Between the Lines
"Fraud is here and safety should be demanded by all Americans," Transportation Secretary Sean Duffy declared this week as the DOT shuttered 110 commercial driver training schools tied to more than 5,000 English-proficiency violations [Transport Topics]. That crackdown headlines a month where regulation, fuel, and capacity all pulled in the same direction, tight. Diesel crack spreads hit a record $106 a barrel [Transport Topics], the LMI signaled capacity contraction for the ninth straight month [FreightWaves], and carriers reported drayage driver shortages holding back growth. Here's what fleet leaders need to know.
Washington's CDL crackdown puts safety, staffing, and state oversight all on the same collision course
The Department of Transportation's emergency shutdown of 110 CDL training schools is the most sweeping federal action against driver-training providers in memory. FMCSA Administrator Derek Barrs said each shuttered school certified at least 10 drivers later cited for English-language proficiency violations, and collectively they trained more than 5,000 drivers who failed roadside ELP checks [Transport Topics]. Texas and Pennsylvania led the closures with 13 schools each, followed by California with 11, Florida with 10, and Utah with nine [FreightWaves].
The action goes well beyond training providers. Duffy said 239 highway deaths since early in the administration have been correlated with drivers who lacked English proficiency, and 30,000 drivers have been placed out of service on ELP grounds [Transport Topics]. FMCSA will now audit state third-party CDL skills testers nationwide, with penalties that could withhold up to 4% of federal highway funds from noncompliant states, doubling in subsequent years. Homeland Security Investigations kicked off a synchronized surge at roughly 200 driving schools across 23 states.
"If you're here illegally and you can't speak the language and you're not well trained, you don't deserve to be in a big rig to drive on American roads, endangering American citizens." Sean Duffy, U.S. Secretary of Transportation
Enforcement in the field is already reflecting the new posture. During CVSA's International Roadcheck this spring, ELP violations broke into the top five driver out-of-service infractions for the first time, with 361 citations logged among 54,575 driver inspections [Transport Topics]. Cabotage enforcement is tightening too. Federal agents arrested two Mexican nationals at a Nogales, Arizona training school in an investigation of illegal hiring practices, and CBP told FreightWaves it is seeing an increase in cabotage encounters, particularly near the border [FreightWaves].
For carriers, the immediate story is capacity. J.B. Hunt, Schneider, and Knight-Swift all told analysts the driver pool, especially in drayage, is now the binding constraint on growth. "Drayage has become the primary constraint," Schneider CEO Jim Filter said, noting the company chose not to chase volume that would have required expensive third-party dray [Trucking Dive]. ATA's Henry Hanscom called the enforcement push a message that trucking "demands skill, responsibility, and adherence to the highest standards," and OOIDA's Todd Spencer said basic English ability is common sense for anyone behind an 80,000-pound rig.
The takeaway for fleet leaders: expect a tighter, more scrutinized driver supply through the rest of the year, with real leverage for carriers that invest in properly trained, fully qualified drivers and can document it.
Diesel futures surge to a post-war high as global supply squeeze deepens
ULSD on the CME jumped nearly 5% in a single session to $4.62 a gallon, the highest settlement since military action against Iran began [FreightWaves]. Retail diesel is averaging $5.63 a gallon, and Goldman Sachs more than doubled its refining-profit forecast as Ukrainian drone strikes on Russian refineries and Middle East disruptions continue to squeeze supply [Transport Topics]. Winter heating demand and harvest season point to sustained pressure into Q4.
Refiners score biggest biofuel waivers since 2017, with reallocation to follow
EPA granted small refinery exemptions totaling 1.76 billion credits for the 2025 compliance year, roughly 80% above prior projections [Transport Topics]. The agency will reallocate 100% of the exempted volumes into 2026 and 2027 blending mandates, a compromise meant to protect farm-state biofuel demand while giving smaller refiners relief. RIN prices and fuel-surcharge math will feel the ripple.
ShipStation folds LTL into its parcel platform, chasing the SMB freight opportunity
ShipStation is now offering pre-negotiated LTL rates alongside parcel inside a single interface, building on parent Thoma Bravo's June acquisition of WWEX Group [FreightWaves]. According to ShipStation, 78% of merchants surveyed already ship freight, and more than half manage it separately from their parcel operation. LTL carriers should expect more small and mid-sized shippers arriving through digital gateways.
Missouri breaks ground on 255 new I-70 truck parking spaces
MoDOT kicked off a $33 million expansion that will add 255 truck parking spaces along I-70 by late 2028, funded through a federal INFRA grant [Trucking Dive]. OOIDA's Todd Spencer noted there is only one safe parking spot for every 11 trucks on U.S. roads, forcing drivers into impossible choices when hours run out. Real pavement, in the right places, is finally starting to move.
Nvidia says AI supply crunch spans memory, silicon, and data center build
Nvidia CEO Jen-Hsun Huang told investors the company has enough supply for 70% revenue growth next year, but demand is still ahead of that [Supply Chain Dive]. Supply commitments have ballooned from $119 billion to $279 billion in one quarter. For freight and logistics tech buyers, expect longer lead times and firmer pricing on AI-enabled TMS and warehouse tools through 2027.
Descartes doubles down on 3PL software with $120M Extensiv deal
Descartes bought warehouse management provider Extensiv for $120 million, just a week after picking up TMS provider Tai for $100 million [FreightWaves]. The moves deepen its reach into brokers, warehouses, and last-mile fulfillment, signaling continued consolidation among logistics tech vendors serving small and mid-sized 3PLs.
State CDL audits could reshape licensing in five key states
HSI Secretary Markwayne Mullin flagged California, New York, New Jersey, Massachusetts, and Virginia as states with problematic CDL issuance patterns [Transport Topics]. Formal notices requiring corrective action plans are heading to governors and state licensing agencies, with federal highway funds on the line. Fleets domiciled in those states should expect tighter documentation on hire-side compliance.
LMI signals more pricing pain for shippers, more leverage for carriers
The LMI's transportation prices index hit 90 in August, its fourth month above that mark in the last five, while capacity remained in contraction [FreightWaves]. Logistics managers expect the tight market to persist for at least 12 months. Contract renewals this fall will be the first real test of whether shippers accept the new floor.
Canada retaliation and IEEPA refunds will scramble cross-border freight math
Canada's countertariffs of 15% to 50% on C$27.5 billion in U.S. goods take effect September 8, with Oxford Economics warning of higher costs and weaker growth on both sides [Transport Topics]. Meanwhile, U.S. shippers like Williams-Sonoma are still receiving IEEPA tariff refunds and sharing them with vendors and employees [Supply Chain Dive]. Expect volatile cross-border volumes and shifting sourcing conversations into Q4.
This month made one thing clear: the regulatory environment is now the single biggest force shaping capacity. Between CDL school closures, ELP enforcement, state audits, and cabotage crackdowns, the drivers still standing after this sweep will be more valuable than ever. Carriers who invest in verified training, English-capable hiring pipelines, and documented safety practices will find themselves with real pricing power heading into 2027. This is a market that rewards doing the job right.
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