DOT Threatens "Nuclear Option" on California CDLs, Winter Storm Fern Waivers & FedEx Spinoff | The Daily

The regulatory battle between Washington and Sacramento reaches a boiling point as the ⁠DOT threatens to strip California of its authority to issue commercial driver's licenses⁠. This unprecedented "nuclear option" escalates beyond the initial dispute over non-domiciled credentials and could leave hundreds of thousands of drivers unable to operate in interstate commerce. On the weather front, the FMCSA has issued a ⁠massive 40-state regional emergency declaration⁠ to assist with relief efforts during Winter Storm Fern. While the Northeast battles snow, the Southeast faces dangerous ice storm conditions that have ⁠left over one million people without power⁠ and grounded thousands of flights. In market news, ⁠FedEx Freight prepares for its spinoff as a standalone company⁠ with a freshly assigned investment-grade credit rating. Meanwhile, Alaska Airlines leverages its acquisition of Hawaiian Airlines to ⁠launch new international cargo routes into London and Rome⁠. Finally, analysts predict a ⁠dramatic rise in transportation M&A activity by late 2026⁠, though buyers remain focused on specialized carriers rather than general freight. This recovery favors companies with defensible service models while pure spot market brokerages may continue to struggle. ⁠Follow the FreightWaves NOW Podcast⁠ ⁠Other FreightWaves Shows⁠ Learn more about your ad choices. Visit megaphone.fm/adchoices