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The Daily // Thu 08.20.26 View in browser →
The DailyThursday · August 20, 2026
The five minutes that makes you the most informed person in freight today
Lead Story
XPO upgraded by S&P, just one notch below investment-gradeLTL carrier XPO has had its debt rating upgraded by S&P Global Ratings, though outside of one specific obligation, it remains below the cutoff line between investment and non-investment grade debt. S&P raised its issuer credit rating on XPO to BB+ from BB, one notch shy of investment grade, a year after cutting the rating to BB in July 2025. The upgrade puts S&P’s corporate rating for XPO higher than Moody’s, which affirmed its Ba2 rating with a positive outlook last September, a signal that often precedes an upgrade but doesn’t guarantee one. XPO’s senior secured debt already carries an investment-grade BBB- rating from S&P, which was affirmed in the latest action, while its senior unsecured debt got a two-notch bump to BB. S&P’s rationale leaned heavily on strengthening trucking-market fundamentals and improved debt metrics: funds-from-operations-to-debt hit 35.7% in the second quarter, above S&P’s earlier 30% full-year forecast, and is expected to reach 40% next year. The agency also credited XPO’s move to insource more of its linehaul, with outsourced linehaul miles falling to 6.7% in 2025 from 20.9% in 2023 as adjusted EBITDA margins rose to 17.8% from 14.9%. S&P also flagged truckload-to-LTL spillover as a tailwind, tied to tighter truck capacity from license revocations, English-proficiency testing and CDL school decertifications. The agency expects XPO’s North American tonnage to rise 2% to 3% this year with a 4% to 5% yield increase, and sees the current capacity dynamics as largely structural heading into 2027. Why It Matters?
A ratings upgrade this close to investment grade lowers XPO’s borrowing costs and signals to the broader LTL sector that operational efficiency gains, not just market tailwinds, are showing up in the numbers that credit agencies and lenders watch most closely. Top Stories
ACCC executes search warrant at logistics software giant WiseTech in competition probeAustralia’s competition regulator executed a search warrant at WiseTech Global, the CargoWise owner, seeking documents and electronic data concerning global logistics services and software. WiseTech disclosed the action through an ASX filing and pledged full cooperation; the ACCC confirmed the warrant to FreightWaves and described the investigation as ongoing. WiseTech’s software reaches more than 20,000 logistics companies across 193 countries, including 24 of the 25 largest global freight forwarders. The company faced a separate ACCC review after its 2025 e2open acquisition, which gave it control of Expedient, and in January agreed to divest that business under a court-enforceable undertaking. WiseTech shares closed 8.7% lower in Sydney following Wednesday’s disclosure, their steepest single-day loss since late June. Why It Matters?
Freight companies rely on software for customs entries, shipment data, carrier workflows and customer operations. A competition investigation involving a major provider can affect pricing, service quality and available options. Sponsored · Aurora
Americold’s Port Saint John bet stitches DP World and CPKC into one cold chainAmericold has opened a roughly $80 million cold-storage hub at Port Saint John, New Brunswick, the first site to bring together all three of its strategic partners: DP World, which runs the box terminal; CPKC, whose rail line connects the port to Central Canada; and Americold itself, which operates the temperature-controlled infrastructure between them. CEO Rob Chambers called the model a bet on partnership rather than vertical integration. The facility, Americold’s sixth in Canada, offers about 22,000 pallet positions and is the only temperature-controlled storage in Eastern Canada directly connected to a port without drayage. DP World’s $247 million terminal expansion lifted capacity to 1 million TEUs annually, and container throughput at the port hit a record 239,364 TEUs in 2025, up 29.4% year over year. Why It Matters?
How logistics providers are leveraging supply chain links to create a dynamic, specialized network. Home Depot offers nationwide express delivery from local storesHome Depot rolled out express delivery nationwide, turning more than 2,300 stores into local fulfillment centers for professional contractors and DIY customers. Nearly every item is available for delivery in three hours or less for a small flat fee with no membership required, and executives said most deliveries are actually arriving in under an hour. Free same-day delivery is available on orders of $25 or more placed before 4 p.m., and Home Depot said it has cut delivery lead times by about 45% over the past 18 months, with two-thirds of in-stock parcel orders now arriving same-day or next-day. The retailer reported second-quarter net income of $4.8 billion on revenue up 5.7% to $47.9 billion. Why It Matters?
The trend of in-store fulfillment diminishes demand for network carriers like FedEx and UPS, which are cutting back on low-margin B2C parcel delivery to focus on more profitable customers. Trump hits pause on 50% Canada tariffs, extends trade talksPresident Donald Trump delayed planned 50% tariffs on nearly $20 billion of Canadian imports for three days after negotiators reached what both sides called a breakthrough, just hours before the duties were set to take effect. The tariff threat had targeted goods including wine, dairy, cement, clothing and hockey equipment, stacked on top of existing U.S. tariffs on Canadian steel, aluminum, autos and lumber. Canada-U.S. Trade Minister Dominic LeBlanc and U.S. Trade Representative Jamieson Greer continued talks in Washington to finalize an agreement, with automobile tariffs among the unresolved issues; negotiators have reportedly discussed cutting U.S. tariffs on Canadian autos from 25% to 15% but remain divided over which vehicles would qualify. Why It Matters?
Canada is one of the United States’ largest trading partners, and a 50% tariff escalation could have increased costs and disrupted freight flows across North America’s integrated manufacturing, automotive and supply chain networks. FreightWaves Today · Live at 12PM ET
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FreightWaves Events
F3: Future of Freight Festival
FreightWaves’ flagship event blends the latest FreightTech with rapid-fire demos and world-class speakers with the most legendary networking in logistics. October 27–28, 2026 · The Signal, Chattanooga
Sponsored Insight
Presented by Motive
The State of Fleet Maintenance: AI, Automation, and Cost of OwnershipFleet maintenance costs are rising, and reactive strategies are becoming more expensive. FreightWaves partnered with Motive to explore how fleet organizations are using AI, automation, and integrated operations platforms to reduce downtime, improve efficiency, and lower total cost of ownership. Presented by Aurora
Your next truck could drive itself.Aurora Driver 2 is hauling freight on public roads. From the Research Desk
In partnership with CargoWise Landside
What It Takes to Win in the Next Era of DrayageFreightWaves and CargoWise Landside surveyed drayage operators on the automation investments separating growth from margin compression amid demand volatility and driver shortages. In partnership with Werner
High-Stakes Freight Brokerage: Risk and AccountabilityFreightWaves and Werner surveyed shippers moving high-value freight and found compliance failures and limited visibility are turning low-cost brokerage into a reliability risk, not just a pricing one. Courtesy of Infios
New Research: Tariffs Didn’t Raise Costs. They Raised the Execution Standard.Infios-backed research breaks down how tariff volatility turned transport-mode selection and trade-route monitoring into daily operating decisions instead of annual ones. Watch on FreightWaves TV
What We’re Watching
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XPO’s next move toward investment-gradeS&P’s upgrade to BB+ leaves XPO one notch below investment-grade. Watch whether continued insourcing of linehaul miles and improving FFO-to-debt trends earn it a further upgrade. ▸
WiseTech’s competition probe widensThe ACCC’s search warrant follows WiseTech’s forced e2open/Expedient divestiture earlier this year. Watch whether the investigation surfaces new remedies affecting CargoWise customers. ▸
Canada tariff talks head toward a deadlineTrump’s three-day pause on 50% Canada tariffs buys LeBlanc and Greer more time to negotiate, with auto tariff rates still unresolved. Watch whether a deal lands before the pause expires. That’s your Daily for today. See you tomorrow.
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