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This week’s top stories in trucking

Freight Market Hits COVID-Era Extremes as Capacity Craters

The March Logistics Managers’ Index reveals transportation pricing surged to 89.4 while capacity plunged to 39.2 — a 50.2-point gap not seen since November 2021’s freight boom peak.

Pricing jumped 12.7 points, the fastest growth since March 2022, accelerating sharply from 81.9 to 94 in the month’s final weeks. Meanwhile, capacity marked its fourth consecutive month of contraction.

Regulatory crackdowns — English-proficiency requirements, non-domiciled CDL restrictions, ELD provider enforcement and driver school closures — are squeezing truck supply hard. Iran conflict impacts compound the pressure.

Surveyed managers expect continued tightness: future capacity readings of 34.9 and pricing at 93 over the next 12 months.

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Q1 Truckload Earnings: The Final Rough Quarter?

The first quarter of 2026 may mark the last round of bad news for truckload carriers as supply contracts and demand finally rebounds from a three-year slump.

Two major winter storms and a 56 percent spike in diesel prices hammered carrier margins, prompting analysts to trim near-term estimates. Yet full-year sentiment remains bullish. Morgan Stanley’s Ravi Shanker kept 2026 numbers largely intact, noting “the momentum that the sector saw exiting 2025 continued into 1Q despite fears that the December strength was temporarily driven by peak season and weather.”

Ongoing capacity attrition and positive manufacturing data suggest contractual rates could climb from mid- to high-single digits by year’s end.

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Kroger, Major Carriers Face Class-Action Lawsuit Over Alleged Driver Hiring Pact

Three former Quickway Transportation drivers are suing Kroger, Swift Transportation, U.S. Xpress and Werner Enterprises, alleging the companies conspired to block hiring of ex-Quickway employees after the carrier shuttered in March. The lawsuit claims carrier representatives admitted receiving top-down instructions from Kroger not to hire the unionized Teamsters-represented drivers — potentially an illegal restraint of trade under the Sherman Act.

Werner denied the allegations, stating it “successfully onboarded 62% of the former Quickway drivers to a Kroger account” in Newark, Ohio. The proposed class action could include more than 100 drivers from facilities in Indiana and Virginia.

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FMCSA Launches Study to Quantify Truck Parking Benefits

The Federal Motor Carrier Safety Administration (FMCSA) is moving forward with a research initiative to measure the monetary benefits of expanding truck parking capacity nationwide. The study will collect approximately 1,000 driver surveys focusing on authorized versus unauthorized parking usage, cost-effective expansion methods and reservation system effectiveness.

Industry heavyweights including the American Trucking Associations and Truckload Carriers Association submitted supportive comments during the preliminary period, noting driver frustration with growing paid parking requirements. The agency clarified it won’t assess paid versus free parking debates or amenities — just overall capacity benefits.

Comments are due May 6.

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EPA Allows DEF Sensor Deactivation — But Skipping Fluid Could Cost You

The Environmental Protection Agency (EPA) now permits trucks to deactivate Diesel Exhaust Fluid (DEF) sensors via software, addressing concerns about faulty devices stranding drivers mid-haul. But don’t mistake this for a green light to skip DEF entirely.

“If you don’t put DEF in a system that’s designed for Selective Catalytic Reduction, you’re going to risk long-term damage to the vehicle,” Allen Schaeffer of the Engine Technology Forum said. Warranty claims, trade-in values and insurance coverage are all at stake if tampering is discovered.

Nitrogen oxide (NOx) sensors remain active, and fines start at $45,268 per violation.

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SONAR spotlight: Dry van rally takes another brief pause

(Source: SONAR)

Summary: The mid-March rally in dry van spot rates has taken a brief pause in the first week of April. Despite the slowing in weekly gains compared to the last four years, all-in spot rates continue to be at their best levels since 2022.

The SONAR National Truckload Index 7-day average (NTI) rose 3 cents per mile all-in week-over-week from $3.06 on March 30 to $3.09 per mile. The NTI is 32 cents per mile, or 11.6%, higher than $2.77 last month and 80 cents per mile, or 35%, higher than $2.29 last year.

Weekly gains were much lower in spot market linehaul rates. The SONAR National Truckload Index Linehaul Only (NTIL) gained only 1 cent per mile week-over-week from $2.23 to $2.24 per mile. The NTIL is 10 cents per mile, or 4.7%, higher than last month and 51 cents per mile, or 29.5%, higher than $1.73 per mile last year.

Fuel costs for the NTIL are based on the average retail price of diesel fuel and a fuel efficiency of 6.5 miles per gallon. The formula is NTID – (DTS.USA/6.5).

Speaking of fuel costs, the price of diesel paid at the pump nationwide continues to rise. The Diesel Truck Stop Actual Price Per Gallon (DTS) rose 24 cents per gallon week-over-week from $5.42 per gallon to $5.66. The DTS is $1.21 per gallon, or 25%, higher than last month. Compared to last year, the DTS is $2.00 per gallon, or about 55%, higher.

The most recent Logistics Managers’ Index (LMI) reading for March showed transportation capacity continuing to contract, falling to 39.2 points. Transportation prices surged to 89.4, the widest price-to-capacity spread seen since the COVID-19 pandemic. The LMI shows a value over 50 as expansion, while a value below 50 indicates contraction.

Looking ahead, trucking capacity is gaining better pricing power while being negatively impacted by higher fuel costs. Larger fleets are less exposed due to fuel surcharges, while smaller fleets and owner-operators are most affected.

This dichotomy stems from fleet size: smaller fleets often cannot negotiate favorable fuel-buying plans, relying instead on fuel cards that save only cents on the gallon. Additionally, many of them are more likely to have higher exposure to the spot market, where prices are quoted all-in, and are more likely to be impacted by truckload supply and demand.