Month: June 2026

Lloyd’s Insurers Lose Rail Damage Appeal

A federal appeals court ruled that Lloyd’s of London insurers cannot recover from two railroads after a train derailment damaged cargo. The decision bars the insurers from stepping into the shoes of their policyholder to sue CSX and Evansville Western.

The case began when a railcar carrying industrial goods derailed in Illinois, damaging the shipment. The cargo owner’s insurer paid the claim and then sued the railroads, claiming they caused the wreck through negligence. The railroads argued that a liability limitation in the original shipping contract blocked any recovery. The Seventh Circuit agreed, holding that the contract’s cap on damages applied even to the insurer’s subrogation claim. Because the cargo owner had accepted the limit when it shipped, the court said the insurer stood in the same shoes and could not demand more.

For trucking and rail companies that move freight under standard contracts, the ruling reinforces that damage caps travel with the goods. Insurers cannot reopen settled liability questions simply by paying a claim and suing downstream carriers.

Bottom Line: Contract damage limits stick—even to insurers.

https://www.courtlistener.com/opinion/10880391/certain-underwriters-at-lloyds-v-csx-transportation-inc/

How might this affect your cargo insurance rates?

**Rail Insurers Lose Bid to Dodge Cargo Damage Claims**

The Seventh Circuit ruled that Lloyd’s underwriters must honor cargo insurance policies and cannot force railroads to shoulder losses from damaged freight shipments. The decision blocks insurers from shifting blame onto carriers after paying claims.

The dispute arose when goods traveling by rail suffered damage. Lloyd’s paid the cargo owners under the policies, then sued CSX Transportation and Evansville Western Railway, arguing the railroads’ negligence caused the losses and they should reimburse the insurers. The railroads said the policies contained subrogation waivers that blocked such suits. The appeals court agreed, holding that the contract language plainly prevented the insurers from stepping into the shippers’ shoes to sue the carriers.

This ruling shields railroads from post-claim lawsuits by cargo insurers when policies include clear waivers. For trucking and rail companies moving freight nationwide, it reduces litigation risk and keeps insurance costs more predictable. Carriers can rely on these clauses instead of facing surprise reimbursement demands years after incidents.

**Bottom Line:** Clear subrogation waivers in cargo policies stick—insurers cannot sue the carriers later.

https://www.courtlistener.com/opinion/10880392/certain-underwriters-at-lloyds-v-csx-transportation-inc/

How might this decision affect your freight insurance contracts going forward?

The 2026 FIFA World Cup will bring significant operational and financial pressures to host cities across the United States, Canada, and Mexico, according to multiple industry reports on costs, logistics, and travel impacts.

Host City Cost Overruns

Local governments are absorbing the majority of expenses related to transportation, security, and event infrastructure, while FIFA retains most revenue from ticketing, sponsorships, and media rights. Toronto’s projected costs have risen to CAD $380 million from an initial estimate of CAD $45 million. Vancouver’s budget has increased to CAD $620 million, up from CAD $240 million. Federal security funding of $625 million across 11 U.S. host cities is not expected to cover total expenses.

Traffic and Delivery Disruptions

City and federal authorities are implementing road closures, restricted access zones, and heightened security measures around stadiums, fan zones, and major transit corridors. These controls will affect courier operations and last-mile delivery drivers beyond match hours, particularly in neighborhoods near venues and key transportation routes.

Hotel and Airfare Trends

Contracted hotel rates in host cities have risen more than 62 percent above the global average during the 2026 sourcing season, with Toronto seeing the largest increase at 4.8 percent. Prices have since declined from earlier peaks, with the steepest drops reported in Vancouver and Monterrey. Airfares to non-host cities are rising more moderately, reflecting concentrated demand between host locations from June through July.

Event Scale and Logistics

The expanded 48-team tournament will span 16 host cities across three countries and four time zones. FIFA’s large room blocks have shaped local revenue forecasts and staffing plans, though some reports indicate weaker-than-expected tourism demand outside those blocks. Local courier and logistics providers are advised to monitor route changes and access restrictions during the event period.

Fraud risks tied to identity manipulation and automated attacks are expected to grow in 2026, according to industry forecasts. The trend is prompting increased investment in fraud detection systems across multiple sectors, including transportation and logistics.

Market Growth in Fraud Detection

The global fraud detection and prevention market reached $35.3 billion in 2025. It is projected to expand to $40.4 billion in 2026 and reach $129.4 billion by 2033, reflecting a compound annual growth rate of 18.1 percent.

Shift Toward Automated Threats

Businesses anticipate that fraud attempts will become more automated next year. Criminals are combining real and fabricated data to create synthetic identities capable of bypassing conventional verification processes. These threats are no longer limited to external perimeters and are increasingly operating within systems designed for legitimate users.

Regulatory Focus on Location Data

The federal government has classified precise location data as sensitive information. The Federal Trade Commission recently took enforcement action against Gravy Analytics and its subsidiary Venntel for collecting and selling billions of smartphone location data points without adequate safeguards.

Finance Sector Incident Trends

Reported fraud and security incidents in the finance sector rose from 156 in 2024 to 202 in 2025. Early data for 2026 shows continued growth, with 65 incidents recorded in the first quarter alone—an increase of 76 percent compared to the same period in 2025.

An Oklahoma father’s decision to take his two young daughters into a women’s restroom at an Alabama gas station has sparked widespread discussion about public restroom access for families traveling with children.

Incident Overview

Robert Buckner recorded the encounter on video after a bystander confronted him while he assisted his daughters in the women’s restroom. According to Buckner, the men’s restroom appeared unclean, and he chose the empty women’s facility to avoid exposing the children to adult men. The bystander, standing in the doorway, objected to Buckner’s presence and contacted authorities by phone.

Public Reaction and Commentary

Buckner later posted the video on TikTok, noting that many commenters supported fathers bringing daughters into women’s restrooms when necessary. He advised announcing one’s presence to staff and confirming that other users are comfortable before entering. The post has generated significant online discussion about family restroom access during travel.

State Policy Context

The incident coincides with recent state-level legislation addressing restroom designations. Oklahoma Governor Kevin Stitt signed HB 1449, the “Women’s Bill of Rights,” which defines sex as biological sex at birth and permits state law to separate facilities such as restrooms, locker rooms, and shelters accordingly. Similar measures have been enacted or proposed in other states, affecting how public and private entities manage restroom access.

Industry Perspective

Truck drivers and delivery personnel frequently report difficulty gaining access to restrooms while making stops. Industry observers note that when businesses provide facilities for employees or customers, consistent access for professional drivers making deliveries remains a recurring concern within the trucking community.

The Federal Motor Carrier Safety Administration (FMCSA) Clearinghouse continues to shape how motor carriers and drivers manage drug and alcohol violations. Employers must understand their responsibilities under the system, including when and how to conduct queries, report violations, and prepare for upcoming compliance changes scheduled for 2026.

Employer Responsibilities

Motor carriers are required to register with the FMCSA Clearinghouse and designate authorized users who can conduct queries and submit violation reports. Employers must query the database for both pre-employment screenings and annual checks of current drivers. Failure to maintain accurate records or complete required queries can result in enforcement action.

Query and Reporting Requirements

Employers must conduct a full query of the Clearinghouse before hiring a driver and complete limited queries at least once per year for existing employees. Violations involving alcohol or controlled substances must be reported within strict deadlines. These include positive test results, refusals to test, and actual knowledge of violations by the employer.

Penalties for Noncompliance

Carriers that fail to meet Clearinghouse requirements may face civil penalties, potential loss of operating authority, and increased liability in the event of an accident involving a non-compliant driver. The FMCSA has emphasized that consistent enforcement of reporting and query rules is central to maintaining safety across the industry.

2026 Compliance Updates

Beginning in 2026, additional data elements and procedural requirements are expected to take effect. Carriers should review current internal processes to ensure readiness for expanded reporting obligations and any system-level changes implemented by the FMCSA.

American Eagle Wins Appeal Over Towing Dispute

A Florida appeals court revived American Eagle Towing’s lawsuit against Inter Freight, ruling the trial judge wrongly tossed the case before evidence could be heard. The decision keeps alive claims that the freight company failed to pay for towing and storage services after a crash.

The dispute began when American Eagle towed a wrecked tractor-trailer owned or operated by Inter Freight. American Eagle says it performed the work at the company’s request and stored the damaged rig for months, but Inter Freight refused to pay the bill. Inter Freight moved to dismiss, arguing the complaint was too vague and failed to show a valid contract. The trial court agreed and ended the case early.

On appeal, the Third District Court of Appeal reversed that ruling. The panel held that American Eagle’s allegations were sufficient to state claims for breach of contract and unjust enrichment under Florida law. Because the complaint described the services performed and the demand for payment, the court said the case should move forward to discovery and trial. The ruling matters because it reminds carriers and service providers that basic allegations of work performed and payment demanded can survive early dismissal motions.

For trucking and towing companies, the decision reduces the risk that legitimate invoices get wiped out by technical pleading challenges before facts are developed.

**Bottom Line:** Courts will let service providers pursue payment claims if they clearly allege work done and money owed.

https://www.courtlistener.com/opinion/10876277/american-eagle-towing-inc-v-inter-freight-inc/

How might this ruling change how you handle disputed towing bills?

**Broker Liability Case Heads to Ohio Supreme Court**

The Ohio Supreme Court has agreed to review whether Interactive Brokers can be held responsible when a customer claims an online trading platform failed to prevent unauthorized or reckless trading. The court’s acceptance of the appeal sets up a major test of how far brokerage firms must go to protect retail investors from their own mistakes or from fraud.

The dispute began when Ohio investor Nicholas Bitounis sued Interactive Brokers after losing substantial sums in his account. Bitounis alleged the firm’s trading platform allowed rapid, high-risk trades that he claims he did not authorize or fully understand. Interactive Brokers countered that its customer agreement placed all trading decisions and risks on the account holder, and that it had no duty to intervene or halt trades it viewed as legitimate. Lower courts split on whether the brokerage owed any extra duty of care beyond the contract terms.

The Supreme Court will decide if Ohio law imposes a duty on online brokers to monitor accounts for signs of unauthorized activity or unsuitable trading, or if the relationship is strictly governed by the account agreement. The outcome will determine whether brokerage firms can continue to rely on broad liability waivers in their contracts or must build stronger safeguards into their platforms. For everyday investors using low-cost online brokers, the ruling could affect account security standards and the ability to recover losses when something goes wrong.

**Bottom Line:** The court will decide how much responsibility online brokers bear for customer trading activity.

https://www.courtlistener.com/opinion/10876880/bitounis-v-interactive-brokers-llc/

What do you think—should brokers have to stop risky trades, or is it always on the investor?

European transport authorities are reportedly increasing enforcement of footwear standards for commercial drivers, according to social media posts circulating this week. The claims suggest that drivers wearing improper footwear, such as flip-flops, may face fines of up to €2,500, or approximately $2,900.

Details of the Reported Enforcement

The Monday, June 15 post warned that “DOT officers have started cracking down hard on drivers wearing” footwear considered unsuitable for operating a commercial vehicle. The message stated that drivers could face significant penalties solely based on their choice of shoes.

Context on Footwear Standards

While many jurisdictions require drivers to wear footwear that provides adequate support and does not interfere with safe vehicle operation, specific fine amounts and enforcement practices can vary by country or region. At this time, no official statements from European transport authorities have been issued confirming a new or intensified crackdown on footwear.

Industry Perspective

Trucking industry groups have long advised drivers to select footwear that offers stability and does not pose a safety risk during loading, unloading, or emergency situations. Common recommendations include closed-toe shoes with non-slip soles and sufficient ankle support.

Next Steps for Carriers and Drivers

Fleet managers and owner-operators are encouraged to review their company footwear policies and ensure compliance with applicable regulations in the regions where they operate. Drivers should consult official government sources or their employer’s safety department for the most current requirements.

**Georgia Court Kills Trucking Appeal Over Missed Deadline**

A Georgia appeals court threw out Four Seasons Trucking’s case against Yates Insurance Agency because the company never filed its brief on time.

The trucking firm had sued its insurance agency and lost in the lower court. It tried to appeal, but the documents explaining what the trial judge supposedly got wrong were due May 20, 2026. Four Seasons never filed them and never asked for more time. On June 15, the Court of Appeals of Georgia dismissed the appeal outright under its rules.

The ruling is a blunt reminder that appeals courts enforce deadlines strictly. Missing a filing date can end a case regardless of its merits. For trucking companies already juggling insurance disputes, lawsuits, and operations, the message is clear: treat appeal deadlines like load times—miss them and you’re done.

**Bottom Line:** File on time or lose your shot.

https://www.courtlistener.com/opinion/10875159/four-seasons-trucking-inc-v-yates-insurance-agency-inc/

What filing deadlines have you seen cost carriers the most?

American Eagle Towing Loses Bid to Block Inter Freight Suit

A Florida appeals court let a lawsuit against towing company American Eagle Towing move forward, ruling the lower court can decide whether the company must face claims from freight hauler Inter Freight over an alleged unpaid tow bill.

The dispute began when Inter Freight hired American Eagle to tow a disabled rig. American Eagle later sued in small claims court to collect its fee. Inter Freight countered with its own lawsuit in circuit court, claiming the tow damaged its equipment and caused lost profits. American Eagle asked the trial judge to dismiss or pause the bigger case, arguing the small-claims filing should control everything. The judge refused, and American Eagle appealed.

The Third District Court of Appeal held that nothing forces one case to stop because the other exists. Florida law lets separate courts handle related disputes at the same time unless a specific statute or court rule says otherwise. The panel found no such bar here, so both actions can proceed. For trucking and towing firms, the decision means a bill-collection case won’t automatically shield them from bigger damage claims filed elsewhere.

Bottom Line: Parallel lawsuits can run at once unless the law says stop.

https://www.courtlistener.com/opinion/10876277/american-eagle-towing-inc-v-inter-freight-inc/

What steps do you take when a customer threatens a counter-suit after you file for unpaid freight charges?

Yakima emerged as a modest rate gainer this week, with Northeast-bound lanes showing slight increases even as markets in Florida and South Texas eased and California remained unchanged.

Regional Rate Movement

While broader freight markets in Florida and South Texas posted corrections and California held steady, Yakima recorded consistent, if limited, upward movement on lanes headed to the Northeast. The gains were described as modest but sustained throughout the reporting period.

Other Developments

Rep. Sam Liccardo has proposed federal support to rebuild the Pacifica pier, raising questions about the long-term value of such infrastructure investments.

DoorDash Inc. introduced an in-app AI chatbot designed to assist users with grocery ordering and meal planning by drawing on past purchase data and online reviews.

FBI Director Kash Patel released a statement regarding the surrender of Said Abdullahi Ereg, who had recently been added to the agency’s newly established Most Wanted Fraudsters list.

Artificial intelligence adoption in freight and logistics has moved from pilot projects to operational necessity, with leading supply chain organizations now using AI to improve planning, visibility, and decision-making. Industry executives say high-quality, real-time data is the foundation of current logistics performance, and platforms that integrate AI into transportation management systems are widening the performance gap between companies that rely on static planning and those using predictive analytics.

Survey Shows AI Adoption Patterns Across Freight

FreightWaves and Trimble surveyed carriers, brokers, shippers, and owner-operators to measure where AI is being adopted, what challenges remain, and what leaders expect next. The results highlight current use cases in planning, visibility, exception management, fraud detection, pricing, and customer communication.

New Index Tracks Accepted Truckload Volume

SONAR has introduced the Accepted SONAR Truckload Volume Index (ASTVI), a dataset that isolates accepted truckload demand by removing rejection activity. The index provides the first direct measure of freight volume that clears the tender process and moves, offering clearer insight into market stress than traditional tender acceptance rates alone.

Data Quality Remains Central Challenge

Despite AI’s potential in less-than-truckload operations, inconsistent data formats across carriers, brokers, and shippers limit effectiveness. Variations in pickup event reporting, status codes, and exception definitions require systems to first normalize information before higher-value analysis can occur. Platforms that connect directly to existing TMS data without requiring replacement or lengthy integration are positioned to deliver faster results.

Market Conditions Create Cost Pressure

Freight markets continue to show weak demand alongside rising costs. While base rates may appear attractive, final transportation expenses paid by shippers remain elevated due to accessorial charges and other factors. Ocean freight faces additional pressure from weaker trade growth, Middle East disruptions, and structural overcapacity, according to Ti.

Waddle Trucking Hit With New Trial Over Crash

Georgia’s Court of Appeals has ordered a new trial in a deadly wreck case, ruling that the trial judge wrongly blocked evidence showing the driver’s fatigue and the company’s hiring practices.

Aileen Johnson and Sarah Bryant sued Waddle Trucking of Mississippi after a tractor-trailer driven by a Waddle employee rear-ended their vehicle on I-75. The impact killed Johnson’s husband and injured both women. At trial, the judge refused to let jurors hear that the driver had worked 14 straight hours and that Waddle had hired him without checking his prior employment or drug-test records. The jury found for the company, but the appeals court said that evidence should have reached the jury because it could show both driver negligence and the company’s failure to enforce safety rules.

The ruling clarifies that trucking firms can be held responsible not just for what happens on the road, but for how they screen and schedule drivers before trips begin. For carriers, the decision raises the stakes: skipping background checks or pushing drivers past legal hours could now open the door to bigger verdicts.

Bottom Line: Poor hiring and hours records can cost carriers at trial.

https://www.courtlistener.com/opinion/10873711/waddle-trucking-of-mississippi-inc-v-aileen-johnson/

What steps does your company take to verify driver records before every load?

**Ohio Appeals Court Upholds Broker Win in Commission Dispute**

The Ohio Court of Appeals affirmed summary judgment for Broker’s Alliance of Ohio, ending Erin Fairbanks’ bid to recover unpaid commissions. The panel found no evidence that the brokerage owed her money under their agreement.

Fairbanks worked as an insurance agent placing business through Broker’s Alliance. After her relationship ended, she sued claiming the company still owed her commissions on policies she had sold. The trial court tossed the case, ruling she failed to show any contract breach or outstanding payments. On appeal, Fairbanks argued the lower court ignored facts and applied the wrong legal standard. The Seventh District disagreed. Writing for the court, Judge Robb held that summary judgment was proper because Fairbanks produced no contract language, payment records, or other proof creating a genuine issue for trial. Without that evidence, her claims could not survive.

The ruling matters because it reinforces how Ohio courts handle commission disputes in the insurance and logistics-adjacent brokerage world. Independent agents and small operators often rely on handshake deals or vague agreements. This decision shows that without clear documentation of what is owed and when, courts will not let weak claims reach a jury. For trucking and freight brokers who use similar commission structures, the message is simple: keep detailed records or risk losing recovery rights.

**Bottom Line:** Document every commission term—courts won’t guess what was promised.

https://www.courtlistener.com/opinion/10874234/fairbanks-v-brokers-alliance-of-ohio-inc/

What commission practices does your company use to avoid disputes like this?

Yakima Valley agricultural markets are showing signs of stabilization as the region transitions into the busy cherry harvest season. A recent freight market update indicates that Yakima has shifted from a slight truck capacity shortage to adequate availability, a change that could influence carrier rates on key Pacific Northwest lanes.

Freight Market Conditions in Yakima

The adjustment to adequate capacity comes as shippers prepare for increased volumes associated with cherry season. While carriers retain pricing leverage on Southeast and California-to-East Coast movements, the improved equipment supply in Yakima may ease pressure on spot rates for regional hauls. Industry observers will continue to monitor whether this balance holds as harvest activity peaks.

Agricultural Output and Seasonal Demand

Yakima remains one of the most productive agricultural regions in the United States, supporting high volumes of fruit, vegetable, and specialty crop shipments. The current outlook for asparagus from the Walla Walla and Lower Yakima Valley areas shows insufficient supplies for the 2026 season, with no market price established at this time. These conditions underscore the variability of produce movements and the importance of flexible transportation capacity.

Labor Market Remains Steady

Despite broader economic fluctuations, the labor market outlook for Yakima is described as steady. This stability supports consistent freight operations in the region, where agricultural shippers and carriers depend on reliable driver availability during peak harvest windows.

Regional Context for Trucking Operations

Trucking activity in Eastern Washington often reflects a combination of agricultural cycles and broader economic factors. With Yakima positioned as a critical node for produce transportation, any shift in capacity or demand can ripple across Pacific Northwest corridors. Carriers and brokers serving the area are expected to adjust routing and pricing strategies in response to evolving market signals.

The U.S. Energy Information Administration has lowered its forecast for global oil demand in 2026, citing elevated fuel prices, tightening supply, and government-led conservation measures following ongoing disruptions in the Middle East.

Inventory Drawdown Accelerates

According to the agency’s latest Short-Term Energy Outlook, OECD total liquid fuels inventories are projected to fall to just under 2.3 billion barrels by December 2026—the lowest level since the dataset began in 2003 and well below the five-year average of 2.8 billion barrels. The drawdown reflects continued reliance on stored supplies to offset reduced flows through the Strait of Hormuz.

Demand Forecast Revised Downward

The EIA now expects global oil demand to contract by an average of 1.1 million barrels per day in 2026 compared with 2025, marking the first annual decline since the pandemic-driven drop in 2020. The revision incorporates reports of government initiatives aimed at reducing fuel consumption, including fuel switching and efficiency measures.

Price Outlook Remains Elevated

Benchmark Brent crude is forecast to average around $105 per barrel in the spot market for June and July, above the $91.60 futures price recorded earlier this week. The agency stated that prices are likely to stay high until global oil flows normalize and inventories are replenished.

U.S. Product Demand Trends

Domestically, total products supplied averaged 20.4 million barrels per day over the most recent four-week period, up 3.0 percent from the same period last year. Motor gasoline inventories rose by 3.4 million barrels to 215.0 million barrels but remain 5 percent below the five-year average.

A Philadelphia liquor distributor reported the theft of approximately 1,800 cases of Noble Oak Bourbon from a North Philadelphia warehouse on June 5 in a daylight operation that company officials described as a coordinated cargo theft.

Details of the Incident

The theft occurred between 1 p.m. and 3 p.m. at a facility operated by A21 Wine & Spirits on North American Street. Employees loaded the bourbon onto a truck after being presented with what appeared to be legitimate delivery credentials. The shipment, valued at roughly $500,000, did not reach its intended commercial destination.

Company Response and Industry Alert

A21 Wine & Spirits and parent company Apogee 21 Holdings have notified distributors, retailers, bars, and consumers to watch for suspicious bulk offers of Noble Oak Bourbon. CEO Mark Newman stated that the suspects used spoofed company names to deceive warehouse staff. The company employs between 12 and 15 people and described the incident as a “sophisticated” daytime heist.

Investigation Status

Philadelphia police and the local FBI field office are investigating the theft. The case is part of a broader national increase in cargo theft involving food and beverage products. No arrests have been reported at this time.

Background on the Product

Noble Oak Bourbon was previously owned by Edrington, the parent company of The Macallan. The stolen inventory consisted of more than 10,000 individual bottles across 1,800 cases.

The U.S. labor market showed signs of cooling in May, with the Department of Labor reporting slower job growth and a steady unemployment rate. At the same time, several trucking and logistics firms are navigating workforce reductions, regulatory shifts, and capacity constraints that continue to shape industry conditions.

Employment Trends Signal Slowing Growth

The Labor Department reported on June 5 that job growth declined last month after a revised April figure of 179,000 new positions. The national unemployment rate remained unchanged at 4.3 percent. Within the broader economy, several sectors posted notable losses, including trade, transportation and utilities, which shed nearly 4,000 jobs, and construction, which lost 1,200 positions.

Trucking Firms Issue WARN Notices

Sparhawk Trucking and Sparhawk Truck and Trailer, Inc. filed a Worker Adjustment and Retraining Notification with the Wisconsin Department of Workforce Development. The filings come as bankruptcy activity and layoff notices continue across freight operations, even as some market indicators point to gradual recovery.

Regulatory and Market Pressures Persist

Federal enforcement actions targeting non-English-speaking drivers, questionable training programs, and repeat offenders operating under new names have contributed to a tighter capacity environment. In parallel, a new federal regulation is expected to gradually limit participation by noncitizens in the trucking workforce. The Infrastructure Investment and Jobs Act of 2021 also established a Truck Leasing Task Force to review lease-purchase arrangements used in the industry.

Recruitment Challenges Expand Beyond Trucking

Carriers now compete for workers not only with other trucking companies but also with warehouses and distribution centers that have expanded alongside e-commerce growth. These roles often do not require a commercial driver’s license, broadening employment options for potential drivers. Demand for logistics and supply-chain positions continues to outpace overall job-market growth, while many regions face aging workforces and fewer new entrants.

Ninth Circuit Backs Feds Over California Break Rules

The Ninth Circuit upheld a federal ruling that California’s meal and rest break rules cannot apply to drivers of passenger buses and other commercial passenger vehicles. California’s attorney general and labor commissioner had asked the court to overturn the Federal Motor Carrier Safety Administration’s 2020 preemption decision, but the panel refused.

The fight started after the FMCSA concluded that the state’s stricter break requirements counted as safety regulations that conflict with federal hours-of-service rules. Under federal law, states can keep tougher rules only if they prove one of three narrow exceptions. California argued its rules protected drivers and passengers alike, but the court found the state failed to meet any exception. The judges said the federal agency’s reading of the statute was reasonable and entitled to deference.

For bus companies and motorcoach operators running routes in California, the ruling means they follow the single federal schedule instead of juggling two sets of break mandates. Fleets gain predictability on long-distance trips and avoid penalties for following U.S. hours-of-service limits. The decision also signals that other states’ extra break rules face similar federal pushback when applied to passenger carriers.

Bottom Line: Federal hours rules trump California’s meal and rest breaks for passenger drivers.

https://www.courtlistener.com/opinion/10870122/people-of-the-state-of-cal-v-fmcsa/

How do you think this affects scheduling on your routes?

**Railroad Loses Bid to Block Town’s Land Claim**

The D.C. Circuit upheld the Surface Transportation Board’s refusal to declare federal law supreme over a Massachusetts town’s right-of-first-refusal claim on forest land the Grafton & Upton Railroad wants for new track. The court ruled that ICCTA preemption does not block the town’s state-court suit to enforce its Chapter 61 rights.

Grafton bought the Hopedale parcel intending to build rail facilities. Massachusetts’ Chapter 61 gives towns a right of first refusal when classified forest land is sold. After Hopedale sued in state court to unwind the sale, Grafton asked the STB for a declaratory order that federal rail law wipes out the town’s claim. The Board declined, and Grafton appealed.

The D.C. Circuit agreed with the Board. It held that the town’s lawsuit does not attempt to regulate rail operations or unreasonably burden interstate commerce; it merely seeks to determine who owns the land. Because ownership disputes are traditionally state matters and do not directly regulate rail transportation, ICCTA does not preempt them. The decision leaves Grafton to litigate title in Massachusetts courts before it can build.

For short-line operators eyeing land deals, the ruling means state property rules still matter even on rail projects. Railroads cannot assume federal preemption will automatically kill local land claims.

**Bottom Line:** State land-law fights can still derail rail projects until title is settled.

https://www.courtlistener.com/opinion/10870700/grafton-upton-railroad-company-v-stb/

What land-purchase surprises have you faced on rail or trucking projects?

A provision in the House Transportation and Infrastructure Committee’s newly introduced highway bill seeks to address predatory lease-purchase agreements that have long placed independent truckers at financial risk.

Lease-Purchase Agreements Targeted

The measure would prohibit certain lease-purchase contracts that have been criticized for locking drivers into unfavorable financing terms for equipment. Supporters say the change would reduce opportunities for freight fraud by limiting the use of these arrangements as vehicles for exploitation.

Additional Trucker Provisions

Beyond the lease-purchase language, the bill includes a pilot program allowing states to test higher truck weight limits, allocates $750 million for expanded truck parking, and requires shippers and receivers to provide restroom access at pickup and drop-off locations.

Funding Outlook Remains Uncertain

OOIDA has stated it will not support a highway bill without dedicated investment in truck parking. The legislation’s prospects are unclear, with questions remaining about whether it can advance through the full House and secure necessary funding in a constrained fiscal environment.

California citrus shippers saw freight rates fall sharply this week after a dramatic surge last week on several key produce lanes.

Rate Correction Follows Sharp Gains

Last week, rates climbed steeply on multiple California-to-East Coast corridors, including a 36% jump from Salinas to New York and a 66% increase from Santa Maria to New York. Shipments from South Texas to Baltimore also rose 27%. This week brought broad corrections across those same lanes.

Industry Support and Research Funding

The U.S. Department of Agriculture has allocated $160 million to the Citrus Research and Field Trial (CRAFT) program. The funding supports new plantings, treatments, and growing methods while collecting data to guide long-term industry progress. An additional $20 million will go toward Citrus Nursery and Packing Equipment Grants for equipment purchases and facility upgrades.

California Program Secures Annual Funding

California’s citrus program has secured $2 million in annual federal funding. State researchers continue to monitor and combat citrus greening alongside efforts in Florida, where the disease has caused the most severe commercial damage. The CRAFT initiative also gathers and shares data on research effectiveness to assist growers statewide.

Regulatory and Trade Developments

The EPA has approved Soilcea’s CarriCea T1, the first CRISPR-edited rootstock designed to provide greening tolerance for Florida citrus. Separately, the Animal and Plant Health Inspection Service (APHIS) expanded a Mexican Fruit Fly quarantine area in California. Updated plant health protocols are expected to support increased South African citrus exports to China.

**Florida Appeals Court Backs Insurer in Assignment Dispute**

A Florida appeals court ruled that Citizens Property Insurance Corporation can challenge an insurance claim assignment even after paying part of the claim. The decision overturns a lower court ruling and strengthens insurers’ ability to fight questionable transfers of benefits.

The case started when homeowner Dwayne Strong assigned his insurance claim to Quality Assessments & Logistics, which then assigned it to Black Diamond Funding Ventures. Black Diamond sued Citizens for unpaid benefits after the insurer paid some money directly to the company. Citizens argued the assignment was invalid under Florida law. The trial court sided with Black Diamond, but the Fourth District Court of Appeal reversed that decision on June 3, 2026.

The appeals court held that partial payment does not prevent an insurer from later questioning whether an assignment was proper. This matters because Florida’s assignment of benefits rules were designed to stop abuse in property claims. For logistics and assessment companies that rely on claim assignments, the ruling means they face greater risk when taking over homeowner claims. Insurers now have clearer grounds to deny or claw back payments tied to questionable transfers.

Bottom Line: Insurers can still challenge assignment validity after making partial payments.

https://www.courtlistener.com/opinion/10869471/citizens-property-insurance-corporation-v-black-diamond-funding-ventures/

What does this ruling mean for how your company handles claim assignments?

The nation’s largest freight broker, C.H. Robinson, has begun tightening its motor carrier acceptance standards following a recent U.S. Supreme Court decision that opened brokers to potential liability for negligent hiring of unsafe carriers.

Supreme Court Ruling

In a unanimous decision earlier this month, the Supreme Court ruled that state-law negligence claims against freight brokers are not preempted by federal law. The case originated from a 2017 crash in Illinois in which a commercial driver was seriously injured after being struck by a tractor-trailer hauling freight arranged by C.H. Robinson. The broker had selected Caribe Transport II, LLC to move the load.

The Court held that a broker’s duty to exercise reasonable care when selecting carriers relates to motor vehicle safety and therefore falls within the safety exception of the Federal Aviation Administration Authorization Act (FAAAA). As a result, brokers may now face state negligence claims if an accident occurs involving a carrier they selected.

Changes to Carrier Vetting

Industry observers note that the ruling creates a direct incentive for brokers to strengthen their carrier screening processes. Carriers report that C.H. Robinson has updated its security protocols and, as of Thursday morning, has begun locking out owner-operators whose safety records fall below the company’s updated thresholds.

Notifications sent to carriers in the C.H. Robinson network indicate that non-certified safety flags are now resulting in immediate removal from available lanes. The changes align with broader expectations that brokers will place greater emphasis on documented safety programs and compliance history when approving carriers.

Industry Implications

Legal analysts say the decision is likely to prompt other large brokers to review and potentially revise their carrier qualification criteria. Carriers with marginal safety scores or incomplete compliance documentation may face reduced access to freight opportunities as brokers seek to limit exposure to future negligence claims.

The ruling does not impose new federal requirements but clarifies that states retain authority to regulate broker practices related to motor vehicle safety.

**Penske Wins Pension Withdrawal Fight on Appeal**

The Seventh Circuit ruled that Penske Truck Leasing does not owe withdrawal liability to the Central States pension fund after a 2018 asset sale. The court affirmed the lower court’s decision that the transaction qualified for an exemption, ending the fund’s attempt to collect millions in pension obligations.

Penske sold certain trucking assets to another company in 2018. Central States claimed the deal triggered “withdrawal liability” — a large payment required when an employer leaves a multiemployer pension plan. Penske argued the sale met a narrow statutory safe harbor that shields companies from liability when operations continue without a break in contributions. The fund countered that the exemption did not apply because the buyer was not a contributing employer at the exact moment of transfer.

The Seventh Circuit sided with Penske. It held that the statute focuses on whether covered work continues, not on technical timing details. The court rejected the fund’s narrow reading, finding it would undermine the exemption’s purpose. For trucking and logistics companies that frequently buy or sell terminals and fleets, the ruling clarifies when pension obligations travel with the assets and when they stay behind.

The decision reduces uncertainty for carriers navigating asset sales and multiemployer pension plans.

https://www.courtlistener.com/opinion/10866289/penske-truck-leasing-lp-v-central-states-southeast-and-southwest-areas/

How might this ruling change how your company structures future asset sales?

**Seventh Circuit Sides with Pension Fund in Penske Dispute**

The Seventh Circuit upheld a district court decision rejecting Penske Truck Leasing’s attempt to escape withdrawal liability to a union pension plan. The appeals court ruled that the trucking company must continue making payments under the Central States pension fund’s calculation, rejecting arguments that the fund’s methods were arbitrary.

The dispute began when Penske withdrew from the Central States Southeast and Southwest Areas Pension Plan, triggering withdrawal liability under federal law. Penske challenged the fund’s assessment, claiming the trustees used improper assumptions and failed to follow required procedures. The district court sided with the pension fund on most issues, and the Seventh Circuit affirmed that ruling in full.

The court held that pension plans have wide discretion in setting withdrawal liability as long as their methods are reasonable and consistent with ERISA. It found no evidence that Central States acted arbitrarily or violated the statute. The decision strengthens pension funds’ ability to collect from trucking and logistics companies that exit multiemployer plans.

For fleet operators and lessors, the ruling signals that challenges to withdrawal calculations face a high bar and that courts will defer to trustees’ actuarial choices.

**Bottom Line:** Penske must pay the assessed withdrawal liability.

https://www.courtlistener.com/opinion/10866290/penske-truck-leasing-lp-v-central-states-southeast-and-southwest-areas/

How might this affect your company’s future decisions on union pension participation?