Trucking Market Conditions Hit New All-Time High

May was a blockbuster month for the trucking market, reaching unprecedented highs, as outlined in reports from FTR. Thanks to a combination of increased freight demand and a relatively stable fuel market, the trucking industry saw significant growth. When demand surges like this, especially alongside steady operational costs, small carriers and owner-operators are presented with expanded opportunities to increase their haul volume and revenue.

This growth reflects positive trends for the industry, with capacity utilization nearing its peak. This means that trucks are running fuller and prices are favorable for those in the freight-forwarding business. For small carriers, tapping into this demand spike can mean negotiating better rates and securing more lucrative contracts.

Freight Rates Surge in Favorable Market

Freight rates have surged as a result of these booming market conditions, according to FTR's latest data from May. With higher rates, carriers are better positioned to cover operational costs and potentially boost profits. However, it's critical for small carriers and independent operators to stay competitive by keeping their operations lean and efficient.

At VAU0, we emphasize the importance of using technology like our transportation management system to streamline processes (/tms.html). By optimizing routes and managing loads effectively, carriers can better handle the increased demand and maximize the benefits of elevated freight rates.

Mexico’s Trucking Labor Crunch Intensifies

South of the border, Mexico is facing a tightening labor market within its trucking sector, as highlighted by a recent warning from the International Road Transport Union (IRU). The shortage of skilled truck drivers is contributing to capacity constraints, which could impact cross-border logistics operations. For carriers that operate between the U.S. and Mexico, this could mean longer wait times and increased pressure to negotiate shipment terms.

It’s essential for U.S.-based carriers working with Mexican partners to anticipate disruptions and plan accordingly. Ensuring compliance with cross-border regulations becomes paramount during such challenging times. For guidance on handling compliance, visit our compliance resources (/compliance.html) at VAU0.

Broker Transparency and New Trucking Rules

The trucking industry is on the cusp of implementing long-awaited broker transparency rules, with new regulations slated for release in 2026, according to recent reports. These changes are set to increase transparency in brokering transactions, providing carriers and owner-operators with a clearer understanding of the fees and rates involved in their operations.

Broker transparency can potentially reduce the ambiguity that small carriers face when dealing with freight brokers. This greater clarity can help operators ensure they get a fair deal when moving loads. Staying informed and adaptive to these changes will be key for carriers who want to stay ahead of the regulatory curve.

Long-Awaited Broker Transparency Proposal

Aligned with new trucking rules, the broker transparency proposal will shortly be unveiled, marking a significant step forward for the industry. This proposal, eagerly awaited by many, is expected to change the way information is shared between brokers and carriers, fostering more trust and cooperation within the logistics chain.

"The proposal is set to reshape the broker-carrier relationship, ensuring that carriers have access to information that will empower better decision-making." - Industry Insider

As this proposal approaches, carriers should prepare to adjust their business practices and leverage transparency to enhance operational efficiency and profitability. Engaging with such regulatory changes proactively can be a game changer for small carriers seeking to thrive in a competitive environment.

What Carriers Should Do This Week

• Review and optimize routes utilizing TMS solutions to maximize efficiency and profit.
• Engage with brokers to understand how new transparency rules may affect operations.
• Stay informed about labor market conditions, especially when working with international partners.
• Leaf through compliance regulations with a focus on cross-border operations.
• Keep abreast of market trends and rate increases to negotiate favorable contracts.

In 2022, we were running a small fleet and spending approximately $400 per truck per month on software. TMS license, ELD subscription, e-sign service, separate accounting integration. Four different logins. Four different monthly invoices. Four different support teams to call when something didn't work.

None of it talked to each other without manual data entry.

The software evaluation that changed everything

We spent three months evaluating every major TMS and fleet management system on the market. AscendTMS, McLeod, Motive, EZLogz, KeepTruckin, TruckingOffice, Axon. We signed up for demos, trials, and in two cases, paid for actual subscriptions to test them properly.

What we found was consistent across almost all of them: the software was built by people who had never dispatched a truck. You could tell immediately. The terminology was slightly wrong. The workflows assumed steps that no real dispatcher would take. The ELD and TMS were always separate systems that "integrated" — meaning they sometimes shared data, if you configured things correctly, and the configuration broke whenever either vendor pushed an update.

"The best way to evaluate trucking software is to use it under real pressure. Not in a demo. Not in a test environment. On a real load, with a real deadline, when a broker is calling every 30 minutes for an update."

The specific things that were broken

Without naming specific vendors: one major TMS required five screen transitions to update a load status. Not five clicks — five full page navigations. On a mobile browser from a truck stop, that meant 45 seconds to tell a broker the truck was loaded. Another system had beautiful analytics dashboards but couldn't tell you, in real time, how many hours of drive time your driver had remaining without navigating to a separate compliance module.

The ELD market was worse. Most ELD systems were designed to satisfy FMCSA's technical requirements — which they did — while making the user experience as painful as possible. Drivers hated them. When drivers hate their tools, they find workarounds. Workarounds create compliance risk.

The moment we decided to build

The decision was made on a Tuesday afternoon when our dispatcher spent 40 minutes re-entering data from a rate confirmation PDF that our ELD had already captured in a different system. The information existed. It was digital. It lived in three different places that didn't talk to each other, and a human was manually transferring it between systems.

That's not a technology problem. That's a lack of ambition problem. Nobody had decided to solve it because the existing systems were profitable enough without solving it.

What we decided to build instead

One platform. ELD and TMS as the same system, not integrations. AI that reads rate confirmation PDFs so dispatchers don't have to. A dispatcher — eventually an AI dispatcher — that covers nights and weekends so loads don't get missed. E-sign built in, not bolted on.

And priced at zero through 2026, because the goal was to prove the product worked before asking carriers to pay for it.

Two years in: did it work?

The Rate Con AI has a 95%+ accuracy rate on standard broker formats. ERETH ELD passed FMCSA's technical certification. Our AI dispatchers book real loads for real carriers after hours. The carrier dashboard still occasionally has a minor bug — we fix them the same day they're reported.

Would we have been better off just using an existing system and focusing on freight? Financially, in the short term, probably yes. But we would have kept paying $400 per truck per month for software that we knew was mediocre. And we would have missed the opportunity to build something that actually works the way the industry needs it to work.

We don't regret it.