<div class="phx-topic abstract-wrapper">Mary Ann (Mimi) Dawson possesses the kind of deregulator's background that fits almost perfectly in </div>

Mary Ann (Mimi) Dawson possesses the kind of deregulator's background that fits almost perfectly in

<div>Mary Ann (Mimi) Dawson possesses the kind of deregulator's background that fits almost perfectly in the Reagan-era Transportation Department, White House sources say.And Mrs. Dawson, a six-year veteran of the Federal CommunicationsCommission, also has had considerable congressional experience, thanks to 11 years on the staffs of various members.She worked as a legislative assistant to former Reps. Richard Ichord and Steve Symington, both Missouri Democrats.Mrs. Dawson next served on the Senate Commerce, Science and Transportation Committee staff as an administrative assistant to Sen. Bob Packwood, R-Ore., starting in 1973.In 1981, President Reagan appointed her to the FCC, where she earned a...

Mary Ann (Mimi) Dawson possesses the kind of deregulator's background that fits almost perfectly in the Reagan-era Transportation Department, White House sources say. And Mrs. Dawson, a six-year veteran of the Federal Communications Commission, also has had considerable congressional experience, thanks to 11 years on the staffs of various members.She worked as a legislative assistant to former Reps. Richard Ichord and Steve Symington, both Missouri Democrats. Mrs. Dawson next served on the Senate Commerce, Science and Transportation Committee staff as an administrative assistant to Sen. Bob Packwood, R-Ore., starting in 1973. In 1981, President Reagan appointed her to the FCC, where she earned a reputation of a strong supporter of communications deregulation policy advocated by former commission chairman Mark S. Fowler and the current chairman, Dennis R. Patrick. Although she's less well known in the transportation industry than her probable superior - secretary-designate Jim Burnley - her experience in Congress and at the FCC apparently encourages industry insiders. As one lobbyist explained it: We expect her to be approachable and capable of engaging in the kind of dialogue with Congress and the industry that we didn't get from Mr. Burnley. As the No. 2 appointee at the DOT, Mrs. Dawson will handle many of the day-to-day operations of the department. DOT insiders say that she should make the transition with little disruption of department business because Mr. Burnley is staying on and the support staff is already in place.

DAWSON: A VETERAN DEREGULATOR

<div class="phx-topic abstract-wrapper">The alcoholic beverage industry is going through changes that are roiling demand forecasts, with a growing number of people drinking less than they were during the pandemic and different tastes apparent among young drinkers.</div>

The alcoholic beverage industry is going through changes that are roiling demand forecasts, with a growing number of people drinking less than they were during the pandemic and different tastes apparent among young drinkers.

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<div class="phx-topic">(The following story appears in the Top 100 Importers and Exporters issue of the Journal of Commerce magazine to be published May 4, 2026.) US alcoholic beverage importers are still trying to find their right supply-and-demand balance after another volatile year for wines and spirits shipments. Import numbers are also being roiled by changing tastes among US drinkers that are favoring new shipping methods and trade lanes. Containerized imports of wine, beer and distilled spirits fell 4.9% in 2025 and another 16.1% in the first quarter of 2026, according to data from PIERS, a sister company of the Journal of Commerce within S&amp;P Global. Last year’s drop continues the uneven trajectory that alcoholic beverage imports have had since US inbound shipments hit a peak of 468,465 TEUs in 2022. After that, imports dropped 18% in 2023, followed by a 13.5% rebound in 2024. Allison Leavitt, managing director of the Wine and Spirits Shippers Association, said last year’s import numbers were affected by frontloading ahead of the Trump administration’s various tariff moves and the subsequent gap in later shipments. “There was a push at the beginning of 2025 to get products in prior to the tariffs, and this did create lower volumes in subsequent months, with some importers putting a stop to imports when tariffs were first announced,” Leavitt said. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="84b1392e-a3ba-4353-8535-68285ce036da"></dynamic-object></div>But alcoholic beverage shippers are also still figuring out the right level of inventory to hold. The popularity of drinking at home during the pandemic led the industry to estimate stronger growth than what materialized afterward, she said. The alcoholic beverage industry itself is going through changes that are also roiling demand forecasts. A growing number of people are drinking less than they were during the pandemic. Changing tastes among young drinkers who prefer pre-packaged, ready-to-drink cocktails or malt beverages are another headwind for imports of individually bottled wines and spirits. “It’s definitely a confluence of post-COVID hangover from when people were indulging more in alcohol,” Leavitt said. “There’s a huge amount of inventory we are still working through. “There’s a little bit of a kickback in consumption from wellness trends,” she added. “There’s the rise of the ready-to-drink category. Those have impacted both wine and spirits imports.” <h3>Shift in shipping methods </h3>Imports from France, the second-largest source of US wine and spirits imports behind Italy, have fallen 23.7% since 2022. Along with lower demand, Leavitt said some of the volume decline also stems from different shipping methods. Instead of shipping individual bottles, US wine shippers are increasing using tanks and totes to import thousands of liters of bulk wine that can be bottled domestically. Leavitt expects this trend to continue as major retailers such as Costco and Aldi offer more private label wines at lower price points than estate-bottled wines. At the same time, shippers of estate-bottled wine are taking smaller consignments to reduce their risk of holding too much inventory at a time of changing tastes, resulting in more demand for less-than-containerload and consolidated shipments. “We see a lot of movement in bulk shipping, and more and more wine and spirits are moving in bulk,” Leavitt said. “It’s wine clubs bringing it in and the largest chains are definitely looking into more private labels.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="5c36d5d7-b71b-42c7-b321-01ecf1899819"></dynamic-object></div>The distilled spirits market faces a similar dynamic. Along with offering low-cost, private label brands, US spirits shippers are contending with the rising popularity of the prepackaged, ready-to-drink cocktail. Those products, along with malt-based seltzers, are steering drinkers away from individual bottles and further driving bulk alcohol shipments. Even though wine and spirits shippers do not lack for space on ships, Leavitt said network and schedule changes by ocean carriers can still impact the industry. Faced with weaker trade volumes, the Ocean Alliance and Ocean Network Express combined two jointly operated, trans-Atlantic services into one at the start of 2026, which also reduced the number of ships in the services from 11 to seven. Mediterranean Shipping Co. also restructured its US East Coast network by dropping the trans-Atlantic leg of an around-the-world service, That effectively reduced some capacity and service frequency between Northern Europe and US East Coast ports at a time when the wine and spirits industry is moving to more just-in-time shipments, Leavitt said. Schedule reliability and consistency is also a factor on services shipping between Oceania and the US, which are serving Australian and New Zealand wine shipments. While a few direct Oceania services are available, many importers still rely on transshipping, and dealing with resulting delays in reaching the US. Despite last year's import decline, Leavitt said the industry might be finding a floor in demand. Import bookings for the early part of 2026 appear healthy. The US and Europe have a trade truce that should avoid further tariff-driven volatility. And newer types of products, whether private label or ready-to-drink, continue to gain traction with drinkers. “We see a lot of news about declining consumption and the phrase ‘neo-prohibitionist’ has come up as the trend toward no- and low-alcohol has picked up speed,” Leavitt said. “However, alcoholic beverages continue be consumed, and the volumes are not that different year on year for imports.”   Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

(The following story appears in the Top 100 Importers and Exporters issue of the Journal of Commerce magazine to be published May 4, 2026.) US alcoholic beverage importers are still trying to find their right supply-and-demand balance after another volatile year for wines and spirits shipments. Import numbers are also being roiled by changing tastes among US drinkers that are favoring new shipping methods and trade lanes. Containerized imports of wine, beer and distilled spirits fell 4.9% in 2025 and another 16.1% in the first quarter of 2026, according to data from PIERS, a sister company of the Journal of Commerce within S&P Global. Last year’s drop continues the uneven trajectory that alcoholic beverage imports have had since US inbound shipments hit a peak of 468,465 TEUs in 2022. After that, imports dropped 18% in 2023, followed by a 13.5% rebound in 2024. Allison Leavitt, managing director of the Wine and Spirits Shippers Association, said last year’s import numbers were affected by frontloading ahead of the Trump administration’s various tariff moves and the subsequent gap in later shipments. “There was a push at the beginning of 2025 to get products in prior to the tariffs, and this did create lower volumes in subsequent months, with some importers putting a stop to imports when tariffs were first announced,” Leavitt said. But alcoholic beverage shippers are also still figuring out the right level of inventory to hold. The popularity of drinking at home during the pandemic led the industry to estimate stronger growth than what materialized afterward, she said. The alcoholic beverage industry itself is going through changes that are also roiling demand forecasts. A growing number of people are drinking less than they were during the pandemic. Changing tastes among young drinkers who prefer pre-packaged, ready-to-drink cocktails or malt beverages are another headwind for imports of individually bottled wines and spirits. “It’s definitely a confluence of post-COVID hangover from when people were indulging more in alcohol,” Leavitt said. “There’s a huge amount of inventory we are still working through. “There’s a little bit of a kickback in consumption from wellness trends,” she added. “There’s the rise of the ready-to-drink category. Those have impacted both wine and spirits imports.” Shift in shipping methods Imports from France, the second-largest source of US wine and spirits imports behind Italy, have fallen 23.7% since 2022. Along with lower demand, Leavitt said some of the volume decline also stems from different shipping methods. Instead of shipping individual bottles, US wine shippers are increasing using tanks and totes to import thousands of liters of bulk wine that can be bottled domestically. Leavitt expects this trend to continue as major retailers such as Costco and Aldi offer more private label wines at lower price points than estate-bottled wines. At the same time, shippers of estate-bottled wine are taking smaller consignments to reduce their risk of holding too much inventory at a time of changing tastes, resulting in more demand for less-than-containerload and consolidated shipments. “We see a lot of movement in bulk shipping, and more and more wine and spirits are moving in bulk,” Leavitt said. “It’s wine clubs bringing it in and the largest chains are definitely looking into more private labels.” The distilled spirits market faces a similar dynamic. Along with offering low-cost, private label brands, US spirits shippers are contending with the rising popularity of the prepackaged, ready-to-drink cocktail. Those products, along with malt-based seltzers, are steering drinkers away from individual bottles and further driving bulk alcohol shipments. Even though wine and spirits shippers do not lack for space on ships, Leavitt said network and schedule changes by ocean carriers can still impact the industry. Faced with weaker trade volumes, the Ocean Alliance and Ocean Network Express combined two jointly operated, trans-Atlantic services into one at the start of 2026, which also reduced the number of ships in the services from 11 to seven. Mediterranean Shipping Co. also restructured its US East Coast network by dropping the trans-Atlantic leg of an around-the-world service, That effectively reduced some capacity and service frequency between Northern Europe and US East Coast ports at a time when the wine and spirits industry is moving to more just-in-time shipments, Leavitt said. Schedule reliability and consistency is also a factor on services shipping between Oceania and the US, which are serving Australian and New Zealand wine shipments. While a few direct Oceania services are available, many importers still rely on transshipping, and dealing with resulting delays in reaching the US. Despite last year's import decline, Leavitt said the industry might be finding a floor in demand. Import bookings for the early part of 2026 appear healthy. The US and Europe have a trade truce that should avoid further tariff-driven volatility. And newer types of products, whether private label or ready-to-drink, continue to gain traction with drinkers. “We see a lot of news about declining consumption and the phrase ‘neo-prohibitionist’ has come up as the trend toward no- and low-alcohol has picked up speed,” Leavitt said. “However, alcoholic beverages continue be consumed, and the volumes are not that different year on year for imports.”   Contact Michael Angell at michael.angell@spglobal.com .

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US alcohol importers managing shifting consumption habits

<div class="phx-topic abstract-wrapper">Demand returned sharply last month as shippers, facing surging truckload rates, looked to intermodal for lower-cost capacity alternatives.</div>

Demand returned sharply last month as shippers, facing surging truckload rates, looked to intermodal for lower-cost capacity alternatives.

<div class="phx-topic">J.B. Hunt Transport Services delivered more than 46,000 intermodal loads in one week last month, a company record and an early sign that domestic intermodal is entering its first meaningful stress test of the rail and drayage network since the COVID-19 pandemic. The surge followed a weak start to the year, when winter weather and frigid temperatures depressed volumes in January and February. But demand returned sharply in March as shippers, facing surging truckload rates, looked toward intermodal for lower-cost capacity alternatives. J.B. Hunt, the largest US asset-based intermodal carrier, said March volumes rose 8% year over year after flat conditions in the first two months of 2026. First-quarter volumes on the West Coast were flat, while local East Coast volumes increased 7% year over year. If the volumes continue to grow into the second quarter, it’ll put pressure on J.B. Hunt and rail partners BNSF Railway, CSX Transportation, and Norfolk Southern Railway to remain reliable and dependable. “As we enter this prove-it time for rail networks, we and the railroads are confident service levels can be maintained even in a period of sustained volume growth,” Darren Field, president of J.B. Hunt’s intermodal division, said during the company’s first-quarter earnings call Wednesday. Rail service has been stable so far this year. Average US intermodal train speed was 2.8% faster in the first quarter than a year earlier, according to the Surface Transportation Board, while the number of railcars idled at least 48 hours fell 1.9%. But some intermodal shippers told the Journal of Commerce that tender rejections have increased, and that on-time performance has weakened since March 1. One Midwest-based shipper, who asked not to be identified, said its on-time performance with J.B. Hunt fell below 90% in March and also deteriorated with Hub Group and Swift Intermodal. All three providers told the shipper the service issues were tied to driver availability. Craig Ingram, owner of Asset-Based Intermodal, a dray provider in Dallas, said driver availability is a major issue. “Right now, we're at 150% capacity; we’re back to where we were during COVID,” Ingram told the Journal of Commerce. “The ‘busy feeling’ is there with everyone I talk to in this business, from Chicago, Phoenix, California, Atlanta and New Jersey. The dray providers I regularly speak with across the US are all in the same boat I am in. They're turning downloads left and right.” Other intermodal marketing companies are reporting the same pattern. Knichel Logistics, a non-asset-based IMC, said its first-quarter intermodal loads increased 36% year over year, with March volume alone up 53%. Like J.B. Hunt, Knichel said the growth is coming on shorter-haul lanes, where intermodal has traditionally offered less of a cost savings to truckload compared to longer moves. “Our average length of haul declined just under 6% year over year for the quarter and 7% in March, signaling a shift beyond traditional cross-country moves,” said Jon Krystek, Knichel’s chief operating officer. “We’re seeing more adoption across core East Coast corridors and lanes like Chicago to the Mountain West, where intermodal is becoming more competitive with truck.” <h3>Pricing has begun to reset </h3>Ingram said drayage rates are starting to move higher as customers place more value on guaranteed capacity and dependable service than on the lowest possible price. When rates fall out of line with demand, the best drivers choose the highest-paying loads, leaving cheaper freight to less reliable operators. “Higher rates in this market will give us the ability to book the best drivers that take care of their trucks, keep in constant communication and are more dependable and reliable than their peers,” he said. “The best drivers, who take pride in their work, know the market has turned, so they will sit and wait to get their rate. They won’t take the [low paying] crummy loads anymore.” It may take longer for domestic intermodal providers to push through higher contract rates with shippers. J.B. Hunt said freight moving east to west — i.e. backhaul freight into the West Coast — remains locked into rates below year-ago levels. The company also said pricing on outbound West Coast business has not improved as quickly as it would like. ”Every head-haul segment we operate in is [the] positive,” Field said. “We are getting price increases, but we’re not getting to the level of price increases that would cover our inflation at this point in the cycle.” If prior cycles are an indication, intermodal contract pricing typically lags truckload by three to six months. If true, intermodal pricing could begin to reset later this summer or in the fall for larger providers such as Hunt, with smaller non-asset-based operators getting higher rates shortly after. For now, the key question is whether intermodal can absorb the volume returning to the network without repeating the service breakdowns that pushed shippers away during the last major cycle. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

J.B. Hunt Transport Services delivered more than 46,000 intermodal loads in one week last month, a company record and an early sign that domestic intermodal is entering its first meaningful stress test of the rail and drayage network since the COVID-19 pandemic. The surge followed a weak start to the year, when winter weather and frigid temperatures depressed volumes in January and February. But demand returned sharply in March as shippers, facing surging truckload rates, looked toward intermodal for lower-cost capacity alternatives. J.B. Hunt, the largest US asset-based intermodal carrier, said March volumes rose 8% year over year after flat conditions in the first two months of 2026. First-quarter volumes on the West Coast were flat, while local East Coast volumes increased 7% year over year. If the volumes continue to grow into the second quarter, it’ll put pressure on J.B. Hunt and rail partners BNSF Railway, CSX Transportation, and Norfolk Southern Railway to remain reliable and dependable. “As we enter this prove-it time for rail networks, we and the railroads are confident service levels can be maintained even in a period of sustained volume growth,” Darren Field, president of J.B. Hunt’s intermodal division, said during the company’s first-quarter earnings call Wednesday. Rail service has been stable so far this year. Average US intermodal train speed was 2.8% faster in the first quarter than a year earlier, according to the Surface Transportation Board, while the number of railcars idled at least 48 hours fell 1.9%. But some intermodal shippers told the Journal of Commerce that tender rejections have increased, and that on-time performance has weakened since March 1. One Midwest-based shipper, who asked not to be identified, said its on-time performance with J.B. Hunt fell below 90% in March and also deteriorated with Hub Group and Swift Intermodal. All three providers told the shipper the service issues were tied to driver availability. Craig Ingram, owner of Asset-Based Intermodal, a dray provider in Dallas, said driver availability is a major issue. “Right now, we're at 150% capacity; we’re back to where we were during COVID,” Ingram told the Journal of Commerce. “The ‘busy feeling’ is there with everyone I talk to in this business, from Chicago, Phoenix, California, Atlanta and New Jersey. The dray providers I regularly speak with across the US are all in the same boat I am in. They're turning downloads left and right.” Other intermodal marketing companies are reporting the same pattern. Knichel Logistics, a non-asset-based IMC, said its first-quarter intermodal loads increased 36% year over year, with March volume alone up 53%. Like J.B. Hunt, Knichel said the growth is coming on shorter-haul lanes, where intermodal has traditionally offered less of a cost savings to truckload compared to longer moves. “Our average length of haul declined just under 6% year over year for the quarter and 7% in March, signaling a shift beyond traditional cross-country moves,” said Jon Krystek, Knichel’s chief operating officer. “We’re seeing more adoption across core East Coast corridors and lanes like Chicago to the Mountain West, where intermodal is becoming more competitive with truck.” Pricing has begun to reset Ingram said drayage rates are starting to move higher as customers place more value on guaranteed capacity and dependable service than on the lowest possible price. When rates fall out of line with demand, the best drivers choose the highest-paying loads, leaving cheaper freight to less reliable operators. “Higher rates in this market will give us the ability to book the best drivers that take care of their trucks, keep in constant communication and are more dependable and reliable than their peers,” he said. “The best drivers, who take pride in their work, know the market has turned, so they will sit and wait to get their rate. They won’t take the [low paying] crummy loads anymore.” It may take longer for domestic intermodal providers to push through higher contract rates with shippers. J.B. Hunt said freight moving east to west — i.e. backhaul freight into the West Coast — remains locked into rates below year-ago levels. The company also said pricing on outbound West Coast business has not improved as quickly as it would like. ”Every head-haul segment we operate in is [the] positive,” Field said. “We are getting price increases, but we’re not getting to the level of price increases that would cover our inflation at this point in the cycle.” If prior cycles are an indication, intermodal contract pricing typically lags truckload by three to six months. If true, intermodal pricing could begin to reset later this summer or in the fall for larger providers such as Hunt, with smaller non-asset-based operators getting higher rates shortly after. For now, the key question is whether intermodal can absorb the volume returning to the network without repeating the service breakdowns that pushed shippers away during the last major cycle. Contact Ari Ashe at ari.ashe@spglobal.com .

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Strong March volumes give intermodal its first real stress test in years

<div class="phx-topic abstract-wrapper">Shippers are no longer clinging to the hope that rate increases were a temporary winter phenomenon due to snowstorms and frigid weather, the company said, noting that a fundamental reset of the market is afoot.</div>

Shippers are no longer clinging to the hope that rate increases were a temporary winter phenomenon due to snowstorms and frigid weather, the company said, noting that a fundamental reset of the market is afoot.

<div class="phx-topic">J.B. Hunt Transport Services has all but declared the freight recession over, saying tightening capacity, higher pricing and heightened demand signal truckload and intermodal are in the early stages of a new upcycle. The largest intermodal provider in North America late Wednesday reported first-quarter revenue of $3.1 billion, up 5% year over year, while operating income jumped 16% to $207 million. “As we moved through the first quarter, the freight environment felt meaningfully different than what we’ve operated in over the past several years,” J.B. Hunt CEO Shelley Simpson said during a conference call after the earnings release. Simpson said regulatory crackdowns involving non-domiciled commercial driver’s licenses (CDLs) and English language proficiency regulations have removed significant capacity from the truckload market. J.B. Hunt also pointed to a regulatory crackdown on cabotage — or when truck drivers from Mexico legally deliver cross-border loads, but then illegally haul domestic freight within the US before returning home. “When combined with early signs of improved demand, [it] resulted in a tighter truckload market throughout the quarter,” Simpson said, with all those factors leading to a “shift from a defensive posture to playing offense.” Spencer Frazier, Hunt’s executive vice president of sales and marketing, said shippers are no longer trying to claim that the tightening market was a temporary event due to snowstorms and frigid temperatures over the winter. “Today, most customers understand there has been and continues to be a shift in industry capacity that is impacting the truckload market, and that this is a structural change,” Frazier said on the call, noting that change has allowed J.B. Hunt to no longer chase volume but rather carefully pick and choose which freight to haul. He said it has also led to a change in mindset for shippers. “We’re seeing far less price-led decision-making and far more focus on execution quality,” he said. “They’re consolidating freight with fewer, more reliable providers and prioritizing scale, visibility and execution.” <h3>Need for drivers highest in four years </h3>Brad Delco, Hunt’s CFO, said pricing pressures are likely to persist and outpace broader inflation measures, underscoring the structural nature of the current market shift. “Based on what we’re seeing, the change in price will exceed core inflation,” he said. Delco said the challenge for J.B. Hunt — and the broader industry — is the continued rise in purchased transportation costs, particularly in its power-only truckload and brokerage operations, where Hunt relies on third-party drivers rather than company employees. “Even with what I think are some pretty meaningful increases in rates, a lot of those are being passed to carriers to cover loads,” he said, noting the dynamic has contributed to margin pressure in certain segments. Delco added the industry will need sustained pricing gains to restore profitability and support reinvestment, although the timing of when third-party capacity costs stabilize remains uncertain. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="3797d666-aa07-45fb-852d-7bdc3afc0f74"></dynamic-object></div>Data from DAT Freight &amp; Analytics shows spot market trends beginning to firm, with load-to-truck ratios rising in recent weeks — a key indicator of tightening capacity and increasing pricing power for carriers. Dry-van spot rates have risen sharply over the past month. It has also begun to trickle down to the contract market. The Journal of Commerce Intermodal Savings Index, a measure of 120 modally competitive lanes across the US, showed that truckload contract rates, excluding fuel, rose more than 4% year over year in March. By excluding fuel, the comparison shows carriers such as J.B. Hunt are beginning to increase base rates, independent of fuel spikes linked to the war with Iran. And the core supply-and-demand picture shows it could last for a while. “Truckload rates, tender rejections, the ISM [Purchasing Managers’ Index] and several other metrics are all at the highest levels since 2022, while trucking employment is at the lowest levels since 2022,” Frazier said. “In fact, our current driver need is the highest it has been since June of 2022.” Simpson said the freight market is undergoing a longer-term transition, with a gradual recovery likely to be more sustainable. “We’ve seen recoveries happen very quickly. Those tend not to work as well for us over the long term,” she said. “If we recover over the next one to two years, that’s going to be healthier for our business over the next four to five years.” Contact Dan Ronan at <a href="mailto:contactdanronan@gmail.com">contactdanronan@gmail.com</a>. </div>

J.B. Hunt Transport Services has all but declared the freight recession over, saying tightening capacity, higher pricing and heightened demand signal truckload and intermodal are in the early stages of a new upcycle. The largest intermodal provider in North America late Wednesday reported first-quarter revenue of $3.1 billion, up 5% year over year, while operating income jumped 16% to $207 million. “As we moved through the first quarter, the freight environment felt meaningfully different than what we’ve operated in over the past several years,” J.B. Hunt CEO Shelley Simpson said during a conference call after the earnings release. Simpson said regulatory crackdowns involving non-domiciled commercial driver’s licenses (CDLs) and English language proficiency regulations have removed significant capacity from the truckload market. J.B. Hunt also pointed to a regulatory crackdown on cabotage — or when truck drivers from Mexico legally deliver cross-border loads, but then illegally haul domestic freight within the US before returning home. “When combined with early signs of improved demand, [it] resulted in a tighter truckload market throughout the quarter,” Simpson said, with all those factors leading to a “shift from a defensive posture to playing offense.” Spencer Frazier, Hunt’s executive vice president of sales and marketing, said shippers are no longer trying to claim that the tightening market was a temporary event due to snowstorms and frigid temperatures over the winter. “Today, most customers understand there has been and continues to be a shift in industry capacity that is impacting the truckload market, and that this is a structural change,” Frazier said on the call, noting that change has allowed J.B. Hunt to no longer chase volume but rather carefully pick and choose which freight to haul. He said it has also led to a change in mindset for shippers. “We’re seeing far less price-led decision-making and far more focus on execution quality,” he said. “They’re consolidating freight with fewer, more reliable providers and prioritizing scale, visibility and execution.” Need for drivers highest in four years Brad Delco, Hunt’s CFO, said pricing pressures are likely to persist and outpace broader inflation measures, underscoring the structural nature of the current market shift. “Based on what we’re seeing, the change in price will exceed core inflation,” he said. Delco said the challenge for J.B. Hunt — and the broader industry — is the continued rise in purchased transportation costs, particularly in its power-only truckload and brokerage operations, where Hunt relies on third-party drivers rather than company employees. “Even with what I think are some pretty meaningful increases in rates, a lot of those are being passed to carriers to cover loads,” he said, noting the dynamic has contributed to margin pressure in certain segments. Delco added the industry will need sustained pricing gains to restore profitability and support reinvestment, although the timing of when third-party capacity costs stabilize remains uncertain. Data from DAT Freight & Analytics shows spot market trends beginning to firm, with load-to-truck ratios rising in recent weeks — a key indicator of tightening capacity and increasing pricing power for carriers. Dry-van spot rates have risen sharply over the past month. It has also begun to trickle down to the contract market. The Journal of Commerce Intermodal Savings Index, a measure of 120 modally competitive lanes across the US, showed that truckload contract rates, excluding fuel, rose more than 4% year over year in March. By excluding fuel, the comparison shows carriers such as J.B. Hunt are beginning to increase base rates, independent of fuel spikes linked to the war with Iran. And the core supply-and-demand picture shows it could last for a while. “Truckload rates, tender rejections, the ISM [Purchasing Managers’ Index] and several other metrics are all at the highest levels since 2022, while trucking employment is at the lowest levels since 2022,” Frazier said. “In fact, our current driver need is the highest it has been since June of 2022.” Simpson said the freight market is undergoing a longer-term transition, with a gradual recovery likely to be more sustainable. “We’ve seen recoveries happen very quickly. Those tend not to work as well for us over the long term,” she said. “If we recover over the next one to two years, that’s going to be healthier for our business over the next four to five years.” Contact Dan Ronan at contactdanronan@gmail.com .

Freight downturn ending as truckload capacity tightens: J.B. Hunt

<div class="phx-topic abstract-wrapper">The agency said it will begin a non-adjudicatory probe into ocean carrier practices around shipping hazardous and radioactive goods out of the US, with a focus on packaging such shipments. </div>

The agency said it will begin a non-adjudicatory probe into ocean carrier practices around shipping hazardous and radioactive goods out of the US, with a focus on packaging such shipments.

<div class="phx-topic">The Federal Maritime Commission (FMC) is probing whether US exporters of hazardous materials and radioactive substances are being discriminated against by ocean carriers. The agency said Wednesday its Bureau of Enforcement, Investigations and Compliance will start a non-adjudicatory investigation into ocean carrier practices “relating to hazardous cargo, including, but not limited to, radioactive cargo” and if those practices “discriminate against United States exporters and service providers.” The FMC said they will seek information from the top 11 ocean carriers serving US trades, along with marine terminal operators, port authorities and forwarders. The agency said it is seeking information about rules and practices regarding the acceptance or non-acceptance of hazardous cargo, including radioactive cargo, from US shippers who are licensed for such exports. The probe will also examine if ocean carriers have “exclusive agreements” for packaging and shipping hazardous materials and if that is a “just and reasonable regulation or practice.” US shippers sent out some 1.2 million TEUs of cargo flagged as hazardous materials in 2025, up 4.6% from the year prior, according to data from PIERS, a sister company of the Journal of Commerce within S&amp;P Global. Shipments flagged as radioactive cargo and isotopes, though, are miniscule, totaling about 93 TEUs last year. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

The Federal Maritime Commission (FMC) is probing whether US exporters of hazardous materials and radioactive substances are being discriminated against by ocean carriers. The agency said Wednesday its Bureau of Enforcement, Investigations and Compliance will start a non-adjudicatory investigation into ocean carrier practices “relating to hazardous cargo, including, but not limited to, radioactive cargo” and if those practices “discriminate against United States exporters and service providers.” The FMC said they will seek information from the top 11 ocean carriers serving US trades, along with marine terminal operators, port authorities and forwarders. The agency said it is seeking information about rules and practices regarding the acceptance or non-acceptance of hazardous cargo, including radioactive cargo, from US shippers who are licensed for such exports. The probe will also examine if ocean carriers have “exclusive agreements” for packaging and shipping hazardous materials and if that is a “just and reasonable regulation or practice.” US shippers sent out some 1.2 million TEUs of cargo flagged as hazardous materials in 2025, up 4.6% from the year prior, according to data from PIERS, a sister company of the Journal of Commerce within S&P Global. Shipments flagged as radioactive cargo and isotopes, though, are miniscule, totaling about 93 TEUs last year. Contact Michael Angell at michael.angell@spglobal.com .

Port News

Transport, Trade and Regulation News

FMC to examine how container lines handle hazmat goods, isotopes

<div class="phx-topic abstract-wrapper">The “K-shaped” US economy has split the outlook for apparel demand, with premium brands performing well while those targeting more cost-conscious consumers struggle. </div>

The “K-shaped” US economy has split the outlook for apparel demand, with premium brands performing well while those targeting more cost-conscious consumers struggle.

<div class="phx-topic">(The following story appears in the Top 100 Importers and Exporters issue of the Journal of Commerce magazine to be published May 4, 2026.) Clothing retailers and brands will likely remain cautious in their ordering this year amid still-rising costs and uneven consumer demand that reflects a “K-shaped” US economy. US apparel and footwear imports fell 7.2% year over year in the first two months of 2026 after a 2.4% decline in 2025, according to PIERS, a sister product of the Journal of Commerce within S&amp;P Global, as the industry worked through inventory corrections. Last year’s decline brought the five-year annual compound growth rate for the sector down to just 0.1%, a figure that underscores a lack of sustained demand growth since the COVID-19 pandemic. In recent earnings calls, executives from across the sector said inventory is largely balanced, but sales remain inconsistent, with higher-income consumers continuing to spend while middle- and lower-income households pull back — what economists call the “K-shaped” economy. As a result, premium brands and retailers are performing relatively well, while some mid-market players targeting cost-conscious consumers are under intense pressure. Deckers Brands, for example, reported continued strength in its UGG and HOKA franchises, selling those shoes at full price. By contrast, Nike said it is still working through inventory challenges in North America, resorting to promotions and other discounts to draw down unsold stock.<div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="5e628056-1478-4e46-a0c4-8443c45aad01"></dynamic-object></div>“You can’t just sit there and say, ‘Everything’s great,’” Nike CEO Elliott Hill told employees following the company’s earnings call, according to a report from Bloomberg News, emphasizing the need for a more candid assessment of business conditions. A similar dynamic is playing out in the apparel sector. Luxury brand Ralph Lauren reported strong demand for its products sold at full prices. VF Corporation, however, reported weakness in sales of Vans apparel and shoes, requiring more promotions, while children’s clothing designer and retailer Carter’s said it would institute “disciplined cost controls” to combat higher tariff costs and margin compression. <h3>Rising costs, changing sourcing </h3>The prospect of rising costs for raw materials and transportation — due largely to the war in the Middle East — will further erode margins for struggling companies such as VF Corp. and Carter’s. Clothing manufacturers rely on petroleum-based textiles, including polyester, nylon and spandex, and they typically only hold six to eight weeks of inventory, according to the American Apparel and Footwear Association (AAFA). The <a href="https://www.joc.com/article/ocean-carriers-wait-for-clarity-on-safe-hormuz-passage-after-us-iran-ceasefire-6201132">ongoing closure of the Strait of Hormuz</a>, blocked to virtually all commercial shipping traffic since the war began on Feb. 28, has increased the price of those raw materials, <a href="https://www.joc.com/article/cost-hit-ocean-carriers-roll-out-series-of-rate-increases-fuel-surcharges-6202474">as well as the cost of bunker fuel</a>. “If this situation in Iran — or the knock-on effects thereof — last six months to a year, then we’re talking about broader supply chain impacts,” AAFA Executive Vice President Nate Herman told the Journal of Commerce. At the same time, higher gasoline prices will act as a brake on consumer spending, particularly among lower-income households forced to prioritize getting to and from work and school over discretionary purchases. Apparel and footwear are essential goods, but consumers can delay buying new items for as long as their existing wardrobe still functions, Herman explained. Lingering uncertainty surrounding US import tariffs and trade policy will also continue to drag on ordering. Last year, significantly higher tariff costs, particularly for Chinese-made goods, prompted many apparel shippers to change their sourcing, as well as order less product, a trend that will likely continue this year given the industry’s deep ties to Asia. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="bef3016d-dd2f-4ed9-9310-f4e88395cce1"></dynamic-object></div>China’s share of US apparel and footwear imports fell to 34.1% in 2025 from 41.7% in 2024, while southeast Asian countries Vietnam, Bangladesh, Indonesia and Cambodia all gained share, according to PIERS. That shift can also be seen in routing decisions. Inbound clothing shipments to the Port of New York and New Jersey, for example, grew 5% last year, while imports to the Los Angeles-Long Beach port complex and Northwest Seaport Alliance slipped 1.7% and 28.9%, respectively. Although the US Supreme Court’s ruling invalidating tariffs the Trump administration imposed under the International Emergency Economic Powers Act (IEEPA) puts <a href="https://www.joc.com/article/first-wave-of-ieepa-refunds-to-us-importers-to-start-april-20-cbp-6203623">importers in a position to recoup those duties</a>, the administration is already moving to replace them with similar tariffs that are more likely to withstand legal challenges. The Office of the United States Trade Representative (USTR) on March 11 <a href="https://www.joc.com/article/potential-new-us-tariffs-cloud-sourcing-strategies-peak-season-demand-6187613">launched two separate Section 301 investigations</a> — one related to “structural excess capacity and production in manufacturing sectors” and a second aimed at forced labor — widely expected to result in new and higher tariffs. Neither investigation is specific to apparel, but the risk of additional tariffs, particularly on goods from Vietnam, Bangladesh, Indonesia and Cambodia, could complicate efforts to diversify sourcing away from China. <h3>Watching USMCA review </h3>Clothing companies are also paying close attention to the upcoming review of the United States-Mexico-Canada Agreement (USMCA), which could influence nearshoring strategies and cross-border freight flows via intermodal, truckload and less-than-truckload. In a March 3 letter to USTR Jamieson Greer, more than 500 business organizations urged the administration to extend USMCA and avoid changes that could disrupt supply chains. “Supply chains are built on trillions in long-term investment, which have been refined over the years to be highly efficient to comply with USMCA’s rigorous framework,” the letter said. “Material changes to USMCA requirements or rules of origin could lead to multi-year supply chain disruptions at significant cost to companies invested in America, raise consumer prices, and erode North American competitiveness.” Separately, the USTR also on March 3 released its annual “Notorious Markets” report, identifying dozens of online and physical markets involved in counterfeiting apparel and footwear brands. The AAFA believes counterfeit goods, particularly through e-commerce platforms, are undercutting legitimate importers. Those concerns intersect with broader cargo security challenges. As recently as March 22, law enforcement recovered more than $7 million in stolen cargo in three raids across Southern California, including apparel and footwear. The incidents highlight ongoing risks tied to organized retail crime, even as legislative efforts such as the Combating Organized Retail Crime Act of 2025 appear to have stalled in Congress. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

(The following story appears in the Top 100 Importers and Exporters issue of the Journal of Commerce magazine to be published May 4, 2026.) Clothing retailers and brands will likely remain cautious in their ordering this year amid still-rising costs and uneven consumer demand that reflects a “K-shaped” US economy. US apparel and footwear imports fell 7.2% year over year in the first two months of 2026 after a 2.4% decline in 2025, according to PIERS, a sister product of the Journal of Commerce within S&P Global, as the industry worked through inventory corrections. Last year’s decline brought the five-year annual compound growth rate for the sector down to just 0.1%, a figure that underscores a lack of sustained demand growth since the COVID-19 pandemic. In recent earnings calls, executives from across the sector said inventory is largely balanced, but sales remain inconsistent, with higher-income consumers continuing to spend while middle- and lower-income households pull back — what economists call the “K-shaped” economy. As a result, premium brands and retailers are performing relatively well, while some mid-market players targeting cost-conscious consumers are under intense pressure. Deckers Brands, for example, reported continued strength in its UGG and HOKA franchises, selling those shoes at full price. By contrast, Nike said it is still working through inventory challenges in North America, resorting to promotions and other discounts to draw down unsold stock. “You can’t just sit there and say, ‘Everything’s great,’” Nike CEO Elliott Hill told employees following the company’s earnings call, according to a report from Bloomberg News, emphasizing the need for a more candid assessment of business conditions. A similar dynamic is playing out in the apparel sector. Luxury brand Ralph Lauren reported strong demand for its products sold at full prices. VF Corporation, however, reported weakness in sales of Vans apparel and shoes, requiring more promotions, while children’s clothing designer and retailer Carter’s said it would institute “disciplined cost controls” to combat higher tariff costs and margin compression. Rising costs, changing sourcing The prospect of rising costs for raw materials and transportation — due largely to the war in the Middle East — will further erode margins for struggling companies such as VF Corp. and Carter’s. Clothing manufacturers rely on petroleum-based textiles, including polyester, nylon and spandex, and they typically only hold six to eight weeks of inventory, according to the American Apparel and Footwear Association (AAFA). The ongoing closure of the Strait of Hormuz , blocked to virtually all commercial shipping traffic since the war began on Feb. 28, has increased the price of those raw materials, as well as the cost of bunker fuel . “If this situation in Iran — or the knock-on effects thereof — last six months to a year, then we’re talking about broader supply chain impacts,” AAFA Executive Vice President Nate Herman told the Journal of Commerce. At the same time, higher gasoline prices will act as a brake on consumer spending, particularly among lower-income households forced to prioritize getting to and from work and school over discretionary purchases. Apparel and footwear are essential goods, but consumers can delay buying new items for as long as their existing wardrobe still functions, Herman explained. Lingering uncertainty surrounding US import tariffs and trade policy will also continue to drag on ordering. Last year, significantly higher tariff costs, particularly for Chinese-made goods, prompted many apparel shippers to change their sourcing, as well as order less product, a trend that will likely continue this year given the industry’s deep ties to Asia. China’s share of US apparel and footwear imports fell to 34.1% in 2025 from 41.7% in 2024, while southeast Asian countries Vietnam, Bangladesh, Indonesia and Cambodia all gained share, according to PIERS. That shift can also be seen in routing decisions. Inbound clothing shipments to the Port of New York and New Jersey, for example, grew 5% last year, while imports to the Los Angeles-Long Beach port complex and Northwest Seaport Alliance slipped 1.7% and 28.9%, respectively. Although the US Supreme Court’s ruling invalidating tariffs the Trump administration imposed under the International Emergency Economic Powers Act (IEEPA) puts importers in a position to recoup those duties , the administration is already moving to replace them with similar tariffs that are more likely to withstand legal challenges. The Office of the United States Trade Representative (USTR) on March 11 launched two separate Section 301 investigations — one related to “structural excess capacity and production in manufacturing sectors” and a second aimed at forced labor — widely expected to result in new and higher tariffs. Neither investigation is specific to apparel, but the risk of additional tariffs, particularly on goods from Vietnam, Bangladesh, Indonesia and Cambodia, could complicate efforts to diversify sourcing away from China. Watching USMCA review Clothing companies are also paying close attention to the upcoming review of the United States-Mexico-Canada Agreement (USMCA), which could influence nearshoring strategies and cross-border freight flows via intermodal, truckload and less-than-truckload. In a March 3 letter to USTR Jamieson Greer, more than 500 business organizations urged the administration to extend USMCA and avoid changes that could disrupt supply chains. “Supply chains are built on trillions in long-term investment, which have been refined over the years to be highly efficient to comply with USMCA’s rigorous framework,” the letter said. “Material changes to USMCA requirements or rules of origin could lead to multi-year supply chain disruptions at significant cost to companies invested in America, raise consumer prices, and erode North American competitiveness.” Separately, the USTR also on March 3 released its annual “Notorious Markets” report, identifying dozens of online and physical markets involved in counterfeiting apparel and footwear brands. The AAFA believes counterfeit goods, particularly through e-commerce platforms, are undercutting legitimate importers. Those concerns intersect with broader cargo security challenges. As recently as March 22, law enforcement recovered more than $7 million in stolen cargo in three raids across Southern California, including apparel and footwear. The incidents highlight ongoing risks tied to organized retail crime, even as legislative efforts such as the Combating Organized Retail Crime Act of 2025 appear to have stalled in Congress. Contact Ari Ashe at ari.ashe@spglobal.com .

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Rising costs, uneven demand crimping US clothing imports

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