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In one reported two-hour period at Midwest truck stops, U.S. Immigration and Customs Enforcement (ICE) detained 30 non-compliant truck drivers.
Chris Pickett, creator of the Coyote Curve, predicts that freight rates could increase by 20% to 30% by the end of the year.
A potential military conflict involving Iran could disrupt the current freight market dynamics.
According to a source, U.S. Immigration and Customs Enforcement (ICE) is actively conducting operations at truck stops to detain non-compliant drivers.
Turning Point is releasing a documentary next week about trucking fraud, including issues like "chameleon carriers," which is expected to increase public support for immigration crackdowns in the industry.
Historically, a freight market recovery follows a period of low inventories, which is the current situation according to the Logistics Managers' Index (LMI).
The freight tightness in the U.S. Midwest is partly driven by a lack of capacity from immigrant fleets, which were concentrated in states like Minnesota, Illinois, and Texas.
There is a high correlation between the location of U.S. auto plants and the current areas of freight market tightness, partly due to federal government incentives.
A significant portion of new data center construction, along with related battery and equipment manufacturing, is moving to the U.S. Midwest, contributing to a regional CapEx boom.
Following the winter storm "Fern" in the third week of January, the U.S. freight market has not returned to its previous state and remains very tight.
Historically, military conflicts have been a strong stimulus for the manufacturing and industrial segments of the U.S. freight economy.
In 2019, the U.S. trucking industry averaged about 500 to 600 net revocations of operating authority per month, whereas the current average is over 1,000 per month.