are also mirrored in in terms of dollar value of truck freight, BTS TransBorder data shows. Since the pandemic in 2021, the value of freight flows carried by truck with Mexico have increased while simultaneously decreasing with Canada. From April 2020 to October 2024, the value of U.S. freight flows with Canada by truck increased 86.4% from $17.8 billion to $33.1 billion while the same measure of freight flows with Mexico increased 166.3% from $20.8 billion to $55.3 billion.
According to FedEx, the proposed breakup will create flexibility for the two companies to handle the separate demands of the global parcel and the LTL markets. That approach will enable FedEx and FedEx Freight to deploy more customized operational execution, along with more tailored investment and capital allocation strategies. At the same time, the two companies will continue to cooperate on commercial, operational, and technology initiatives.
Following the split, FedEx Freight will become the industry’s largest LTL carrier, with revenue of $9.4 billion in fiscal 2024. The company also boasts the broadest network and fastest transit times in its industry, the company said.
After spinning of that business, the remaining FedEx units will have a combined revenue of $78.3 billion based on fiscal year 2024 results for its range of time- and day-definite delivery and related supply chain technology services to more than 220 countries and territories through an integrated air-ground express network.
The move comes after FedEx has operated its freight unit for decades. After launching in 1971 as an overnight air courier service, FedEx grew quickly and in 1998 acquired Caliber System inc., creating a transportation “powerhouse” comprising the traditional FedEx distribution service and small-package ground carrier RPS, LTL carrier Viking Freight, Caliber Logistics, Caliber Technology, and Roberts Express. And in 2006, FedEx acquires Watkins Motor Lines, enhancing FedEx Freight’s ability to serve customers in the long-haul LTL freight market.
FedEx share prices rose after the announcement, as investors cheered a resolution to the debate that had lingered since June about whether the event would happen, according to a statement from Bascome Majors, a market analyst with Susquehanna Financial Group. And FedEx Freight will become a major player in the sector, based on its 16% share of industry revenue in 2023, well above Old Dominion Freight Lines (ODFL)’s 10% and SAIA’s 5%, he said.
Likewise, TD Cowen issued a “buy” rating for FedEx based on the long-awaited move, according to Jason Seidl, senior analyst focused on rail, trucking and logistics. That came as investors were soothed about their worries of potential “dis-synergies” from the split by the detail that FedEx Freight and legacy FDX have signed agreements that will continue the connectivity of the two networks.
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
DAT Freight & Analytics has acquired Trucker Tools, calling the deal a strategic move designed to combine Trucker Tools' approach to load tracking and carrier sourcing with DAT’s experience providing freight solutions.
Beaverton, Oregon-based DAT operates what it calls the largest truckload freight marketplace and truckload freight data analytics service in North America. Terms of the deal were not disclosed, but DAT is a business unit of the publicly traded, Fortune 1000-company Roper Technologies.
Following the deal, DAT said that brokers will continue to get load visibility and capacity tools for every load they manage, but now with greater resources for an enhanced suite of broker tools. And in turn, carriers will get the same lifestyle features as before—like weigh scales and fuel optimizers—but will also gain access to one of the largest networks of loads, making it easier for carriers to find the loads they want.
Trucker Tools CEO Kary Jablonski praised the deal, saying the firms are aligned in their goals to simplify and enhance the lives of brokers and carriers. “Through our strategic partnership with DAT, we are amplifying this mission on a greater scale, delivering enhanced solutions and transformative insights to our customers. This collaboration unlocks opportunities for speed, efficiency, and innovation for the freight industry. We are thrilled to align with DAT to advance their vision of eliminating uncertainty in the freight industry,” Jablonski said.
The trucking industry group Owner-Operator Independent Drivers Association (OOIDA) is encouraging truckers across the country to write letters to federal regulators supporting a proposed rule that would require freight brokers to practice better transparency in freight transactions.
Stakeholders have just five more weeks to submit their opinions to the Federal Motor Carrier Safety Administration (FMCSA) before the agency’s public comment period ends on January 21, 2025.
That comes after the agency published a “notice of proposed rulemaking” in November. The proposed regulation titled “Transparency in Property Broker Transactions” would address what FMCSA calls a lack of access to information among shippers and motor carriers. As a solution, it would require brokers to keep electronic records, and to provide transaction records to motor carriers and shippers upon request.
As times runs out for parties to comment on the potential rule, OOIDA president Todd Spencer has come out firmly in support of the change. “To the shady freight brokers: You’ve skirted federal regulations to take advantage of the hardworking men and women behind the wheel for too long and it’s far past time this era of screwing over truckers comes to an end,” Spencer said in a statement. “To the American trucker: Now is your chance to hold bad brokers accountable. Jump into the arena and demand action from FMCSA. No more sitting on the sidelines complaining. If you speak up, we’ll win this fight.”
On the other side of the fight is the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, which has called the potential rule “misguided overreach” that fails to address the more pressing issue of freight fraud.
But other interests say the potential rule doesn’t go far enough. According to transportation attorney Clay Robbins III with Los Angeles law firm Wisner Baum, federal regulators should go further and impose requirements for brokers to more extensively vet shippers, helping to better determine liability in truck crashes. “Transparency is good, but federal regulators should require freight brokers to meaningfully vet the competency, safety programs and experience of the carriers they hire for others,” Robbins said in a statement. “A lot of brokers only check to see if a carrier has a Motor Carrier number, perhaps a ‘satisfactory’ or ‘no’ safety rating – as opposed to an ‘unsatisfactory’ safety rating – and insurance coverage of at least $750,000. However, all brokers should thoroughly vet carriers by looking into their accident history, record of violations, how long they have been in business, and whether they are a ‘chameleon’ company that is trying to cover its tracks after prior safety incidents by stopping and restarting operations. Hopefully, the FMCSA will follow up their proposal for increased broker transparency with regulations to require brokers to do more to vet carriers.”
Funds are continuing to flow to companies building self-driving cars, as the Swiss startup Embotech today said it had raised $27 million to expand autonomous driving solutions for logistics in Europe and beyond, including U.S. operations by the end of 2025.
The Zurich firm said it would use the new funding to help the company scale up its Automated Vehicle Marshalling (AVM) and Autonomous Terminal Tractor (ATT) solutions in Europe, and ultimately in the United States, Middle East, and Asia.
Embotech—which is short for “embedded optimization technologies”—says it has already secured multi-year rollout contracts for its AVM solution in finished vehicle logistics and for its ATT solution for port and yard logistics applications.
Specifically, Embotech began rolling out its AVM solution in 2023 with automaker BMW. The technology guides new BMW vehicles along a one-kilometer route between two assembly facilities, through a squeak and rattle track, and to the finishing area – with no driver needed at any stage of the journey. That will now expand under a multi-year contract to install the AVM solution in six additional BMW passenger car factories worldwide by the end of 2025, including BMW’s plant in Spartanburg, South Carolina.
And for its ATT business, Embotech is gearing up for a major rollout to haul shipping containers at Europe's largest port, the port of Rotterdam in the Netherlands, with 30 units set to be deployed over the next 2 years. The electric ATTs are equipped with Embotech’s Level 4 Autonomous Vehicle (AV) Kit, which enables them to operate autonomously in complex, mixed traffic situations. Embotech’s autonomous tractors use a combination of LIDAR, cameras, and GPS to detect obstacles in all weather conditions and achieve localization accuracy of less than 5 cm.
According to Embotech, its autonomous driving solutions deliver benefits such as increasing operational efficiency through 24-hour operation, flexible peak handling, and improved transparency with digital integration.
The “series B” round was led by Emerald Technology Ventures and Yttrium, with additional funds from BMW i Ventures, Nabtesco Technology Ventures, Sustainable Forward Capital Fund, RKK VC and existing investors. “Embotech impressed us with their unique, highly adaptable autonomous logistics solution,” Axel Krieger, Partner at Yttrium, said in a release. “The company tackles the global logistics challenge for both commercial and passenger vehicles. With a strong orderbook as well as proven industry partnerships, Embotech is uniquely positioned to lead the market. An investment that aligns perfectly with Yttrium’s goal to empower tomorrow’s B2B technology champions."