Long Distance General Freight Trucking NAICS 484121, 484122

Mar 2, 2026 - Industry Losing Immigrant Drivers Over English Proficiency

• The US trucking industry faces mounting labor pressures as the Trump administration cracks down on immigrant drivers. More than 10,700 commercial drivers have been disqualified after failing newly enforced English proficiency tests, a dramatic rise from just a handful per year between 2021 and 2024. Immigrants are a critical part of the transportation workforce (some 200,000 held non-domiciled commercial driver's licenses in 2024), accounting for over 5% of all such licenses nationwide, according to the Federal Motor Carrier Safety Administration. In a 2021 survey of drivers at the Port of Los Angeles, two out of three identified as immigrants. The crackdown compounds existing recruitment struggles, as trucking has long been unappealing to many Americans due to unpredictable schedules and time away from home - most drivers are in their 40s and 50s and retention is low - leaving companies increasingly short of drivers for key routes.
• A wave of intense winter weather in late January jolted the US trucking industry, triggering a sharp spike in spot rates. According to DAT Freight & Analytics, rates jumped 40% week over week after snow and ice shut down or slowed major freight corridors across the country, highlighting how little excess capacity exists after a lengthy freight downturn. Dry-van spot rates climbed 11 cents in a week - the largest increase in more than three years - while refrigerated rates rose even more as shippers sought freeze protection. Analysts said the reaction was unusually severe for a winter weather event, and had more to do with less capacity. Large carriers such as Knight-Swift Transportation and Old Dominion Freight Line said regulatory crackdowns are directing more freight to compliant carriers, which could tighten capacity and support higher pricing, but the rally may prove short-lived if overall volumes don’t rise once the weather normalizes.

• FedEx announced June 1, 2026 as the date for its spin off of FedEx Freight into its own publicly traded company. As the largest less-than-truckload (LTL) carrier in the US, FedEx Freight moves shipments for retailers, manufacturers, and other shippers, handling goods that are too big or bulky for standard parcel delivery. The spinoff marks a major shift in the LTL market, creating a standalone operator with the scale to compete more directly on pricing, service, and efficiencies. Industry analysts expect the move could lead to higher valuations for other LTL carriers and pressure competitors to streamline operations or pursue M&As. With the new company focused solely on freight, shippers may benefit from more specialized service options, while other LTL carriers will face a market where one of the biggest players is no longer a cog in a bigger machine fighting for resources against FedEx Express and Ground.
• The less-than-truckload (LTL) freight market disappointed in 2025, with volumes remaining soft and growth more muted than expected as broader trucking demand weakened from tariffs after a prolonged freight downturn. The 2023 collapse of Yellow Corp. had briefly insulated other LTL carriers, but in 2025 even major players felt the slowdown, citing weak industrial demand, high interest rates and tariff uncertainty. Pricing discipline largely held, helping carriers avoid destructive rate competition. A notable positive was the smooth rollout of National Motor Freight Classification (NMFC) updates in July, with early customer education and updated tools easing the transition. Some macro indicators offer cautious optimism, including slightly lower interest rates and steady retail sales, but executives say clear signals of a near-term rebound are lacking. Overall, carriers are operating cautiously in a shallower pool of activity, awaiting clearer economic improvements to boost shipment levels.