Labor
CCM, an intermodal chassis management company based in New Jersey, announced that Kevin Daly will assume the newly created role of Chief Commercial Officer, effective July 28. Daly previously served as Chief Commercial Officer at East Coast Warehouse & Distribution and brings more than three decades of industry experience.
Large carriers J.B. Hunt Transport Services and Knight-Swift Transportation Holdings revealed in second-quarter earnings conference calls that they are retaining labor through selective hiring bonuses and other pay adjustments. Executives noted that these measures are not broad-based but are deployed in key markets, reflecting a tightening labor market and rising wage pressures.
The American Transportation Research Institute (ATRI) released its "An Analysis of the Operational Costs of Trucking" report on July 15, showing that average truck operating costs rose to $2.336 per mile in 2025, a year-over-year increase of 3.4%, the highest level in the report's history. Cost increases spanned nearly all categories, with tolls, maintenance and repair, driver benefits, and tires seeing the largest gains. To offset cost pressures, carriers reduced their average fleet size by 2.4% and idled approximately 10% of equipment. Despite the ongoing freight recession, truckload profit margins have shown some recovery, but the industry as a whole still faces pressure from both rising costs and stagnant freight rates.
As part of its restructuring plan, ArcBest will close and consolidate multiple service centers in states including Connecticut, Kentucky, and Illinois, affecting approximately 1% of total dock doors. Additionally, the company plans to reduce about 2% of its non-union workforce, subject to agreements with unions.
Research from the Federal Reserve Bank of St. Louis shows that from April 2023, when the U.S. labor market was at its strongest, to December 2025, the employment rate for people aged 18 to 24 fell by more than 2 percentage points, mainly reflected in a rise in unemployment, while employment for those aged 25 to 64 remained largely stable. The rise in demand for AI skills is partly responsible, accounting for about one-third of the increase in unemployment among young people.
ArcBest unveiled a restructuring plan on Thursday, involving the closure of 10 service centers, a 2% workforce reduction, and the consolidation of its brands. The company expects this move to save $40 million annually, but initial investments will be higher. The newly launched Vaux Freight Movement System will be discontinued, while the Vaux Smart Autonomy product line (including autonomous forklifts) will be retained.
J.B. Hunt Transport Services' second-quarter earnings report, released on Wednesday, showed revenue up 19% year-over-year to $3.5 billion, driven by volume growth in most segments, particularly intermodal. Intermodal operating income rose 22% to $1.75 billion, with volumes up 10% year-over-year to over 578,000 loads, a quarterly high. Company executives noted significant highway-to-rail conversion opportunities, but driver shortages could impact growth.
The Conference Board's Employment Trends Index for June fell for the second consecutive month, indicating that the U.S. job market still exhibits characteristics of 'low hiring and low turnover.' The proportion of consumers who believe 'jobs are hard to find' rose to its highest level since January 2021, and initial jobless claims also rose to the highest monthly average of the year.