Regulation
Hub Group has notified federal regulators that it will delay its Q2 2026 earnings filing due to ongoing accounting missteps, marking the third consecutive missed quarterly deadline. The company is working to restate financial statements from 2023 onward and has taken corrective actions, including appointing an interim CFO.
In the wake of the Supreme Court's June ruling in Montgomery v. Caribe Transport II, which allows state tort claims against freight brokers under a safety exception, major carriers and brokers are positioning their safety records and infrastructure as advantages. Executives from Knight-Swift, Schneider, Landstar, J.B. Hunt, and RXO shared insights on Q2 earnings calls, highlighting potential market tightening, increased insurance costs, and a shift toward higher-quality carriers.
FMCSA has issued a proposed rule to formally codify the exemption procedures for English proficiency enforcement in the U.S.-Mexico border commercial zone. Based on the April 2026 policy memorandum, the rule clarifies that drivers operating solely within the border commercial zone will not be subject to out-of-service penalties, but the exemption does not apply if trips involve operations outside the zone. The agency estimates this could save the industry approximately $14 million annually.
U.S. President Trump issued multiple proclamations on July 20, imposing 50% tariffs on various key imports from Canada under Section 338 of the Tariff Act of 1930, effective August 19. The tariffs apply to all relevant goods, regardless of whether they originate under the USMCA framework, but exempt energy, potash, goods covered by Section 232, and fish and critical minerals. Canadian Prime Minister Mark Carney called this action a "direct violation" of USMCA but expressed willingness to strengthen negotiations to resolve the dispute.
In 2026, the logistics industry faces multiple pressures including trade policy volatility, capacity tightening, cargo theft, and geopolitical conflicts. At an online event hosted by Supply Chain Dive on July 15, experts such as Ranole Beng, Maersk's Head of Transpacific Market, and Donna Lemm, Chief Strategy Officer at IMC Logistics, pointed out that although global trade shows resilience, companies still need to cope with future shocks through diversified sourcing, flexible strategies, enhanced visibility, and strengthened partnerships.
Paccar will initiate software updates for trucks equipped with MX-11 and MX-13 engines in response to the U.S. Environmental Protection Agency's (EPA) revised diesel exhaust fluid (DEF) inducement guidance. The new software will raise the final inducement speed limit and extend the time for drivers to address emissions issues, reducing operational disruptions.
The U.S. Environmental Protection Agency (EPA) issued a proposal on July 9 to amend the 2023 nitrogen oxide (NOx) emission regulations for heavy-duty diesel trucks, including removing engine derate and speed limits related to diesel exhaust fluid (DEF) and relaxing emission warranty requirements. The EPA estimates that if the rule is finalized, it would save truck drivers $12 billion and reduce the cost of each new truck by up to $6,000.
The legal dispute between California and the Federal Motor Carrier Safety Administration (FMCSA) over the withholding of approximately $160 million in funds has reached the U.S. Court of Appeals. Both parties have completed opening and closing statements, with oral arguments set for September 11. The core of the case is whether California improperly issued commercial driver's licenses (CDLs) to non-residents, which could have ripple effects on similar disputes in states like New York.
A proposal submitted by NHTSA to the Federal Register on June 26 indicates plans to extend the compliance deadline for new seat belt anchorage testing regulations for heavy trucks weighing over 10,000 pounds by three years to September 1, 2030. The agency reconsidered the matter after receiving a reconsideration petition from the Truck and Engine Manufacturers Association (EMA) and opened public comment until July 27.
Last month, an Illinois jury ruled on a fatal rear-end crash on I-55 in 2020, finding R+L Carriers and its driver 60% at fault and the deceased 40% at fault, ultimately awarding $6.015 million in damages. The jury assessed total damages at $10.25 million, reduced proportionally under the state's modified comparative fault rule.